Natwest Group Plc · LSE:NWG
Natwest — The Royal Bank of Scotland Group — Manufacturing Division Conference 2003
146 slides from Natwest's conference presentation, Oct 6, 2003
Slide 1: The Royal Bank of Scotland Group
ac RBS The Royal Bank of Scotland Group
Slide 2: Fred Goodwin, Group Chief Executive
Fred Goodwin Group Chief Executive
Slide 3: First Active Offer
Slide 3 First Active Offer z Cash offer of €6.20 per share z Values First Active at €887 million z Recommended by First Active Board z Accretive to RBS earnings
Slide 4: First Active Branch Network
Slide 4 First Active Branch Network First Active
Slide 5: First Active Branch Networks
Slide 5 First Active Branch Networks 90 Branches First Active Ulster Bank
Slide 6: First Active
Slide 6 First Active First Active Branches 51 Customers 335,000 Market shares – Mortgages 12% – Savings accounts 3% – Personal loans 1%
Slide 7: First Active vs Ulster Bank
Slide 7 First Active Ulster Bank First Active Republic of Ireland Branches 122 51 Customers 506,000 335,000 Market shares – Mortgages 3% 12% – Savings accounts 4% 3% – Personal loans 3% 1% – Personal current accounts 9% – – Credit cards 7% – – SME accounts 14% –
Slide 8: Ulster Bank + First Active combined
Slide 8 First Active Ulster Bank +First Active Republic of Ireland Branches 173 Customers approx 800,000 Market shares – Mortgages 15% – Savings accounts 7% – Personal loans 4% – Personal current accounts 9% – Credit cards 7% – SME accounts 14%
Slide 9: Mortgages Market Ranking
Slide 9 First Active Mortgages Market Ranking Irish Life and Permanent #1 Ulster Bank + First Active #2 Bank of Ireland #3= AIB #3=
Slide 10: Savings Accounts Market Ranking
Slide 10 First Active Savings Accounts Market Ranking AIB #1 Bank of Ireland #2 Irish Life and Permanent #3= Ulster Bank + First Active #3=
Slide 11: First Active financials
Slide 11 First Active Ulster Bank First Active 1H03 1H03 Profit before tax €191m €34m Loans to customers €14.9bn €7.6bn* Customer deposits €12.9bn €3.9bn * Gross of securitisation of e2.7bn
Slide 12: Strategy
Slide 12 First Active Strategy z Retain First Active and Ulster Bank brands and branch networks Cost Savings z Combine technology, processing activities, central functions z Leverage Group functions z Lower funding costs Revenue Benefits z Strengthen Ulster Bank’s mortgage offering z Broaden First A
Slide 13: Fred Goodwin, Group Chief Executive
Fred Goodwin Group Chief Executive
Slide 14: Group Structure
Slide 14 Group Structure CUSTOMERS • RBS Cards • Personal • Large Corporates - RBS • Coutts • Direct Line • Personal • Personal • Personal • NatWest Cards • Mid Corporates and • Adam • Churchill • Small Business • Small Business • Business • Business • RBS Advanta Commercials-RBS/NW • NatWest Offsho
Slide 15: Group Employees
Slide 15 Group Employees Employees 31 Aug 2003 Corporate Banking and Financial Markets 16,100 Retail Banking 30,000 Retail Direct 7,000 Manufacturing 21,200 Wealth Management 5,500 RBS Insurance 19,600 Ulster Bank 4,500 Citizens 13,800 Centre 1,700 Group Total 119,400
Slide 16: Group Operating Profit
Slide 16 Group Operating Profit 2002 £m Corporate Banking and Financial Markets 3,203 Retail Banking 3,019 Retail Direct 701 Manufacturing (1,682) Wealth Management 432 Direct Line Group 355 Ulster Bank 244 Citizens 766 Central items (587) Group operating profit 6,451
Slide 17: Group Structure
Slide 17 Group Structure CUSTOMERS • RBS Cards • Personal • Large Corporates - RBS • Coutts • Direct Line • Personal • Personal • Personal • NatWest Cards • Mid Corporates and • Adam • Churchill • Small Business • Small Business • Business • Business • RBS Advanta Commercials-RBS&NW • NatWest Offsho
Slide 18: Manufacturing
Slide 18 Manufacturing z Manufacturing Mark Fisher z Group Technology John White Coffee z Group Purchasing Ed Smith z Operations Mark Fisher z Conclusion Mark Fisher Questions & Answers
Slide 19: Mark Fisher, Chief Executive, Manufacturing
Mark Fisher Chief Executive, Manufacturing
Slide 20: Manufacturing
Slide 20 Manufacturing z What is Manufacturing? z What does it deliver? z Making it work z More to come
Slide 21: What is Manufacturing?
