Bob Tramontano, Director de Operaciones de Negocios de la Industria Financiera de NCR Corporation. 13° Congreso Internacional de Tecnología para el Negocio Financiero

2. Bob Tramontano
Director de Operaciones de Negocios
Industria Financiera de NCR Corporation

3. NCR Confidential
The Future Role of the branch
Reach willing customers. Satisfy needs. Deliver service & profit.

4. NCR Confidential
CONSUMER DEMANDS
CONSUMER
DEMANDS
“I want personalized bank
services at times convenient
to me”
“I want to deposit or make
payments any time day or
night”
“I expect always-available
bank services that are secure
and know my preferences
across all points of service”
CONSUMER
DEMANDS
BUSINESS
IMPERATIVES
THE
BUSINESS
DEMAND
GAP
Leverage my existing
infrastructure to sell and
serve customers more
efficiently while complying
with regulations
Expand advisory services
and deepen relationships
Monetize consumer loyalty
by re-defining multi channel
experiences
The Demand gap is rapidly expanding.
Consumer expectation boundaries are stretching. Bankers need to meet them, Profitably.

5. NCR Confidential
Consumers expect Branches to be part of their new ecosystem
Consumers self - inform via multiple sources, creating complex transacting & decision pathways.
PURCHASE
FRIEND
EVANGELIZE
TRUST
DECIDE
COMPARE
RESEARCH
SEARCH
DISCOVER
DECIDE
GET
HELP
SHARE
DISCOVER
WEB COMPANY
WEBSITE
MOBILE BRANCH
/STORE
CALL
CENTER
SOCIAL
73% of Consumers
trust friends, family &
social media for
banking information
Banks must ready to
offer the next level of
interaction wherever,
whenever
Delivering
Branch Capability
where consumers
want to transact
Banks no longer have
clear control of the
service & sales
engagement model

6. NCR Confidential
Traditional Profit models are under pressure.
Traditional profitability models failing. Unprecedented need to create new, sustainable profit models.
Low spreads on
Lending & credit
balance margins
Fee based income
reducing with new
regulation
Legacy Branch network
costs remain,
customers fill the
branches but revenues
decrease
Typical Global average
Cost : Income Ratio
rising to 50%
Increased Regulation &
Basel 3 reduce ROE on
retail banking by 20%
45% of typical bank
costs attributed to
distribution channel

7. NCR Confidential
Branch Transformation strategies are converging.
Its about reaching the customer - doing profitable business with them, where they like to do business.
2005
Differentiation through
design, no ROI model
2010
Branch is the loss
channel & must close
2013
Create more effective Branches, Expand
Reach, Grow market share, reduce cost to
serve
Typically 4 or 5 new
branch formats
Customizable model fits
demographic & wealth
market specifics
Reduced footprint,
operation costs, with
90% customer space
Modular, rapidly
deployable, often with
retail partner, work
place, university

8. NCR Confidential
New Opportunity – Acquire small business & personal custom.
Argentina – a rich vein of potential to establish New SME & Retail customer relationships
Opportunity Size
14.5m consumers
60%+ of working
population remain
unbanked
World average11%
Opportunity Size
26% of adults
saved money in
2012.
Only 8% with banks
Opportunity Size
Almost 12,000 new
small businesses
start up every year
The Challenge
Provide good value,
personalized
services to attract
Gen X, Y and SME
Source: World Bank 2012

9. NCR Confidential
A Profitable Branch Network Expansion Strategy
Leaner, reduced footprint Branches. Expanding into new territories. Servicing the full customer base.

10. NCR Confidential
The Economics of branch network expansion in the future.
Profitable points of presence. Reaching customers. Closing the capacity gap. Accelerating fulfilment.
Today
TomorrowTraditional Branch
ATM
Iconic
Express
Micro
Self Service
ATM
Target
segment/
micro market
Points of Presence
4
‘Old’ Branch formats
Points of Presence
9
‘New’ Branch formats
•Fact – 76% Increase in sales revenue at 42% of the traditional cost
• Tailor digital and physical service
distribution to market priorities
• Improve economics through
capital-lite network model
• Synchronize channels to create
an informed sales platform
• Translate higher relevance
interactions into financial
results

11. NCR Confidential
93 Sq mts
33% of traditional
branch footprint
195% of traditional
operating income
per sq mts
49% of the
traditional operating
cost per sq mts.
40% of traditional
Staffing model cost
Express Branch Format
NCR Technology. Blending strategies - Transaction efficiency. Consumer experience. Revenue generation.

12. NCR Confidential
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• NCR technology enables blended Consumer
Experience & Revenue generation strategy.
• Technology allows staff to pay attention to
orchestrating customer transaction & buying
cycle.
• Customers interact with roving bankers, available
to assist during business hours - branch converts
after hours to a 24 hour self-service zone.
• Capital and operating costs are 50% less than a
traditional branch, while offering similar levels of
sales, service, and transaction capabilities.
Wells Fargo, Neighborhood branch initiative
Small footprint. No back office. Transacting capability, staff interaction, Private discussion.

