Change, innovate, explore and adjust. These will become the hallmarks of financial institutions that survive and thrive in today’s consumer-driven market. Digital Insight explored importance of an omni-channel offering in today's marketplace, why more engagement across all channels is critical, and how to get started on developing your own omni-channel strategy.

1. 2015 Momentum Webinar Series:
Omni-channel Engagement
Maximizing Profitability in a Consumer-driven Market
Russell Lester & Ryan Loesch

2.  Introduction
 Q/A
 Social Media (#DIWebinar & @Digital_Insight)
 Post-webinar Materials
Welcome
2

3.  The future of customer engagement
 Your strategic imperatives
 Three steps to get started
Overview
3

4. Introductions
Russell Lester - Senior Director, Strategy & Business Analytics, NCR Financial
Services - Russell has over 15 years of experience in the financial services industry and presently leads
the Analytics center of excellence for NCR Financial Services. In this role, Russell is responsible for
managing a team of seasoned analysts that provide timely, accurate, relevant and pro-actively persuasive
insights to internal stakeholders and customers. This team helps customers navigate the complex
landscape of their diverse data assets to identify, quantify and prioritize areas of opportunity. Russell has
spent much of his career interacting with financial institutions to understand their business challenges and
identify ways in which insights can help inform their strategic plans. Prior to joining NCR, Russell was vice
president of financial planning and analysis at Harland Clarke.
Ryan Loesch – Senior Product Manager, NCR Financial Services – Ryan joined NCR
Financial Services from NCR retail, where Ryan led the design and development of omni-channel tablet
and mobile applications for high-touch retail environments. Ryan’s focus with NCR Financial is to seek out
both short and long-term integration opportunities across physical and digital channels while developing
and implementing relevant solutions. Prior to NCR, Ryan was first vice president of strategic program
management with SunTrust Bank in Atlanta, Georgia. Ryan has been developing mobile applications since
app popularity began to surge 6 years ago.
4

5. THE FUTURE OF
CUSTOMER
ENGAGEMENT

6. Retail and Mobile are driving omni-channel
expectations.
22%
Conversion rates for proximity
based offers vs comparable
digital campaigns which only
show single digit conversion rates
50%
Of sales are being influenced
digitally
60%
Of adults don’t go an hour
without checking their
smartphone or tablet
20%
Of retailers are offering
location based mobile apps
Source: RetailTouchpoints.com
6

7. The omni-channel experience is alive in other
industries.
7

8. Consumers’ view of financial services is changing.
Source: Millennial Disruption Index: http://www.millennialdisruptionindex.com/
33%
are open to switching banks
in the next 90 days
68%
think the way they will access
their money in 5 years will be
completely different
33%
don’t think they’ll need
a bank at all
73%
would be more excited
about a financial service
offering from Apple, Google,
Amazon, PayPal or Square
than from their own national
bank
8

9. Retail banking’s business model is under attack by
companies creating great customer experiences.
Your biggest threat,
particularly with the
Millennial generation, may
be technology companies
entering banking and
payments with innovative
products, respected
brands, and massive
customer bases.
9

10. • $1 invested in user experience = $2 to
$100 return¹
• More times at bat = more home runs
• More interactions = more profitable
customers
• More transactions = higher satisfaction
and more business
Retail data underscores the value of omni-channel.
“Consumers don’t distinguish between channels. They
are channel blind, therefore they expect the same
service, products, offers, and pricing online as they do
in-store and on mobile.”
- Miya Knight, Senior Research Analyst, IDC
¹AGBeat. “Why UX is Critical.” May 9, 2014.
10

11. Continuity of Consumer
Experience
Consumer 360 or 720 View
Personalization and
Preferences X-Channel
X-Channel Consumer
Insights, Events, Trans
The customer experience is at the center of omni-channel.
Smart and Relevant X-
Channel Offers and Promos
11

12. Mobile Banking
Bill Pay Problem
Telephoned the
Contact Center
Walked Into the
Branch
Referred back to
Contact Center
Submitted Online
Complaint
Performed Large
Withdrawal
Continuity of Consumer
Experience
Consumer 360 or 720 View
Personalization and
Preferences X-Channel
X-Channel Consumer
Insights, Events, Trans
The Consumer is at the Center of Omni-Channel: Examples
Smart and Relevant X-
Channel Offers and Promos
12

13. Omni-channel is the next evolution of personalized service.
How consumers will benefit:
 Improved account opening on mobile
 Better needs alignment and
personalization
 Secure authentication and transactions
 Better access to expertise for faster
resolution
 Better alerts and notifications
 Better control (card management)
 Personal financial management
mobilized
 Ability to bundle services and products
13

14. You have countless considerations.
14

15. Your customers have countless considerations.
1515

16. Creating great customer experiences by
bridging the digital and physical channels
 Take a fresh look at how you service
your customer
 Make things EASY
 Make them flow seamlessly
 Focus on customer-centered service
Our industry acknowledges that omni-channel is critical, but
little progress has been made.
1616

17. LET’S TALK ABOUT
YOUR STRATEGIC
IMPERATIVES.

18. Map the baseline and target with each imperative.
18

19. Good strategies are multi-channel.
19

20. Multi-channel is the norm.
Source: Digital Insight Internal Study, over 300,000 consumers, January 2015
• 75% of Gen X are multi-
channel users
• Consumers of all generations
are using multiple channels
and devices
• Digital and self-service
channels are the most popular
20

21. Industry data shows that multi-channel interaction
means more interaction.
McKinsey & Company, Retail Banking Insights, The Future of U.S. Retail Banking Distribution. February 2014
21