Slide 21 What is Manufacturing? Manufacturing Technology Operations Services Group Technology Account Group Purchasing Management – IT Operations Other support units Telephony – IT Development Lending Payments
Slide 22: Group Technology
Slide 22 Group Technology z 3,800 staff z Locations – Edinburgh – London – Dublin z Role – IT Operations – IT Development z Scope – Group wide
Slide 23: Account Management Operations
Slide 23 Account Management Operations z 5,000 staff z 15 centres (Customer Service Centres) z Role – Opening and closing accounts – Standing orders and direct debits – Customer accounting z Scope – NatWest Retail Banking – RBS Retail Banking – CBFM – Coutts/Adam & Co – Offshore Banking – Tesco Pers
Slide 24: Account Management Operations
Slide 24 Account Management Operations Bolton Customer Service Centre
Slide 25: Telephony Operations
Slide 25 Telephony Operations z 3,700 staff z 13 centres z Role – Inbound customer requests to call centres – Support branch telephony z Scope – NatWest Retail Banking – RBS Retail Banking – Tesco Personal Finance
Slide 26: Lending Operations
Slide 26 Lending Operations z 3,800 staff z 15 centres z Role – Mortgage processing – Retail lending – Security for lending – Debt recovery z Scope – NatWest Retail Banking – RBS Retail Banking – CBFM – Tesco Personal Finance
Slide 27: Payment Operations
Slide 27 Payment Operations z 3,000 staff z 17 centres z Role – Coins, notes, cheques – BACS, CHAPS, SWIFT payments – ATMs z Scope – NatWest Retail Banking – RBS Retail Banking – CBFM – Coutts/Adam & Co – Offshore Banking – Tesco Personal Finance
Slide 28: Group Purchasing
Slide 28 Group Purchasing z 1,000 staff (110 Purchasing, 890 Facilities Management) z Locations – Edinburgh – London z Role – Group centre of excellence for purchasing – Facilities and logistics management z Scope – Group wide
Slide 29: Manufacturing
Slide 29 Manufacturing z What is Manufacturing? z What does it deliver? z Making it work z More to come
Slide 30: What Does it Deliver? Need to Support Multiple Brands
Slide 30 What Does it Deliver? Need to Support Multiple Brands
Slide 31: Need to Support Multiple Distribution Channels
Slide 31 What Does it Deliver? Need to Support Multiple Distribution Channels z Branches z ATMs z Telephone z Internet z Mail
Slide 32: Challenge
Slide 32 What Does it Deliver? Challenge z Maximise efficiency and flexibility, whilst supporting multiple brands and channels
Slide 33: Solution
Slide 33 What Does it Deliver? Solution z Single platform, multi-brand/channel
Slide 34: Single Platform, Multi-Brand/Channel
Slide 34 Single Platform, Multi-Brand/Channel z Single IT system – Banking engine – Payments engine – Cards engine – Desktop engine z Common – Processes – Management – Infrastructure
Slide 35: Turning Size into Scale
Slide 35 Single Platform, Multi-Brand/Channel Turning Size into Scale z Aggregation gives size z Aggregation with single platform and common processes gives scale Bringing z Economies of scale z Benefits of specialisation
Slide 36: Scale
Slide 36 Scale z So far today... – 3.5m cheques and credits processed – £38m dispensed from ATMs – £100m of Streamline payments acquired – £127bn of CHAPS payments made – £89m of mortgage lending drawn down – 18,900 Standing Orders and Direct Debits set up – 5,210 accounts opened – 132,700 telephone
