The shortlist for the 2012 Retail Banker International Awards
has now been finalised. In all, there are 22 categories with 62
separate banks nominated, with names such as Standard Chartered,
RBC, Chase, HSBC and Itau Unibanco nominated at least three times.
Winners will be announced in the next issue
Go deeper with GlobalData
RBI sets out details of a number of
the key Awards categories and summarises the reasons for the banks
being nominated.
Best Retail
Bank – Global
Abu DhabiIslamic
Bank
In the past three years ADIB has more than
doubled customer financing assets and attracted over AED27bn
($734.94m) in new deposits; built the balance sheet to
AED75.3bn; doubled the number of customers, increased its branch
network to 66 and quadrupled the number of ATM’s.
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By GlobalDataRecent new products and services have been
launched including SME banking, ladies banking, wealth management,
private banking, children’s banking, and Etihad branded cards.
It has set the benchmark for recruitment,
training, qualification and retention of UAE nationals in its
workforce with a current Emiratisation rate at 44.5% of total
employees.
It has launched a number of corporate social
responsibility initiatives to help those in the UAE affected by the
economic downturn.
HSBC
HSBC posted a resilient set of results for
fiscal 2011 with a reported profit before tax of $21.9bn, up 14%
year-on-year. Retail banking and wealth management profit before
tax rose by almost 20% to $4.3bn.
The bank recorded strong performance in each
of the faster-growing regions with underlying revenues, growing by
12% in its Rest of Asia-Pacific business unit, by 12%, in Hong Kong
by 6% and in Latin America by 13%.
Customer accounts increased by 4% in
highly competitive markets driven by customer acquisition,
coupled with targeted deposit gathering campaigns to support growth
in lending, most notably in Hong Kong, Rest of Asia-Pacific and in
Europe.
Itau Unibanco
Brazil-headquartered Itaú Unibanco ended 2011
as the eighth-largest bank in the words by market
capitalisation.
Itaú Unibanco accounts for about 11% of the
Brazilian retail banking market and operates around 5,000 branches
and over 30,000 ATMs.
What have they done to deserve the
nomination?
In 2011, Itau delivered income growth, strong
profits and shareholder value for investors.
It has also increased its commitment towards
product innovation, competitive pricing and corporate social
responsibility.
In 2011, for the second year running, the bank
posted record breaking results, with net income of BRL14.6bn
representing a 22.3% ROE. The loan portfolio grew by 19.1% to
BRL397.0bn.
The retail banking division was a major
contributor to this performance with mortgages, credit cards and
personal loans all showing strong growth leading to double digit
increase in 2011 retail banking revenues.
Itau enjoys a market leading position in both
credit cards and auto loans and, via its recent offer to assume
full control of Redecard, aims to achieve similar success in
merchant acquiring.
This performance was underpinned by prudent
housekeeping. During 2011, the process of integration between Itaú
and Unibanco was completed and all technology platforms were
integrated and run in a single environment. Itau’s efficiency ratio
fell by 140 basis points to 47.7%, relative to 2010.
2011 saw Itaú Unibanco embark on a major
programme to remodel the retail service network and improve its
customers’ overall banking experience, following a major
refurbishment of its branch network.
Royal Bank of Canada
Fiscal 2011 was an exceptional year for RBC
Royal Bank.
RBC operates the strongest and most profitable
retail bank franchise in Canada with a number one or two market
share in each of its core businesses: consumer lending, consumer
deposits and investments, credit cards, and business financial
services.
RBC reaches over 10m clients through the
largest branch and ATM network in Canada, as well as online
channels, mobile banking application (with over 1m downloads
to date), contact centres, and proprietary and specialised sales
forces.
In 2011, the Canadian Banking platform earned
$3.5bn, or 53% of Royal Bank of Canada’s (RBC’s) overall net income
from continuing operations, the greatest contribution of any
business division.
Fiscal 2011 was a year of exceptional
performance for RBC despite economic uncertainty, low GDP growth,
high unemployment and downward pressure on net interest margins
across North America.
Highlights in 2011 included a cost-income
ratio of 44.8% in 2011, an improvement by 700 basis points
from 2008 and a 60% premium in year-over-year volume growth in 2011
(RBC growth of 7.7% versus Peer Average of 4.8%).
Standard Chartered
StanChart posted record income and operating
profit for the ninth consecutive year in 2011, despite difficult
market conditions. The Consumer Banking division grew operating
profit by 26%to over $1.6bn.
