1. Webinar The Future Of The Branch: Why A Digital Revolution Is Needed Alyson Clarke, Principal Analyst February 5, 2015. Call in at 12:55 p.m. Eastern time @alysonmclarke

2. © 2015 Forrester Research, Inc. Reproduction Prohibited2 Agenda › Why banks’ own strategies are killing the branch › Why the branch needs a digital revolution › How innovative companies are using digital to transform the branch

3. © 2015 Forrester Research, Inc. Reproduction Prohibited3 Agenda › Why banks’ own strategies are killing the branch › Why the branch needs a digital revolution › How innovative companies are using digital to transform the branch

4. © 2015 Forrester Research, Inc. Reproduction Prohibited4 › Forrester’s June 10, 2013, “US Online Bankers” report was edited to reflect the most current data. Base: US online adults (18+); Source: Forrester’s North American Consumer Technographics ® Financial Services Online Benchmark Recontact Survey, 2014

5. © 2015 Forrester Research, Inc. Reproduction Prohibited5 Applied over the phone 14% Applied in person 32% US 43% 21% Canada* Yet human touchpoints continue to be significant sales channels Online consumers who applied for a financial product in the past 12 months: Base: 14,213 US online adults (18+) who applied for at least one financial product/account except for mutual fund/ETF account, small business checking account, small business credit card, small business loan/line of credit and 401(k)/403(b), or other employer-sponsored retirement account financial products in the past 12 months *Base: 1,263 Canadian online adults (18+) who applied for at least one financial product/account except for mutual fund/ETF account, small business checking account, small business credit card, small business loan/line of credit, and GMWB financial products in the past 12 months; Source: Forrester’s North American Consumer Technographics ® Online Benchmark Survey (Part 2), 2014

6. © 2015 Forrester Research, Inc. Reproduction Prohibited6 Purchasers are also more likely to have researched in person Base: US online adults 18+ (online weekly or more) who applied for the mentioned product in the past 12 months; Source: Forrester’s North American Consumer Technographics ® Online Benchmark Survey (Part 2), 2014 “How did you research each product prior to applying for or opening your account/policy?” The touchpoint most likely used to research prior to opening the account

8. © 2015 Forrester Research, Inc. Reproduction Prohibited8 Agenda › Why banks’ own strategies are killing the branch › Why the branch needs a digital revolution › How innovative companies are using digital to transform the branch

9. Frontline employees have been left with outdated technology.

10. It’s not about human versus digital.

11. © 2015 Forrester Research, Inc. Reproduction Prohibited11 Agenda › Why banks’ own strategies are killing the branch › Why the branch needs a digital revolution › How innovative companies are using digital to transform the branch

12. Digital should be used to empower employees, not just replace them.

13. © 2015 Forrester Research, Inc. Reproduction Prohibited13 Innovative firms are digitally empowering frontline employees in four key areas 1.Simplifying tasks to enable faster in-person service

14. © 2015 Forrester Research, Inc. Reproduction Prohibited14 Tablet-based concierge tools can enable roaming greeters to quickly serve customers Source: November 25, 2014, “The Future Of The Branch Lies In Digitally Empowering Employees” Forrester report Concierge tools can ensure high-valued customers are prioritized.

15. © 2015 Forrester Research, Inc. Reproduction Prohibited15 Paperless account opening and digital signatures make for faster account opening Source: October 4, 2010, “Case Study: How SNS Bank Put The Web At The Heart Of Its New Multichannel Strategy” Forrester report SNS bank’s branch network acts as a physical extension of the Web.

16. © 2015 Forrester Research, Inc. Reproduction Prohibited16 Innovative firms are digitally empowering frontline employees in four key areas 1.Simplifying tasks to enable faster in-person service 2.Providing visual and interactive tools to educate and engage customers

17. © 2015 Forrester Research, Inc. Reproduction Prohibited17 Interactive tablets can help frontline staff members to deeply engage more with customers Source: November 25, 2014, “The Future Of The Branch Lies In Digitally Empowering Employees” Forrester report Royal Bank of Canada’s interactive touchscreens help customers learn about products and services.

18. © 2015 Forrester Research, Inc. Reproduction Prohibited18 Innovative firms are digitally empowering frontline employees in four key areas 1.Simplifying tasks to enable faster in-person service 2.Providing visual and interactive tools to educate and engage customers 3.Delivering tools based on needs to shorten the sales conversation and improve conversion

19. © 2015 Forrester Research, Inc. Reproduction Prohibited19 Diagnostic tools can guide bankers through a “needs-based” sales conversation Standard Chartered’s “iNeeds” tool helps staff members engage customers and convert sales.

20. © 2015 Forrester Research, Inc. Reproduction Prohibited20 Integrated role-based tools can speed up the sales process and improve cross-sell Zenmonic’s “mobileBANKER” speeds up the sales process through: › Integrated customer information. › Interactive tools and video. › Personalized cross-sell opportunities. › Paperless account opening.

21. © 2015 Forrester Research, Inc. Reproduction Prohibited21 Innovative firms are digitally empowering frontline employees in four key areas 1.Simplifying tasks to enable faster in-person service 2.Providing visual and interactive tools to educate and engage customers 3.Delivering tools based on needs to shorten the sales conversation and improve conversion 4.Using technology to enhance access to experts

22. © 2015 Forrester Research, Inc. Reproduction Prohibited22 Videoconferencing allows more customers to access experts Nationwide Building Society launched Remote Advisor to reduce waiting time for mortgage advisors; it boosted performance by 66%.

23. © 2015 Forrester Research, Inc. Reproduction Prohibited23 Tablets can improve face-to-face experiences with experts Source: November 25, 2014, “The Future Of The Branch Lies In Digitally Empowering Employees” Forrester report Customers and financial planners can physically interact with Westpac’s “Discover Your World” tool.

24. © 2015 Forrester Research, Inc. Reproduction Prohibited24 Next steps for eBusiness executives 1.Use digital to empower employees, not just replace them. 2.Look at ways to weave human interaction into digital touchpoints. 3.Bridge the organizational gap. 4.Gain a deeper understanding of other channels. Spend time at the branch/storefront; listen in at the call center.

25. © 2015 Forrester Research, Inc. Reproduction Prohibited25 Next steps for eBusiness executives (cont.) 5.Look at what can be leveraged. What existing digital tools do you already have that could be leveraged into human touchpoints? 6.Talk to vendors who are already innovating in this space. 7.Develop a flexible and agile road map. 8.Start small, test, and learn. 9.Build so that you can deploy into any channel.

26. Thank you Alyson Clarke +1 650.581.3858 aclarke@forrester.com

27. © 2015 Forrester Research, Inc. Reproduction Prohibited27 Selected Forrester Research › November 25, 2014, “The Future Of The Branch Lies In Digitally Empowering Employees” › June 5, 2013, “Powering The Agile Store”