CUSTOMER EXPERIENCE MANAGEMENT THROUGH

FINACLE
Agenda/Topics To Be Covered
• CUSTOMER EXPERIENCE MANAGEMENT
• CUSTOMER LOYALTY
• WHAT IS CBS
• CUSTOMER RELATIONSHIP VIEW
• DEPENDENCIES
• Q&A
CUSTOMER EXPERIENCE MANAGEMENT
• Every Time a Customer comes into contact with an Enterprise –
whether through
– The People;
– A Web site;
– Advertising Campaigns; or
– Marketing materials
The Customer has an opportunity to form an opinion, be it
– Good
– Bad
– Indifferent
CUSTOMER EXPERIENCE MANAGEMENT
• Customer Experiences
– Are both logical and emotional
– Can be designed
– Convey Value
– Usually influence future behavior more than the product or
service does
– Involve all five senses
– Must be managed
CUSTOMER EXPERIENCE MANAGEMENT
• Common mistakes when thinking about Customer Experience
– Considering only the logical or rational part of an experience,
e.g., the product said that I could remit money free of charge,
when a large part of customer experience is emotional, e.g.,
my son could not have a bike on his birthday as the Term
Deposit was not encashed in time
– Forgetting that an experience involves all five senses, e.g., a
front desk employee is selling a great product, say “Super
Sixer” but is chewing tobacco or pan or is shabbily dressed
– Confusing the product or service design with experience design
– Underestimating the value of an experience
CUSTOMER EXPERIENCE MANAGEMENT
CUSTOMER EXPERIENCE MANAGEMENT
The Economics of Poor Customer Experience 29920 customers
At risk 34%
Rs. 1,49,60,000/-
Translated to BOB Issue Not Resolved
20 million customer
Revenue = Rs. 1000 crores Defect – 28% 24640 customers
Rs. 1,23,20,000/-
Average Revenue per customer = Rs. 500
88000 Resolved – 38%
Complain customers
Poor Experience 2%
44,00,000
22% customers
At Risk – 55%
2371600 customers
Decline in wallet Rs. 118,58,00,000/-
43,12,000 share
Positive Do Not customers
Experience Complain
78% 98%
1940400 customers
Defect – 45% Rs. 97,02,00,000/-

Total Lost Revenue = Rs. 2,72,80,000 + Rs. 215,60,00,000 = Rs. 218,32,80,000

Customer Loyalty
• Very Important for the enterprise
• Silent Attrition - We tend to focus on vocal dissatisfied customers,
while ignoring the silent ones
• It can cost 30 to 40 time more to attract a new customer than to
retain an existing customer
• An increase of only 5% in customer retention can translate into a
25% to 55% increase in profitability
Customer Loyalty – An example
Profitability Based on Length of Customer Relationship
<6 6-12 1-2 YEARS 2-5 YEARS > 5 YEARS
MONTHS MONTHS

