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Retail Banking Synechron Retail Banking | 1 Synechron Retail Banking | 2

Accelerating Digital for Our Value Proposition 18 Global Locations Digital A unique approach to market differentiation in the financial services domain $500m • Digital Strategy Privately Held and • Experience Design Unlike other firms, Synechron’s “Power of 3” approach and financial services expertise Self-funded • Creative & Emerging Engineering gives us a competitive edge to tackle our clients’ problems from any vantage point • Digital Innovation with great depth. Synechron combines the “Power of 3” - business process knowledge, digital design and core technology delivery excellence - to drive transformative • Blockchain COE solutions. We have the unique ability to provide an end-to-end approach, from 8000+ • Artificial Intelligence COE business consulting through technical development to digital enhancement. This Team Members • InsurTech COE empowers us to deliver solutions to some of the toughest business challenges. Globally • RegTech COE • Augmented / Virtual / Mixed Reality • Mobility 150+ Marquee Clients

Business Consulting Vertical • Enterprise Strategy, Architecture and Focused only on Transformation Financial Services • Client Experience and Lifecycle Management • Data Science, Engineering and Governance 25% • Regulatory Change and Compliance Y-o-Y Growth • Finance and Risk Transformation • Innovation Management • Program Management Services

Technology

• Technology Consulting • Application Development • Automation • Enterprise Architecture & Cloud • Quality Assurance • Systems Integration • Data & Analytics • IT and Database Support • Microservices and API Development • Business Process Management Synechron Retail Banking | 3 Synechron Retail Banking | 4

Our Capabilities

To help global clients stay at the cutting edge of digital innovation, Synechron is working with the world’s largest global to consult with them on everything from new innovation strategies related to emerging technologies like blockchain, to how to apply data science to age-old supply chain issues such as managing cash inventory in ATMs. Whether cards and payments, transactional services, home mortgage/auto/personal , consumer banking, or digital branch re-imagination, Synechron is Accelerating Digital for retail banks around the world.

Unlike other innovation labs and accelerators that bring together industry participants to discuss theoretical ideas, FinLabs is more than just a collaborative space. We listened to clients’ feedback that current industry proofs of concepts (POCs) are weak or have trivial objectives, and thought about Blockchain Artificial InsurTech how to create something better. Intelligence Automation FinLabs acts as an innovation hub — allowing our clients to reap the benefits of Synechron’s digital R&D investment and scale transformative ideas with access to the brightest minds using cutting- edge technology. Synechron combines the “Power of 3” — business process knowledge, digital design RegTech Artificial Intelligence Internet of and core technology delivery excellence — to drive Data Science Things (IoT) transformative solutions.

Digital Branch Consumer Wearables User Transformation & Biometrics Experience

Gamification Beacons & Virtual Agents Contextual Advice Synechron Retail Banking | 5 Synechron Retail Banking | 6

Synechron is working with an array of Retail Banks to re-design Cards, Payments, and evolutionary cards, payments, and loyalty programs with core Synechron is helping banks intelligently transition to a digital- capabilities including: Transactional Services – first operating environment which lets today’s on-the-go Loyalty Programs customers conduct a variety of banking transactions and tap • Operational consulting and digital transformation strategies, Savings, Website, Mobile into personalized services and products uniformly across the and design full omnichannel landscape: • Enterprise technology implementations Services, Open API • Consult on direct-to-customer research and design • Use of Open API Technologies and strategies related to strategies Payment Gateways • Create flexible design and architecture for mobile and • Cross-border payment strategies website functionality and increased engagement for • Innovation management related to the cross-section of e-banking and expanded services blockchain, payments, and loyalty programs • Deploy digital innovations to modernize and enrich the user • Systems integration of key financial services experience and usage while boosting brand with a top- and payment technologies including companies like of-mind market presence Finastra and Pega • Build creative technologies to solve business issues and • User experience design for omnichannel - web, mobile, challenges, eliminate customer friction/pain points branch, and experiential interactions related to credit cards • Provide analytics and support for custom-crafted • Decentralized and distributed blockchain technology technologies architecture and design for loyalty program points • Web service integration and rollout management • Real-time performance monitoring and testing to raise applications to the next level of development and ensure usability and scalability. Synechron Retail Banking | 7 Synechron Retail Banking | 8

