Becoming a Customer Centric Bank. Presenter s Name Presenter s Title

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1 Becoming a Customer Centric Bank Presenter s Name Presenter s Title

2 Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle. 2

3 Agenda Leadership in Banking Becoming a Customer Centric Bank Results Achieved by Oracle Customers 3

4 Oracle in Banking Did You Know? 10 of the top 10 Global banks use Oracle Applications to run their business 23 of the top 25 North American banks use Oracle Applications to run their business 15 of the top 20 Global banks use Oracle Applications to measure and manage their performance 4

5 The Challenges We re Hearing Grow Business & Cross-Sell to Customers How can I streamline my business processes to grow wallet share and shorten time to market for new products and services? The average cost to acquire a new customer is $3,500 in the US Compliance & Regulatory Pressures How can my organization meet the increasing regulatory compliance demands? IT spend on compliance will grow annually at 14.1% and reach $3.0 billion by 2006 Scale Costs to Match Market Opportunity How can I improve cost efficiency ratios while providing greater value to our customers? In the near to intermediate term, the industry is expected to continue to experience pressures on its net interest margin 5

6 The Growth Challenge Grow Business & Cross-Sell to Customers How can I streamline my business processes to grow wallet share and shorten time to market for new products and services? The average cost to acquire a new customer is $3,500 in the US Annual Median Defection Rates (%) Defection rates are high while share of wallet remains low Average Number of Products at a Single Institution = US Canada 4 UK 2 France Average Number of Products Per Household = 15 Source: Celent Communications 6

7 A New Approach to Increasing Growth Become a Customer-Centric Enterprise A Customer-Centric Enterprise empowers employees with customer data and insight through end-to-end business processes to ensure the best decisions are made for both the company - and - the customer Customer at any customer moment of truth while providing a seamless customer experience. 7

8 The Customer-Centric Enterprise Key Imperatives Provide a seamless, unified customer experience for all customer interactions regardless of internal organization Transform customer data into actionable information by providing the right information to the right person at the right time Extend customer understanding throughout the enterprise thus enabling all functional areas to make informed, customer-based decisions 8

9 Agenda Leadership in Banking Becoming a Customer Centric Bank Results Achieved by Oracle Customers 9

10 Become A Customer Centric Bank Requirement Oracle Capability The Oracle Difference Provide a single source of truth for customer data Universal Customer Master for Banking Only complete repository for data across the enterprise accessible by a hub & spoke model Drive intelligent customer interactions Deliver multi-channel campaign & offer management Show a complete view of customer to customer agent Pre-built Customer Analytics for Banking Closed Loop Marketing for Banking 360 Degree Customer View Through Integrated Banking Sales & Service Only end to end performance & profitability analytics in context of customer interactions Only complete offer & campaign mgmt solution with built in analytics to measure & refine marketing programs Only multi-channel sales, service, marketing and transaction solution preintegrated with core banking 10

11 Become A Customer Centric Bank Requirement Oracle Capability The Oracle Difference Provide a single source of truth for customer data Universal Customer Master for Banking Only complete repository for data across the enterprise accessible by a hub & spoke model Drive intelligent customer interactions Deliver multi-channel campaign & offer management Show a complete view of customer to customer agent Pre-built Customer Analytics for Banking Closed Loop Marketing for Banking 360 Degree Customer View Through Integrated Banking Sales & Service Only end to end performance & profitability analytics in context of customer interactions Only complete offer & campaign mgmt solution with built in analytics to measure & refine marketing programs Only multi-channel sales, service, marketing and transaction solution preintegrated with core banking 11

12 Need for Single View of Customers Grow Business & Share of Customer Wallet Shift from product centric to customer centric view Improve the effectiveness of cross-sell and up-sell efforts Lower TCO Centralize customer information management Automate error handling, account setup & other administration costs Provide Consistent, Differentiated Service Create consolidated, customer profile across channels and operational systems Make informed decisions during customer interactions Detect and manage customer events Manage Governance, Risk & Compliance Meet rules for corporate governance, e.g. Sarbanes-Oxley Address risk management provisions, such as BASEL II Comply with regulations such as USA PATRIOT Act, Gramm-Leach- Bliley Privacy Act, ACORD, MiFID 12

