Customer Service Up. Costs Down. Peter Lycholat Business Leader Co-operative connect

1. Customer Service Up. Costs Down.Peter LycholatBusiness LeaderCo-operative connect

2. Great to be a winner! CO-OPERATIVE BANKING GROUP WINS SPECIAL AWARD FOR INNOVATION 2011 BREAKING NEWS… FINALIST FOR UK INSTITUTE OF CUSTOMER SERVICE, BEST APPLICATION OF TECHNOLOGY AWARD CO-OPERATIVE BANKING GROUP WINS TOP UK PROCESS IMPROVEMENT AWARD 2011

3. Company Background Co-operative Banking Group Vision: ‘To become the UK’s most admired financial services business’ • Co-operative Banking Group is part of The Co-operative Group • Co-operative Banking Group has over 12,000 employees in the UK • Head office is in Manchester, but we have 350 branches and major occupancies across the UK • Co-operative Financial Services merged with Britannia in 2009 • The merged business has £70bn assets and 9 million customers • We are owned and controlled by our 5.5 million members

4. Agenda • Evidence: what have we delivered ? • Learning: what makes us worthy of being a winner ? • Evolution: what’s next ?

5. Results Matter… • Headlines… • Great news: financial savings of £7.5m in 2010 with additional annualised benefits of over £8m from 2011 initiatives • But more importantly significant service improvements delivered for our customers and members • With an end to end process strategy designed and embedded within the business

6. The Highs - Customer Service Enhancements Co-operative connect: Delivering the Customer Promise • Introduced a new loans calculator saving £1m and removing an overnight batch delay for our customers • In direct response to customer feedback delivered a new communication process for application progress updates • Enhanced a core card reader process step that improved customer online payments experience increasing usage by over 23% • Revolutionised how our customers access their available balance through a new SMS text service • Delivered a “virtual adviser” solution which provides right first time advice to customer enquiries with a net business case benefit of £2m • Transformed a paper based account switching process into an electronic solution at point of sale across all channels

7. Current Account Switching What does the new process look like? Key improvements Current account switching completed electronically at POS Pro-active customer contact from start to finish using SMS Virtually all paper removed from process Switching timescales reduced by 7 days Cancellations during switching reduced by 50% What’s better for the customer? Improved adviser confidence in process Case tracking capability for front line advisers No need to wait for customer to return form Brand new customer switching letters No paperwork needed to transfer payments Customers kept up to date throughout switching It takes less time to switch Customers updated when issues with Direct Debits Customers can switch directly over the phone

8. The Lows? Our Learning • Make It Yours • The Education Experience • Head On – Not Always • Involve IT • Results Do Matter • Make Combos • Be A Myth Breaker

9. Next Steps • Challenge… • We are exploring integrating systems thinking into the methodology • Embedding… • Following the success of applying DCDC to end to end product processes, we are now embedding the methodology “in the line” and training local process improvement teams

10. Thanks Again… Customer Service Up… “It’s great to be recognised externally for your efforts” …Costs Down