Slide 37: Specialisation
Slide 37 Specialisation z Our core business z Operational specialisation – Systems architecture – Business process design – Change capability – Operations management – Improvement capability z Supporting specialisation – Property, purchasing, security
Slide 38: Single Platform, Multi-Brand/Channel
Slide 38 Single Platform, Multi-Brand/Channel z Scale z Specialisation Enable us to z Support income growth z Improve efficiency
Slide 39: Support Income Growth
Slide 39 Support Income Growth £m RBS Group Income 20,000 18,000 16,000 14,000 12,000 10,000 8,000 1999 2000 2001 2002 2003* * 1H03 annualised
Slide 40: Improve Efficiency
Slide 40 Improve Efficiency FTEs Manufacturing Headcount 25,000 20,000 15,000 10,000 5,000 0 1999 2000 2001 2002 1H03 Published headcount per statutory accounts
Slide 41: Improve Efficiency
Slide 41 Improve Efficiency FTEs Manufacturing Headcount 25,000 Showing Transfers from Other Divisions 20,000 15,000 10,000 5,000 0 1999 2000 2001 2002 1H03 Published headcount per statutory accounts
Slide 42: Improve Efficiency: Account Management Operations
Slide 42 Improve Efficiency 4,000 Account Management Operations Accounts per FTE 3,000 2,000 1H02 2H02 1H03
Slide 43: Improve Efficiency: Lending Operations
Slide 43 Improve Efficiency 12,000 Lending Operations Accounts per FTE 8,000 4,000 1H02 2H02 1H03
Slide 44: Improve Efficiency: Payments Operations
Slide 44 Improve Efficiency 15,000 Payments Operations Payments per FTE 10,000 5,000 1H02 2H02 1H03
Slide 45: Improve Efficiency: Cost:Income Ratio
Slide 45 Improve Efficiency % RBS Group Cost:Income Ratio 60 50 40 1999 2000 2001 2002 1H03 Cost:income ratios calculated after netting operating lease depreciation against rental income
Slide 46: Manufacturing
Slide 46 Manufacturing z What is Manufacturing? z What does it deliver? z Making it work z More to come
Slide 47: Making it Work
Slide 47 Making it Work z Management processes z Managing costs z Knowing where to draw the line z People
Slide 48: Management Processes
Slide 48 Management Processes z Short lines of communication z Fast clock speed – Quick decisions – Issue resolution z Centralised – Communications – HR – Finance – Risk
Slide 49: Managing Costs
Slide 49 Managing Costs z Manufacturing focuses on improving efficiency z Other divisions focus on improving income z No allocation of shared costs z No disputes over internal transfer pricing
Slide 50: Knowing Where to Draw The Line
Slide 50 Knowing Where to Draw The Line z Not a simple rule z Entrepreneurial flair takes precedence z Exploit centres of excellence z Understand what is truly core z Understand where value can be added z Manage risk
Slide 51: Example: Direct Line / Churchill
Slide 51 Knowing Where to Draw The Line Example: Direct Line / Churchill z Integrate IT operations z Separate IT development – RBS Insurance centre of excellence – Manufacturing integration skills z Integrate purchasing, property and security z Separate customer sales call centres
Slide 52: People