13 Master Data Management Enables a Single View Complete Master Data Management Solution Enables a Single View Of Customers Creates and maintains a unique, complete and accurate customer information across the enterprise Distributes customer information to all operational applications just in time MDM enables organizations to: Know your customers Improve data quality Utilize customer insight during all customer interactions Comply with privacy and regulatory requirements Reduce data management costs 13

14 Master Data Management for Banking Provide a Single Source of Truth for Customer Data Integration Services OAS 10g Customer Data Hub Data Quality Services Web Services Siebel CRM ISV Partners Core Systems Oracle ERP 3 rd Party Vendors Update Customer Execute Survivorship Propagate Updates Synchronize Modify Customer Information Changes in any application are transmitted to master data hub Cleanse Data Determine Survivorship Merge Records Cross-Reference Customers Determine relevant systems Send new account information Publish updates into customer data hub from core and back office systems Respond to master customer changes 14

15 Consistent Customer Experience Across Channels Receive Offer Complete Application Close Sale Inquire on Account Request Service Branch Call Center Internet Relationship Manager 15

16 UMB Financial Corporation COMPANY OVERVIEW One of the largest independent banks in America UMB offers complete banking and related financial services to both individuals and business customers UMB s vision is to be recognized for the unparalleled customer experience Over 140 branch locations in 8 US States Employees: 3,500 associates Assets: US$ 8 Billion CHALLENGES/OPPORTUNITIES Multiple sources of customer information and multiple versions of the truth Wanted a flexible platform on which to build A need to empower their associates to fulfill UMB s mission: To know our customers and anticipate their needs; advocate and advise; innovate and surprise SOLUTIONS Customer Hub (UCM) Customer Relationship Management Trillium for Data Quality CUSTOMER PERSPECTIVE It is easy to make fact-based decisions when the facts are right in front of you. That is what ClientLink does, It puts the facts in front of you. - Kevin Kramer, Senior Vice President, Enterprise Sales RESULTS An increase in the research time available for associates to quantify the customer relationship Improved cross sale opportunities due to complete customer view Successful blending of nightly batch updates and real-time integration leveraging MQ Series 16

17 Become A Customer Centric Bank Requirement Oracle Capability The Oracle Difference Provide a single source of truth for customer data Universal Customer Master for Banking Only complete repository for data across the enterprise accessible by a hub & spoke model Drive intelligent customer interactions Deliver multi-channel campaign & offer management Show a complete view of customer to customer agent Pre-built Customer Analytics for Banking Closed Loop Marketing for Banking 360 Degree Customer View Through Integrated Banking Sales & Service Only end to end performance & profitability analytics in context of customer interactions Only complete offer & campaign mgmt solution with built in analytics to measure & refine marketing programs Only multi-channel sales, service, marketing and transaction solution preintegrated with core banking 17

18 The Value of Intelligent Interactions Better understanding of customer behavior and buying patterns Identify selling opportunities in real-time Target the right products to the right customers and the right time Understand customer value to move customers into more profitable relationships Retain high-value customers 18

19 Unique Value of Analytics Applications Leading Customer Analytics Solution with Banking Specific Analytic Applications Extends insight from front office to back office with insight into entire business process Lowers TCO, Speeds Time To Value Over 4 years of development and market success THE leading Customer Analytics solution Hundreds of successful customers Broadest support of Siebel CRM versions Enhances value of Front Office CRM investments Deeply integrated with CRM banking applications Integrated analytical insight into your CRM processes Pre-built ETL Maps/Data Integration, Dashboards & Reports 19

