Transcript

X-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:0 [MUSIC] Financial institutions are accelerating their investments in digital transformation. They're doing this to improve customer experiences and improve their productivity, and this is what we're here to talk about today. Welcome to our knowledge 2021 session, transform customer journeys end to end with financial services operations. I'm Tammi Shapiro and I'm excited to be joined by my colleague at ServiceNow, Namit Saksena and Nathan Hopkins from Kiwibank. So let's go ahead and get started. We want to cover a few things during today's session. First I'll start off by talking about the opportunity we see and hear from our customers around transforming their operations, and I'll walk through a few examples. Next, I'll hand it over to Namit to talk about how we are empowering our customers and partners to solve for this opportunity, leveraging financial services operations. And lastly we'll talk with Nathan Hopkins from Kiwibank. He'll share some of his ServiceNow journey and the value that they're recognizing by transforming their operations. Again, I'm Tammi Shapiro and I'm responsible for financial services at ServiceNow. Ultimately, our team's primary objective is to build capabilities to empower financial services customers and partners to capture more value from our platform and capture it faster. So let's get started with the opportunity. The opportunity to transform or at a minimum significantly improve customer operations and servicing, is part of every conversation that we have with financial institutions. At every point in the customer journey, there's a risk of under delivering to your customers or incurring unnecessary cost and overhead. Your customers want an easy way to engage with their financial institution, whether it's through a self-service channel, a branch, or a contact center. Their expectations are high not just about that initial contact but about how quickly their financial institution responds to their requests. The reality is that many customer requests require some level of manual resolution today. And that's where middle office teams often get involved. But here's where processes are unstructured, departments are fragmented, systems are siloed, and as a result, there's a lot of paper spreadsheets and emails that flow through the system. And then you have the back office systems. A lot of these are legacy systems, they are difficult to work with and it's hard to extract data from. At every point there's a risk of slowing down or their cost of handling these issues is unnecessarily high. These unstructured processes also make it more challenging for financial institutions to deliver on their SLAs and effectively track their compliance with regulations. So let me walk through an example to make this real. This represents a real scenario with one of our customers, but it also reflects what I imagine many financial institutions go through today. The scenario here is a customer that accidentally sent a payment to the wrong individual and wants to recover the funds through his bank. And the before state, the financial institution didn't have a self-service option. So the customer had to call the call center or visit the branch to report the issue. From there the branch or the call center would create a case on the customer's behalf. The case would then be assigned to a payment operations team who would be notified via email. All of the cases were then tracked on a spreadsheet so the compliance would have access to review them. Meanwhile, a case order was assigned to investigate the case. This case center had to work across multiple systems to research the transaction, as well as to look up the customer information. Meanwhile, you have a customer that's confused, doesn't know where their money is and is eager to get an update. Finally, the case is resolved and the customer gets their money back or there's a less fortunate resolution. As you can see, this process was highly manual and slow. Work was tracked on spreadsheets and emails, there's a lot of room for error, and it wasn't a great experience for the customer. So now let's look at the after state. Once work was moved onto ServiceNow leveraging financial services operations. This is the same scenario but here the customer had a self service option. So they can initiate their request through a digital channel. Regardless of how the inquiry was initiated, the right teams are automatically notified of this issue and can start to work on it immediately. Also by integrating various payment systems into the ServiceNow platform, the relevant data to resolve the case is automatically extracted. This enables faster resolution and can even result in automated decisioning of the case. Everyone has real time visibility into the status of the case. Everything happens faster and compliance is made aware proactively of any issues versus a more reactive tracking. Now imagine thousands of these issues that happen at your financial institution every week or even on a daily basis. The impact that this is going to have on customer satisfaction and productivity is very significant. And that's ultimately what we're solving for with financial services operations. Where the customer is reporting a payment error or requesting deferment on a loan payment, challenging a fee on their account. Whatever the issue might be, financial services operations offers a structured way to resolve a process end-to-end from a customer through the front office to the back office. Hundreds of financial institutions around the globe, leverage ServiceNow for customer servicing and customer operations today. Let me bring this to life with a few examples. First you see on the left here a top five bank in the US that move their corporate card onboarding program to the ServiceNow platform. Everything from initiating an application, through to actually issuing the plastic to employees of the corporation. This process was expedited from 50 days on average to eight days in the after scenario. You can imagine significant cost savings and also faster time to revenue because plastic is in the hands of the employees faster. The second scenario here is complaints management processing. A top regional bank again, in the US, moved their complaints process onto the ServiceNow platform. Everything from a customer initiating a complaint through to routing it to the appropriate teams through to resolution. This financial institution was able to recognize 2.5 million in annual cost savings as a result of this. Another bank-- a top 4 bank in the UK-- is leveraging ServiceNow to transform their payment operations. I gave one example of this and the previous example in the before-after scenario. They were able to move several processes onto the platform in under 12 weeks, integrate multiple systems and as a result, realized significant cost savings and time savings and their payment operations. And