Whether it’s reimagining current physical bank branches Our capabilities and experience span the entire retail customer Digital Branches and ATMs and transforming them into friendly, beautiful and efficient Consumer Lending – Home lifecycle across home mortgages and equity loans, to digitally-forward spaces, or evolving branches into inviting, auto finance (purchase/lease options), and personal loans. digitally-equipped bank “cafés”, or conceiving of and actually Mortgages, Home Equity Synechron provides smart, end-to-end customized technology constructing brand new digital-first servicing pods for and digital solutions that reduce costs and errors while greatly customers to engage, learn and purchase, Synechron has Loans, Auto Finance, enhancing the customer experience. the bank branch design, architecture and implementation experience. Personal Loans • Ideation, roadmap and platform design for retail lending, including sales toolsets, digital wallets • Single ownership for end-to-end branch re-design • Automate, streamline and improve back-office mortgage • Consult, strategize, re-imagine, plan architecture/ processes and workflows across multiple inter-dependent construction, and build unique, 24/7/365 digital retail bank processes branches • Integrate servicing for lenders, buyers and suppliers, • Design and build modeled after successful proprietary through Synechron’s Blockchain Accelerator worldwide Financial Innovation Labs (FinLabs) • Facilitate document management and tracking • Automate physical digital branches and save in-branch bank • Provide a frictionless home buyer onboarding experience personnel costs • Address reporting, regulatory and compliance mandates • Craft digital-first intelligent and intuitive bank servicing spaces with interactive video and wall displays, and branch • Create solutions for default servicing, and the auctioning advisors “on call” as needed process for listed properties • Expand and enhance the customer experience by offering • Build, and streamline an array of targeted information ATM services beyond cash management (e.g., account and personalized offers, such as a banking-offered “digital opening, loan origination, etc.) glovebox” complete with auto finance/insurance tools • Build technology and functionality for on-the-fly, retail bank customer-facing leveraging enterprise applications Synechron Retail Banking | 9 Synechron Retail Banking | 10

CASE STUDY CASE STUDY Leading Global Bank RBC-DRIVE

Empowering Omni-Channel Digital Retail Banking Experiences Direct-to-customer Ecosystem

| Objective | Solution end-to-end digital experience, as well as crafting the interactive, digitally | Objective: | Solution | Benefits: • In recognition of the importance • Synechron worked with the bank to guided user-led tour which included • In an effort to expand its mobile • One location for the user’s auto • 100K+ active users of the application of customer acquisition and create a Straight Through Processing a map of the space, tutorials and a and digital offerings, RBC Ventures needs in an ecosystem environment within one year engagement, a leading global bank (STP) onboarding experience. Design full digital onboarding experience. identified automobile owners as a with insurance information, car • 400+ dealers onboarded sought to enhance and simplify matrixing was combined with • To further empower the bank’s key customer for its auto-financing valuation, recall and safety notices, its digital onboarding experience, Optical Character Recognition (OCR) in-branch staff, we conceptualized, business. gas station location and discounts • 700+ appointments blocked across including onboarding for loan clients, and Natural Language Processing various services innovated, and equipped the staff • Design and implement a direct- including a reward system, and other and make the experience faster and (NLP) to enable the scanning of with future-forward features such as value-added services for drivers and • 2017’s Mobile Star Awards for Best easier. the country identification card and to-customer, auto-ecosystem smartwatches and tablets. application car-owners, all stored in a secured Auto Application • The bank additionally wished salary letter required to open a new “digital glovebox” to create a mobile-first website account including for a loan product. • The objective for the application was to allow RBC to be top of mind • Users can select their Province and for customers to view • The bank was able to upgrade and | Benefits mobile-scan their VIN barcode or offers, manage loyalty and rewards digitize its previous cumbersome and top of funnels for the customer • Synechron’s STP solution for loan upload a photo of their license plate, air miles gained from credit card legacy system which required new at any point in the auto finance client onboarding produced an 80% allowing the application to show purchases, and engage around new account holders to provide much lifecycle when key auto finance accuracy rate among documents the make and model of the car, mortgage offers. more extensive documentation related decisions. required for onboarding, and greatly its current and depreciation value and had necessitated the bank to • Perhaps most importantly, the reduced the processing time for new estimates, and relevant recalls manually store those. bank wished to create its first-ever applicants from 12 days to less than • Predictive intelligence to understand digitally-enabled bank branch within • Synechron supported the bank in 24 hours. user behavior and present a unique, impressive, interactive creating its mobile-first website • The mobile-first website significantly customized news, articles, etc. physical space, so as to optimize the which allowed existing and enhanced client engagement full customer journey. prospective clients to receive a • Book services related to ongoing with the bank’s card and loyalty variety of mobile-enabled offers maintenance, insurance, etc. and can programs. and easily educate themselves on schedule a test drive products and services. • The bank leveraged the digital • Four-part video series to support brand initiative to deliver integrated, • Using design thinking modeled after education and GTM at the Toronto measurable digital elements, and its own successful global FinLabs, Auto Show allowed the ability to track views. Synechron provided the interior • Set the AWS environment design and buildout services for an drawing on its Cloud experience Synechron Retail Banking | 11 Synechron Retail Banking | 12