Customer advances were up 9% per cent to
$269bn billion and customer ahead by 11% to $352bn.
StanChart’s loans-to-deposits ratio remains
low at 76.4%,compared with 77.9% in the previous year, reflecting
its philosophy of ‘funding before lending’.
Digital channel highlights included ramping up
spending on its online and mobile offerings.
In 2011, StanChart launched Breeze Banking
with individuality at the heart of the offering; in addition the
bank developed Breeze Places – a mobile application that helps
consumers find its branches, ATMs and cash deposit machines.
Priority Banking income grew by 10% in 2011
with private bank income up by 21%.
StanChart has continued to improve its
distribution network, opening, refurbishing or relocating more than
60 branches, and refreshed or replaced over 400 ATMs.
It continues to roll out Next Generation
branches and applying its customer-focused approach to enhance and
improve the customer experience.
The new branch design features include touch
sensitive screens for browsing that allow customers to email
digital brochures, free Wi-Fi, video conferencing with specialist
advisors, and comfortable waiting areas where staff meet the needs
of customers using laptops and iPads.
Customer feedback has been positive and
StanChart now has over 160 Next Generation branches across 13
markets with a further six markets planned for 2012.
Best Retail
Bank – North America
American Savings Bank
American Savings Bank (ASB) operates a network of 57
branches—including 12-instore branches in Hawaii – that are open
more hours and days than other local banks, 120 ATMs, and online
banking.
Faced with several and unique market challenges – the island
geography limits potential physical expansion with available land
scarce and priced at a premium – the local economy is driven by the
tourism industry and Hawaii shows little overall population growth
with 1.2m inhabitants.
Coupled together all of these factors make Hawaii a
traditionally slow-growth market but despite this, ASB successfully
met its targets for 2011 with a net interest margin of 4.12%, an
efficiency ratio of 56.76% and return on assets of 1.23%, ranking
it among the top performing banks amongst its peer group
nationally.
ASB has embarked on a multi-year Performance Improvement Plan to
reduce expenses, increase net interest margin and increase return
on assets.
The bank has the number 1 market share for home equity lines of
credit with its popular “Equity Express” home equity line of
credit. ASB is also at the financial services forefront in support
of renewable energy, having recently introduced the “Clean Energy
Loan” product.
Through partnerships with selected contractors it provides
financing to consumers for the purchase and installation of
photovoltaic systems in homes and businesses.
Royal Bank of Canada
In 2011, RBC continued to grow its market
share among Canadian retail banks in key consumer and business
categories, including Consumer Lending (up 20 bps to 23.6% share),
Personal Core Deposits (up 120 bps to 21.8% share), Personal
Investments (up 10 bps to 15.8% share), and Business Deposits and
Investments (up 20 bps to 25% share).
In terms of comparative ranking, RBC has a
leading market share in four of the top five consumer and business
categories, and is a close second in the other (Personal Core
Deposits).
At the same time, provision for loan losses
declined 10 bps.
During 2011, RBC added to these capabilities
by introducing a number of branch-based and online tools and
calculators for client use, and by launching a “retail branch of
the future” retail store concept called Retail by Design (RBD).
The underlying premise for the RBD program is
that the branch channel is evolving to become more of a
retail-centric space, based on customer expectations.
By strategically cross-selling services to
clients, the bank has achieved industry-leading results in terms of
services per client, with 18% of customer households having
transaction accounts, investments and borrowing products with RBC –
compared to 13% for the bank’s next nearest competitor, and a peer
average of 10%.
Umpqua Bank
Umpqua has reviewed all aspects of its branch
strategy and decided to take an innovative approach with the
opening of its first “neighbourhood store”, so as to provide the
ultimate retail banking experience for its customers.
Umpqua has continued to significantly invest
in creating an inviting and engaging customer experience that
foster community spirit.
Umpqua serves communities in Oregon,
Washington, Nevada and northern California. The bank has grown to
186 stores and $11bn in assets since 1994, when new leadership
began to transform the organisation.
This phenomenal growth is due in large part to
its culture of service and creating a signature experience for
every customer, whether online or in one of its branches, which
Umpqua calls “stores.”
In the past year, the bank opened a newer
version of its neighbourhood store with cutting-edge features
designed to provide residents with a comfortable, convenient, and
inviting banking experience.
A key component of the customer service
experience at stores involves providing an appealing physical
environment where customers truly feel welcomed.