Slide 52 People z 21,200 FTE z Diverse workforce z HR strategy – Performance management – Reward by specialisation and location – Leadership – Talent management
Slide 53: People: Voluntary Attrition
Slide 53 People Voluntary Attrition % 14 12 10 8 2001 2002 1H03* * Annualised
Slide 54: People: Survey versus UK Financial Services Norm
Slide 54 People Manufacturing 2003 v UK Financial Services Norm* Workload and stress Communication Employment security Management leadership Customer focus and quality Training and development Total reward Performance management Job satisfaction and engagement Co-operation and working relationships
Slide 55: Manufacturing
Slide 55 Manufacturing z What is Manufacturing? z What does it deliver? z Making it work? z More to come
Slide 56: More to Come: Further Efficiency Improvement
Slide 56 More to Come Interim Results, August 2003 Slide 1 Further Efficiency Improvement Outlook z Further progress expected z Continue to centralise Manufacturing, where appropriate z Eliminate duplication, simplify processes z Projects under way
Slide 57: More to Come
Slide 57 More to Come z Continue to improve efficiency z Continue to support income growth z Achieve further consolidation z Support acquisitions
Slide 58: Continue to Improve Efficiency
Slide 58 Continue to Improve Efficiency Examples z Image and Workflow z Customer query management system z Fraud management – Automated profiling – Automated ‘Know Your Customer’ z E-enabled internal processes – Routine reports on screen – Self service HR and training
Slide 59: Continue to Support Income Growth
Slide 59 Continue to Support Income Growth Examples z Product development z Sales and pipeline management z Quicker, easier account opening z Removing work from Corporate Relationship Managers
Slide 60: Achieve Further Consolidation: Mortgages
Slide 60 Achieve Further Consolidation Mortgages z Build new Group mortgage platform z RBS and NatWest plus – One Account – Direct Line Financial Services – Lombard Direct – Coutts – Ulster
Slide 61: Achieve Further Consolidation: Technology
Slide 61 Achieve Further Consolidation Technology z Consolidate IT operations on to Group single platform – Direct Line – Churchill – Ulster – Coutts – The One Account – Direct Line Financial Services – Lombard Asset Finance – RBS Commercial Services
Slide 62: Achieve Further Consolidation: Other Initiatives
Slide 62 Achieve Further Consolidation Other Initiatives z Complete RBS branch back office centralisation z Consolidate back offices – Lombard Asset Finance – RBS Commercial Services z Consolidate Group collections and recoveries z Centralise printing
Slide 63: Support Acquisitions
Slide 63 Support Acquisitions z Scaleable platform – IT – Process – Organisation z Proven integration capability z Early involvement
Slide 64: Manufacturing
Slide 64 Manufacturing z What is Manufacturing? z What does it deliver? z Making it work z More to come
Slide 65: Manufacturing
Slide 65 Manufacturing z Manufacturing Mark Fisher z Group Technology John White Coffee z Group Purchasing Ed Smith z Operations Mark Fisher z Conclusion Mark Fisher Questions & Answers
Slide 66: John White, Director, Group Technology
John White Director, Group Technology
Slide 67: What is Manufacturing?
