SBC Vertical Markets Retail Banking Overview - PowerPoint PPT Presentation

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SBC Vertical Markets Retail Banking Overview


SBC Vertical Markets Retail Banking Overview 2005 Update – PowerPoint PPT presentation

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Title: SBC Vertical Markets Retail Banking Overview

SBC Vertical MarketsRetail Banking Overview
  • 2005 Update

Banking Industry Session Outline
  • Section 1 The Banking Vertical
  • Section 2 Defining the Banking Opportunity
  • Section 3 Positioning with the Banking Customer
  • Section 4 Success Stories
  • Appendix Additional Resources

The Banking Vertical
Financial Markets

Financial Services Vertical
Cap Markets
Stock trading Options and commodities Investment
Traditional Banks Savings Institutions Credit
Unions Credit Cards
Funds/trusts Central bank/currency
Real Estate
Commercial and retail bankinglargest opportunity
for non-insurance financial services about 55
of vertical revenue.
Overall Market Size Financial Services
Expected CAGR (2003 2010) 2.17
IT Spending World-wide Upside
Source Worldwide IT Spending 20042008 Update by
Vertical Markets, IDC 32668
Largest Spend Average Growth Significant
Overall Financial Market - Projected IT and
Telecom Spending
Defining the Opportunity
Telecom Expenditures Banks
Expected CAGR (2003 2010) 3.58
Telecom Services Breakout Banks
Opportunity Segmentation
gt 70 in Region
Total SBC Share of Segment 720 Million
Top 10 Banks in Vertical IT and Telecom Spend
Section 3Positioning the Customer
Challenges Drivers
Business Continuity, Compliance Risk Management
  • Sarbanes-Oxley Act (SOX)
  • Check-21
  • Gramm Leach Bliley Act (GLBA)
  • The Patriot Act
  • Basel II
  • Increasing and Changing Regulations

Transforming the Branch and Enabling the Front
Office Improved Service, New Revenue
  • Increased competition
  • Expanded portfolio
  • Most expensive channel
  • Need for incremental revenue
  • Front-line execution of relationship-based
  • Integration of delivery channels
  • Demand for Consistent customer experience
  • Differentiation through customer service
  • Relationship-based strategies

Enhance the Customer Experience
  • Continuity of Government and Disaster Recovery
  • Multiple networks, duplicate resources and
    complexity resulting from MA activity
  • Site to site collaboration
  • Customer demand for varied points of access
  • Resource shifting to meet changing customer needs

Cost Control Operational Efficiency
  • Continuity of Government and Disaster Recovery

Source Nortel
Regulatory IssuesImpacting Banks
Requires financial services companies to improve
capabilities to identify customers flag
suspicious transactions (anti-money-laundering
and anti-terrorism programs now required)
Requires integrating back end systems
upgrading storage and hardware infrastructure
Sarbanes Oxley Actpublic company disclosure on
effectiveness of internal controls on financial
reporting Requires a framework for internal
control, rules, processes audit trail
The SOX Act
The law facilitates check truncation by advancing
the use of a new negotiable instrument referred
to as a substitute check. The law enables wide
spread creation and use of substitute as a
routine practice, not simply for damage or
destroyed checks.
Check 21
The Gramm Leach Bliley Actrequires that
financial institutions protect consumers
personal information. Requires distribution of
privacy notices Requires networking apps that
enable a consolidated view of customers across
multiple divisions. Increases competition by
broadening allowable offerings.
The Role of the Branch has Evolved
Critical Success Factors
Branch Strategies
  • Customer empowerment
  • Virtual agency
  • Specific value propositions

Advisory Skills, Excellence in Customer Experience
Branch as Wealth Center
Sales Skills, Incentives, Product Knowledge
  • Best of breed manufacturer of products,
  • Advantage based on scale,process excellence

Branch as Sales Office
Scale, Flexibility, Efficiency
  • Physical and virtual fulfillment
  • Supply chain management
  • Infrastructure management

Branch as Service Center
Alliance Skills, Open Strategy, Control Points,
  • Price discovery
  • Intermediation
  • Risk management

Branch as Marketplace
Source IBM
Bank Branches are Looking to
  • Provide new customer productivity tools on every
    branch phone
  • Simplify management of moves, adds, and changes
  • Manage all centralized customer calls and give
    every employee in each branch a complete view of
    every customers account
  • Ensure that the most appropriate sales or service
    employee answers calls from the most appropriate
  • Enhance corporate communications by allowing
    employees to receive company information in a
    timely manner
  • Give senior executives more visibility by
    allowing them to talk to all branch employees
    live, every day in a TV format
  • Have real-time branch surveillance for
    productivity management and law enforcement
    support in hold-up situations
  • Distribute media for advertising, training or
    cross-selling promotions to all branches without
    increasing bandwidth charges
  • Push real-time information to tellers and agents,
    keeping them abreast of current information, via
    XML applications.