20 Pre-built Customer Analytics for Banking Drive Intelligent Customer Interactions Databases BI Dashboards Analytics Server Data Warehouse Customer Operational Executive Real-time Decisions Interaction History Customer Behavior Segment Migration Propensity to buy Performance Scorecards Operational Cost Analysis Bank Performance Analytics Line of Business Analytics Regional Analytics Trends KPI Monitoring Multi-channel Engine for Real Time Recommendations Retention Actions 20

21 Sales Analytics Complete Solution for Entire Sales Cycle Sales Analytics Analyze pipeline opportunities and forecasts to determine actions required to meet sales targets. Determine which products and customer segments generate the most revenue and how to effectively cross-sell and up-sell. Understand which competitors are faced most often and how to win against them. Usage Accelerator Analytics Option Add-on to Sales Analytics empowers front line managers with the information needed to effectively manage their team s usage. Removes the ambiguity and focuses users on the information they need to maintain. add Profitability Analytics for insight into customer and product profitability Profitability Analytics Oracle Financial Services Applications (OFSA) and Oracle Business Intelligence Enterprise Edition are now completely integrated, providing financial services organization with industry leading profitability analytics delivered using the industry leading Business Intelligence platform. 21

22 Service Analytics Complete Solution for Entire Service Lifecycle Service Analytics Complete analysis of the business aspect of the services organization. Includes analysis of the call center and field service business to understand the true cost to serve in a complex service business add Oracle Contact Center Telephony Analytics for complete insight Contact Center Telephony Enables the measuring and managing of multi-channel contact center operations, key business processes and activities by providing increased operational effectiveness through detailed staffing, headcount and scheduling analysis Also provides increased business value through complete campaign and sales performance insight by agent and across customer, product, service and region. 22

23 Marketing Analytics Complete Solution for Entire Marketing Organization Marketing Analytics Campaign Analytics - Provides Campaign Results data by Offer, Segment, Agent performance. Manager can monitor a campaign scorecard and identify root causes for shortfalls in meeting predicted goals Customer Analytics - Provides product affinity, market basket and next product purchased analysis. Provides demographic information and information on impact of customer behavior due to marketing activities. Event Analytics - Provides Analytics related to management of trade shows, customer events etc. Marketing Events Analytics can show analysis of Event registrations, expenses on supplies by vendor, region, event etc., Event ROI analysis that is fully integrated with Marketing Planning Analytics. Marketing Planning/Executive Analytics Provides Marketing Planning related information. The information is organized for different roles like Marketing Executive, Director, Finance Director. The dashboard also has a Sales Alignment page to allow Sales and Marketing Executives to co-ordinate activities 23

24 Wachovia Gains Enterprise View of Performance COMPANY OVERVIEW Wachovia Corp. created on Sept through merger of First Union and the former Wachovia Assets of $700 billion as of 3/31/07 20 million retail, brokerage and corp. customers through East Coast and U.S. 4th largest banking company in U.S. CHALLENGES/OPPORTUNITIES Create a single view of customers across all channels Reduce dependence on IT to execute marketing campaigns Optimize revenue over the lifetime of a customer relationship Allow Call Center agents to switch between inbound service calls and outbound marketing campaigns SOLUTIONS Siebel Analytics CUSTOMER PERSPECTIVE "We have been extremely impressed with the ability to bring data together from disparate sources and make it easy to access and leverage across the organization. Brian Collins, Technical Sponsor at Wachovia IB RESULTS Increased asset under management: 12% annualized loan growth, improved cross-sell opportunities Reduced lead time, prospect-to-client Reduce time to prepare for Annual Client Meeting reviews Increase communication across team Improved response time for client inquiries Proactive identification of client needs 24

25 Become A Customer Centric Bank Requirement Oracle Capability The Oracle Difference Provide a single source of truth for customer data Universal Customer Master for Banking Only complete repository for data across the enterprise accessible by a hub & spoke model Drive intelligent customer interactions Deliver multi-channel campaign & offer management Show a complete view of customer to customer agent Pre-built Customer Analytics for Banking Closed Loop Marketing for Banking 360 Degree Customer View Through Integrated Banking Sales & Service Only end to end performance & profitability analytics in context of customer interactions Only complete offer & campaign mgmt solution with built in analytics to measure & refine marketing programs Only multi-channel sales, service, marketing and transaction solution preintegrated with core banking 25