CASE STUDY CASE STUDY Corporate Expense Management Modernization Saudi Hollandi Bank/Alawwal Bank

Global Tier-1 Bank A Fully Digital Café Branch

| The Problem | The Solution | The Results In 2016, Saudi Hollandi Bank rolled out Alawwal Bank responded with their In its first six months since opening, a corporate rebranding initiative for the inaugural IBDA branch – an aesthetically Alawwal’s IBDA branch has been a modern banking era, changing their driven, open-air, digital café in the tremendous success for the newly name to Alawwal Bank (Arabic for “The heart of a popular mall. Partnering with rebranded company and gained attention First”) to represent their history as the Costa Coffee, Alawwal designed a sleek, globally for its disruptive approach first bank in Saudi Arabia. With the new open bank complete with palm trees to successful innovation. The branch name, the bank sought a new image to entice impulse mall-goers to walk in reinforced the desired image that Alawwal representative of their innovative vision and encouraged them to stay with the is a technology forward, customer-first and a customer-first attitude. To serve as relaxing environment. But, the branch bank that embraces the digital age. a symbol of their new identity, Alawwal couldn’t just be a comfortable place to Beyond the improved brand equity sought to design a branch of the future. sit without offering enhanced services. that IBDA cultivated, the branch itself Like most banks, Alawwal Bank was Therefore, each table-top was paired with has provided an impressive return-on- facing the reality that the traditional a touchscreen device to encourage visitors investment. Some of the many positive distribution model wasn’t aging well. to explore the Alawwal digital portal, results seen include: Branch operational costs had become which engages customers in everything • Improved Service and Availability prohibitively high with less foot traffic ranging from casual games and branch – Digital functionality have allowed to show for it. Furthermore, the services information to product research and the branch to offer full functionality provided within lacked the efficiency digital branch functionality. at a customer friendly, seven days a and convenience consumers have Alawwal recognized that while the week until 11 pm. come to expect in the digital age. Their atmosphere created from the aesthetic • Better Customer Experience – new branch needed the technology design, touch screens and café may raise 7-minute onboarding, no lines to streamline their operations, provide the bank’s profile and draw more foot and quick transactions in a café maximum convenience on-demand for traffic, the real benefit would come from • Research & Discovery: Analyze eliminate redundancies, and make environment has cultivated an | Business Need: their customers, and provide a lasting using next-generation technology and the current state, determine future applications cloud-ready. This efficient and stress-free banking aesthetic that would define Alawwal embrace cutting-edge digital banking Synechron was selected to design and needs, and establish an execution improved performance, scalability, experience. build a Corporate Expense Management Bank as the premiere bank in the region to increase self-service, new customer roadmap. Identify the user roles and testing and maintenance • Greater Customer Engagement – and Reporting application to replace and entice potential customers to walk onboarding, and cross-sell opportunities. apply Experience Design to define Rather than off-putting sales pitches the bank’s legacy mobile and desktop • Enhance Channel Support – Adopt through their door most importantly, This was achieved with virtual teller kiosks the ideal experience for each. that can drive customers away, applications. The client provided three a Representational State Transfer however, it needed to embrace the digital to allow customers to video-chat with a tablet content organically guides primary goals: Improve Market Presence • UX Concepts & Designs: Create architectural style to consolidate era of banking. live Alawwal employee and work through customers toward profitable actions Through User Experience, Seamless wireframes and annotations, draft course-grained services into questions, concerns and banking needs. such as opening accounts and credit Customer Migration, and Reduced a back-end design, and validate test fine-grained APIs for improved Additionally, touch-screens throughout cards, and engaging customers with Maintenance Time & Costs. Due to legacy plans. performance, scalability, and the branch are set up with content to financial product offerings. architecture, this required a new digital • Design & Development: Engage in modifiability. entertain and educate customers on architecture be designed and developed technical design, create Technical • Implement Oracle Service Bus new products and services to help drive • Increased Foot-traffic – The IBDA Design Documents, devise a (OSB) – Move microservices to new business opportunities. Perhaps branch sees a higher percentage of Middleware integration plan, initiate OSB to enhance security and most uniquely, Alawwal also developed foot traffic than non-IBDA Alawwal | Solution back-end design, and validate test communication, reduce transport a comprehensive digital onboarding branches. plans. cost, and improve traceability & capability, allowing customers in the First, Synechron developed a Mobile-first Digital Café to apply for a debit or credit • More Business for Less Expense logging of service calls. Embracing AI, virtual tellers and product and implementation strategy, • Quality Assurance & Regression cards in seven minutes, on demand, on – digital onboarding has reduced applying Design Thinking to create a rich Testing: Deploy the integrated their own, and completely digitally. The operational costs while improving user experience for each unique user code into test environments, test service draws on AI techniques such | Benefits: the customer experience. profile. Next, a responsive application integration in the overall system, and as Robotic Process Automation (RPA), was developed with a standardized ensure QA sign-off. • Client mobile adoption up to 75% Optical Character Recognition (OCR), technology stack and application • Implementation: Launch the MVP on from 10% and Natural Language Processing codebase. The roll-out schedule aligned the Expense Management platform. • Role-based dashboards, (NLP), which streamlines customer with the following Minimum Viable onboarding tremendously. The AI Synechron implemented the following authorization and functions Product (MVP) sprint timeline: backbone of the onboarding process solutions to provide a responsive • Responsive digital platform enables data extraction from ID scans • Product Backlog: Create a foundation for the tech stack: targeted feature map, information auto-population of necessary application architecture and migration plan. • Adopt a Microservices Model fields, automated data sanitization - Decompose monolithic modules, and verification, and automated KYC information extraction. Synechron Retail Banking | 13 Synechron Retail Banking | 14