Slide 67 What is Manufacturing ? Manufacturing Technology Operations Services Group Technology Account Group Purchasing Management – IT Operations Other support units Telephony – IT Development Lending Payments
Slide 68: Group Technology
Slide 68 Group Technology z NatWest IT integration z Results of IT integration z More to come
Slide 69: NatWest IT Integration: Challenge
Slide 69 NatWest IT Integration Challenge z Integrate NatWest on to RBS operating platform – Technology – Business processes
Slide 70: NatWest IT Integration
Slide 70 NatWest IT Integration NatWest Bid Presentation, November 1999 Sl ide 62 Clear Business Plan Common Products From To Products Processes Platform Creating Creat ing aa New New Force Force in in Banking Banking
Slide 71: Decisive and Fast Mobilisation
Slide 71 NatWest IT Integration Decisive and Fast Mobilisation z Confirmed target platform in first 30 days z Cancelled 472 projects z By end 2000: – 2,200 headcount on Integration – Common Financial Markets, Risk Systems and General Ledger
Slide 72: Integration Approach
Slide 72 NatWest IT Integration Integration Approach Scale RBS systems Migrate customer-facing systems early Convert customer and accounting data for migration in one weekend u 2000 2001 2002
Slide 73: Scale RBS Systems
Slide 73 NatWest IT Integration Scale RBS Systems z Scale RBS systems by a factor of 5 z Consolidate the network z Create a single development capability
Slide 74: Migrate Customer-Facing Systems Early
Slide 74 NatWest IT Integration Migrate Customer-Facing Systems Early Jul 2001 12.6 million credit cards Nov 2001 3,500 ATMs Dec 2001 1.0 million internet customers Dec 2001 1,650 branches - converted hardware Jul 2002 29,000 card merchants
Slide 75: Convert Customer and Accounting Data in One Weekend
Slide 75 NatWest IT Integration Convert Customer and Accounting Data in One Weekend Prove full data 4 months elapsed conversion Prove Day 1 operation Prove Day 2 Repeat at full volume onwards until perfect Final conversion 7 October 2002
Slide 76: The Royal Bank of Scotland Group
ac RBS The Royal Bank of Scotland Group
Slide 77: NatWest IT Integration
Slide 77 NatWest IT Integration
Slide 78: NatWest IT Integration Summary
Slide 78 NatWest IT Integration Summary z A single platform in 942 days - 5 months ahead of target z 40,000 people trained z Minimal impact on customers z Significant contribution to NatWest cost savings
Slide 79: NatWest IT Integration Awards
Slide 79 NatWest IT Integration z Financial Services Technology Awards 2002: – Winner best use of IT in Retail Banking – Winner best systems integration project z Financial News Awards 2003: – Winner best systems integration project z British Computer Society IT Professional Awards 2003: – Winner fi
Slide 80: Group Technology
Slide 80 Group Technology z NatWest IT integration z Results of IT integration z More to come
Slide 81: Results of IT Integration
Slide 81 Results of IT Integration z Single IT platform z Know our systems and processes z Excellent systems availability z Assured disaster recovery z Experienced change capability
Slide 82: Single IT Platform
Slide 82 Single IT Platform z 8 mainframe computers – Single sysplex (operate as one) – Over 16 billion instructions per second z Single network – Supporting 95,000 connected PCs z Branches, ATMs, telephone, internet for multi-brands
Slide 83: Know Our Systems and Processes
Slide 83 Know Our Systems and Processes z We understand – the architectures – the applications – the business processes – the data and data structure
Slide 84: Excellent Systems Availability
Slide 84 Excellent Systems Availability Key System Availability (%) 100.00 99.95 Oct 02 Conversion 99.90 99.85 99.80 99.75 Industry Standard 99.70 99.65 Dec Jun Jun Jun Aug 99 00 01 02 03
Slide 85: Assured Disaster Recovery
Slide 85 Assured Disaster Recovery z Industry leading recovery capability z Regularly tested z Live operations managed from disaster recovery site
Slide 86: Experienced Change Capability
Slide 86 Experienced Change Capability Group Executive Management Committee Technology Integration Directorate Programme Implementation Boards z Tried and tested management approach z Across businesses, across functions z Approach will be used to manage change in future
Slide 87: Experienced Change Capability: Acquisitions
