Choosing the correct technology will maximize value and provide a seamless customer experience.
Going inside a bank branch location is no longer the only way to handle a bank transaction. According to a report from McKinsey & Company, 55 percent of bank transactions now occur outside of the branch banking channel. A Mercator Advisory Group report posits that 85 percent of bank customers use ATMs for a portion of their transactions. The rapid growth in internet and mobile banking is also well documented and raises additional service delivery considerations.
Increasingly banks are turning to true multichannel banking strategies where the profitability of consumer relationships is increased through a commitment to personalized services whenever and wherever the consumer wants them. Whether a bank has a small or large number of ATMs, it is important to select the appropriate technology that will satisfy the bank’s need to reduce TCO, increase Time to Market, and facilitate a balanced, customer-centric services strategy.
This white paper is sponsored by Auriga, a European supplier of software and solutions for the banking and payments sectors. It details four key factors that allow you to maximize the value of your ATM network while simultaneously implementing a compelling multichannel banking strategy.
Understandably, banks are keenly focused on transactional value, meaning the value received from a specific transaction relative to the cost of providing it. This theme has guided investment strategies into self-service automation resulting in a significant reduction in operational costs. However, these cost gains are often outweighed by the detrimental loss in customer contact and an erosion of the customer relationship.
Today’s consumer is increasingly enjoying personalized services that are tailored to their personal needs and preferences. Not surprisingly, consumers also expect the same sophistication from their banking ser-vices provider. The banks that best satisfy the consumer’s expectations for personalized and convenient services are gaining market share.
Progressive banks now recognize the need to shift their emphasis from focusing on individual transactions to optimising the value of the customer relationship in its entirety. Advanced multi-channel banking solutions like WWS that combine consumer access convenience and flexibility with relevant marketing and sales opportunities help to grow market share and increase profitability.
Ease of Change
The widespread adoption of standards like XFS and new, lower cost ATMs has resulted in heterogeneous ATM networks where a mixture of devices from different vendors is the norm. The available servic-es at each ATM can also vary significantly, ranging from cash recycling to simple cash withdrawals, geographical or event based marketing campaigns, and third party ser-vices like mobile top-up. This increasing complexity places ever greater demands on the management of the ATM network.
Today’s fast moving, always on world places stringent demands on a bank’s ability to innovate and deploy new services quickly, cheaply, and reliably. The availability of vendor independent ATM clients has greatly simplified the management of mixed ATM networks. Banks are now free to choose the ATM models that offer the best priced performance advantages for their needs without restricting their ability to deploy new services. For example, Auriga’s WWS solution easily handles a mixture of ATM models and operating systems. WWS automatically manages the delivery of multiple services and marketing campaigns to any number of ATM groups for the ultimate in change management control.
Another significant factor driving im-proved time to market advantage is the ability to reuse the same business services across multiple channels. For example, the underlying rules that are used to manage a bill payment are fundamentally the same irrespective of whether the transaction is initiated in a branch, at an ATM, or from a mobile Internet-enabled device. The wide-spread availability of smart client technology means that new services can be easily implemented and instantly deployed across multiple different touch points leading to a reduction in development costs, faster time to market, and increased manageability and control.
Seamless Customer Experience
Every interaction with a customer is important, irrespective of how they choose to interact with their bank. A seamless experience not only builds the brand, but also gives customers a sense of familiarity and comfort. Traditionally each delivery channel has operated as an isolated island of automation with limited or no sharing of information across channels. The result is a disjointed experience for the consumer and significant difficulty for the bank to correctly tailor their services to address the varying customer needs.
Delivering a seamless customer experience across multiple service channels is achievable but it requires a phased approach that delivers tangible benefits throughout the process. Regardless of the specific implementation details a few critical objectives are emerging as “must have” capabilities.
Firstly, consumer information should only be entered once and shared across all channels. Secondly, service agents must have access to all of the consumer’s activities regardless of the channel used so that they can provide a fully informed response. In addition, services should be able to span multiple channels if this leads to a better consumer experience. For example, with WWS a customer can start a cash withdrawal transaction on their mobile phone and complete it later at an ATM. The ability to schedule appointments, order foreign exchange, or respond to sales offers using the home banking channel is another example with the requested service being completed at the branch.
A multi-channel solution needs to deliver high quality services that are always avail-able. In addition, the solution needs to al-low banks to smoothly expand the system’s capacity in response to increasing usage. Modern SOA-based architectures provide a number of clustering and redundancy features and have become a preferred foundation for highly available, easy to manage systems.
WWS has been carefully built to take maximum advantage of SOA principles allowing banks the flexibility to easily expand their systems while ensuring the highest levels of service availability. In addition, the comprehensive monitoring features within WWS allow banks to proactively control their network and its performance.