Over the next 10 years, retail banking will face many challenges of global proportions. Feeling the increased pressure from industry consolidation, growing regulatory scrutiny, and more demanding consumers, banks will be forced to adapt to external conditions to survive. Other changes of equal importance will come from within. A big one is the arrival of a new generation of "millennial" workers—individuals born between 1983 and 2000—who have dramatically different outlooks and work styles compared to earlier generations.

The right investments in technology and software can help banks adapt to these changes. But the real key to capitalizing on new opportunities is by empowering bank staff to add additional value, whatever their job role or skill level.

What's more, investments in systems that lock people into low-value roles in the hopes of containing costs will not succeed in a fast-paced, customer-centered world. In contrast, empowering people can make a difference at every level by:

• Driving customer loyalty through personalized service delivery.
• Discovering innovative processes and new services that better meet customer needs.
• Managing partner relationships in anticipation of market changes.
• Maximizing productivity to drive operational excellence.

The goal of Microsoft Corporation is to make it possible for banks to succeed by giving people the right tools, information, and access to expertise in order to deliver high-value products and services in this "new world of work." Today, these capabilities are integrated into the next-generation of Microsoft Office and Microsoft Windows products and platforms. For tomorrow, we see these environments evolving to address the changing needs of retail banking.

Always On, Always Connected
As the costs of mobile devices and connectivity continue to fall, more retail banking customers will expect the convenience of security-enhanced banking on their mobile devices. For example, using mobile systems for Web access, e-mail, and making payments—all over secure wireless connections—will become routine for the most competitive banks. Meanwhile, bank branches will use location technologies to help customers who are using personal mobile devices find convenient branch locations, receive personalized offers, and access services.

Branching out. Once tomorrow's customers enter the branch, maintaining a favorable customer experience will be critical. The use of location services will help bankers keep track of customers, reduce wait times, and improve security. Furthermore, integrating location services with existing customer files will give bank representatives a complete view of the relationship. Integrated location services also will help banks anticipate customer needs, personalize service delivery, and streamline transactions.

New media gets richer. Innovations in large-format, interactive displays will permit banks to replace static posters and signage with more compelling and personalized rich media. Interactive displays will be used as the interface to systems that employ the same comprehensive view of customer information available to human bank representatives. In this way, customers will receive satisfying self-service options even for complex transactions.

Simpler interaction with customers. Meanwhile, emerging pen-based solutions will help users switch effortlessly between today's sometimes confusing mix of electronic documents and paper. The concepts use regular ink and work with regular paper, and let users combine handwritten text and diagrams with digital content from reports, magazines, and Web pages. One technology being explored uses a stylus to intuitively "drag" content from one device to another.

Creating Trust, Reducing Risk
A bank's primary value proposition is its customers' trust that their money is secure and access is reliable. Yet trust today is perhaps the greatest barrier to the smooth implementation of seamless retail banking solutions, as far as customers are concerned.

In the next 10 years, people and organizations will be able to share data more freely while maintaining control over who can access it and under what conditions. Unauthorized users will not be able to decrypt personal information without following the rules established by the proper custodian of the data. With smart content systems in place, banks and customers will have improved security and control over confidential information, thereby inspiring trust in the relationships and systems.

Foolproof authentication. Customers are reluctant to share data over networks without safeguards, but conventional login-password security practices are time-consuming and prone to error. The use of biometric identifiers such as fingerprints and retinal scans is becoming widespread as a supplement to or replacement for password security. However, biometrics by itself is not a guaranteed solution. Voice and facial features, for example, can appear different under different circumstances. Fortunately, more sophisticated systems will soon be able to recognize individuals automatically. Such systems will be based on a preponderance of physical evidence rather than a single characteristic.

Differentiating with Outstanding Customer Service
Global competition threatens to reduce many aspects of retail banking today to commodity-level services. New technology solutions can help retail branch banks restore the differentiated value of their brand by providing the unique, highly personalized customer service that customers increasingly expect.

Many banks rely on structured processes and systems that automate routine decisions (such as loan approvals) with business rules. However, even well-designed systems encounter exceptions that fall outside of the rules. When this happens, customers can feel victimized by bureaucratic red tape and may be at risk of taking their business elsewhere.

Bringing human judgment and discretion into structured processes at key points can be decisive in salvaging customer relationships at the "moment of truth." This requires workers who are empowered—not just by bank policies but by more flexible systems.

For bank managers, customer service representatives, and other employees to outperform the competition, they need access to the right information and the best tools.

Realizing the Potential of the Work Force
Tomorrow's business environment will be more collaborative for workers in a wide range of roles. However, collaboration tools such as e-mail, instant messaging, shared workspaces, team calendars, and online meetings require better context and integration to deliver the benefits they promise.

A range of new methods for supporting context-sensitive messaging and alerting is now under development. These will help people take greater control of their exposure to communications and reduce the impact of "information overload."

Flexible and consistent software tools will be needed for the training and retention of employees. Among many other things, banks will use these tools to repurpose staff in periods of low traffic volume in order to handle demand in high-volume periods. For example, during quieter times in the branch, tellers can become call center representatives using such technologies as voice over IP (VoIP) phones, collaboration software, and a headset. The result will be enriched roles and greater opportunities for the staff.

The next 10 years will pose unique challenges to retail banks. Attracting and retaining customers, preserving differentiated value in a global market, and adapting to work force changes will require investment and adaptation.

Microsoft believes that people are the key to success in the new world of work. Working together with our global ecosystem of industry partners, developers, and IT professionals, Microsoft delivers the software applications and platforms that can help retail banks become People-Ready Businesses.

For more information, read the complete white paper, Retail Banking in the New World of Work PDF (454 KB) | XPS (468 KB).

---

Was This Information Useful?