Slide 87 Experienced Change Capability Acquisitions z Experienced technology due diligence team z Project management skills leading multiple and complex programmes z Capability to deliver benefits
Slide 88: Group Technology
Slide 88 Group Technology z NatWest IT integration z Results of IT integration z More to come
Slide 89: More to Come: Further Consolidation - Technology
Slide 89 More to Come Achieve Further Consolidation - Technology S lid e 5 7 Achieve Further Consolidation Technology z Consolidate IT operations on to Group single platform – Direct Line – Churchill – Ulster – Coutts – The One Account – Direct Line Financial Services – Lombard Asset Finance – RBS C
Slide 90: More to Come: Direct Line/Churchill
Slide 90 More to Come Achieve Further Consolidation - Direct Line/Churchill z Migrate Direct Line IBM platform on to the RBS single platform – Save 120 jobs – Improve resilience and disaster recovery z Migrate Churchill applications and data to Direct Line – On the RBS single platform – Save further
Slide 91: Delivering Change for the Business
Slide 91 More to Come Delivering Change for the Business - Examples z New mortgage platform z Image and workflow z New processes – Web-enabled finance and HR – Account opening
Slide 92: Deliver New Technologies
Slide 92 More to Come In Addition, Deliver New Technologies z Introduce Extensible Mark-up Language (XML) – Enables more re-use of data and transactions z Move to Broadband network – Variable bandwidth using IPVPN (Internet Protocol Virtual Private Network) – “Pay as you go”
Slide 93: Group Technology Summary
Slide 93 Group Technology Summary z Integration: a success z Single platform – Reliable – Flexible – Scaleable z Change capability – Support organic growth – Support acquisitions
Slide 94: Manufacturing
Slide 94 Manufacturing z Manufacturing Mark Fisher z Group Technology John White Coffee z Group Purchasing Ed Smith z Operations Mark Fisher z Conclusion Mark Fisher Questions & Answers
Slide 95: The Royal Bank of Scotland Group
ac RBS The Royal Bank of Scotland Group
Slide 96: Ed Smith, Director, Group Purchasing
Ed Smith Director, Group Purchasing
Slide 97: What is Manufacturing?
Slide 97 What is Manufacturing? Manufacturing Technology Operations Services Group Technology Account Group Purchasing Management – IT Operations Other support units Telephony – IT Development Lending Payments
Slide 98: Group Purchasing: Challenge
Slide 98 Group Purchasing Challenge z Deliver NatWest purchasing integration benefits and create leading edge purchasing capability in RBS
Slide 99: Group Purchasing
Slide 99 Group Purchasing z Building capability z Doing deals z Changing the game z More to come
Slide 100: Building Capability
Slide 100 Building Capability z Global purchasing – Clear leadership – Overcome resistance by demonstrating savings z Flexibility – Single global deals – Regional deals – Small, local deals
Slide 101: Building Capability: People
Slide 101 Building Capability z People z 70% new external recruits
Slide 102: Doing Deals
Slide 102 Doing Deals z Aggregation z Agility z Hard bargaining
Slide 103: Doing Deals: Aggregation
Slide 103 Doing Deals Aggregation z Leverage absolute volume z Standard specification Example z Combined demand for office supplies and paper – Citizens acquisition of Mellon – Pennsylvania versus Rhode Island suppliers – 36% saving
Slide 104: Doing Deals: Agility
Slide 104 Doing Deals Agility z Close monitoring of volatile markets z Rapid decision making Example z UK electricity supply – Worked closely with supply market – Captured market low point – 33% saving
Slide 105: Doing Deals: Hard Bargaining
Slide 105 Doing Deals Hard Bargaining z Classic purchasing technique z Excellent negotiation skills z Opportunistic Example z Mobile phones – 3 suppliers reduced to 1 – Short window of negotiation – 31% saving
Slide 106: Changing the Game
Slide 106 Changing the Game Breakthrough Deals z Marketing and media z Cheque books New Route to Market z Reverse Auctions
Slide 107: Breakthrough Deals: Marketing
Slide 107 Changing the Game Breakthrough Deals z Marketing - media buying – All brands across Group – Single supplier – Benchmarked quality and service improvement – 20% saving
Slide 108: Breakthrough Deals: Cheque Books
Slide 108 Changing the Game Breakthrough Deals z Print - cheque books – Standardised design format with individual brand identity – Supplier consolidation (3 to 1) – Re-designed key processes with suppliers – Long term, strategic, Group wide deal – 40% saving