THOUGHT LEADERSHIP

creating initiatives. Banks can proactively In this way, consumers can earn, rack up, to-person money transfers, remote Synechron’s Industry Perspective on Retail Banking choose to disrupt their own industry, or track and spend points that easily convert check deposits, opening and funding watch from the sidelines as assertive, to cash for any loyalty cards they own of term deposits (such as the purchase non-bank disruptors do so, and take and store those in their mobile device- of a ), managing valuable customers with them. based digital wallet. savings and retirement accounts, are all increasingly available using digital The evolving digital ecosystem also The payoff to banks is that loyalty service platforms that include mobile means that by analyzing, understanding, programs decrease churn among valued applications and websites (smart and utilizing the treasure trove of data customers, encourage repeat business, phones, tablets, PCs, laptops). Open API now being collected about the banking, and leverage gamification to encourage (Application Programming Interface) payments, spending, and savings customers to achieve higher tiers. In is becoming the industry standard patterns of each customer, banks 2015, there were 3.3 billion loyalty and is allowing divergent software can better position themselves at the program memberships in the U.S., with programs to become integrated and epicenter of each and every customer’s the average individual enrolled 29 loyalty communicate with each other. But personal financial life. Artificial programs, and membership numbers they are not just technical interfaces. Intelligence, machine learning and data are growing.2 Moreover, 76% of loyalty They make for richer, more robust science applications are migrating into program users see that program as part customer experiences. The increased this space and allowing banks to offer of their relationship with the brand. use of Open APIs is driving further customers on-the-spot advisories and adoption of cloud computing for many financial solutions--just as customers | Digital Wallets Go consumer applications, as well as placing develop a financial need and consider Mainstream pressure on banks to create more open, their various options. cloud-enabled business models and Transaction-based services that are applications. offered within a digital, omni-channel | Digital Wallets Go environment are becoming critically | Make My Consumer Loan Mainstream important for on-the-go customers. Bill payment, retail purchases, person- Easier, Better, With More Infor- More and more tap-and-go consumers to-person money transfers, remote mation are using their smartphones to carry check deposits, opening and funding and easily use their digital wallets. of term deposits (such as the purchase Banks are finding creative but necessary | Digital Retail Banking is | Right Place, Right Time | Competition Escalates Tech companies like Apple Pay, PayPal, of a Certificate of Deposit), managing ways to provide a bevy of valuable and Samsung, Google Wallet, and Paytm savings and retirement accounts, are perfectly customized loan services, Here, Are You Ready? Banks must offer the right product or As banks move away from decades old have already built their own digital wallet all increasingly available using digital all within a digital competency. Such service, at precisely the right moment, legacy systems in favor of flexible digital platforms. Banks that think digitally service platforms that include mobile a toolkit can keep a bank top of mind The future is now. Retail banking to exactly the right customer, all within technologies, the banking landscape has forward are expecting benefits from applications and websites (smart with potential loan customers and assist is experiencing a major digital an individual customer’s preferred become more challenging. Incumbent offering their proprietary digital wallet phones, tablets, PCs, laptops). Open API them in navigating the process. One transformation that is shifting products interactive channel-of-the-moment, to banks face new competitors. They must platforms to entice and enable their own (Application Programming Interface) is bank developed a direct-to-consumer and services from a mass production see the benefits of reduced customer contend with all-digital financial service customers. Technology