26 The Need for Closed-loop Marketing Consumers Demand a Richer and More Relevant Dialogue Traditional (direct and above-the-line) marketing is not working Average response rates for traditional direct marketing activities just 2.6% 1 Pray and spray marketing destroys relationships as well as brand value Consumers see over 3,000 (direct/indirect) marketing messages each day. Over 60% cite oversolicitation as a reason to defect. 2 Under Pressure for Accountability, Alignment and Proven ROI from Marketing Investments Expenditure is huge, results are unproven, processes are inefficient Where measurable, 20% of marketing spend is wasted 3 It must be accountable, for every action taken and every dollar spent Marketers cannot calculate ROI for 40-60% of spend 3 26

27 Closed Loop Marketing for Banking Open, flexible, business intelligence platform Powerful descriptive and predictive analytics Pre-built dashboards, personalized access Customer & Business Insight Fact-based planning & budgeting Enterprise calendar Project and content management Align and optimize spending Marketing Reporting & Analytics Planning & Resource Management Closed loop tracking Role-based, real time analytics Continuous learning Response & Lead Management Manage Understand Customer Measure Plan Execute Campaign Management Segmentation and targeting Campaign design and execution Targeted loyalty campaigns Multi-channel response capture Collaborative lead management Integrated ROI analytics Events Management & Execution Events management Invitation, registration, follow-up Integrated customer-facing portal 27

28 Closed Loop Marketing for Banking Complete Multi-Channel Marketing Solution with Embedded Insight & Segmentation Tools Best-in-class marketing solution that aligns and optimizes corporate and branch marketing Coordinated communications across channels and collaborative execution with branches and relationship managers Tightly integrated with channels including call center, branches, field, and partners for superior customer experience and closed-loop execution Complete end-to-end solution that links strategy and planning with execution and measurement Fusion of insight and action for accelerated campaign execution and intelligent offer recommendations 28

29 Closed Loop Marketing for Banking Deliver Multi-Channel Campaign & Offer Management Acquisition On-Boarding Retention Segment Create Execute Analyze Define Customer Segments Slice & Dice Segmentation Data to Refine Queries Design Multi-Stage Campaign Attach Offers to Campaigns Test Campaigns Assign Channels Initiate Campaign Waves Monitor Campaign Progress Adjust Campaigns Review Campaign Calendar Review Campaign Effectiveness Monitor Results in Real-time Evaluate Offers Compare Campaigns 29

30 NyKredit Improves Campaign Management COMPANY OVERVIEW One of Denmark s leading financial institutions Provides retail banking, mortgage and insurance services Approx. 450,000 private customers and 80,000 business customers Industry: Financial Services CHALLENGES/OPPORTUNITIES Create a single view of customers across all channels Reduce dependence on IT to execute marketing campaigns Optimize revenue over the lifetime of a customer relationship Allow Call Center agents to switch between inbound service calls and outbound marketing campaigns SOLUTIONS Siebel Marketing Siebel Marketing Siebel Call Center Siebel Analytics CUSTOMER PERSPECTIVE Using Siebel ebusiness Applications, our customers can switch between the branch, the call center, or the Web without interruption. They receive enhanced more satisfying experience and are more likely to become long-term loyal customers. - John Anker Moeller, VP, Sales and RESULTS Marketing Reduced dependence on IT support Campaigns are now created and executed in days rather than weeks Realized improved response rates due to a single, consistent view of the customer Improved cross-sell and up-sell Better coordination of marketing efforts across all customer touchpoints and maintenance of continuous dialogue 30