Customer Experience The Things Network Allows
You to Do
Network Security integrated with Regulatory
Centrally managed Locally delivered
E-Learning Digital Marketing Corp. Comm.
Centrally Managed Video Surveillance
HVAC Security
ATMs Kiosks
Cost Control Solving Problems w/ Technology
Telecom Trends Address Financial Critical
Success Factors
Business Continuity Robust networking Redundant
networking w/ backup datacenters Complete
security practices with Implemented solutions
  • Robust networking
  • Reliability
  • Uptime of networks is increased due to
  • best practice architectural approach to network
  • Interoperability
  • Multiple solutions work together based on one
    common architectural approach
  • Security Managed Solutions provides
  • 24x7x365 security response ability
  • router, firewall, anti-virus, and IDS rule
    setup documentation
  • Anti-virus auditing report
  • Network security monitoring raw data logs
  • Security threat monitoring log
  • Redundant networking with backup datacenters
  • Availability of mission critical applications
    customer info

Customer Experience and Service IP Telephony Web
and voice based conferencing services VPNs for
Branch and WAN connectivity Extensive web based
Cost Control Operational Efficiency Converged
single network State of art wireless
solutions full branch connectivity and
flexibility Image, storage and hosting
How Much Does an Outage Cost?
Applications Downtime (/minute)
ERP (order entry) 13,000
Supply chain mgmt. 11,000
E-commerce 10,000
Internet Banking 7,000
Customer Service center 3,700
Electronic funds transfer 3,500
Messaging 1,000
Survey by Standish Tower Group
Telecom Trends Address Financial Critical
Success Factors
  • IP Telephony
  • Centralize and integrate contact center
  • Leverage agent resources over multiple sites
  • CTIallowing agents to see whos calling before
    picking up call
  • Merge voice over with e-commerce websites
  • Transfer calls between branches and virtual
    contact centers
  • Conference calling services for employees and
  • Mobility
  • Intelligent call routingallowing access to voice
    data via phone, laptop, PDA or any device
  • Wireless LAN phones connect to wireless access
    points throughout branch
  • VPN
  • Connectivity between branches
  • elearning
  • Broadcast messages of products promotions
  • Leverage all resources of the branches to give
    smaller stores the same look and feel of larger
  • IP enabled ATM and Kiosk provide information on
    product and services, i.e. loan approval
  • Expand web based banking services

Business Continuity Robust networking Redundant
networking w/ backup datacenters Complete
security practices with Implemented solutions
Customer Experience and Service IP
Telephony Mobility VPNs for Branch and WAN
connectivity and extensive web based services
Cost Control Operational Efficiency Converged
single network State of Art Wireless
solutions Full branch connectivity and
flexibility Image, storage, and hosting
Telecom Trends Address Financial Critical
Success Factors

Business Continuity Robust networking Redundant
networking w/ backup datacenters Complete
security practices w/ Implemented solutions
Converged single networkEfficient More
efficient than running two separate networks
Merged voice data Use one network to
satisfy multiple compliance issues Reduces
maintenance costs by standardizing
infrastructure Route calls to contact centers
during peak hours State of Art Wireless
Solutions Productivity gains with mobile
wireless solutions Wireless concierge Hotspots
Full branch connectivity and flexibilitySpeed
Allows rapid deployment of new applications
Enabling change without re-engineering the
Customer Experience and Service IP Telephony Web
and voice based conferencing services VPNs for
Branch and WAN connectivity Extensive web based
Cost Control Operational Efficiency Converged
single network State of Art Wireless
solutions Full branch connectivity and
flexibility Image, storage and hosting
  • The Sage study found that while cost savings was
    cited as an IPT deployment driver by 75 of those
  • Productivity savings was cited by more than 60.
  • The productivity benefits were felt by both IT
    non-IT workers.
  • 66 of the respondents said they perceive IPT
    deployment gave them a competitive advantage.