Slide 109: New Route to Market - Reverse Auctions
Slide 109 Changing the Game New Route to Market - Reverse Auctions z Internet based electronic auction – Hosted by independent third party – Multiple suppliers pre-qualify to bid – Bid downward to win the business – Can see competing bids “RBS run the largest reverse auction programme of any Financi
Slide 110: Reverse Auctions: Direct Mail Campaigns
Slide 110 Changing the Game New Route to Market - Reverse Auctions z Example - Direct Mail Campaigns – 18 suppliers pre-qualified to bid – 2 hour bid process – 668 bids received - over 30 bids per supplier – 35% saving
Slide 111: Reverse Auctions: Example Direct Mail
Slide 111 Reverse Auctions Example: Direct Mail Price 11.00 11.16 11.33 11.50 12.06 12.23 12.40 12.56 Time 11.00 11.16 11.33 11.50 12.06 12.23 12.40 12.56
Slide 112: The Royal Bank of Scotland Group
ac RBS The Royal Bank of Scotland Group
Slide 113: More to Come
Slide 113 More to Come
Slide 114: RBS Purchasing Benchmark, AT Kearney 2003
Slide 114 More to Come “RBS are leaders in Purchasing and Supplier management within the Global Financial Services Sector” AT Kearney 2003 RBS Target 2004 C RBS 2003 Average in Financial B Services A Procurement Procurement Strategic Transaction Performance Human Resources Strategy Organisation Purc
Slide 115: More to Come
Slide 115 More to Come z Supplier development – Fewer, better suppliers z e Procurement – Streamlining our ‘purchase to pay’ processes z Exploit reverse auction opportunities z Consolidate Churchill and other acquisitions z Keep ‘doing the deals’
Slide 116: Manufacturing
Slide 116 Manufacturing z Manufacturing Mark Fisher z Group Technology John White Coffee z Group Purchasing Ed Smith z Operations Mark Fisher z Conclusion Mark Fisher Questions & Answers
Slide 117: Mark Fisher, Chief Executive, Manufacturing
Mark Fisher Chief Executive, Manufacturing
Slide 118: What is Manufacturing?
Slide 118 What is Manufacturing ? Manufacturing Technology Operations Services Group Technology Account Group Purchasing Management – IT Operations Other support units Telephony – IT Development Lending Payments
Slide 119: Operations: Focus on Two Issues
Slide 119 Operations Focus on Two Issues z Telephony z Image and workflow
Slide 120: Telephony
Slide 120 Telephony z 3,700 people z 13 centres z 70 million calls per annum z Inbound calls – NatWest Retail Banking – RBS Retail Banking – Tesco Personal Finance z Call patterns – Morning and afternoon peaks – Monday and Friday peaks – Month end peaks
Slide 121: Telephony: Top Calls
Slide 121 Telephony z Top 5 calls – Balance enquiries – Statements and cheque books – Inter account transfers – Standing orders and direct debits – Queries
Slide 122: Customer Satisfaction 2001
Slide 122 Customer Satisfaction 2001 MORI Inter Bank Market Comparison - Telephone Handling RBS NatWest 20 30 40 50 Average of monthly customer satisfaction survey results for 2001 Very satisfied customers
Slide 123: RBS Telephony Model
Slide 123 RBS Telephony Model z Customer choice – Branch – Call centre z Customer choice – Human agent – Automated z Ownership z Your Money Magazine – Best Direct Banking Provider 2001, 2002 and 2003
Slide 124: NatWest - Old Telephony Model
Slide 124 NatWest - Old Telephony Model z Designed to minimise cost z Telephone lines to branches removed z Single national number z Compulsory Automated Voice Response z Lack of ownership
Slide 125: NatWest - New Telephony Model
Slide 125 NatWest - New Telephony Model z Step 1: Automated Voice Response now optional z Step 2: Better trained staff take ownership z Step 3: Option to phone branch z Step 4: Dedicated branch support teams
Slide 126: Outcome - Customer Choice
Slide 126 Outcome - Customer Choice Automated Choice 45% Branch 8% Customer Service Adviser 47%
Slide 127: The Royal Bank of Scotland Group
ac RBS The Royal Bank of Scotland Group
Slide 128: Customer Satisfaction
Slide 128 Customer Satisfaction
Slide 129: Customer Satisfaction: Telephone Handling
Slide 129 Customer Satisfaction Inter Bank Market Comparison - Telephone Handling RBS NatWest 20 30 40 50 60 NOP FRS customer satisfaction survey results - June 2003 spot figures Very satisfied customers
Slide 130: Operations: Focus on Two Issues
Slide 130 Operations Focus on Two Issues z Telephony z Image and workflow
Slide 131: Paper Driven
Slide 131 Paper Driven
Slide 132: Image and Workflow: What is it?
