Microsoft Solutions for the Banking Industry
The banking industry is undergoing a painful transformation, and the pace of change has recently accelerated as a result of turmoil in the economy. When this transition ends, the banking industry will see fewer brand names above the doors at corporate headquarters and branch offices. The consolidation will be most obvious in the United States and the United Kingdom, two very fragmented banking markets, but the impact will be global.
Major sectors of the industry will be forever changed. Monoline companies, particularly in credit card, investment banking, and mortgage business lines, will be absorbed into the remaining major banks, which will become more universal in their service offerings. Consolidation will continue among regional and community banks, as well as credit unions, as the shift toward safety and soundness favors prudent enterprises.
As these changes unfold, traditional banking enterprises will also have to respond to attacks from non-traditional service providers offering attractive alternatives in payment methods and channels, investment programs, and lending solutions. And the impact of non-traditional service providers will continue to grow as consumers become more comfortable using social technology.
Industry leaders recognize that difficult times require aggressive business-building strategies. Meeting the evolving needs of individuals and small businesses is at the core of these initiatives. The focus will continue to be on improving the customer experience as one element of a plan to retain current customers and attract new ones. Additionally, the industry recognizes the critical role filled by customer contact employees in successful execution of these plans. At a minimum, it is necessary to improve the employee experience by providing the newest technology consistent with the technology they are already comfortable using and by giving them the tools required to respond to customer needs.
Microsoft Corporation is unique in its ability to support the banking industry. Because we field the world's largest community of software partners, banks can build business applications on top of Microsoft software with confidence. And Microsoft's investment in innovative new capabilities, such as Virtual Earth, Tellme, and Surface, provides exciting ways for the banking industry to offer customers memorable banking experiences that build a bank's brand and strengthen loyalty.
Microsoft banking solutions include:
Branch
Turn each customer interaction into a sales opportunity with integrated, complete customer data and the communications and collaboration tools employees need to work efficiently. Prepare your branches for industry changes with a scalable, flexible infrastructure that can be quickly adapted to meet needs and take advantage of opportunities. At the same time, reduce asset management costs by simplifying IT management and employee training.
Microsoft focuses on helping financial organizations leverage technology to amplify the impact their people can deliver to drive business success. One way we do this is by providing our customers with technology they can implement to enhance the experience of their customers.
Customer knowledge
As banks look for new ways to generate revenue and increase profit, they are beginning to focus on delivering more personalized services to attract new customers, deepen and extend relationships with long-term clients, and expand opportunities to up-sell and cross-sell more products to existing customers.
Microsoft Dynamics CRM is designed to provide bank employees-from personal bankers to financial advisors to business relationship officers-with a rich source of information about every customer. From the moment a customer first contacts the bank or opens a new account, bank employees can begin to review, evaluate, and anticipate his or her current and future financial needs. That kind of personal care and attention breeds loyal customers, and more loyal customers lead to increased revenue and higher profits.
Online financial services
The Web has become a strong new channel for the banking industry, and the newer generation of banking industry Web sites is closely integrated with the branch, call center, and mobile banking channels. Although the majority of consumers still favor the branch environment, a distinct shift is under way, particularly among younger customers, toward digital access to basic banking services. As use of the Internet channel for many transactions becomes common, the banking industry recognizes the opportunity to change the role of the branch from a servicing office to a sales environment.
Customer and performance insight
Today's banks understand that increasing their revenue and profits means they first must improve their performance. Yet many banks find it increasingly difficult to achieve that goal because they lack good business intelligence to help enable effective performance management. And good performance management is essential as banks strive to manage risk, improve branch operations, design and execute more effective marketing campaigns, attract and retain more customers, and increase customer profitability.
At a time when every strategic decision has the potential to improve or erode a bank's bottom line, bank employees struggle to collect and synthesize enormous amounts of raw data from every part of the organization and to transform that data into the information executives and managers need to make critical decisions. Because much of the data is stored in silos managed by disparate and disconnected technology solutions, however, the information is slow to reach the people who need it. And once the information arrives, it is often outdated or incomplete.
Core banking
Modular, component-based system renewal is the best way to reduce risk, increase management buy-in, and avoid ripping and replacing. By leveraging modern banking applications on the world's best platform, banks can achieve a phased, strategic approach that allows them to renew core systems in a managed, modular way at differentiated cost and to improve operations, reduce costs, and prepare for growth by leveraging a component-based architecture that strongly integrates with the systems already in place.