Key Trends Summary
  • MA activity continues to drive consolidation and
    competition, leading to a more global market, and
    the development of multi-service financial
  • Online services are changing the marketplace
  • Customer service and customization are important
    competitive factors
  • Focus on security and information privacy has
    sharpened as awareness of identity theft grows
  • Automation, self-service, and other IT-based
    services are being used to off-set staff

General Growth Opportunities
  • Customer service and differentiation are driving
    growth in call center services, managed services,
    and routing services
  • Internet banking is driving bandwidth, security
    and content services
  • Online processes are driving opportunities in
    image, storage, and hosting services
  • Regulatory and security needs are driving
    security services, redundant networks and
    business continuity services.

Starting Questions
  • Do your customers have anytime access to account
    information and services? Do you offer electronic
    statements and electronic bill presentment and
    payment (EBPP)?
  • Are you losing customers to competitors who offer
    enhanced services over the phone and Web?
  • Can your existing systems and network support
    your current product go-to-market needs?
  • Can your customers access their information
    through multiple channels of communications, i.e.
    phone, Web, at the branch?
  • How effectively are you using the customer data
    being collected online, on the phone and at the
    branch? How are you doing as compared to your

Starting Questions (cont.)
  • Do you know who your most profitable customers
  • Are you effectively cross-selling products to
    those customers who are most likely to buy them?
  • Do your employees have to access multiple legacy
    systems to process account transactions?
  • Do your data systems provide a comprehensive view
    of your customers on a single screen?
  • Does your staff have the tools they need to stay
    up to date on new products?
  • Are you facing rising costs for site-to-site
    communications, sales force management, and
    training functions?
  • Are you facing increasing competition due to
    mergers and acquisition?

AppendixAdditional Resources
Basic Needs and Opportunities Telecom Services
Basic Needs and Opportunities Consulting
Frost and Sullivan March 2004
Basic Needs and Opportunity Software
SBC Solutions are lead Callisma or System
Integration Partners
Frost and Sullivan March 2004
Basic Needs and Opportunity - Hardware
Frost and Sullivan March 2004
Key Challenges
  • Sarbanes-Oxley legislation and need for business
    transparency forces financial services firms to
    be as open as possible with their records,
    transactions, and business dealings
  • Graham-Leach-Bliley (GLB) legislation continues
    to push financial services firms to become
    financial superstores, encouraging significant
    cross-segment expansion
  • Business continuity/disaster recovery needs have
    taken on increased importance for financial
    service market follilng 9/11 attacks, forcing
    financial services firms to ensure that data is
    as accessible as possible at all times
  • Mutual funds scandals regarding market-timing
    transactions are leading to new regulations and
    promoting greater integrity of financial services
  • Likelihood of increased merger acquisition
    activity to achieve greater scale affects
    potential buying patterns for IT/telecom services
  • Online banking opportunities that enhance
    customer experience continue to be refined and
    improved, requiring investment in time and money
    from financial services companies
  • Check 21 legislation forces financial services
    institutions to explore check electronification

Securities Exchange Commission (SEC)
  • Electronic message storage
  • Commission Guidance to Broker-Dealers on the Use
    of Electronic Storage Media under the Electronic
    Signatures in Global and National Commerce Act of
    2000 with Respect to Rule 17a-4(f)http//www.sec.
  • SEC Compliance and Storage Managementhttp//www.s
  • SIA Objects to SEC Rule for E-Mail
  • CIO Mandate from SEC Regulators Save Your
    Electronic Documentshttp//
  • CIO SEC Rule Creates Opportunity for CIOs on
    Corporate Boardshttp//
  • Securities Industry Instant Messaging Standards
    Keeping It Simplehttp//www.securitiesindustry.
  • Banktech Do Not Delete! http//
  • New York Times New Demand Seen for Data
  • No E-Mail Relief in New Books-and-Records

Securities Exchange Commission (SEC)
  • Business continuity planning
  • Interagency Paper on Sound Practices to
    Strengthen the Resilience of the U.S. Financial
  • Comments on Proposed Rule Draft Interagency
    White Paper on Sound Practices to Strengthen the
    Resilience of the U. S. Financial
  • Feds Prep Disaster Recovery Regshttp//www.bytean
  • Feds Set DR Regulationshttp//www.byteandswitch.c
  • Securities Industy Industry Still Worried About
    BCP Distance Regshttp//
  • Wall Street Technology Not Quite
  • Wall Street Technology Is Regulation Right
    Around the Corner?http//
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