% OF
24% 25% 24% 19% 8% CUSTOMERS

% OF
4% 13% 26% 32% 25% PROFIT

49% Customer provide 27% Customer provide

17% Profits 57% Profits
CBS, Customer and YOU
• How Can CBS assist in the creation of
– Positive Customer Experience; and
– Customer Retention
• CBS is NOT a substitute for “emotional bonding” with the
customer
– But CBS can provide some inputs for creating “emotional
bonds”
• CBS CANNOT provide any sensory experience
What is CBS
• CBS is a
– TRANSACTION PROCESSING,
– CENTRALIZED
Application Software
• Transaction Processing is the backbone of BANKING
• Transaction Processing requires that we have CUSTOMER DATA
• Since CBS is centralized, it means that the same CUSTOMER AND
TRANSACTION DATA is available to each and every operational
unit connected to the central Data Centre
CBS enables
• Any Where Banking
– Geography becomes redundant, the world becomes a village
– Customer can derive the benefits of our LARGE FOOTPRINT
– Our Customers can enlarge their MARKET SIZE – “wherever
you go, BOB is available to SERVICE your needs”
– Our customers can deposit their cheques ANYWHERE and get
IMMEDIATE CREDIT
– Our customer’s suppliers can get IMMEDIATE CREDIT for
cheques issued
– Our customers can REDUCE THEIR RISK by depositing CASH at
any CBS branch
CBS enables
• Uniform Banking Experience
– One Version of Truth
– Product features UNIFORM across all Branches
– Fees, Interest Rates, Charges UNIFORM across all Branches
– Changes in Fees, Interest Rates, Charges happens INSTANTLY
AND FOR all branches AT THE SAME TIME
CBS enables
• ANY TIME BANKING – ATM, E-commerce
– The Bank never sleeps – 24/7 Real Time
– Cash withdrawal through ATMs
– Fund Transfers through “Baroda Connect”
– Tax Deposits – Direct Taxes, Indirect Taxes
– Bill Payments
– Shopping Mall
– Railway Booking
CBS enables
• New Channels for Service Delivery
– Internet Banking
– SMS banking
– Electronic Channels – Email/Softcopy for Statements of
Accounts
• New Products
- Salary Linked Accounts
- Pooling of Accounts
How You Can Serve through Finacle
• Use “Customer Relationship View” (CRV) for
– A complete unified view of the customer
– CRV provides true GUI and drop down lists
– Summary & drill down
– Extensive search capabilities
– WSIWYG printing
– Online data
– Online context sensitive help
 The CRV Screen

Horizontal Menus Online Help

WYSIWIG
Printing
Search Icons

Hyperlinks for Summary Info

detailed info

Vertical Menus
CRV - Broad Classification
• Customer Level Detail
• Account Level Detail
• Limit & Margins Detail
• Trade Finance Details
CRV – Customer Level Links
• Customer Search
• General Details
• Account Inquiry
• Summary Portfolio Statement
• Turnover
• Maturities
• Sweep Details
CRV – Account Level Links
• General Details
• Transaction Inquiry
• Balance Details
• Interest Inquiry
• Inward Cheques Inquiry
• Outward Cheques Inquiry
• Account Turnover Details
• Limit Details
• Related Party Inquiry
CRV – Account Level Links
• TD Transaction Details
• TD Interest Details
• TD Tax Deduction Details
• TD Renewal History Details
• Asset Classification
• Loans Inquiry
• Delivery Channel Transaction
• Bill and Coll History of Revolving OD
• Interest Rate Inquiry
• Loan General Details
• Repayment Schedule
• Collection and Past Due Inquiry (including charges)
• Ledger Inquiry
• Inquiry on Interest
• Inquiry on Charge Off and Non Accrual
• Messages Inquiry
• Documents Inquiry
• Loan Late Fee Details
• IRR Inquiry
Limit & Margin Links
• Customer Limit Details
• Limit Node Details
• Customer Collateral Details
• Insurance Details
• Limit Tree Details
Trade Finance Links
• Import
– Documentary Credit
– Bills
• Export
– Documentary Credit
– Pre Shipment Credit
– Post Shipment Credit
• Inland
– Inward DC
– Outward DC
– Bills
• Forward Contracts
• Bank Guarantees
• Remittances
• Inward
• Outward
Dependencies
• A computer is a GIGO machine
– Quality of Data, a PRIME dependency
• Cleaning existing data – Addresses, Dates of Birth, De-
duplication of Customer IDs, New Cust IDs for Joint Holders
• Cleaning of Migrated Data
• Data Enhancement – Email addresses, Telephone Numbers
– Missing Data
• Cheque Books Issued but not entered in Finacle (Inter-SOL
transaction – Any Where Banking – denied)
• Signature not uploaded/not verified – Any Where Banking
denied
Dependencies
• Single window service delivery
– Universal Teller
– Use Customer Terminal for Internet Banking
• Marketing New functionalities – encourage customers to use
channels other than Branch
– Internet Banking – Fund Transfer, Payment of Taxes, Bill
Payment
– Debit Cards, Credit Cards
• Training of Front-line staff
– Finacle
– Behaviour
Q&A
Thank you