Alternative Banking Channels

Course overview The explosion of mobile-based banking in Africa and Asia has led banks globally to reconsider whether the traditional brick and mortar setup for a bank is still ideal in every market circumstance. At the same time, the expansion of telecoms into the mobile payments space has called into question how profitable mobile banking and other alternative channels where banks lag in distribution can be. This course addresses how participants can explore, develop, profit from and risk manage alternative banking channels, including: mobile banking, ATMs, Agency banking and e-banking. Starting with traditional brick and mortar branches, we explore the pros and cons of alternative channels as well as the strategy’s compatibility with the bank’s product mix, marketplace and market position. Much of our discussions centers on how to ensure that risks are managed appropriately within the alternative channels and that an internal risk framework is established to ensure strategic and operational risks have been assessed and incorporated. In this 3 day course participants will learn: The cost-benefit analysis of the various alternative banking channels, including: -Agency banking -Mobile banking -E-banking (internet banking) -ATM banking -Traditional branching Major challenges and issues in implementing alternative channels Various product offerings that have been successful or unsuccessful in these channels How to research the market for the viability of the various channels How to match products with demand and customer base How to organize internal management and risk management support for alternative channels How to develop management and risk management policies and frameworks for supporting alternative channels How to choose the right systems architecture for supporting alternative banking channels This course is intended for: Banking executives, managers and operational personnel Bank risk managers and heads of risk IT and Information Systems personnel Auditors Regulators Consultants
Day 1 Introduction and Overview The scope for alternative channels Africa—in the lead Asia Europe Americas Traditional channels Brick and mortar branches ATM and Auto-branches New, Alternative channels Mobile banking -Mobile payments -Mobile lending Agency banking -Cash-in, cash-out -Lending Internet banking -Account review and non-credit transactions -Credit transactions Overview of sample regulation on channels Delivery channels -International comparisons -Branching regulations -Agency regulations -Main regulatory options -Channel licensing Approval process -Branching -Alternative channels -Anti-Money laundering (AML) Overview of typical products for delivery on alternatives Retail products -Deposit and savings acounts -Credit cards -Mortgages -Overdraft facilities Wholesale products -Small-to-Medium sized loans -SME services Key devices -Pre-approvals -Rollover of facilities Incorporating Key devices into the alternative channels Day 2 Costs, Benefits and Risks of Alternative Channels Branch Banking -Costs of branch establishment -Benefits -Target customer markets and sequences -Using mapping and data analysis techniques in deciding on branching -Risks associated with Branch Banking and risk management concerns ATM/Auto-Branching -Costs of ATMs -Usage costs, maintenance costs, -Security -Benefits and prospective profits -Risks of ATMs/Autob-branches Mobile banking -Structure and designs -Network and operating costs -IVR versus SMS -Challenges with acceptance amongst bottom of the pyramid -Acquisition costs (POS, etc.) -Variable costs -Risks to mobile banking Agency banking -Structure and designs -POS and operating costs -Branding costs -Training costs -Regulatory and related costs -Risks -Benefits and potential revenues E-banking -Targeting of the relevant segment -Empowering customers -Usability issues -Personalization -Costs and Challenges -Risks -Benefits and potential revenues Strategic Execution Competition from non-banks Collaborative development of service Capacity building -The right people -Hiring, training -Operations -Risk Management -IT considerations -Case Study of Multi-Channel execution using Finacle v10 Channel Optimization Multi-channel integration and drivers Integration technologies Multi-channel implementation Applied strategy Day 3 Next Generation banking models (Comments and discussion points from Accenture survey) Intelligent multi-channel banking -Integrated, multi-channel architecture -Analytics and real-time event management -Advance digital advisory -Need-based offerings optimized by channel The socially-engaged bank -Customer engagements -Leverage influences -Co-creation based on increased customer intimacy Financial/non-financial digital eco-system -Bank as trust center with extended proposition -The bank where you are leveraging the power of mobile -M-payment services Getting a foundation for Next Generation Banking Channel optimization applied -Integration -Management in the face of uncertainty -Customer segmentation -Effective sales -Communication -Performance management Case Studies Leveraging social media Placing the bank at the center for customers Globally-relevant challenges for Alternative channels (Comment and discussion on Ernst & Young Surveys) Fee-setting, pricing and service quality to customers Competition Customer advocacy Customer demand for personalization and flexibility Loyalty rewards Simplification (Comment and discussion Booz & Co. study) Improving performance by reducing complexity -Product Management -Core and non-core business lines -Simplifying product line Distribution—migrating low-value transactions to direct channels Operations & IT—capitalizing on scale Organizational structure & roles Embedding the changes Concluding remarks