Umpqua places a greater emphasis on retail
operations and atmosphere than traditional bank branches and
creates an intimate banking experience that incorporates
state-of-the-art technology.
One such feature, the “Discover Wall,” is an
interactive touch screen that showcases financial tools and product
information. The wall also features real-time information about how
Umpqua Bank is giving back to the community, while local businesses
are featured in another area of the bank.
A digital café is reserved for using the
Internet, including online banking. One of the most talked about
features is a phone that serves as a hotline to Umpqua Bank’s
president.
The skill set of employees is a major
contribution to the customer experience and through the use of what
Umpqua Bank refers to as “universal associates,” all employees have
the ability to work in all areas.
Associates are cross-trained to be able to
take care of any need a customer might have. This practice is
contrary to most financial institutions, which utilise staff that
specialize solely in one or two banking functions.
US Bank
US Bank ended 2011 on a high note, reporting
both record net revenue and record net income. US Bank experienced
notable growth in deposits, loans and commitments year-over-year,
and credit quality continued to improve.
US Bank has sought to differentiate itself
from its peer banks throughout the economic downturn, by focusing
on customer satisfaction, prudent risk controls and by making a
number of opportunistic strategic bank and non-bank
acquisitions.
In 2011, US Bank made two FDIC-assisted
low-risk bank acquisitions: well-priced banks in growth markets
that help the lender get closer to achieving its goals of being in
the top three in market share in targeted, growing markets.
Notable successes included further growth of
its savings and rewards program, S.T.A.R.T. — SavingsToday And
Rewards Tomorrow, with customer numbers of the programme 865,000
users.
Wells Fargo
For fiscal 2011, Wells Fargo posted record net
income was $15.9bn, up 28% year-on-year.
Retail banking highlights included consumer
checking accounts up a net 3.2% percent while consumer credit card,
lines of credit and loan product sales were up by double digits
from 2010.
Wells Fargo’s retail banking household
cross-sell ratio of 5.92 products per household in 2011 was up from
5.70 in the fourth quarter 2010.
Wells Fargo’s retail bank ranked number one in
customer satisfaction according to the American Customer
Satisfaction Index (ACSI) for customers of large banks.
Multichannel highlights included 19.8m active
online customers and 7.3m active mobile banking customers.
Best Branch
Strategy
Citigroup Smart Branch
Taking a leaf out of Apple’s hugely successful
store strategy, Citi has rolled out a new retail prototype for the
basis of its branch of the future.
Smart Banking branch locations have now opened
in Singapore followed by locations in Japan, Hong Kong and New
York.
Citi is
now expanding its network of flagship branches in key
metropolitan cities, including elements of the flagship design and
some of the technology, although smaller in size.
Citi’s branch strategy has a focus on
customer-centric innovations and an eye towards growth in key
markets, drawing on smart banking technologies and best practices
developed by Citi in Asia.
The centerpiece of the Citi branch of the
future is a huge, interactive media wall displaying local weather,
news and financial updates.
There is also a touchscreen “Planning Table,”
a series of interactive workbenches and a digital service browser
where customers can cruise Citi’s products and services.
Itau Unibanco
2011 saw Itaú Unibanco embark on a major
programme to remodel the retail service network and improve its
customers’ overall banking experience, following a major
refurbishment of its branch network.
Itau’s branch investment programme entailec
developing a new concept in customer service incorporating
modernity, transparency and proximity to its customers.
Above all, the overriding objective was to
focus on raising levels of customer satisfaction.
The branch transition covered outlets across
300 cities and was completed in only six months, on schedule and on
budget at a rate of up to 500 simultaneous refurbishments per
month.
Royal Bank of Canada
Branches are critical to RBC’s distribution
strategy because they serve as the primary public face of RBC,
driving new client acquisition, and delivering the broadest range
of products and face-to-face service to deepen client
relationships.
Diverse competition across geographies and
businesses requires increased local market leadership and
capability – including resource allocation based on local market
opportunity. Along with the other channels, the branch network is
focused on delivering four key client needs: Advice, Service,
Convenience, and Value for Money.
RBC Royal Bank’s specialized sales include
1,200 commercial bankers aligned to industries, 600 small business
specialists, 1,400 mortgage specialists, and 2,000 financial
planners, making it the largest and most specialized proprietary
sales force of any Canadian bank.
Standard Chartered
StanChart has continued to improve its
distribution network, opening, refurbishing or relocating more than
60 branches, and refreshed or replaced over 400 ATMs.
