Amdocs Launches Three New Solutions to Help Retail Banks Strengthen Customer Relationships
ST. LOUIS, MO, - March 21, 2006 – Amdocs (NYSE: DOX), the leading provider of software and services to enable integrated customer management and the intentional customer experience™, announced today the availability of three new solutions for the financial services market. These solutions complement the Dynamic Banking model pioneered by Amdocs, which can help retail banks achieve greater profitability by offering personalized service and product packages to customers. The new solutions include Amdocs Dynamic Pricing and Product Bundling Solution, Amdocs Customer Communications Solution, and Amdocs Mobile and Micro-payments Solution.
“In an environment that gives consumers many choices, banks have not offered a value proposition that encourages strong customer loyalty, high customer satisfaction and consolidation of their banking relationships,” said Kathleen Khirallah, research director, Retail Banking, at TowerGroup, a leading financial services research and consulting firm. “Amdocs’ Dynamic Banking offers the type of approach banks should consider as a way of differentiating themselves with integrated customer management. By enabling innovative product bundling and pricing and streamlined customer communications, this approach can help banks increase revenue per customer as well as customer satisfaction and loyalty.”
The Amdocs Dynamic Banking model helps retail banks combat one of their biggest concerns, customer churn. Retail banks have relatively low customer loyalty and experience significant customer turnover each year. The average customer uses less than two products at one bank, yet has ties to an average of four other financial institutions. Dynamic Banking is based on the strategy of bundling products and tailoring services using customer data to help increase the number of products and services per customer, building loyalty and reducing churn.
“Amdocs’ Dynamic Banking strategy is the answer for banks looking to strengthen and grow their customer relationships,” said Ralf Neidig, team manager, CRM IT international development of Cortal Consors, a BNP Paribas company and the European leader in online savings and brokerage for private individuals. “Since 2001, we have trusted Amdocs with our customer relationship management strategy and we look forward to reaping the benefits of implementing the new banking solutions.”
To successfully adopt the Dynamic Banking model, banks must ensure that their systems are integrated across all lines of business. However, many bank IT infrastructures currently are segmented by product and include several functional redundancies. These redundancies can range from account opening functions to service fulfillment capabilities, and make it difficult to share customer information across product lines. Cross-selling and offering bundles in real-time is nearly impossible with the current structures.
“Dynamic Banking is a cost-effective alternative to completely replacing a bank’s current IT systems,” said Michael Blum, president, Financial Services Division, Amdocs. “By adopting the Dynamic Banking model and using Amdocs’ solutions, banks can save by gradually updating their IT systems one business component at a time.”
Amdocs Financial Services Solutions
The financial services market is undergoing a transformation not unlike that of the telecommunications industry, including consolidation, a changing consumer dynamic with customers wanting more control and new, more nimble competitors entering the market. Other challenges of the financial services industry, such as handling a large number of transactions and keeping the loyalty of millions of customers are also similar to those of the telecommunications space. Amdocs Financial Services Solutions leverage the company’s more than 20 years of experience in the telecommunications industry, to help financial institutions gradually modernize their IT infrastructures to support the rapid introduction of new products and services, increasing customer retention and profitability.
The Amdocs Dynamic Pricing and Product Bundling Solution allows a bank to integrate the similar processes in each line of business into a single business component that can operate across the entire company. An example of a component would be an enterprise-wide catalog that encompasses all products and services. Such horizontal components have multiple benefits. For example, banks can reduce maintenance costs by eliminating redundancies, helping to increase the potential to cross-sell products and potentially grow their incremental revenue.
The Amdocs Customer Communications Solution will enable banks to aggregate account information and personalize customer correspondence services, regular statement design, production and fulfillment through print and electronic formats. This could help banks to reduce product and mailing costs by up to 30 percent.
The Amdocs Mobile and Micro-payments Solution provides a secure infrastructure to link a mobile phone network with the banking network to transform the phone into a payment point and personalized banking device.
Amdocs has more than 50 customers in the financial services market that utilize Amdocs CRM and other software products, including leading financial services institutions such as ABN AMRO.
Filed under: Amdocs