Slide 132 Image and Workflow What is it? z Image – Electronic picture of paper item – Single central store z Workflow – Electronic routing to operator – Management of progress
Slide 133: Image and Workflow Implementation: Remove the Paper
Slide 133 Image and Workflow Implementation Step 1 - Remove the Paper z Pilot Liverpool Customer Service Centre now z Glasgow Customer Service Centre by Christmas z All Customer Service Centres by 1H04 z Key high volume Payments Centres z Train over 5,000 staff z Early benefits – Remove paper – Load
Slide 134: Image and Workflow Implementation: Increase Functionality
Slide 134 Image and Workflow Implementation Step 2 - Increase Functionality z During 2H04 z Integration with core systems e.g: – Back Office – Signature images z Electronic feeds from: – Fax – e-messages – Internet banking z Access to information from other units
Slide 135: Image and Workflow Implementation
Slide 135 Image and Workflow Implementation
Slide 136: Image and Workflow Implementation: Process Automation
Slide 136 Image and Workflow Implementation Step 3 - Process Automation z Add intelligent character recognition – Computer reads forms – Process by process redesign z Automatic routing z Automatic signature verification z Pre-filling data fields in core system z Straight through processing
Slide 137: Image and Workflow Benefits
Slide 137 Image and Workflow Benefits z Significant efficiency improvement – Process specific – Straight through processing up to 95% improvement – Free form letter circa 10% improvement z Higher quality of service – No lost items – Greater accuracy
Slide 138: Image and Workflow Benefits
Slide 138 Image and Workflow Benefits z Workload balancing – Intra centre – Inter centre – Across Manufacturing z More specialisation z Contingency
Slide 139: Image and Workflow: Customer Benefits
Slide 139 Image and Workflow Customer Benefits z Faster turnaround times z Higher quality, fewer errors z Greater “connectedness” of organisation – Progress tracking – Query resolution
Slide 140: Manufacturing
Slide 140 Manufacturing z Manufacturing Mark Fisher z Group Technology John White Coffee z Group Purchasing Ed Smith z Operations Mark Fisher z Conclusion Mark Fisher Questions & Answers
Slide 141: Manufacturing
Slide 141 Manufacturing z Manufacturing Mark Fisher z Group Technology John White Coffee z Group Purchasing Ed Smith z Operations Mark Fisher z Conclusion Mark Fisher Questions & Answers
Slide 142: Manufacturing
Slide 142 Manufacturing z What is Manufacturing? z What does it deliver? z Making it work z More to come
Slide 143: Conclusion: Manufacturing Delivers
Slide 143 Conclusion Manufacturing Delivers z Single platform, multi-brand/channel – Scale – Specialisation z Common processes z Enable us to – Support income growth – Improve efficiency
Slide 144: More to Come
Slide 144 More to Come z Projects under way – Simplify processes – Improve products – Improve customer service – Continue to roll-out Manufacturing … more to come
Slide 145: Questions & Answers
Questions & Answers Fred Goodwin Mark Fisher
Slide 146: The Royal Bank of Scotland Group
ac RBS The Royal Bank of Scotland Group
The Royal Bank of Scotland Group — Manufacturing Division Conference 2003 on 6ix