It continues to roll out Next Generation
branches and applying its customer-focused approach to enhance and
improve the customer experience.
The new branch design features include touch
sensitive screens for browsing that allow customers to email
digital brochures, free Wi-Fi, video conferencing with specialist
advisors, and comfortable waiting areas where staff meet the needs
of customers using laptops and iPads.
Customer feedback has been positive and
StanChart now has over 160 Next Generation branches across 13
markets with a further six markets planned for 2012.
Umpqua Bank
During 2011, Umpqua Bank focused on building
its technology infrastructure to ensure that the bank’s operations
are reliable and scalable.
New workstations and servers, and a
“lights-out” system that ensures a nearly worry-free back-up system
are just a few of the projects Umpqua Bank has recently
completed.
The result of the redesign by Umpqua is an
experience that redefines retail banking. The bank continues to
experiment with new ideas and initiatives while rapidly expanding
its regional footprint.
In 2011, the bank opened 10 new stores in the
Pacific Northwest, launched a business banking division, and opened
new commercial lending teams and commercial banking centers in two
locations.
Innovative customer-facing applications are in
the planning stages, including solutions that help translate the
inviting atmosphere of the bank’s brick-and-mortar stores to its
online presence.
Best Mobile
Banking Strategy
ABSA
Absa was the first South African bank to
launch mobile banking services in the year 2000.
Absa Mobile banking is currently delivered
across three technology platforms (WAP, WIG and USSD) which enable
Absa to cater for every segment of the market and every type of
handset ensuring that all South Africans, regardless of income, can
have access to mobile banking.
While internet penetration remains low, it is
estimated that over 95% of South Africans own a mobile phone
allowing Absa mobile banking to address the need created by a lack
of access.
Absa now serves over 3m customers across the
three mobile channel offerings, processing in the region of ZAR12bn
billion in transaction values annually.
Exciting new developments include delivering
mobile NFC payments and an enhanced experience for smartphone and
tablet users as these devices continue to become more widespread
however Absa has not lost sight of those that need cheaper and
convenient services the most.
It is estimated that almost half of South
Africa’s 49m citizens do not have a bank account.
These unbanked South Africans can still
receive a basic banking function through Absa’s cash transfer
innovation called CashSend.
Absa is currently the only bank in South
Africa to offer end-to-end services for personal loans and real
time life insurance.
Absa Cellphone Banking users can apply for a
personal loan, be credit scored and receive the funds deposited
into their account in a matter of minutes, all from a mobile
phone.
Absa Cellphone Banking is taking small steps
toward the giant leap of non-queueing, travel-free branchless
banking provided to South Africans at a reduced cost.
ANZ goMoney
ANZ takes a customer-centric approach in its
mobile banking strategy across the Asia Pacific region, which is
primarily focused on three key areas.
Addressing market-specific needs by
providing features that resonate with customers in each
geography:
This is evidenced through ANZ’s different
mobile banking offerings that address the varying market needs
across the Asia Pacific region.
ANZ goMoney™ was launched in 2010 response
to market trends and changing customer behaviours and preferences
towards the mobile channel.
An award winning mobile banking service,
ANZ goMoney was the first native mobile banking application for the
iPhone in the Australian market.
The service was an immediate success among
customers and became the number one finance application in the
Apple iTunes Stores within hours of launch.
Today, ANZ goMoney has more than 550,000
users who initiate more than 5 million transactions a week, and is
processing around 30% of all ANZ’s digital transactions.
In New Zealand, three types of mobile
services are deployed to address the needs of the different
customer profiles across the two operating ANZ brands (ANZ and
National Bank). Together, the following offerings service close to
230,000 customers across the two brands:
In Asia, specifically in Taiwan, ANZ
leverages its mobile banking service on the iPhone to provide
customers with timely, cards-related promotions and retail offers
given the highly competitive cards market).
Addressing market specific eco-system
conditions by leveraging technology and devices that are most
prominent in each geography:
ANZ deployed a unique mobile payments
service called WING for the “unbanked” population of Cambodia.
Cambodia is largely a cash economy where it is estimated that only
500,000 of its 14m populations have bank accounts. However, an
estimated 3m Cambodians own mobile phones.
WING gives these Cambodians access to
safe, secure, fast and affordable ways to manage their money using
their mobiles. In addition, customers are able to cash-in or
cash-out at over 600 WING Cash X-Press outlets, or use ANZ Royal
ATMs to withdraw cash.
