Irish Banking in a Digital Age: NTUC Income

Irish cashboxing in a digital Age NTUC Income great powerIntroductionCase pollInformation Systems used by NTUC Income forward MigratingBusiness Processes used by NTUC Income before MigratingProblems Associated with the hoary SystemsNew digital System capabilitiesHow did the clean establishment resolve the problemsHow did the rising digital formation of rules pass on a basis for the orange schemaCould Orange invite been lendable with the Old systemsThree Important Lessons for Irish Retail Banking final stageIntroductionBanking in a digital age is a ample subject and I have gvirtuoso into some detail to crumple the case study and to answer the questions out songd. However I want to initi whollyy high unprovoked the diagrams below, the first diagram shows the percentage of nodes that consult the network and is self-explanatory, still it does highlight how important the internet is to asserts to create tax income and to ensure their viability on into the future. The s econd diagram however is somewhat of a par on the wholeel to this in that it shows that younger customers ar inclined to bank with larger well cognize banks regardless. An interesting argument could be given for both sides.Case StudyInformation systems used by NTUC Income before migrating wereOld fashioned HP 3000 mainframe systemDecades aged Cobol programsBatch touch systems,Agents tried to withdraw the documents using nonebooksBusiness Processes Used by NTUC Income before migrating to bleak digital systems wereEntirely paper basedCustomers met with broker/agent to complete marriage suggestion formForm is submitted by courier to Office service departmentForm is logged and sortedForm is hence sent to underwriters.Accepted proposals hence sent to selective knowledge moldor Services Department be printed and distributed.All received documents then sent to storage unit for logging and filingIn a lot of cases departments had to pass strong-arm documents among each other Problems Associated with the Old SystemsVery cumbersome and metre consuming processAfter proposal form immaculate by customer it could start out 2 to 3 days for the form to be couriered to underwritersForm then sent to computer services department to be printed and distributed.Sent to storage unit to be logged and stored which could take over two to three daysDocument convalescence slow and cumbersome taking up to two days to locate, then the form had to be shipped by courier.Refiling would take 2 days.Documents had to be physically passed to each otherHigh volume of staff involved in clerical roles, from start to finish the policy will have been handled by up to 13 staffEntirely paper based systemExisting computer system very unreliable with regular breakdownsBreakdowns meant redness of man hours re-inputting lost dataExisting system had to be plunk for up daily however if system crashed during the day staff had to make whether to save daily reconciliation or whether to do a ample back upIf daily back up not completed previous days data would be lostNo truly while data, systems did not allow data inputter to see if customer is subsisting or new.Loss in revenue and sales due to drop of real term data.Existing system had 3 major computer hardwargon failures which mean firing of 6 days.Regular breakdownsNo up to envision information for departments or immanent digital mailing system.2.1 New digital system capabilitiesNew Java based EBao LifesystemAll branches equipped with s discountners and new monitorsNew PC RAM of 128MBNew hardware and software for use serversDisk storage systemsData transmitted immediatelyAll Documents scanned and stored on digital devicesData stored on two or more servers all connected by two or more connection lines. hurrying cableWireless capabilityFiber-optic Backbone2.2 How did the new system resolve the problems? Reduced timeframe for induction of policy Efficient scanning and processing systems. Real time data, enabl ing cross sales and cross referencing for subsisting customers Reduction in time to react to market trends and changes. Easier to design and first appearance new products to keep ahead of market trends Good backup systems, data saved on two or more servers ensuring no loss of data New disaster recovery site that no eight-day required restoration of the previous days data ameliorate customer service as new system gave a unity view of each customer showing all real time data allowing cross selling and foreshortend turnaround times Up to 50 percent saving on time and be3.1 How did the new digital system propose a basis for the orange strategy?Orange was stuck in a paper based timewarp. This meant that all time and energy was put into manual applications which did not leave time for them to concentre on a more customer friendly and customer focus organization. The new system meant that there was a huge reduction in the need for large volumes of clerical staff and these staff co uld be employ to impart a better customer service and excessively provide a better profit for the business by utilizing the customer information to enable cross sales.It withal enabled time for the merchandise strategy to be overhauled as up to date data was now at hand. This data provided a customer profile facilitating the sale of more relevant products by providing some Golden Nuggets of information. As the systems could provide some analytical and working(a) CRM data.It also enabled the business to be able to react quickly to any new market trends as the new digital systems were able to take on and launch new products quickly and in fact enabled them to come up a brand new concept in the amends business, the launch of the Orange motorcycles fleet. This fleet was very distinctive and easily spotted on the high street which in itself was a major marketing tool but they not only serviced their own customers who had accidents but also non customers which in turn meant that these people would go to Orange the next time they needed a quote for policy and also created a witness Good moment.It enabled them to launch Orange Eye which was a smartphone application. This provided an in gondola car camera which helped combat motor insurance fraud which ensured that be for the lodge would be kept down and in turn allowed for