allows individuals becoming the industry standard and is “digital glovebox” which uses predictive environment to the new banking churn and increased loyalty. In providers and Robo-Advisors, startup to banish plastic cards and move toward allowing divergent software programs intelligence to identify target customers, ecosystem of individualized, client- addition, banks are reorienting as they fintech companies vying for or already a cashless society. They securely store to become integrated and communicate then equip car buyers with specific first experiences, dynamic usability increasingly serve as providers of real- granted limited-purpose bank charters and use their debit and credit cards and with each other. But they are not just information about car prices and values, and deeper engagement. Newly life, real-time, and easy-to-navigate or utilizing the white label banking data, and access cash via their choice technical interfaces. They make for richer, recall and safety notices, customized enhanced “smart banks” must be able solutions, not just institutions that sell services of regulated banks, and even of mobile device (e.g., smartphone, more robust customer experiences. The news and articles, detailed loan options, to meet or exceed customer demands their products and services. behemoth online consumer companies smartwatch) in order to purchase goods increased use of Open APIs is driving insurance and car maintenance tips, and expectations, all while taking a forging partnerships with select banks and services. Digital wallets also allow further adoption of cloud computing for and much more, all as they progressed fully-flexible, omni-channel approach. What is clear is that banks must (your competitors?) hoping to offer a full individuals to quickly and easily send many consumer applications, as well as through the auto finance lifecycle. Providing a welcoming, pleasant, safe, provide a consistent experience, and appealing suite of banking services to or receive payments from others (via placing pressure on banks to create more memorable, and “wow-moment” banking evaluate their features, create more and products to their best shoppers. Venmo and Zelle), as well as tap bus and open, cloud-enabled business models Various types of Artificial Intelligence and experience for customers is driving bank data-driven business models, and Consultant McKinsey & Company put train passes or access concert and other and applications. Machine Learning are being integrated innovation. Further, banks possess the maintain personalized user context a number to that. It estimates that event tickets digitally. into the consumer lending lifecycle strong desire to digitize so as to optimize even as customers switch between developed-market banks alone may put process that banks have long viewed as operational efficiencies, reduce costs, and and among engagement channels. A a collective $90 billion in profits at risk by But a mobile wallet doesn’t just digitize | Give Me Digital – All Access, a core business line: home mortgages, drive profitability as they make sound purposeful 360-degree view lets banks 2020 depending on the extent of digital a bank’s traditional cards. It can also All Of The Time home equity loans, automobile and often large investments in learn each customer’s particular habits disruption.1 function as a personalized marketing purchase financing, and personal loans. and preferences and even anticipate agent that can alert tapped-in consumers Transaction-based services that are Everything from point-of-sale marketing their needs. The end-goal is to develop, To lure and retain customers, banks to targeted specials and sales, events and offered within a digital, omni-channel and loan applications, to processing, sustain, and deepen a valued bank- must develop a stronger competitive coupon savings from their favorite stores, environment are becoming critically underwriting, loan closing, customer customer relationship, not just serve as advantage and be just as nimble, just restaurants, other retailers and service important for on-the-go customers. onboarding, and even collections can the financial intermediary. as agile, and more customer-centric in providers, as well as their favorite bank. Bill payment, retail purchases, person- be enhanced through analytics-focused their customer engagement and value-

