Invigorating Physical Channels in a Digital World

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1 Invigorating Physical Channels in a Digital World Jerome Amara Vice President, Sales and Marketing jerome.amara@diebold.com May 07, 2015

2 Blending Physical channel and Digital experience, Digital banking might be the way of the future, but banks can't neglect their branches, which remain just as popular among younger people as older generations JD Power The goal of the branch transformation and deploying additional services, such as virtual ATMs, an online "click to call" function and an online budgeting tool, is not only to make things more convenient, but to get existing customers to build deeper relationships with the bank Bank of America, Digital Banking executive Consumers are interested in having different types of technology in the branch with someone there to assist if need be. That might be a way to increase loyalty and get more people to stay, Accenture, MD of Banking practices 2

3 The industry s dilemma

4 Top Six Global Trends Changing The Banking Experience Interrelated trends are disrupting the financial industry as we know it. Industry Trends Drive to Digital New Economics of Banking 3.0 Emergence of Customer 3.0 Security As a Differentiator Retailification of Banking Source: Diebold Research Non-Banks Gaining Ground 4

5 The Current Situation Consumer are seeking at a truly differentiated experience, 80% of consumers differentiate between brands of toilet paper <5% of consumers differentiate between brands of retail banks Source: Why We Know Our Toilet Paper Better Than Our Banks TIME.com 5

6 The Banker s Dilemma Compared to other retailers the banking industry has not yet met consumer expectations. Memorable Experience Cross-Channel Integration Support and Education Exploration and Engagement 6

7 The Evolving Role Of The Branch The branch will remain a key component to an omni-channel strategy and offers the richest experience to consumers. Financial planning and advising One-to-one marketing and sales Customer service and issue resolution FREQUENCY OF INTERACTION Complex transaction handling Local community branch presence RICHNESS OF EXPERIENCE 7

8 Consumers Want Multiple Channel Touch Points The right combination of multi-channel touch points are vital to consumer satisfaction. 3% 3% 9% 23% 28% 34% The branch still has the greatest influence of satisfaction. Source: J.D. Power and Associates, McGraw Hill Financial

9 Branches Remain Important Despite economy and technology changes, consumers still prefer branches to open new accounts. 39% Other 61% Prefer Branches 62% 63% 61% 56% Gen Y / Millennials (18-34) Gen X (34-47) Boomers (48-68) Golden Generation (69+) Younger generations have a greater preference to start or expand their relationship with a financial institution in the branch because they are not sure what they need. They go into bank branches because people inside answer their questions. Source: Diebold Forrester Omnibus March 2013 & Market Rates Insight, June

10 The Industry Dilemma However, branches will have to change to remain relevant to consumers and viable for financial institutions. ILLUSTRATIVE Traditional Branch New Model Branch 7-9 branch headcount 15-20% self-service transactions 4,000-5,000 square feet Units Sold 5-6 branch headcount 50-60% self-service transactions 2,000-3,000 square feet Relationship Value 10

11 Four Primary Branch Types Select the branch format that most suits your business objectives and location needs. Instant Convenience Standard Showcase sq ft 750-2,000 sq ft 2,000-5,000 sq ft 5,000+ sq ft Transaction Focused Essential Transactions Most common model Relationship Focused Limited Service Self & Assisted Service Relationship focused Encourages Exploration Banking Staff support as Encourages exploration Guided Assistance Encourages Self-service needed Self & Assisted service Full Service Banking Assistance If Needed Often in metro areas Full-service banking Branding Opportunity Show local presence Lower cost to operate High Efficiency High Engagement 11

12 Transformation Around the Globe Financial institutions around the world are experimenting with new models that address the specific needs of their market and consumers. Bank of America North America TD Bank North America Belfius Bank Europe BNL Europe Helm Bank Latin America Capitec South Africa sbiintouch Asia Pacific DBS Bank Asia Pacific 12

13 Technology for tomorrow, and today.

14 Technology Enables Branch Transformation There are several technologies that can enable your branch transformation strategies. Deposit Automation Mobile Cash Access Easily migrate deposit and bill payment transactions Address over 50% of all teller transactions Reduce teller headcount Cash recycling yield incremental operational improvements Pre-stage ATM transactions with mobile app More secure (card-less) Better customer experience 14

15 Technology Enables Branch Transformation There are several technologies that can enable your branch transformation strategies. Assisted Self-Service Tablet Integration Inside the branch self and assisted service Augment transaction migration efforts Develop improved customer experience Cash recycling capabilities Integrate tablet experience Enable branch employees to intervene during a transaction Monitor selfservice device health and activity 15

16 Technology Enables Branch Transformation There are several technologies that can enable your branch transformation strategies. Teller Pods Offer services which typically occur in a longer teller line Allowing for more personal communications and service Allow deeper conversations in the lobby versus branch offices New generation of Teller assist unit enhance efficiency and security 16

17 Technology Enables Branch Transformation There are several technologies that can enable your branch transformation strategies. Two-Way Video Two-way video conferencing at the ATM or in a office setting Enhances consumer experience Expands access to financial service experts touch points and times Advances targeted marketing Video by choice, not by default 17

18 Technology Enables Branch Transformation There are several technologies that can enable your branch transformation strategies. Marketing Enablement Tools to assist in the marketing of your institutions products and services Digital wall, touch screen or ATM marketing campaign Enhance dialogue with existing consumers and personalize user experience Create actionable call-to-actions 18

19 The day after tomorrow Digital Branch

20 CONVERGING TRENDS Branch Transformation EFFICIENCY AUTOMATION Omni-Channel Experience CONVENIENCE ORCHESTRATION

21 Responsive Banking Concept on YouTube:

22 SIGNAGE BRANDING INTERACTIVE SIGNAGE QUEUEING TRANSACT VESTIBULE CONSULT VESTIBULE FAST CASH DIGITAL WALL

23 RECONFIGURABILITY

24 MARKET FEEDBACK Diebold s Responsive Banking Concept was made to spur the imagination and spur the imagination it does. Bob Meara Launching an Unmanned Pod into the Branch Space This will set a new standard in self-service and will help redefine the bank branch in the future. Could this be the bank of the future? Diebold Reimagines Financial Services Experience with Responsive Banking Concept It s refreshing and encouraging to see that a company with such a long and accomplished history is still capable of innovation in its industry, and I think Diebold has a bright future ahead. - Matt Frankel, Analyst

25 More than a solutions provider, Your innovation partner.