then lastly Kiwibank. I won't steal Nathan's under because he'll be joining us shortly. But among many processes, Kiwibank has moved their loan servicing or loan maintenance processes onto the platform, and has achieved significant productivity gains as a result. Before I hand it off to my colleague Namit, I wanted to summarize a few key objectives we're solving for with financial services operations. First is superior experiences. By connecting customers to front office teams through the middle and back office teams on a single platforms, customers benefit from faster resolution and a more predictable experience. Next is faster time to value. Financial services operations is designed specifically for financial institutions. What we've done is taken the richness of the ServiceNow platform and added industry specific functionality. This means faster time to value customers can also recognize exponential productivity gains. I walked through a few examples just now. We also offer industry optimize reporting modules which make it easier to recognize continuous improvement. And then lastly, by embedding risk and compliance controls into the process, our customers are able to achieve more compliant operations and at the same time reduce their regulatory exposure. With that, I'd like to hand it to Namit who will give you a deeper look into what financial services is all about. Welcome, Namit. Thank you so much, Tammi. Hi, everybody. I'm Namit Saksena, the director of product for financial services operations. Picking up from where Tammi left off, where she spoke about the opportunity. I am excited to share ServiceNow's answer for helping our financial services customers face the challenges that Tammi outlined. The answer is, provide customers a seamless experience where they get to choose their preferred channel of interaction. Online or mobile banking, live chat or virtual agent, branch or call center. The customer has the choice to raise the request the way that they want. Now, once the customer request has been accepted, then our digital workflows instantly route the request to the right team and operations. Loans, card, payments, complaints, deposits, or any team in the back office. The appropriate team can instantly start working on the case in their specific workspace. And they can use our advance work assignment to start instantly working on the case rather than waiting for it to be assigned to them. Integration hub enables realtime connectivity to systems of record without requiring civil to have access to the core systems. Such true, front to back automation reduces the number of errors which translate to less cost, realtime visibility, and collaboration on a single system of action. It also leads to amazing employee and customer experiences. With ServiceNow financial services operations, customers are able to achieve true, enterprise wide transformation. Digitizing front to back operations gives our customers unparalleled transparency into SLAs, bottlenecks, opportunities for process improvement, KPIs, business performance, trends, and analysis. And using our single platform, finally connect customer operations to IT as well as risk in compliance. At ServiceNow, our motto is, behind every great experience is a great workflow. Within the financial services team, we believe that by delivering a great employee experience and operations, you can deliver a great customer experience. So this could read, behind every great employee and great customer experience, is a great workflow. Let's see how we make that happen. Everyone knows about our amazing local platform, as well as our amazing customer workflows platform. We have worked with our financial services customers to understand their needs and added the industry specific features on top of these two great foundations. Looking at the enablers slayers, a standard out of the box financial services data model, which we have been building with the help of the banking industry architecture network, makes it easy for our customers and partners to speak the same language. Enterprise capabilities of mapping your business services and common shared services make it easy to reuse your existing investments in ServiceNow. If you look above that, we've added out of the box applications for payment, cards, loans. And we are adding many more applications and expanding the data model enroll. We are also adding financial services specific UX experience, process optimizations, performance analytics dashboard, and integrations. There is a whole lot of innovation available to plug and play. And we are doing this across all the subindustries in financial services-- banking, insurance, and wealth and asset management. This allows you to focus on business process transformation for any business process. Across customer engagement or customer service or customer operation or across all of them together. To summarize, along with the financial services specific features, financial services operations also includes CSM, ITSM, as well as app engine. This makes financial services operations, ServiceNows, all in one platform to help our financial services customers transform their core business. With that, I'm excited to hand it back to Tammi to talk to one of our customers who are doing exactly such an amazing transformation. Over to you Tammi. Thank you, Namit for tying it all together. Now and I'd like to welcome Nathan from Kiwibank. Nathan, thanks for joining today. I'll let you go ahead and introduce yourself before we get into Q&A. Hello, from New Zealand. Thank you, Tammi. I'm Nathan Hopkins, a senior product lead here at Kiwibank, New Zealand's largest 100% owned Kiwibank. Great, Nathan. So I know you've been on your ServiceNow journey for some time now and it's been great to partner with you on it. Can you share a little bit about some of the challenges that you faced and what you've been doing with ServiceNow at Kiwibank? Yeah, absolutely. So look, I think the opportunity for us was really-- as you touched on earlier-- the ability to shift away from a low level of processed maturity, which was highly geared around email, spreadsheets, phone calls. And really translate that into what we wanted to be a system of action built on a scalable platform, knowing the size of the challenge that we had ahead of us. I guess overall we knew that we wanted to become more efficient, put customers at the center of everything that we do, and reduce our risks through uplifting our compliance position. And the way that we did this was introducing a capability that we've named Piriti. Piriti is a Maori word that means bridge. And it's so reflective of what we've introduced being really the capability of connecting our frontline teams who are facing off against customers, whether that's in a branch or a contact center. And connecting that into our back office specialist teams who are executing highly complex processes. So I guess I will diving into that in a