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Digital Evolution on Operational Banking Activities
Korkut Okay, Head of Branch Operations Management, Yapi Kredi [BİST: YKBNK]
Digitalization of Operations: This is where we use new technologies to relieve workforce of low value activities. Branch Back Office is the most appropriate area to take advantages of new technologies. First example is “Self Learning Data Computing Tools”. We pertinaciously aspired to decrease transaction time by eliminating one station from process flow for all cases and another station for majority of cases by automating data capture/transfer.
Client instructions that are sent to Bank are scanned by the system and the content of the instruction is captured. If it contains a word like transfer or sent, it is assumed to be a money transfer and directed to the related operator. If we would not use this technology, an operator would read the instruction and transfer it to the related operator manually. Also, transaction details such as receiver and amount are captured from the instruction and all of them are infilled by the system at the relevant transaction screen. In this case, the operator only approves the transactions just before the execution. By “Self Learning Data Computing Tools”, cycle times dropped away by 50 percent. It provides us to:
• complete approximately 4, 8 Mio TRX per year without any human intervention;
• have higher customer satisfaction due to lower cycle times and lower operational risk related with the operational mistakes, due to less manual operation.
Another new technology that we utilize, and is one of the most challenging tasks, is Signature Verification. To verify the signature on instruction, we have verification processes like customer call for confirmation, but this leaves all the effort to the operator and her/his experience, while also being a very time consuming activity. We are working on a tool to facilitate signature verification process.
All the customer signatures are already scanned digitally in our system. Using these scanned signatures as a reference, our system compares the signatures that are on the instructions with the digitally stored ones.
As Yapi Kredi we will continue to invest in digitalization to increase operational efficiency in all processes. The efficiency we create will provide time for more valuable activities like sales and risk control
This enables us to support our operator by a tool in deciding whether the signature belongs to the related customer . Our aim is to have signature verification with 80 percent accuracy ratio.
Digitalization of Branches: Despite the fact that number of digital customers and transactions are significantly increasing, customers visiting branch are not decreasing considerably. Financial transactions are raised from 8.8 Mio to 22 Mio, whereas financial transactions executed in the branches declined only 4.4 Mio from 5.8 Mio during the last 3 years. That is why we should continue to invest digitalization of branches.
Deep dive into branch processes shows that the most time-consuming phase is providing customer signatures on agreements during the new sales and customer onboarding. With the new legal arrangement, banks are allowed to get customer approvals and verification through touchscreens, only if they are already digital customer. The customers login to Yapi Kredi Mobile via touchscreen by putting the pin and approves all the compulsory documents digitally.
By use of touchscreens, we catch the opportunity to:
• eliminate back office activities at maximum,
• optimize number of steps,
• discharge from wet signature obligation and paper based flows.
In 2018, by using this technology, we save 14 Mio A4 papers and 54 minutes a day per branch by processing 31 products via touchscreens. Our aim is to enlarge the number of products to 45, to reach 30 Mio paper and 65 minutes time-saving target.
Digitalization of Employees: At this part, our ambition is to mobilize our workforce with digital to optimize customer facing and back-office branch processes. We deliver every single sales person a tablet to bring the branch to the customer premises. The tablets are integrated to the banking system so that customer acquisition and product sales can be executed.
What kind of competitive edge will this tool procure?
• Customer Visit Plan: Sales team can plan their visit, and before that they can study every small information about the customer via tablets and research on the best CRM offers for that customer.
• Engagement & Hot Sales in Customer Premises: Sales teams have a chance to work together with the customer on tablet, subsequently make pricing and sales on customer premises. Digital approval can also be carried out via tablets.
• Leaving the Customer Premises: After the visit, if they do not plan any other visit, they can still monitor potential customers in the same hinterland. On returning to the branch, they can fulfill customer form with speech-to-text.
The way we have progressed can be illustrated by figures. While our centralization ratio reached 67percent, the ratio of branch front-office staff over back office has exceeded 83 percent.
As Yapi Kredi we will continue to invest in digitalization to increase operational efficiency in all processes. The efficiency we create will provide time for more valuable activities like sales and risk control.