1 McKinsey & Company report January 2017 “A brave new world for global banking, annual review 2016 2 See the ecommerceceo.com infographic at: https://www.ecommerceceo.com/customer-loyalty-programs/ Synechron Retail Banking | 15 Synechron Retail Banking | 16

machine learning, natural language shrinking their branch networks, user- repurposed to provide value-added processing (which analyzes how humans friendly digital branches with 24/7/365 investment advisory services, assist communicate and, using multiple data access are quickly becoming the new clients in starting a mortgage or loan gathered, can develop tailored text norm. Forward-thinking banks are application, or assist with other activities advisories and more), and document- reimagining and re-engineering key that require human intervention. Bank based robotic process automation branches to allow customers to do even personnel are even wearing futuristic (RPA) which uses computer software to more within a sometimes smaller, but smartwatches that can alert them when streamline formerly labor-intensive and a defined footprint. A notable 63% of an in-branch customer requires in- error-prone manual paper processing global senior bank decision makers person assistance. Some branches offer and data extraction. Lightning-fast surveyed said they are planning to multi-functional kiosks, while many are document processing significantly change their branch model in line with also equipped with video screens that decreases the time banks spend making a digital transformation, while 88% allow ‘virtual tellers’ and authorized bank loan decisions. agreed that bank branches add value advisors to interact live, one-on-one with for customers.3 Some have developed customers at the exact moment of the To Branch or not to Branch.... AI can be used for credit score “banking cafés” that encourage query. development, loan pricing, automated customers to come in, have a seat, is that the right question? underwriting, and more. Machine and conduct their business in a casual, In addition, expanded acceptance learning outputs improve each time new friendly café environment. These and implementation of Straight- data is added. The goal is to produce allow customers to engage in a bevy Through Processing (STP) technology a better, more enlightened and highly of banking activities beyond just cash is letting banks more easily, quickly The quest to justify banking’s oldest On one hand, we have the argument that the branch is useful loan model that can help banks in management, all within a self-service and cost-effectively process numerous an expensive operating expenditure that does little to a variety of ways, such as with targeting digital environment. transactions from start to finish that distribution channel continues despite meet the expectations of the millennial customer and their best customers or predicting would otherwise have to be manually the wonders of self-service automated has been made redundant by superior and contextual the probability of a loan default. Even Neither are ATMs or banking kiosks inputted multiple times into different advice through mobile apps. Teller per transaction costs the added convenience of accessing disappearing. They are becoming operating systems. STP is allowing banks kiosks and the growing adoption of mobile are increasing, and people are using more convenient electronic applications is making it smarter and more numerous within to go virtually paperless for many, but ways to conduct their everyday banking needs. Remote easier for consumers to apply for these many branches. In the same survey, not yet all, services. Similarly, STP can banking. The arguments for and against check deposit, self-service kiosks, smart ATMs, digital formerly paper-intensive loan products. respondents said they expect ATMs facilitate easier and faster customer branch banking are well publicized these channel migration and video chat bankers are all to grow from the current three million onboarding, such as where a customer gunning the traditional branch model down. All the logic, to four million by 2021. They are provides documentation to open a new days, and yet we continue to debate the statistics and key performance indicators about branch | Build Me A Better (Digital) being enhanced with an expanded account, thereby enriching the customer subject year after year. banking suggest that its days should be numbered. Branch menu of products and services that experience and making it frictionless. customers can research and order up The inevitable death of physical bank for themselves on considerably larger branches has been overexaggerated. touch screens. Bank personnel are being While it’s true that some banks are

3 World Branch Report 2017, Digital Bank Transformation: The Evolution of Branch Banking, by Efma and Synechron Synechron Retail Banking | 17 Synechron Retail Banking | 18

Retail Banking: Building the “Smart Bank”

Mobile Strategy is a Must, but it also needs to be paired with integrated experiences across channels.

