WORKSHOP ON TRANSACTION

MIGRATION PILOT CAMPAIGN

Retail Banking Business Development

July 26, 2022
TRAINING OBJECTIVES
3
The main objectives of this WORKSHOP is to:-
• Be acquainted with TRANSACTION MIGRATION INITIATIVE;
• Know the major responsibilities of implementing organ/ DISTRICT &
BRANCHES/;
1 4 7

• Aware about migrating of HEAVY USERS to digital channels;

• Acquaint about MEETER-GREETER and their main roles;
10
• Create awareness on BRANCH PERFORMANCE
8
MEASUREMENT; and
• Discuss on CHALLENGES FACED and SHARE GOOD PRACTICES &
LESSON LEARNED from pilot program.
The bank identified strategic pillars along with imperatives to improve
its Retail banking performance

Strategic Expand retail market share by
imperatives building tailored CVPs for
retail segments and enhancing
sales force effectiveness
Drive Opex reduction through branch
operating model simplification,
footprint optimization and
transaction migration
Develop customer centric Leverage ongoing staff
reputation through innovation development programs and
in digital channels and introduce performance backed
improving customer experience incentives to support retail
growth

Initiatives 1 Define clear customer
segments
2 Develop differentiated
CVPs for retail customer
segments (mass, middle and
affluent) including anchor
products, acquisition
strategies and branding
position
3 Drive sales force
effectiveness through use of
client data to increase up-sell
and cross-sell, streamlining
RM focus to maximize sales
time and capacity, and training
of sales staff on effective
advisory and sales techniques
4 Simplify the branch operating
model by automating/ digitizing key
functions (e.g., statement
issuance), and centralizing branch
back office staff (e.g., internal
control) and back-office processes
(e.g., reconciliations)
5 Consolidate branches and
redesign future branch
expansion plans based on
profitability and new branch
operating model
6 Migrate transactions to out-of-
branch channels by prioritization
of users for transaction migration,
enhancing channels and
introducing new technologies (e.g.,
cash deposit machines)
7 Drive digital innovation by
enhancing digital payment
platforms and improving
customer journeys
8 Transform customer
experience by developing a
CX measurement system,
training staff on CX delivery
and increased
responsiveness to customer
feedback
9 Support staff development
through ongoing learning and
development programs and
active coaching and feedback
culture
10 Update performance
management of staff by
increasing importance of key
metrics such as sales
profitability, productivity and
linking incentives to individual,
quantifiable targets
A. TRANSACTION MIGRTION
Transaction migration:-
3

• Is migrating of branch transactions to alternative channels by prioritizing

heavy users, enhancing digital channels performance and availability,
1 4 7

OR

• Accelerating migration of transactions through from teller to self-service

10
&
8
alternative channels, done through enhanced processes, staff
engagement, customer incentives & infrastructure development.
TRANSACTION MIGRATION

B. MAJOR ACTIVTIES TO BE SUCCESSFUL IN TM

Key potential actions

A Heavy users Identify heavy drivers of in-branch transactions (our assessment indicates that 17% of Key enablers need to
prioritization customers account for 80% of cash withdrawals; 15% of customers account for 80% of cash
deposits) and develop relevant solutions to migrate their transactions (e.g., cash
be implemented to
collection, digital and self-service channels etc.) ensure success of the
transaction migration
Define target channel for key transactions and customer characteristics effort. These include
B Define target
Provide positive (e.g., cash back reward) and negative incentives (e.g., fees) to discourage
channels and
branch transactions Create strong
incentives
ownership through
Ensure customer can access channels (e.g., ATM cards, mobile and internet banking (e.g., branch manager
C Channel
etc.) soon after account opening role modelling right
enhancement and Introduce Card printers and ID readers for quick service away from tellers behaviour, daily
new Introduce new channels and technologies (e.g., Cash Deposit Machines, cheque drop box in problem-solving on
technologies select branches) operational issues,
incorporate transaction
Introduce meeter-greeter to redirect and educate customers on how to use alternative migration to branch
D Customer channels (e.g., demonstrate how to use ATMs and digital channels)
education and scorecard)
Identify roles of branch staff in transaction migration
staff training Launch competitions for transaction migration between branches Motivation and training
e.g., competition
Develop targeted customer value proposition (CVP) for customer segments to use
E Linkage with between branches
alternative channels
customer
ecosystems
TRANSACTION MIGRATION

B. MAJOR ACTIVTIES CONT..

 17% of customers account for 80% of cash withdrawals; 15% of customers
account for 80% of cash deposits
Withdrawals Deposits Approach to transaction migration:
Heavy users represent 17% of total customers but account for as Heavy users represent 15% of total customers but account for
much as 80% of cash withdrawals volume as much as 80% of cash deposits volume Proactively reach out to customers to

