Multi-Channel Banking The Open Plan Approach Gerry Allen E-Commerce Strategy Agenda Strategic Backdrop Open Plan - a brief overview Implementation of the e-channels Internet WAP iDTV The results so far Future plans Summary and Questions Strategic Backdrop Strategic Backdrop Converted to a bank in 1997 4 million savers 500,000 borrowers Needed to address: Pressure on margins Competition based on price New entrants Strategic Backdrop The back book Revenue Per Customer Old Business New Business PROFIT BREAKEVEN Open Plan - a brief overview Open Plan Overview 100% 165% Open Plan Open Plan Overview Replace wide margin single product relationships with narrower margin multiproduct relationships Provide Customised Banking: Personal Planning and advice An integrated set of products Greater accessibility for customers Help customers to see the whole financial picture Customer relationship management High quality service delivery Open Plan Overview Traditional product view Current Account Savings Savings Accounts Savings Accounts Accounts Overdraft Credit Card Personal Loans Unit Trusts Insurance Life Assurance Mortgage Pension Vehicle Leasing Open Plan Overview Open Plan product view Offset Mortgage Current Account Savings +Accounts +Mortgage +Mortgage Reserve Flexible Mortgage Current Account + Mortgage +Mortgage Reserve Money Management Current Account Sweeping Features: Aggregation Savings Accounts Current Account Savings Accounts Savings Accounts Other +Savings Savings Accounts Savings Accounts Savings Accounts Savings Accounts Open Plan Overview Helping Customers To See The Whole Picture Summary Statement Current Account Savings ‘pots’ Mortgage Personal Loans ‘reserve’ accounts Credit Cards General Insurance Life Insurance Unit Trusts Other Woolwich accounts Open Plan Overview Bricks or Clicks Bricks Clicks Branch Telephone Credit Personal MortCard Loans gage Life Current Unit Deposits Trusts Assur. Account EBank New Systems Open Plan Overview Bricks and Clicks Bricks Clicks Branch Telephone Credit Personal MortCard Loans gage Life Current Unit Deposits Trusts Assur. Account EChannels Open Plan Overview Bricks and/or Clicks Strength of Woolwich brand - did not wish to create a competing brand Wanted to retain single customer set and single customer view Strength of retail branch network Use of existing IT infrastructure Use of existing staff expertise Belief that customers require multi- channel access to banking services Desire to create integrated customer benefits Open Plan Overview Channel Integration Legacy Systems WAP iDTV Internet Call Centre ATMs Branch Middleware Implementation of the e-channels Implementation Implementation 1998 1999 2000 Internet WAP iDTV Incept Pilot Launch 2001 Implementation Two solutions: Network operator solution WIRELESS NETWORK INTERNET WAP Gateway WTLS BANK SSL Break Point Implementation Corporate solution INTERNET WTLS WIRELESS NETWORK WTLS BANK WEB server WAP Gateway SSL Secure Domain Implementation IT Marketing Staff Training Phone Supply Content Customer Support Relationships Communications Operational Fulfilment Implementation VS Viewed from 10ft (lean back) Less is more on the TV (larger fonts, less data) Keep it simple - (low user Viewed from 10 inches (lean forward) As much detail as you need Willing to learn (so far) tolerance) Not used to interaction Expect interaction The Results so Far... The results so far… All targets met in 2000& 2001 Over 1m Open Plan customers 3+ products per customer 25% new to Woolwich Remaining 75% are more profitable than ‘classic’ Woolwich customers High (and increasing) usage of e- commerce channels The results so far… Average daily logins and Calls Handled Calls handled E-channel logins The results so far… E-Channel Activity WAP iDTV Web The results so far… Average daily logins Internet iDT V WAP The results so far… Frequency of use WAP Web iDTV The results so far… Lessons learned on WAP Those using the channel do so frequently Not just internet customers Seen as convenient and personal When the service is right it is used often Getting people started is a big issue Lots of misconceptions (esp. cost and speed) Usability Standards The results so far… Lessons learned on all e-channels All the channels are different media with different characteristics and design points Individual customers have different preferences Most customers use multiple channels Effective Channel Management is essential Business processes must be adapted (end to end processes are key) Manage the customer experience on each individual channel and as a whole Release strategy is fundamental (Channel interdependency) Future Plans Future Plans Continue learning about each e-channel and how best to exploit it Continue making e-channels the ‘channels of choice’ Increasing effectiveness of cross-channel management Increasing breadth and depth of channels Continue to exploit integrated channel strategy in line with new technology and customer demands Call centre to contact centre Summary Open Plan’s successful strategy has been built upon the concept of an integrated set of financial products and an integrated distribution network. It maximises the benefits of the existing bank infrastructure whilst fully exploiting new technology. Gerry Allen Gerry.Allen@Barclays.co.uk Questions and Answers