Excellence in Operations. Getting the basics right in banking

Transcription

1 Excellence in Operations Getting the basics right in banking

2 Getting the basics right in banking Overview Banks are currently focusing their efforts on complying with increasingly complex regulations and responding to the challenging economic environment. However, customers are now more likely to switch banks if the basic services are unsatisfactory. According to Ernst & Young (EY) research, 1 nearly two-thirds of customers have left or are considering leaving their main bank because of the poor quality of service provided. Getting the basics right by focusing on the critical customer interactions will not only help minimize customer attrition, but will also help reduce the combined cost associated with operational processes and regulatory compliance. We understand the challenges you face Customer service Customers are increasingly moving elsewhere because of frustration with operational service failures within core services such as payments, collections and recoveries, and contact centres. Regulatory changes New and more complex regulatory requirements will intensify the pressure on retail banks as they are costly to implement. Cost and efficiency Cost reduction is no longer good enough to stay competitive. Banks must understand the impact of their efficiency programs on their customers. Enabling technology Enabling technologies such as Image and Workflow are essential but also costly to implement. Many retail banks do not have the funds to deploy essential technology or upgrades in critical business areas. People and change Many initiatives will fail to achieve the targeted benefits due to an insufficient focus on change management and a misunderstanding of the cultural implications of change. 1 Ernst & Young s Global Consumer Banking Survey 2012 The customer takes control

3 Critical customer interactions To address these challenges we have identified a series of critical customer interactions that retail banks need to focus on to get the basic services right. Account closing Changes t o fees and charging structure Change of account details Account opening Account switching Critical customer interactions Complaints handling Life events Setting up a payment First time in collections Lost or stolen card

4 EY s insights Our tools and methodologies involve assessing the maturity of each relevant critical customer interaction to help improve customer satisfaction and reduce attrition levels, in addition to helping you achieve cost efficiency and regulatory compliance. We can assess the effectiveness and maturity of each critical customer interaction across the following five operating model dimensions: Strategy 4 3 Process and policy 2 1 People and organisation Technology and data Performance management Level 1 Underdeveloped Level 2 Basic Level 3 Established Level 4 Leading The organisation does not have an adequate plan to addresses challenges. Usually reactive and on an ad hoc or crisis basic only The organisation has a basic, or fundamental, approach to addressing the issues and concerns in this area The organisation has a formal plan and/or approach to dealing with the issues, problems and risks in this challenge area The organisation is a leader among its peer group in this area and leverages leading practices to creating value, manage risks and rationalise costs We can work through this approach with you from inception and design all the way through to implementation, across your entire organisation or just in a specific functional area, such as: Collections and recoveries Complaints handling Contact centre operations Fraud management Loan operations Mortgage operations Payment operations

5 Getting the basics right in banking How EY can help We put the customer at the centre of operations. With our research and experience, we know what customers expect and can help you develop leading practice. Working with us gives you access to: Over 220 operations professionals across Europe with extensive industry experience in helping deliver efficient and effective operations while also delivering great customer experience Knowledge to help you deal with regulatory and operational changes simultaneously Experience working with the largest global retail banks and the know-how to help you design and implement large-scale changes Insights into what leading-practice for each critical customer interaction looks like, gained through our work with major retail banks The right tools and methodologies to help you from inception through to implementation, including dealing with significant cultural and organisational changes Our approach is tailored to individual client needs and is based on working with you rather than dictating to you. We will align our approach to your requirements and ways of working. Contacts For more information on how we can help, please contact one of our team members. Patricia Stack Ireland patricia.stack@ie.ey.com Lisa Reen Ireland lisa.reen@ie.ey.com

6 EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organisation and may refer to one or more of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organisation, please visit ey.com Ernst & Young. Published in Ireland. All Rights Reserved indd 01/14. Artwork by the BSC (Ireland) ED None. Images from Shutterstock.com The Irish firm Ernst & Young is a member practice of Ernst & Young Global Limited. It is authorised by the Institute of Chartered Accountants in Ireland to carry on investment business in the Republic of Ireland. Ernst & Young, Harcourt Centre, Harcourt Street, Dublin 2, Ireland. Information in this publication is intended to provide only a general outline of the subjects covered. It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice. Ernst & Young accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material. ey.com