Examples of top accounts: CBE Breakdown of cash Examples of top accounts  Inform them of new initiative the bank is launching
CBE Breakdown of cash
withdrawals 2021  Government deposits 2021  Corporates
‒ BSHZ FELM Medebegna ‒ Hidasse Telecom  Understand their pain points
& Capital budget ‒ Rift Valley  Recommend alternatives ways of payments rather
100% = 100 100 ‒ Areka Ketema F/E/L 100% = 100 100 than cash withdrawals and test their appetite to
Medebegna capital University accept them; for instance
budget ‒ Blue Nile
Heavy users 17% Heavy users 15% ‒ Mobile and internet banking – enable
 Micro finance institutions College
‒ Agar Micro Finance S.C. generation of unique transaction ID and
‒ Global Bridge electronic receipt that can be used for
‒ Addis Credit and Saving  Government agencies
College Sodo reconciliation
institution ‒ Ethiopia Electric
 Key selling points to mass customers
 Corporates Utility
‒ Landmark PLC ‒ Andinet Park ‒ Withdrawals are faster to complete in alternative
‒ Ethio-Telecom channels as customers don’t have to wait in
80% ‒ St. Gabriel General 80%
teller queue
Hospital ‒ Adama Town
‒ Isabella socks Transport Agency ‒ Customers have access to their money 24/7

Other 85%  Agents Action required from the branches

Other 83% manufacturing
‒ S.S Peter and Paul
 ‒AgentRomel • Streamline the issuance of debit cards (e.g.,
Catholic School
‒ general Gifti leveraging Instant card issuing machines at
Temamtrading the branches)
 ‒Individuals
Salary recipients • Communicate scripts/ best practices for frequent
‒ Pensioners and tough customers who withdraw (e.g., claim
20% ‒ Safety net customers 20% that they don’t have a debit card)
• Recruit as agents businesses that safety net
customers and pensioners trust (e.g., cooperative
Number of Number of Number of Number of
shops)
accounts withdrawals accounts deposits

Source: CBE MIS

TRANSACTION MIGRATION

B. MAJOR ACTIVTIES CONT….

 Define target channels for key branch transactions and provide incentives to
motivate desired customer behavior
EXAMPLE
Define target channel for each transaction Positive/negative
reinforcement can help
Transaction Primary channels Secondary channels motivate desired customer
behavior. Some of these could
Cash deposit less than ETB 5,000 Cash deposit machines Agent include
Branch
 Pricing changes – adjusting
Cash deposit greater than ETB 5,000 Branch N.A. the pricing of ATMs and
introducing charges on teller
transaction to migrate
Cash withdrawals less than ETB 10,000 ATM Agent (leveraging CBE birr customers to ATMs
and mobile banking)
 Service provision changes
Cash withdrawals greater than ETB 10,000 Branch N.A. – Provide printable electronic
receipts for account balance
Cheque withdrawal Branch N.A. and transaction activity

 Customer campaigns –
Cheque deposits Branch using cheque deposit boxes N.A. customers who deposit using
cash deposit machines for the
Utility payment first time qualify for entry into
a raffle for various prizes
Fund transfers CBE birr, Mobile & internet banking Branches

Balance enquiries
C. GENERAL RESPONSIBILITY
The
3 Region/District shall,

• Coordinate pilot branches;

• Ensure functionality and available of all necessary resources;
• Ensure all branches make utmost effort to maintain their respective ATM’s up
1 4 7
time above 95% ;
• Provide support when the branch needs their assistance; and
• Monitor branches weekly performance, collect justifications10 from low
8
performing branches and report to the central team .
C. GENERAL RESPONSIBILITY CONT….
The
3
Branches shall,
 Provide awareness to all branch performers on transaction migration;
 Identify and migrate heavy drivers/users of in-branch transactions ;
 Plan and shift payroll processing and payment to alternative channels;
 Assign the
1 role of meeter-greeter
4 who consistently manage
7 the lobby as well as gate area;
 Set tolerable daily teller and fund-transfer transaction targets for performers;
 Make utmost effort to make all channels (ATM, mobile banking, internet banking and
mobile money solution) functional and available at all times; 10
8
 Mobilizing their active agents and get engaged them in processing bill collection, safety
net and payroll payments, traffic penalty collection, etc.
 Migrating to alternative channels shall be made by perusing customers rather than by
forcing or misinforming;
 Expected to meet the pilot goal set for teller and fund transfer transactions;
TRANSACTION MIGRATION