31 Become a Customer Centric Bank Requirement Oracle Capability The Oracle Difference Provide a single source of truth for customer data Universal Customer Master for Banking Only complete repository for data across the enterprise accessible by a hub & spoke model Drive intelligent customer interactions Deliver multi-channel campaign & offer management Show a complete view of customer to customer agent Pre-built Customer Analytics for Banking Closed Loop Marketing for Banking 360 Degree Customer View Through Integrated Banking Sales & Service Only end to end performance & profitability analytics in context of customer interactions Only complete offer & campaign mgmt solution with built in analytics to measure & refine marketing programs Only multi-channel sales, service, marketing and transaction solution preintegrated with core banking 31

32 Operational Questions Multichannel Management How can I provide a consistent view of customer information across channels? Managing Sales Processes How do I support my employees in selling services to customers? Multichannel Support Identify Customer Needs Execute Service Delivery How do I create consistent service experience across all channels? Service Technologies How do my channels work together to provide seamless processes to the customer? 32

33 Complete Sales and Service Platform Provide Customer Centric Service Service Management Financial accounts Service request management Lead management / Referrals Branch Teller Financial transactions Cash management Contact Center Embedded CTI toolbar Universal queuing Call monitoring Performance scorecards Integrated Analytics with pre-built dashboards While Increasing Sales Effectiveness Complete sales application Account origination for consumer deposit, loan & mortgage accounts Needs analysis and product recommendation Integrated real-time decision engine for dynamic product offers and recommendations Fulfils referrals generated from Teller and all other channels 33

34 360 Degree Customer View Through Integrated Banking Sales & Service Show a Complete View of Customer to Customer Agent Agent Desktop Web Services Core Systems Single View of Customer Guided Selling Opening / Fulfillment Service Management Real-time Balances Account Details & Transaction History Contact & Opportunity Management Interaction History Cross-Sell/Up-sell Sales Offers Needs Analysis Product Catalog Product Features / Benefits Multi-product application processes Data capture Document fulfillment Account Funding Financial Transaction Support Common Service Issue Management 34

35 Customer Centric Banking Solutions Channels Branch Sales & Service Call Center Lending Internet Branch Teller Functions Leads & Referrals Guided Selling Origination & Fulfillment Maintenance Transactions Campaigns Offers Incentive Tracking Needs Analysis Task User Interface Collaborative Sales Deposit Origination Lending Origination Document Generation Self Service Activities Service Management Cashboxes Electronic Journal Store & Forward CRM Core Components Consistent Customer Experience Across Channels Real Time Decision Engine Workflow Engine Rules Engine Financial Transaction Engine Assignment & Routing Engine Product Configuration Engine Customer Data Integration Products Master Customer Master Service Master Marketing Master 35

36 Rabobank COMPANY OVERVIEW Rabobank is by far the largest and most dense network in the Netherlands consisting of 2,942 contact points. 7 MM customers, 1200 branches Full range of banking services CHALLENGES/OPPORTUNITIES Improve multi-channel customer service Link the call center, the internet & local branches Reduce time to market for new products Increase focus on individual customer SOLUTIONS Standardize front office application cockpit Set up and implement new business processes Provide continuity, stability, simplicity and cohesion CUSTOMER PERSPECTIVE The single, complete view of the customer and prospects means we are now able to track and trace lead management from start to end. - Tonnie van der Horst, Program Manager RESULTS Sales/banker/day increased 45% Cross-selling up 1% a month All 300 community banks use one front office system Rolled out to all users in 18 months Client data, client contact information, lead and sales information is consistent across the bank Lead-management process and management control successful Can now measure results & reward performance 36