Delivering proof points for ANZ’s
brand of “We Live In Your World”:
ANZ mobile banking services provide proof
points for ANZ’s brand of “We Live In Your World” by offering
customers uncomplicated and convenient banking on the go. This is
most notably evidenced through the positive customer feedback of
ANZ goMoney™:
Bank Zachodni WBK
Bank Zachodni WBK has been systematically
introducing mobile banking services onto the Polish market.
Avocado, introduced In November 2011, is a
solution that allows making use of a simple and convenient banking
service as well as lowering mobile phone bills.
Avocado stands for a special Bank Zachodni WBK
bank account with a debit card and online banking services. The
account can be opened at most branch offices of Plus – one of the
three biggest GSM operators.
The service has its dedicated mobile banking
application available in the five operational systems: IOS,
Blackberry, Android, Windows Mobile, and Symbian.
Additionally, there is a browser version
suitable for mobile phone Internet users.
A VISA debit card is issued for the account
and customers can use it to withdraw cash and for NFC-enabled
payments or safe online transactions.
The Plus’s customers benefit in another way:
if they decide to resign the agreement or sign one for the first
time and open Avocado account at the same time they will get a
bonus of 50%. Half of their monthly Plus service fee or half of the
prepaid money will be transferred onto their Avocado account.
Bank Zachodni WBK also allows customers to use
mobile phones in order to withdraw cash from ATMs.
Standard Bank
The Standard Bank Student Loan Application
Site was the first mobile application site for Student Loans in
South Africa.
The solution can offer a provisional answer on
the student loan in less than 10 minutes. As a result, the channel
has become the backbone of all student loan applications.
Branch staff across the country now complete
customer applications through this medium and benefit from direct
capture and removal of paper trails.
The obsolescence of manual steps in the
application has resulted in an average improvement of 80% for end
to end processing of the student loan.
In order to complete the full application
process, the customer is required to go into a Standard Bank
Branch. The process of identifying the closest branch is simplified
through a GPS tracking tool that allows the customer to input their
approximate location into the site and receive GPS details of the
branch they select.
In subsequent versions, the application site
would seek to offer mobile device GPS Coordinates in order to
automatically select the branch closest to them.
The selected branch is then informed of the
provisional student application, the completion of the application
and the requirement to contact the student over and above the
electronic communications being provided.
Promotion of the site is driven extensively
through Social Media with integrated branch and marketing
campaigns.
In terms of performance, Standard Bank has
seen application volumes for January 2012 alone that represents 90%
of our total year targets and a 300% year-on-year increase.
Standard Chartered
StanChart’s mobile offerings in each country
differ based on smartphone penetration.
For countries with high smartphone usage, it
has developed the Breeze suite of banking and lifestyle apps.
Breeze addresses the needs of globally-connected customers who are
on-the-go, tech-savvy, and who value transaction freedom and
convenience.
Currently available in Singapore, Hong Kong,
Malaysia, India and China with more markets to follow soon, the
Breeze mobile banking app allows customers to transfer funds and
pay bills anywhere, anytime from the convenience of their
smartphone.
Breeze is the first mobile banking app with an
e-Cheque feature which turns the smartphone into a chequebook.
Cheque details can be filled out on a
smartphone, and sent to the selected recipient on the customer’s
behalf.
The Breeze Wishlist savings feature enables
customers to set their savings targets and share their wishes,
progress and achievements via their Facebook pages.
With Breeze Home (Asia’s first property search
app that also uses augmented reality and location-based services to
drive its functionality), customers can access information on more
than 100,000 property listings in Hong Kong – including valuations,
transactions and ratings. With its in-built personal finance stress
test, home buyers can work out how much they can afford to
spend.
The number of unique customers using the
Breeze suite of apps per month has grown by an average of 47% over
the past 6 months.
Customer satisfaction is evidenced by a 60%
jump in the number of logins from July 2011 to December 2011.
In markets with lower smartphone usage,
StanChart has innovated differently to serve its customers.
In Kenya, the dual problem of low credit card
and smartphone adoption rates led the bank to partner with Airtel
and Mastercard to offer the world’s first virtual credit card on a
mobile phone.
This has allowed customers without credit
cards to shop online, which generated a 155% increase in mobile
banking customers and 78% growth in number of active customers.
Best
Innovation in Customer Service
Abu Dhab
