A Renaissance in Retail Banking

Banks are realising that their customers want to discuss their finances face-to-face and are drawn to branches offering enhanced customer experiences. Philippe Gogniat explains what Cisco is doing to transform the customer experience in the branch.

For the last few years most retail banks in Europe have been closing branches. With online and telephone banking widely available, it no longer makes business sense to maintain an extensive branch network.
The customer, however, as countless surveys have revealed, prefers to interact with the bank via the branch. Now, as competition has shifted from a cost focus to providing the best customer experience, banks are changing their strategy before too many customers vote with their feet.

A New Banking Experience
Fortunately, explains Cisco’s Philippe Gogniat, this presents a perfect opportunity for banks to reinvent the retail banking experience. ‘This shift in strategy creates an opportunity to move towards value banking. Business processes, people and technology must be transformed to bring value banking to customers when they walk into the branch.’

At present, branches exist in a disconnected environment. Gogniat says: ‘It is a challenge for a branch to offer the customer a 360º view of his or her assets. Challenges include queue management, availability of skilled advisors, as well as targeted, in-branch advertising, to name a few.’

The problem stems from the disparate platforms, whether phone system or data network, on which the business processes relating to the different services the bank provides are constructed. Because the systems were built in silos, using different applications, it is difficult for many banks to deliver a connected banking experience.
Customers, however, are demanding better service from their branch. For banks, serving customers more effectively creates opportunities to sell more products through a multichannel environment – whether via BlackBerry, computer or bank teller.

Integrated Banking
Gogniat adds: ‘On the customer facing side there needs to be an integrated customer relationship management platform so the customer can walk in and can see a screen with all their assets combined on it. For the bank, the challenge is to move to a more horizontal model, cutting across the separate business silos.’

The solution represents a converged network, which becomes the enabling platform for a better retail banking customer experience. Gogniat adds: ‘The network is crucial for modern banking. It allows services such as ATMs, telephone infrastructures, call centres and video to be connected to each other.’ The network solution delivers the bank of the future today. For example, Cisco TelePresence® allows customers to chat with a virtual expert advisor using high-resolution and Dolby stereo.

Cutting Costs
There is a cost advantage too, says Gogniat: ‘The physical security of the branch can be managed from a distance via the IP network. Banks can lower their operating expenditure by integrating voice, data, video, fire alarms, intrusion devices and CCTV cameras through the same (IP) pipe.’

The technology is a tool that will enable an improved customer experience to deliver value banking. ‘We sit down with our clients and have an innovation and transformation discussion,’ explains Gogniat. ‘We talk about what enabling technology is available to them and what can be done to substantially improve the customer experience through the convergence in business processes and technology,’

In concluding, Gogniat says: ‘As concepts from the retail industry make their way into the retail banking sector, banks across Europe are beginning to embrace the new web 2.0 technologies and their relevance for consumerisation. Leveraging this new dynamic and transforming the customer experience is a key focus for banks in Europe.

‘Cisco is well positioned to provide a leadership role in this space in order to help our European Financial Services customers to take full advantage of the value chain of this new paradigm.’

Philippe Gogniat
Director
Financial Services Industry Solutions
European Markets
pgogniat@cisco.com