37 Banco de Chile COMPANY OVERVIEW Largest Chilean owned bank Merger of Banco Chile and Banco Edwards 9,500+ Employees, 1,300+ ATM, 260+ Branches $18B Assets, 660K Credit Cards, 400K Checking Accounts CHALLENGES/OPPORTUNITIES Consistently manage client relationships across channels Transform entire bank processes Front office Core banking Corporate administration Deliver lower Operating Costs, improved Customer Service and new up sell & cross-sell opportunities SOLUTIONS FLEXCUBE for Retail and Corporate Banking Siebel CRM & Teller for multi-channel front office Oracle ERP for Procurement and HR Oracle BI for Sales & Campaign Analytics CUSTOMER PERSPECTIVE Oracle is a strategic partner enabling the transformation at Banco de Chile. The bank is better able to meet its customers demands by deploying new products to market faster. - Ruben Farias, Vice President of Development RESULTS Improved Sales (23% YOY growth) Improved Sales Quality and Efficiency Volume Increase (1.3mm customers) Automation of Sales and Credit Processes Responding quicker to customer care claims Control over Finance & Accounting processes Automation of and control over Management and HR Processes 37

38 Summary Universal Customer Master for Banking Only complete repository for data across the enterprise accessible by a hub & spoke model Pre-built Customer Analytics for Banking Only end to end performance & profitability analytics in context of customer interactions Closed Loop Marketing for Banking Only complete offer & campaign management solution with built in analytics to measure & refine marketing programs 360 Degree Customer View through Integrated Banking Sales & Service Only multi-channel sales, service, marketing and transaction solution pre-integrated with core banking 38

39 The Only Complete Banking Solution Platform Processes Customer Results People Partners 39

40 40

41 Market-Leading Middleware Platform Best-Selling 32,000+ Customers Deployed 70% of World s s 50 Largest Firms $1B+ Business Highest Rated Only vendor in Gartner and Forrester leader quadrants for all Middleware components. Most Comprehensive Source: Forrester Research ranking of Application Platform Servers, April 2005 SOA Vendor of Choice 41

42 Oracle s People Advantage 220,000 database customers 1700 application ISVs 30,000 applications customers 275,000 customers benefiting from shared innovation 30,000 middleware customers 29,000 developers, support engineers and consultants 1300 participants in early customer adoption programs 5000 middleware ISVs 950 customers participating in Customer Advisory Boards 9000 database ISVs 35 Fusion strategy council members 425 user groups 500 Industry & Product strategy council members 42

43 Agenda Leadership in Banking Becoming a Customer Centric Bank Results Achieved by Oracle Customers 43

44 What Customers are Achieving Our Multi-channel Program delivered by PeopleSoft Enterprise CRM, enables every ABN AMRO Bank client to choose how and when they wish to communicate with us. This allows us to be trendsetters in our industry. we saw a 29% increase in the ratio of opportunities created to the number of cashier transactions processed. We also recorded a 13% increase over that period in the ratio of actual referrals to original approaches made to customers. Oracle s Siebel Finance is at the heart of Robeco Bank Belgium s strategy to manage the life cycle of the customer relationship. Account managers are managing 20% more customers each using Siebel Finance. In the four years since the Siebel deployment, average sales for CRM-enabled branches have increased by 71% for auto loans, 110% for mortgage lending, and 164% for credit card applications. 44

45 Industry Quotes With a highly scalable, comprehensive solution, Oracle s Siebel CRM provides best-of-breed marketing and sales tools Let s face it Oracle understands the needs of FSIs at a broad level. Oracle has been kicking its game into high gear. With 22 acquisitions in 24 months, the longtime database kingpin and middleware applications player has gorged on new products and capabilities The buying binge also have served to reinforce the company's commitment to amassing deep expertise in financial services-something not lost on clients in that industry. Oracle s acquisitions of PeopleSoft and Siebel give it a more significant footprint in business intelligence (BI), analytic applications, and performance management. Oracle s Siebel purchase should drive more value for customers through integrated business management applications, and deliver existing Oracle customers with more sophisticated CRM functionality. 45

46 The Oracle Difference Only Oracle offers Complete repository for data across the enterprise accessible by a hub & spoke model End to end performance & profitability analytics in context of customer interactions Complete offer & campaign management solution with built in analytics to measure & refine marketing programs Multi-channel sales, service, marketing and transaction solution pre-integrated with core banking 46