little bit more detail, what does that really mean? For us that means, a typical customer engagement remains as it always has, again, with one of those frontline teams or with one of our existing digital channels. But what we've done is we've introduced a system of engagement for those frontline staff to be able to take structured content from them. And then be able to pass it through into what has been the system of action, of then those back office teams being able to execute that structured work. I guess, doing that significantly uplifting both of our employee experience and customer experience at the same time. Great, Nathan, that's really helpful. And I love the term Piriti, it really does connect it and really represents what it's all about. So can you talk a little bit about what value you've recognized? What have you-- what have you accomplished and what's next in your journey? Yeah, absolutely. So as you mentioned, we've recently passed 12 months on our journey. And I really like that we're journey, because for us it's not a project, it doesn't have an end date. It is continuous. And that's reflective of the ServiceNow platform at the same time. As I mentioned earlier, we've got over 700 odd processes that we know that we want to digitize. And again, that can only be achieved if we take on a culture of continuous delivery instead of, I guess just by 1,000 cuts and individual little projects along the way. So I guess we've achieved what I would term to be significant value to date. Not only in productivity benefits along the way. But looking back to what I said before, enabling our frontline to focus on what they do best, which is customer conversations versus the reality of what they were doing before, which was hunting for the right mailbox to send a request to or try to find the right vision of an Excel template. So that value for, I guess, the frontline and as customers. The value for our agents has really been all about, providing that rich data that our frontline has been able to elicit. Giving them that first time right information to them be able to execute straight away on that process, not having to go through rework or recontact the customer to get more information. And that's adding real value to the process that they're executing against. And I guess finally if I reflect on value for management and leadership, it's having that visibility through realtime reports and dashboards and performance analytics. And there's actually a great example that I want to share there around that whole data to be able to make decisions. Due to COVID-19 that's impacted every organization globally. And for us, through the data we're able to identify that we had naturally latent capacity within our branches who weren't as busy or were forced to be closed because customers weren't able to come in. But we could then leverage that capacity. They have specialist skills especially in lending, and we could route them work through the ServiceNow platform to be able to execute against. Instead of, I guess, the ultimate what could have happened with them of not having any work to do and potentially having a whole different conversation around the future with the organization. So I guess a great example of how what we're doing is not only making us more productive, but we're actually ensuring that we can better workforce manage our people at the same time. That's great. And yeah, you mentioned earlier something that really resonated which is, that it really is a journey. You don't have to-- and we hear that a lot from our customers-- you don't have to do everything at once. It's really about starting in an area, improving that, leveraging things like you just mentioned like data, to inform how to continue to do that. It can be gradual and expand over time. I want to ask you one more question. I know I touched on it, I know we spent a lot of time talking about loan servicing or loan maintenance and the opportunity to really drive efficiency in that area in particular. Can you talk a little bit about what that looked like for you before and what you were able to accomplish there? Yeah, so look, we've really challenged the capabilities of ServiceNow and in the lending operations space. And the before snapshot of this process as you can see it's complex. It was cumbersome, very inefficient. We had upwards of 30% rework against every single case that came in. We had a very high exposure to risk and compliance with it. So naturally it was something that we really wanted to target, shift into the ServiceNow platform. But not just shift it in as a process but really drive out an end-to-end, completely integrated process at the same time to really solve that challenge that we had as a business. And look, the after snapshot that's coming up, it still looks complex because the reality it is. But the beauty of it is, we've hidden that complexity from the frontline. We've made it insanely simple so that to be able to come in service. And that ServiceNow is actually going to be able to execute against 42 different permutations or processes behind the scenes without them really even knowing it. So for us that's going into a singular service and having a completely dynamic for the particular situation they're dealing with. And then likewise that complexity is also hidden from the fulfillment team who's executing in the back end. Once again, those 42 particular processes completely head into them, integrating off to other systems of action or other systems of record. Like sending out emails to customers, sending out automated letters to the customer, storing a copy of that letter into our document management system, so on and so forth. And then I guess finally have a touch on the value. The value is tremendous that we've realized from this particular process. Eliminating the spreadsheets that were there before. Obviously, significantly cutting that end-to-end fulfilment time and naturally lifting our compliance as well. And I guess finally, something that actually Namit and I talked about previously was, just the sustainability lens of this as well. So by being able to, for example, send out now an email with a confirmation letter is obviously more sustainable than us having to print a letter and send it out by post to these customers. And ServiceNow has helped unlock that particular capability which is, just another lens to put on the benefit that we're getting as an organization. Thank you so much, Nathan. Yeah, I know it's great to see not only the value that you've recognized through things like direct cost and how you're able to do better work. But you have the broader value that you just mentioned, is something that's really powerful. Great. So with that, we're going to wrap up our Q&A session. Thank you to all of you for joining us in this session. Really appreciate you taking the time to make it and please be sure to check out the additional sessions in the financial services channel. [MUSIC]