reduced insurance policies.3.2 Could Orange have been available with the Old Systems?Orange would most by all odds not have been possible with the old system. They were not able to provide an efficient, straightforward, transparent system or product due to the major constraints of the old systems.4. Three important Lessons for Irish Retail Banking1. Banks have to embrace the Digital Age to Increase profit.Banks have to embrace and utilize all systems available and even create new systems in value to increase revenue and in turn increase profit. According the statistics provided by The Second UPC write up on Irelands Digital future t he projected value of the Irish internet economy in 2020 will be E21.1 BN, Projected on line Consumer Spending will be E12.7 BN as opposed to figures provided for 2014 when online consumer spending was E5.9 BN. thence this market has to be tapped to ensure the viability of the bank into the future.While initially consumers were loth to take on some of these new online systems much(prenominal) as online banking one would wonder what their reaction would be if it were to be taken away from them overnight.As can be seen from table below sourced from PWC the percentage of users of online services has change magnitude tenfold and banks have to embrace this change and utilize it to their advantage.Gen Y = born(p) 1980, Gen X = born 1965 1979, Baby boomers = 1946 1964, Matures born prior to 19462. Digital systems remedy services.The new orange system allowed for funds and also staff to be freed up to create a much better customer experience. one way of doing this was to send out t he Orange Fleet which proved a huge success. This model has been in some way reproduced with banks now inception to think outside the box, by providing some time/space sack services such as Mobile Mortgage Managers who will masticate you out of bank hours and in turn the new systems that allow you to bank on line 24 hours a day online in the facilitate of your own home.Bank of Ireland are currently trying to promote an internal scoring card system that they call NPS to ensure that we continue to provide an excellent customer service and allowing all opportunities to be utilized and all cross sales achieved to ensure a good profit and also a good service to the customer. As outlined in our lectures 50 percent of time and effort is invested in trying to get new customers in the first shopping center and 50 percent to hold onto them. It costs six times more to get a new customer because a high retention of existing customers ensures an increased profit.Accenture created a Consume r research of over 13000 in 33 countries and they found that 61% if customers globally switched providers due to a bad experience and 85% switch providers because they nip that companies dont make it easy to do business with.It is no secret that the general publics perception of the Banks in light of the recent recession and bailout by the government has not been advantageous and therefore it is in our ruff interest to improve our systems and also do things a bit differently and this NPS scorecard is in some way constituent this.Also the public would not have great avow in the Banks and again the simple honest and different approach adapted by Orange could be adapted in a more fat platform by the Banks.3. Correct systems have to be in come forth in order for customers to adapt and embrace the change.Bank of Irelands digital systems were sometimes seen as cumbersome by both staff and by customers alike. thither were some major issues with Banking on line for business customers as it was elusive to get set up and in a lot of cases it wasnt compatible with certain computer systems.There is also the publics perception of the risk concerned with digital technology and some customers do not trust the systems and still prefer to go in to the Bank and make their transactions or apply for their loans with a human. I showed a family member how to pay a bill on line. This was their first approach at using this system and they were very impressed with how easy the process was, however as the payee was an Ulster Bank customer the transaction took a partner off of days to go through. This caused my relation a huge worry (they are in their 60s) as she would have preferred to have had physical evidence such as a receipt for the transaction and they could not relax until the funds were acknowledged as received. This however is not such a worry for younger generations as they have more trust in the digital systems. The security issues need to be addressed and hold and also the banks need to keep ahead of the fraudsters. As long as this continues to happen I can see a continued betterment in the use of digital banking systems.ConclusionAs outlined on the Bain brief condition Many banks have been too quick to capitalize on digital technologies as a way to strip costs out of their operations. Steering their technology-enable customers to websites, mobile apps and ATMs, they are shuttering full-service branches and replacing them with automated kiosks. only while the savings from taking a self-service approach can be enticing, the longer term costs of abandoning customers to their own high-tech devices are unacceptably high. The Digital Challenge to Retail banks Oct 17,2012 by Dirk Vater, Youngsuh Cho and Peter Sidebottom.This article was written in 2012 and since then Bank of Ireland has come to realize this and are trying to keep their physical branch footprint in place in as much as possible in order to have a face behind the bank. Other majo r banks in Ireland have been reducing their branch footprint in order to reduce costs. We will have to wait and see in the future what the best approach to this will have been and as always hindsight is sometimes a great thing.ReferencingAccenture Study, Global Consumer Pulse look (2014)Bain Banking Study (2012)FIS Primary Consumer Research (Aug 2011)Laudon, Laudon,(2014) Management Information SystemsSecond UPC Report on Irelands Digital rising (2014)Stapleton, (2015) Banking in a Digital Age WebinarsPutnam, (2011) Attracting and Retaining Gen Y and Gen XVater, Youngsuh and Sidebottom (2012) Bain Brief The Digital Challenge to Retail BanksVillers, (2015) PWC Banking will mean digital banking in 2015