On the other hand, there are those walls, and natural language Artificial the matter is that Risk in most banks that say it doesn’t matter how good Intelligence that can transform the these days is often measured when it your mobile solution is, when you engagement and interaction levels with goes wrong, and very rarely when it goes REALLY REALLY need to do something customers, but this is still not enough. right. That means that it is much easier of importance that concerns your There are even great solutions for to say no to a credit application, and financial wellbeing, you want to do it in addressing the cost of running a branch devise a myriad of risk policies to support person, and in a branch - period! While these days, like partnering with another your decision. I am willing to bet that in the digitization of banking is creating retail business like a coffee shop, health most banks where this is the case, they disruption in the industry, it is still not bar, post office or supermarket chain. will have a revenue growth curve that executed to a level needed to displace Making the branch a ‘destination of correlates directly to the amount of risk the branch value proposition. Customers choice’, is gradually becoming a reality for exceptions or policy revisions for that with complaints, or in need of specialist many evolving banks, and the days of the year. advice like retirement planning, or Barista Relationship Manager could soon their first mortgage, still want to visit be upon us. That said, even that is not This is where Handelsbanken does things the branch and speak with a trusted enough of a compelling reason to ensure a little differently. When customers advisor. Some customers, particularly branch survival. For me, I have come to discuss financing or account opening small business owners, still want to the same conclusion every time.... it’s with the branch manager, that manager establish a relationship with the branch about people. It’s about relationships, has a substantial say in what decision manager because there is more to their local knowledge, body language, smiling, gets taken. It is no surprise that the financial situation and needs than what being polite and generally trying to help bank continues to win customer service an automated decisioning solution can customers that makes all the difference. awards year after year and has enviable compute. Others want to just open a No amount of technology transformation numbers when it comes to the quality of basic checking account in a single branch and digital alternatives can compete with its credit decisions. visit and walk away with a , empowered and motivated branch staff. check book and active account number There it is.... the answer to what Branch in a few minutes. Oh and what about My benchmark has been, and continues 2.0 should be, is not what services and the brand?.....the branch still represents to be, Handelsbanken in the UK. Not advice can be served through paperless something tangible, something real, and only is their slogan “The Bank is the solutions and digital channels, but rather when you are talking about an industry Branch”.... but they literally mean it. that customer delight is best achieved that sells ‘trust,’ people want a place they Don’t get me wrong, this is a bank that when you hand the power to serve the know their money is safe. All the logics, continues to invest in digitization and customer back to those sitting in front statistics and key indicators about branch equipping their branches with usable of the customer. Now there is a branch banking suggest it is here to stay. technology, but more importantly they transformation objective that should get are doing something fundamentally bankers thinking, and one that could be It is difficult to argue with either different. The branch staff have a say more disruptive than any fintech unicorn, viewpoint, but perhaps the question in decisions about their customers. Can if executed flawlessly. should not be whether we should have you imagine such a thing? The problem branches or not, but rather what should with most banks these days is that in be happening in the branch. Let’s for one their quest to become cost efficient, they minute consider what Branch 2.0 could have centralized operations, KYC and be. the risk assessment process, and that means the decision makers sit nowhere For someone who has done a near the customer. They are most likely considerable amount of digital branch sitting in the head Office, back office transformations for several banks across or offshore office, and they are not the globe, I am often questioning what incentivized to keep customers happy, or could and should be done differently in increase revenue. The centralized team’s the branch. It is obvious that the role of performance (and ultimately their bonus) the traditional teller must change, and is measured with KPIs like compliance, there are many new technologies from cost savings, and not approving a Scan to read our detailed beacons, to touch screen tablets and customer who defaults. The sad fact of World Branch Report 2017 Global Footprint

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