Following the financial crisis of 2008, Lloyds Banking Group was, as Bank Systems and Technology put it, a hastily thrown together consortium. The result was the largest bank in the U.K. with 90,000 employees, 30 million customers, 14 bank brands and plenty of redundant systems and processes. Annette Barnes, Group Change Program Director for Lloyds Banking Group, said at a recent conference that her teams needed to fit all of these customers onto one system to make processes more simplistic and chose BPM software to help manage all the changes.
With this software in place, the bank was able to move toward its goal of making everything more simplistic, including customer interactions, services and product offerings. Barnes said putting customers first was the primary goal, but they wanted to make sure the journey to that destination was less complex on all ends.
“Simplifying is where the hard work is,” Barnes said, according to Bank Systems and Technology. “How do you really simplify? This was a simplification process for the whole bank, for insurance, retail and wealth customers. In the end, it has to be simple for everyone.”
To that end, they have started using the BPM software to reduce everything, including the number of office locations. Servers, tools, data centers and more have also been consolidated, as they are now halfway through their goal of streamlining the bank. There are more than 200 initiatives the bank has highlighted to help make changes.
One of the successful aspects of the BPM project was making customer interactions with Pensions and Investments much more simplistic, as she said there were often as many as 700 steps for customers to deal with. Now there are merely 23, and customer complaints have drastically decreased as a result.
Smaller banks seeing success as well
PNC’s John DeMarchis told Information-Management that his Pittsburgh-based company has been using BPM software to make more flexible and automated work processes to create an atmosphere where work processes and customer interactions are much easier.
“It’s extremely exciting,” says DeMarchis, senior vice president of customer management for PNC. “We view it as having huge possibilities in terms of how we interact with our customers. The performance of mail and telemarketing is deteriorating and those channels are actually irritating consumers. This [new initiative] enables us to deliver interactions the way customers want to see a message, when they want to see it. It’s a big part of the future way that we’re going to be interacting with customers.”