Profitable convenience

Today’s consumers are time constrained, less loyal and digitally enabled. Therefore, it is essential that banks put consumers at the center of their retail strategy, responding to their preferences - what channel they want to use for a particular transaction; and presence - where they want to connect with the bank.

“If the bank knows which consumer is coming into the branch they could increase sales by up to 25% by planning ahead.”
-Bob Tramontano

Consumers want control and they want choice, wherever they happen to be. They are becoming multichannel users and expect consistency, whether they're interacting with banks via the Internet, cell phone, ATM or branch, from home, their place of work or even on the move.

When banks understand a consumer's preferences in the context of their presence they can offer the right mix of multichannel options for interaction - and there are benefits. Investment in multichannel service delivery generates enhanced consumer loyalty, or 'stickiness'. Jupiter Research believes that multichannel consumers are 20 percent less likely to defect to another supplier. That's not all. The creation of more opportunities to interact with the consumer in a way that is convenient to them also means more selling opportunities.

Remote Deposit Capture is one example of technology being used to enhance the consumer experience, enabling the consumer to conduct a transaction according to their preference and presence.

Checks remain popular, but they have not always been a convenient payment mechanism for the recipient. With Remote Deposit Capture there is now no need to take someone away from their core activities at the end of the day. Businesses can deposit checks from their own premises, whether that is in a corporate office or at home, using a check scanner and PC to make payment via their online banking portal.

They don't even have to be in a specific physical location. A builder working off-site can deposit the check there and then, capturing the information with a phone's camera and sending it to their bank as part of the mobile banking experience. 24x7 availability, from the office, from home or on the move, is a significant improvement for check deposit services.

There is more than just check deposit, too. As alternative ways of doing business become available, consumers are becoming comfortable using the channel that best suits their lifestyle. They may start a transaction on one channel and complete it on another, and always expect consistent service. 

The challenge to banks is to allow consumers to combine multiple channels in innovative ways, transforming their interactions into effortless experiences. Enabling personalization of communications according to where consumers are and their stated preference can drive higher levels of response, intimacy and loyalty.

Consumers can now book an appointment at a time and branch convenient to them through the Internet. They receive confirmation via e-mail and then an SMS reminder on the day of the appointment. What's more, when the consumer arrives at the branch and logs their presence at a self-service kiosk, a targeted promotional campaign can be delivered via digital signage in the waiting area. 

Banks have sophisticated models that provide data on a consumer's profitability and buying behavior. If the bank knows which consumer is coming into the branch they could increase sales by up to 25% by planning ahead and reviewing the information before the consumer arrives for their appointment. The multichannel reminder functions have also been shown to lower wait times by approximately 50 percent and reduce missed appointments by around a third.

NCR is working with banks around the world to make this happen. Whether it is Remote Deposit Capture, driving marketing campaigns across channels or simply using the latest technology to make transactions easier and more secure, we use our experience of multichannel delivery across industries such as retail, travel, healthcare and entertainment to transform the way consumers bank.

Now is the time for banks to look for more ways to connect remotely with their consumers, accommodating their preference and presence for their financial transactions. As consumers' lifestyles and needs change, great opportunities are arising for innovative financial institutions to give them more choice as to where, when and how they conduct their transactions.

Biography

Bob Tramontano is vice president of financial industry marketing at NCR, a leading global provider of payments, assisted and self-service solutions, with over 125 years of experience and knowledge.