D. STAFF’S ROLES AND RESPONSIBILITY:-

 Each branch staff should be assigned roles and responsibilities in the transaction migration program
Main Backup
to ensure successful execution
Roles and responsibilities for transaction migration program

Educate
Lead daily Promote customers on Identify heavy Call heavy Migrate Deliver Web and
performance Manage self service alternative users when user & high value issued cards mobile
Roles meeting complaints channels channels in branch set and activate registration
meeting customers
Branch
Manager

RM

Teller
supervisor

Meeter/

Greeter

Teller
 BRANCH OPERATING MODEL SIMPLIFICATION

MEETER GREETER….
Meeter-Greeter Roles and Responsibilities
MG
Who should be meeter-greeter?
 A staff who has good  Meets and greets customers and manages customer
BM CS

communication & persuasion flow

 Conducts quick services through self-service terminals
skills , interactive &
 Assists customers through usage of ATM and drop-
welcoming appearance, all
boxes
round banker, hard worker,  Educates customers on mobile & e-channels
having positive attitude and MG

eager to own the initiative,

etc.

Source: Retail banking branch operations best practice 41

TRANSACTION MIGRATION

MEETER GREETER ILLUSTRATIVE

 Meeter greeters educate clients about usage of alternative channels; tellers should encourage customers
to explore alternative channels Customer flow

Key responsibilities Operating model

Greet customers when they come
to the branch, identify their need, ATM 1 Teller positions
and refer them to the right channel C
Promote and educate customers Alternative ATM 2 Queuing customers
about the alternative channels (ATM, channels
internet/ mobile banking, call Direct line to Waiting area
center) call center
Demonstrate transaction that the
client wants to do in relevant
alternative channel, so that
customers can complete the
B
transaction on their own next time
Inform customers about A
active incentive campaigns,
as appropriate Meeter greeter A is the first point of contact for customers, assessing customer needs and redirecting
A
Complete set of quick services: to right channel. He will also help customers use ATM/IDM where applicable
print statement and enroll in
products as relevant (mobile B Meeter greeter B will engage with customers on the queue to educate them about our alternative
banking, internet banking, channels. She will be equipped with mobile phone/tablet to show customers how to use these channels
CBE birr, ATM) and sign them up as well

C Tellers and customer service staff will encourage customers who reach counters to explore alternative
channels and can redirect customers to meeter greeters, if appropriate (e.g., ATM card onboarding,
transactions in digital channels)

Source: Best practice transaction migration strategies 67

E. BRANCH PERFORMANCE MEASURMENT
Calculations of Branch KPI’s:
3
i. Average % age of Cash withdrawal at the counter against ATM utilization =
ii. Average % age of Fund transfer at the counter against FT via Digital Channels =
iii. Average % age share of transactions on alternative channels=
iv. Percentage of Heavy Users on-boarded to alternative channels= =
1 4 7

10
8

3
E. BRANCH PERFORMANCE MEASURMENT
Calculations of Teller Cash Withdrawal:
3
i. Average % age of teller Cash Withdrawal <=10k =
ii. Average % age of teller FT transaction <=100k=
iii. Average share of Cash Withdrawal at ATM from transactions (<=10k) =
iv. Average share of FT on Digital Channels from transactions (<=100k) = =
v. Average
1
Weekly Teller Transaction=
4 7

10
8

3
BRANCH PERFORMANCE MEASURMENT CONT..

..\..\JULY 18-24 2022.xlsx

..\..\July 24 2022.xlsx
F. CHALLENGES OBSERVED
During the pilot campaign, branches faced the following challenges:-
 Digital channels are not easy and simple to use or user friendly, it is not a precise and
quick process;
 High fraud rate and lack of strong security features ;
 System failure/interruptions;
 Free of charge Branch services whereas there is service charge on ATM;
 Limited features of mobile banking application
 Low literacy level of the society especially in outlying areas;
 Non- functionality of ATMs;
 Customers switched to other nearby CBE branch which is not involved in pilot program;
 Salary, safety net, pension and government cheques;;
 Delay in card printing;
 G. WAY FORWARD/LESSON LEARNED
Based on the observation from field visit, customer need and recommendation of staffs, we
have forwarded the following recommendations;
 Create awareness on TM among staff’s;
 Assign Meeter-greeter from the existing staff’s;
 Thoroughly identify drivers/users of in branch transaction and migrate their
transactions to alternative channels;
 Shift payroll processing and other payments (i.e. bill, safety net ) to alternative channels;
 Adjust fee structure on digital channels or in branch services;
 Replace or repair non-functional ATMs on time;
 Add additional features on mobile banking as per customers need;
 Strengthen security features of digital channels, especially mobile banking;
 Make digital channels easy to use/shorter steps or user friendly;
Thanks You!