13. NCR Confidential
Bradesco, Future Branch.
Creating, highly consumer centric, Interactive discovery & sales environment
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• NCR “Cantilever ATM engineering”
technology enabling market driven
format
• Behind the advanced look and feel,
space devoted to self financial
management, not just transactions
• Video conferencing assisted service
available

14. NCR Confidential
46 Sq mts
17% of traditional
branch footprint
400% of the
operating income
per sq mts
36% of the
operating cost per
sq mts
25% of the
traditional
staffing model cost
Micro Branch Format
NCR Technology. Blending strategies - Transaction efficiency. Consumer experience. Revenue generation.

15. NCR Confidential
North American Credit Unions
Lean. Reaching members. Driving cheaper banking for 45% of US banking consumers.
• New formats, allow entrance to new transacting
hotspots eg Hospitals & Malls.
• Small, agile organisations using to compete with
national competition
• Using Video ATMs to run branches, without the
back office needs
• Reinvesting efficiencies to drive better pricing for
members products
Wright Patt CU
First Ontario CU

16. NCR Confidential
23 Sq mts
10% of traditional
branch footprint
1000% of the
operating income
per sq mts.
18% of the
operating cost per
sq mts.
5% of the traditional
Staffing model cost
Self Service Branch Format
NCR Technology. Blending strategies - Transaction efficiency. Consumer experience. Revenue generation.

17. NCR Confidential
New Technology, New Possibilities
Realize New profitable Branch formats, capable of reaching new customers, delivering value.

18. NCR Confidential
Leveraging a new category of technology to deliver direct impact on
transaction efficiency, consumer experience and sales opportunities
1 1 0.8 1
Full Service
0 1
Self Service
Staff Consumer
1 3 1 3
Assisted Service (In Person and Remote)
3
The Key – Assisted Service
Combining Self Service & Full Service to offer personalized attention, cost effectively
Migration
catalyst
Service
expansion
Increased
sales Revenue
Staff sales
productivity
Customer
satisfaction &
personalization

19. NCR Confidential
APTRA Interactive Teller – Underpinning network expansion.
Live Video / Audio Interaction, with Centralized Video Teller, who has full remote control of the ATM
Card or Cardless
authentication
ID Scanner or
Digital Signature
capture
Rich on screen
graphics
educating
customer as
transaction flows
Teller has full
power to over ride
normal business
rules & limits
Video / Audio,
Privacy handset,
Text Chat

20. NCR Confidential
APTRA Interactive Teller – Case Study
First Ontario Credit Union, Canada
Created 4 new
branch formats &
new expansion
strategy
Deployed in New
Locations
Hospital Branch
– permanent
3000 customer
base
Staff customized
to match
demographics of
local community
Mall Branch –
10 million annual
consumer
footflow

21. NCR Confidential
Deposit the days takings in less than 60 seconds, anytime day or night
Improved customer experience
Bulk Cash
Check
deposit
24/7
convenience
Immediate
Validation,
real time
credit
Enable loan & bill
payments through self
service network
“The cost efficiencies make it practical for
any size institution to deploy deposit
automation…A picture is worth a thousand
words.” - Carl Ratcliff, President and CEO ABNB FCU
24/7 time freedom
for small business
Improved operational efficiency
Intelligent Deposit – Add transaction capacity to the ecosystem.
Cashflow management solution for small business. Account Management for Personal customers.

22. NCR Confidential
• ING removed all teller counters from the
branches, using Intelligent deposit ATMs
• All branch staff are now Universal Bankers
• Operation costs down 30%
• Staff sales results up 100%
ING Belgium, Europe – Intelligent Deposit Case Study
Focus on creating, agile, flexible modular branch formats

23. NCR Confidential
Improved customer experience
Speedy Secure
Reduce
transaction
time to 10s
Add transactional value
to the mobile channel
Improved operational efficiency
Mobile Cash withdrawal – Add transaction speed to the ecosystem
Mobile cash withdrawal enables speedy transacting at ATMs, relieving branch traffic.

24. NCR Confidential
The Management Benefits
Technology enhances management, unburdens compliance

25. NCR Confidential
Customized Staff Interaction – Matching local market needs
Staff performance and customer interaction management made easier.
• Instantly deploy SME
Specialists
• Who know local markets
• Educate staff on
without having to visit
the branch
• Match staff to customer
• Demographics or
economic groups
• Flexible daily game
plan for each branch
• Adapting the sales &
service cycles

26. NCR Confidential
BRANCH
TRANSFORMATION
NCR solutions and services to
deliver disruptive change to bank
revenue models and physical
network distribution
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