Simplify to Succeed - IBM

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By 2005, a couple of non-traditional financial service providers will make significant forays into retail financial services on the back of their brand and service differentiation. Simplify to Succeed—Retail financial institutions in 2005 “HSBC is increasingly aligning management competencies along customer segments. Our product departments have been combined into broad customer needs areas, e.g., long-term saving and investing, protecting your lifestyle. Combining this with segmentation of our customers into lifestyle segments has given us a platform for further customer driven development.” Tony Ashford General Manager, Personal Banking HSBC “For most financial institutions, CRM is not so much an analytical as an operational challenge: making customer information available to all.” Michael Koutstaal Programme Director Retail (Netherlands) ING “Customer segmentation… will be enriched by customer needs and customer potential.” Christian Poirier Senior Executive Vice President Strategy and Marketing Division Retail Banking Société Générale “AXA believes that the key differentiator from a customer perspective will be the individualisation of the offer.” Jean-Laurent Granier Market Director AXA France By 2005, quality of service will be the competitive frontier The neutral-to-negative perception that today’s consumer has of FIs leaves service quality wide open as a competitive feature. This will change as FIs strive to have best-in-class products and processes, and refine their product ranges and pricing. Structural change in the industry will also reinforce the emphasis on service quality: The focus on the customer will put a premium on service, as will the growing interest in meeting a customer’s overall needs. By 2005, leading FIs will be categorising their customers by lifestyle 14 Lifestyle 2000-3 Event-Based 1990s Product Channel
“FIs that are successful at delivering service quality will benefit through greater customer loyalty and wallet share, and by getting the customer relationship on to a complete, lifetime basis.” “Service is the key to differentiation.” Christian Poirier Senior Executive Vice President Strategy and Marketing Division Retail Banking Société Générale “Qualitative criteria, for example service quality, will be of great importance in employee bonus calculations.” Mariano Pérez Claver Caja Madrid Successful multichannel approaches will differentiate between type of customer and sales function By adopting sophisticated pricing strategies, FIs will be able to encourage customers to move to the most appropriate and profitable distribution channels. A physical presence will be essential to success: The move to the future is not about eliminating the physical side of distribution and moving to a Web-based approach. People continue to seek personal interaction, especially for advice-based products. The use of physical branches will continue, but these will be more tightly integrated into the multichannel approach, working side by side with mobile agents and other outlets. Their role will also become more sales-oriented; for example, they will make greater use of customer value metrics. “At a localised level, branch managers with their own P&L have the autonomy to fashion the customer experience according to segments using centralised knowledge management and process tools, while complying to formal centralised Nordea ethics and standards.” Lars G Nordström Member of Group Executive Management Nordea “ABN Amro is going to concentrate the knowledge for personal advice in only 80 branches, as part of a multichannel Service Concept.” Dolf Collee Member of the Managing Board ABN Amro 15 By 2005, leading FIs will successfully move to a channel agnostic model for distribution leading to increased differentiation in competitive positioning.
Page 1 and 2: IBM Business Consulting Services Si
Page 3 and 4: Retail financial services: ceaseles
Page 5 and 6: Simplify to Succeed 2005: John Cons
Page 7 and 8: Rethinking the business model The r
Page 9 and 10: The vision of a component-based bus
Page 11 and 12: Today’s typical models Customers
Page 13 and 14: Optimising the customer franchise C
Page 15: Successful FIs will radically redes
Page 19 and 20: Priority actions for tomorrow’s l
Page 21 and 22: Maximising the breadth, depth and f
Page 23 and 24: More FIs will build sources of reve
Page 25 and 26: Priority actions for tomorrow’s l
Page 27 and 28: consolidation still exists in the U
Page 29 and 30: Collaboration with financial instit
Page 31 and 32: have made savings averaging 40% to
Page 33 and 34: Third-party providers can become ma
Page 35 and 36: Take advantage of wage arbitrage op
Page 37 and 38: Moving to a component-based busines
Page 39 and 40: Sources 1 The Abbey National Group,
Page 41 and 42: About IBM Business Consulting Servi
Page 43 and 44: To learn more about our global Fina

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