Innovation transforms the retail bank: today's technology decisions are the seeds of tomorrow's...

Many consumers think the retail banking industry must be very happy with the rewards of recent years' low interest rates and banking fee revenue. But when I visit with top banks around the world, I hear a healthy anxiety about how to best anticipate customers' needs and deliver the right services,

at the right time, to increase their loyalty and value to the bank. It's tougher than ever to achieve this with global consolidation, new regulations and an ever-shifting competitive landscape. But the good news I tell them is this: there is a clear path to transforming your business and securing your position as a banking leader, and it starts with the business and technology decisions you need to make today.

The Multi-channel Integration Challenge

Yours may be one of the many banks still struggling with poorly integrated banking channels--branch systems, ATMs, call centers, online banking and others--that only afford you a partial view of customer activity. This is the legacy of the "more services leads to more revenue" era in retail banking, and it contributes mightily to the perception that customer relationship management solutions didn't work. A seemingly separate challenge is the current urgency to upgrade 8-to-10-year-old branch office systems that won't run new services and applications at all.

What does this have to do with delivering a better customer experience? Everything. Because by approaching these challenges with a holistic vision, determination and an unblinking focus on your customer you can create a 'unified bank' that generates the intelligence to understand your customers more accurately, serve them more efficiently, and operate more profitability.

Building a Customer-Centric Bank

Many people are talking about bank transformation these days, but often with very different ends in mind. At Intel we use the term to describe a customer-focused approach to business redesign that combines overall banking process innovation, branch configuration and modern information technology to integrate service channels and deliver a better customer experience. The process begins at the highest levels of bank management with questions like:

* What do our best customers need, and how do we respond as those needs change?

* Is our bank--particularly our branch office system--prepared to deliver on these needs?

* What tools and information do our employees need to sell and deliver a wider range of higher-value services?

* What will it take to close the current gap?

Intel has helped many banks tackle the challenge of how to win and keep more customers. The ones that succeed and prosper share certain attributes, including:

* A belief that building a customer-centric business is truly an "evolve or die" priority

* A willingness to adapt internal business processes and employee roles to better meet customer needs

* Global vision, realistic execution--the ability to divide large initiatives into manageable, affordable phases

* Strong interdisciplinary teamwork between line-of-business and IT stakeholders who share an attitude of continuous improvement

* An unwavering commitment at the highest executive levels

Three Components, One Transformation

But no amount of business process innovation will deliver a personalized experience if the bank can't see and understand its customers' activities and accounts. So a strategic approach demands linked initiatives in three critical areas.

* Branch renewal--The branch experience is the cornerstone of customer interaction and a strategic focal point for bank transformation. Out-of-date branches need a refreshed network infrastructure with local servers for data caching and business continuity. They need PC-based teller systems with the performance headroom for data aggregation and interactive services, and wireless mobile capabilities to enable new service possibilities

* Banking channel integration--For a complete, real-time view of the customer, banking channels must be connected and synchronized to create a data "highway" throughout the bank. This is done with an open standards-based infrastructure that integrates customer account and activity data across branches, ATMs, online banking and call center channels. This integration also creates the framework for improved risk management and compliance with the latest regulations.

* Customer insight solutions--To leverage your channel integration into smart customer interactions, deploy business intelligence solutions that provide analysis and insight. These solutions deliver a singular, consistent customer experience at any connected banking channel, giving tellers and advisors the means to better serve their customers. They suggest new products or services based on the customer's profile and transaction history.

Why Technology Matters

The right technology decisions are critical to a successful transformation because this is the foundation your business will rely on for years to come. Your technology platform needs to be open standards-based and must support flexible, distributed solutions. It should put the power and performance to serve better, faster and more intelligently in the hands of every employee in your organization, where and when they need it.

With over 30 years of technology innovation and manufacturing leadership, Intel delivers industry-leading performance and efficient asset management at a lower cost of ownership. Integrated banking solutions powered by Intel[R] technology:

* Give banks the flexibility to respond quickly and cost-effectively to new customer opportunities and information

* Provide the power to respond in real time to risks and regulatory compliance demands

* Deliver a scalable infrastructure for decision support and interoperability that grows with the bank

* Provide a flexible, distributed technology architecture comprising industry-leading servers, desktop and laptop personal computers, handhelds, handsets, networking and communications products.

* Support modular expansion of innovative products and services that capture new business opportunities

But Intel provides banks with more than just silicon. Our dedicated Financial Services solutions team of seasoned experts with global industry experience matches real business problems with leading business and technology solutions. We'll introduce you to a worldwide solutions community of service providers, software developers and hardware manufacturers with cutting-edge business solutions that are optimized for Intel technology.

Put Innovative Banking Solutions to Work Today

The bottom line is that your bank needs to offer its customers personalized services now. You can't increase your value to customers through new services alone. Your products must be smarter, tailored to their specific needs, and delivered through a better banking experience. The battle for wallet share will only intensify with global competition and economic change. Intel's banking and technology experts can arm your bank with a clear strategy that reflects your business complexities and delivers the strong customer experience to build your bottom line. To bring your bank transformation to life, contact your Intel business development specialist today, or visit Intel on the Web at www.intel.com/go/finance.

Mark Stahl leads Intel Corporation's global marketing and business development function for the Financial Services Industry--including the banking, capital markets, and insurance segments. Mark has over twenty years experience in technology for the financial services industry. His background prior to joining Intel Corporation is in Enterprise Sales to Fortune 100 companies.

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