22. Digital Insight data shows the same: More digital
means more interactions.
Source: Digital Insight Internal Study, over 300,000 consumers, January 2015
With more interactions,
we also see an increase
in deposits and loan
balances.
22

23. It’s not only good for the consumer—but it’s also more
profitable for you.
Source: Digital Insight Internal Study, over 300,000 consumers, January 2015
Profitability drivers include:
• Balances
• Account Ownership
• Retention Rates
• Cost to Serve
• Interchange Fee Income
• Engagement Opportunities
23

24. The best strategies are omni-channel.
24

25. Omni-channel is multi-channel—integrated.
• Seamless interaction between channels
• Individual channel strengths optimized to meet consumer needs
• Real-time information and consistency across channels
Omni-channel puts you at the center of every engagement.
25

26. Why is an omni-channel strategy important?
Financial potential
• 10% - 20% income improvement to your bottom line.¹
• 25% increase in customer contacts with a 30% gain in
efficiency.”²
Retention benefits
• If you don’t deliver, you will lose out to non-banking
competitors and lose customers/members.
• 73% would be more excited about a financial service
offering from Apple, Google, Amazon, PayPal or
Square than from their own national bank.³
¹Digital Insight Internal Study, over 300,000 consumers, January 2015
²Finextra, October 23, 2014. http://www.finextra.com/news/announcement.aspx?pressreleaseid=57308
³ Millennial Disruption Index: http://www.millennialdisruptionindex.com/
26

27. How do you achieve omni-channel results?
It’s like making a soufflé.
27
+ + =
Results
(Delicious)

28. + + =
Results
That’s omni-channel.
28
• Technology
• Device
• Channel
• Choreography
• Ownership
• Sequencing
• Internal
• External
• Performance
• Measurements
You won’t achieve maximum results without the
convergence of solution, process and partnership.

29. It’s not just a buzzword.
Omni-channel is real, but it takes action. Today we’ll introduce 3 steps to get
you started:
1. Determine where you are today
2. Develop a plan
3. Measure success
29

30. THREE STEPS TO
GET STARTED

31. Step 1: Determine where you are today
31

32. Chart your course to transformation.
Performance
Place
Process
People
Technology
KPIs / NPS
Market Potential
Profit / Efficiency
ROI / Benchmarking
Regulation / Compliance
Performance / Migration
Consistency / Efficiency
Innovation / Culture
Segmentation / Profiling
Education / Communication
Satisfaction / Engagement
Empowerment / Voice
Efficiency / Performance
Migration / Consistency
Usability / Integration
Capacity / Customization
Innovation
Channel Synchronization
Network consistency
Distribution
Optimization
Segmentation
Usability 32

33. Step 2: Develop a plan
33

34. Omni-channel Engagement Model
Financial
Review
1
Impact
Activities &
Options
3
Impact
Sizing
4
Execution Plan
5
Peer
Benchmarking
2
34

35. Get a clear picture of your revenue drivers and opportunities.
• Profit trends of the institution today
• Key areas of opportunity derived from financial
analysis
• Costs per channel transaction using FI data or
industry benchmarks
Key question: Do you have organizational alignment?
Financial
Review
1
Peer
Benchmarking
2
Impact
Activities &
Options
3
Impact
Sizing
4
Execution Plan
5
35

36. Know where you stand alongside your peers.
• Comparison to best-in-class institutions
• FI strengths
• FI opportunities
• Case studies & best practices review
Key question: Who do you want to be like? Or if you’re
the leader, how do you hold your position?
Financial
Review
1
Peer
Benchmarking
Impact
Activities &
Options
3
Impact
Sizing
4
Execution Plan
52
36

37. Assess your options and prioritize your activities.
• Potential transformation options
• Recommended transformation path
• Support activities
Key question: What’s most important to prioritize first?
Financial
Review
1
Peer
Benchmarking
Impact
Activities &
Options
Impact
Sizing
4
Execution Plan
52 3
37

38. Size up the potential impact.
• Potential profit impact
• Overlay to the FI current state
• Get specific with data but look at the big picture
• Next steps prioritization based on likelihood to achieve
Key question: What’s your confidence level in supporting
the funding that you need?
Financial
Review
1
Peer
Benchmarking
Impact
Activities &
Options
Impact
Sizing
3
Execution Plan
52 4
38

39. Map out your execution plan.
• Data-driven branch assessment
• Transaction time studies
• Digital channel deep dive (profit study)
• End user engagement plan
Key questions: What’s your roadmap? Do you have the
resources to do this on your own?
Financial
Review
1
Peer
Benchmarking
Impact
Activities &
Options
Impact
Sizing
3
Execution Plan
42 5
39

40. Step 3: Measure success
40

41.  Convert low value transactions to low cost
channels
 Anticipate customer needs to drive retention
 Enable smooth channel handoffs that delight
your customers
Keep the following metrics in mind when evaluating impact.
41

42.  Innovate design and experience to enable
acquisition
 Connect data to inform, predict and engage
 Lead to a stronger financial standing and a
more loyal customer base
Metrics, cont.
42

43. As you leave today, remember the 3 steps.
1. Determine where you are today
2. Develop a plan
3. Measure success
Your customers expect it—and your
profit will reflect it.
43

44. 2015 Momentum Series
 June 3rd: User Credentials and Your Financial Institution’s Brand – Virtual
Identities at Risk
Registration: http://www.digitalinsight.com/m/momentum2015/rsvp_security_p.html
 November 4th: Business Customers: How to Compete and Win
Registration: http://www.digitalinsight.com/m/momentum2015/rsvp_business_p.html
44
Coming soon . . .

45. Thank you!
Visit Digital Insight: www.digitalinsight.com
45