BD&I LTSB Community Banks Lessons from Teller Capture in the United Kingdom Louise Ryan - Head of Design & Delivery – Counter & Service Introduction to Lloyds Banking Group • Formed on the 19th of January 2009 • Operating a multi-brand strategy, the Groups main brands include; Lloyds TSB, Bank of Scotland, Halifax, Scottish Widows and Cheltenham & Gloucester • The Group has over 30 million customers and is the UK's leading provider of current accounts, savings, personal loans, credit cards and mortgages. • Lloyds Banking Group has approximately 140,000 colleagues across the UK • Focussed on organic growth in the UK and beyond Market Position • Lloyds Banking Group has a substantial network of 3,300 branches and will continue to hold a strong presence on the high street across the UK. • 22 million UK current account customers • 21 million UK savings customers • UK’s number one mortgage lender and provides mortgages to one in three borrowers in the UK. • 26,000 Corporate customers and 800,000 SME customers in the UK • A major bancassurance provider with a 14% market share and is the leading distributor of home insurance in the UK. • Lloyds Banking Group Wealth & International operates across the globe in 35 countries. Pre-Teller Automation Environment • Counter based non-image distributed capture with some back office image capture • Home-grown teller system (ICS) • Mixed cheque and credit (Giro) deposit processing • Miscellaneous peripherals (e.g. Cash recyclers, Chip card readers, pass book printers) • On-line real time accounting • Central codeline matching at iPSL The Teller Automation Challenge • RD1000 codeline readers reaching end of life • Stable platform but at the limit of productivity and functional improvements • Need to improve productivity, customer service, sales and loss profile • Deployment of scanner hardware initially as codeline readers without software change • Aggressive delivery timescales. Initiate software project in Feb 2008 – Start Rollout in November 2008 • Integrate tightly with ICS to ensure no impact on downstream systems Business Case vs Capabilities Benefit Capability Improve Productivity Autofeed scanner Automatic capture of handwritten information (e.g. Amounts, account details) Simplified process, reduced reliance on documented procedures Improve Customer Time saved re-allocated to providing customer Service service Reduce queuing time Reduce Losses Automated Technical Verification Image based signature verification Process control/enforcement and auditing Short term image archive Increase Sales Marketing leads generated based on the context of transaction Time saved re-allocated to lead generation/fulfillment Transaction Comparison – Cheque Deposit Customer Experience Proposition ICS • Queue times are shorter • Sales can be pursued in parallel with the service requested Key Key Capture Correct Capture Correct Post Sell • Tellers have “heads up” time to Amount Amount engage with customers User Experience • Simplifies deposit processing Intelligent Deposit – Sell Mode allowing the “re-skilling” of tellers to sellers • Fewer repetitive keying and Capture correction tasks Sell Correct Post End to End Process • Image based audit trail to speed up exception research • Enforced processes ensures user Intelligent Deposit – Queue Buster Mode accountability for key verification tasks • Improved voucher reading reduces Capture Correct Post end to end costs and customer concerns Less than 12 month payback period Private and Confidential Technical Verification Key Objective to manage losses and improve user accountability: • Collecting Bank Duties – Signature Presence – Date Verification – Words and Figures verification • Signature Verification • Payee verification All processes automated, image enabled, enforced and audited. Project Lifecycle Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Task Name Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Hardware Supplier Selection Build Rollout Software Requirements Design Build Test Trial Rollout Success in Implementation • Testing – Comprehensive functional system testing – Joint testing approach with Goldleaf – Live parallel running – Live Trial in parallel with system test • Engagement – Early and ongoing consultation with Risk stakeholders – Prototyping/demonstrations to users – Colocated IT/Goldleaf resources • Operational Implementation – Online Training and support – Staged rollout – Operational Change Officers – Branch Champions Key Lessons • Establish project scope and “stick to it” • The importance of a small experienced team • Partnership with suppliers (e.g. Profitstars) • Multi channel support • Ongoing engagement and consultation with key stakeholders • Communication and training are as critical as execution • Ownership and advocacy at a local level is key to embed change effectively. • Effective MI and monitoring is required to ensure tangible delivery of business benefit. Current Status • Rolled out to 1690 branches - 130 left to roll out before YE 09 • 90% of counter staff: – would recommend the solution – agree VRA fights fraud and prevents mistakes – say the process is easier. • Investment payback achieved in 12 months • Cheque related fraud in 2009 has reduced by 50% over 2008 • Plan to rollout to branches in newly enlarged group in 2010. Thank you and Questions.