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ROI CASE STUDY Technology tips that actually drive revenue |
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By John Ginovsky
One-to-one ATM messaging, online
appointment booking, mobile RDC, and online banking for business are four new
technologies that have significantly boosted revenue for BMO Bank of Montreal,
which has an extensive branch network in the U.S.'s Midwest and West Coast.
Speaking at a recent retail bank
conference, Andrew Irvine, senior vice-president of the bank, explains how.
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One-to-one ATM messaging: "We deployed it 12 to
18 months ago and what we're seeing is quite amazing, in customer response. We
are basically delivering targeted messages around simple products, like credit
card limit increases. We'll up-sell from a mass-market card to a gold card, for
example, or offer $15,000 to $20,000 lines of credit.
"All of those products can be
simultaneously bought and fulfilled literally at the ATM. Just click yes and
it's done. What we're seeing in our pilots, across thousands of customers, is
that 20-30% who have seen the ads are clicking yes...The ROI of this is very
strong."
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Online appointment booking: "We have had online
appointment booking in our contact center where the contact center agents can
book appointments right away directly in the platform banker calendars. Our
contact center probably does 100,000 appointments a year, if not more, really
channeling appointments to the branch network, increasing yield.
"What we did recently, we asked,
why does it have to go to our contact center agents? Why can't we take the
capability and enable it online in a self-service manner? So we did that. Now
our customers get to choose. Do they want to buy online? Absolutely, we can do
that. Or would you rather book an appointment in the branch? Absolutely, we can
do that.
"It's customer-preference based.
We're probably seeing about 1,000 appointments booked per week. We're seeing in
those sales $100 of increased revenue per appointment that we are generating.
For us, that's about $6 million a year of incremental revenue, much of which
comes from annuity-like products.
"This is a very high ROI
initiative, and it's a fabulous customer experience. It gives control to our
customers. They set the time for when they want to book appointments. It takes
20-30 seconds. They get reminders. The appointment goes into their Outlook
calendars. Our customers love this capability."
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Mobile remote deposit capture: "We were late to
this game in the United States, but not so in Canada. In Canada we were much
earlier...What's interesting, and we didn't expect it, is that 30% of our mobile
customers are pretty heavy RDC users. That's a much higher RDC penetration of
the mobile user base than we believe many of our competitors have. It surprised
us.
"It's actually starting to drive
transaction volumes out of the branch. We also have a number of image-enabled
ATMs. So we're starting to see branch check deposits fall in the nature of
20-40%, which is great because we have more capacity to do other sales-focused
activities."
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Online banking for business: "This is a
commercial treasury portal that we run. It does very large transaction volumes
on a monthly basis, more than $1 trillion.
"Given that we are fully aware that
this is the lifeblood of many of our corporate accounts and commercial
customers, we need to make sure that we have really good usability and good
feature function. We're also maniacal about how we think about risk management
in this application. So we have strong mobile alert features for financial
controllers, who can get alerts based on however they would want to set their
capabilities to manage their cash flow.
"We have multifactor
authentication. We have token-based authentication. We have very strong
anti-malware capabilities. It's fully FFIEC compliant.
"It's robust and we're really
pushing the capabilities that we have in this tool with our customers. For
example, we're going to add a Chinese cash management capability so U.S.
corporates are able to manage local Chinese cash in this tool, which we think
is a pretty significant innovation."
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About the Author
John Ginovsky is contributing editor of ABA Banking Journal and editor of the publication's TechTopics e-newsletter.
For more than two decades he has written about the commercial
banking industry. In particular, he's specialized in the
technological side of banking and how it relates to the
actual business of banking. He previously was senior editor
for Community Banker magazine (which merged with ABA Banking Journal) and was a staff writer for ABA's Bankers News. You can email him at
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[This article was posted on October 22, 2012, on the website of ABA Banking Journal, www.ababj.com, and is
copyright 2012 by the American Bankers Association.]
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