Bank of Montreal 1998 Annual Report Download - page 42

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BANK OF MONTREAL GROUP OF COMPANIES
ELECTRONIC FINANCIAL SERVICES
THE FUTURE OF ELECTRONIC
BANKING IS HERE
Group Description:
Electronic Financial Services (EFS) is made up of diverse
North American businesses that share a mandate to define
the future of electronic banking through new technologies,
distribution channels and the leveraging of information.
Consumer-oriented lines of business include mbanx, North
America’s first virtual banking unit, telephone and Internet
banking services for PCFS customers, and Electronic
Banking Services, which encompasses credit, debit and
smart cards. Corporate lines of business include North
American Cash Management (NACM) which serves clients
t hrough Bank of Montreal, Harris Bank and Bancomer,
BMO Global Custody, International Operating Services,
and Cebra Inc., our digital commerce subsidiary. EFS also
includes our 16.2% interest in Grupo Financiero Bancomer.
The real strength of EFS comes from connecting our orga-
nizational culture and core competencies across all of our
lines of business and geographical boundaries, particularly
throughout the three NAFTA countries. In 1998, EFS
con tributed4.7%toourtotalnetincomeandrepresented
4.5% of our total average assets.
Customer Profile:
EFS customers are diverse, consisting of both retail and
corporate clients. Customers are offered a choice of access
channels, including Internet, telephone and ABMs. EFS
balances a strong focus on technological innovation with a
unique values-based culture to build lasting relationships
with our clients.
Environmental Overview:
Virtually all facets of the financial services environment
are changing, including the technology available to both
customers and financial institutions, the regulatory envi-
ronment, and the competitive environment, which is
expanding to include many more focused niche players. As
a result, customer needs are changing and many more
options are becoming available to them. EFS has identified
four business strategies that enable us to meet and exceed
customer needs in this new world of multiple channels,
customer choice and information.
KEY BUSINESS STRATEGIES:
■develop a deeper knowledge and understanding of our clients;
■continue to look for innovative applications of technology;
ACCOMPLISHMENTS IN 1998:
Developed Deeper Client Understanding
■
mbanx continued to grow its client base with 151,700
customers signed on by the end of fiscal 1998. Clients
that value service and convenience continue to be attracted
to our innovative relationship banking. The launch of
“my view” allows clients to customize their web sites to
their individual needs and reflects mbanx’ commitment
to deliver truly personalized service.
■mbanx achieved a customer satisfaction rating of 95%,
compared to a bank industry average of 88%. This
reflects mbanx’ ability to offer service levels that con-
sistently exceed client expectations, thereby fostering
unprecedented client loyalty.
■
MasterCard
®
’s Management by Account initiative allows
us to better understand and meet customer credit card
needs. Investments in data warehouses, data-mining,
and analytic talent have facilitated the development of
customized products and services.
Introduced Innovative Applications of Technology
■New functionality was added to the on-line MasterCard
web site, allowing cardholders to use self-serve secure
Internet web pages to check account balances, examine
recent transactions, review statements and make special
requests, such as credit limit increases and address changes.
■leverage our technology and customer knowledge to architect
customer solutions; and
■create value through strategic alliances.
■
mbanx implemented advanced contact centre tech-
nologies, including agent desktop facilities, document
imaging and Computer Telephony Integration. These
technologies, combined with mbanx’ value-based
ser vice, have led to visits from companies all over the
world who consider mbanx to be best in class.
■NACM introduced new Imaging Services applications
that allow clients to streamline their back-office processes .
Clients can dial in and download information required
for making credit decisions and other cash applications.
In addition, ViewlinkTM Image Positive Pay Workstations
enable clients to control fraud by making on-line, pay/no -
pay decisions.
Architected Customer Solutions
■
Cebra’s MERX
TM
Internet-based tendering service has
experienced strong growth and has issued 200,000
bid documents for government procurement. Cebra
and Public Works & Government Services Canada were
awarded a gold medal for excellence for MERX at the
Government in Technology Distinction Awards, high-
lighting Cebra’s co-operation with government partners.
■Growth in the corporate card market is accelerating as
we leverage leading-edge technology solutions and EFS’
market position in commercial segments. Our tailored
TM Viewlink is a trade mark of Bank of Montreal.
®Bank of Montreal is a registered user of the trade mark owned by MasterCard International Inc.
TM MERX is a trade mark of Cebra Inc.