Bank of Montreal 2013 Annual Report Download - page 17

MANAGEMENT’S DISCUSSION AND ANALYSIS
Enterprise-Wide Strategy
MD&A
Our Vision
To be the bank that defines great customer experience.
Our Guiding Principle
We aim to deliver top-tier total shareholder return and balance our commitments to financial performance, our customers, our employees, the envi-
ronment and the communities where we live and work.
Our Strategy in Context
Changes in the economic environment, and their effects on our customers, are ongoing. Our focus on helping our customers succeed and giving them
the confidence that they are making the right financial choices – Making Money Make Sense – serves as a compass for us in all economic environ-
ments. It also drives our employees to deliver their best, every day.
Our strategy has proven robust despite continued market uncertainty and global regulatory change. We believe that the strength of our business
model, balance sheet, risk management framework and leadership team, along with the benefits we expect from our North American platform, will
continue to generate sustainable growth and help us deliver on our brand promise of bringing clarity to customers’ financial decisions.
Our commitment to our customers and our shareholders is evidenced in our focus on delivering an industry-leading customer experience,
managing our revenue and expenses to achieve our financial goals, and continuing our prudent approach to risk management. We are making good
progress on our enterprise strategic priorities, with select accomplishments outlined below, as well as on our group strategies, detailed in the 2013
Review of Operating Groups Performance, which starts on page 44.
Our Priorities and Progress
1. Achieve industry-leading customer loyalty by delivering on our
brand promise.
‰ Developed innovative new capabilities, with an emphasis on
digital banking and investing, to bring clarity to our customers’
financial decisions:
o Launched the BMO InvestorLine mobile application, which enables
our clients to track their investments, follow market trends and
place trades anytime and anywhere with their smartphones.
o Enhanced our U.S. online banking platform, providing our
customers the ability to view and manage all their bank, credit card
and investment accounts in one place. After initial release in the
market, there were signs of increased total users and average time
per visit.
o Integrated technology and conference delivery to enhance the
experience of our BMO Capital Markets customers, and won 2013
American Business Awards’ Golden Stevie for Business to Business
Marketing Campaign of the Year.
o Launched Western Union e-Transfers through online banking in
Canada, allowing BMO customers to make cash transfers for pickup
at a Western Union location.
o Developed a new online tool to help customers choose the right
investment and wealth management service to meet their needs.
o Introduced online booking of appointments with our Canadian
branch staff. Customers booked nearly 40,000 appointments in
2013 using this capability.
‰ Recognized externally with awards across our groups, including Best
Private Bank in Canada (Global Banking and Finance Review), Top
Bank-Owned Online Brokerage in Canada (Globe and Mail), Model
Bank Award for Canadian online appointment booking tool (Celent),
Best Investment Bank in Canada (Global Finance) and World’s Best
Metals and Mining Investment Bank (Global Finance).
2. Enhance productivity to drive performance and shareholder
value.
‰ Streamlined our divisional sales structure in Canadian P&C to bring
our leadership closer to customers and improve efficiency.
‰ Continued the redesign of our core processes (e.g., Commercial
Lending and Mortgage) to achieve a high-quality customer experi-
ence, create capacity for customer-facing employees and
reduce costs.
28 BMO Financial Group 196th Annual Report 2013
‰ Increased the client-facing time for our Wealth Management sales
force through the redesign of workforce processes, including client
onboarding and lending processes.
‰ Successfully launched our equity-linked sales and trading platform in
the United States, leading eight deals, including the second largest
convertible bond issued by Canadian issuers in the year.
‰ Reviewed our cost structure to find pathways to greater efficiency:
o Continued to roll out new branch formats offering smaller, more
flexible and more cost-effective points of distribution across
North America.
o Realized real estate synergies from the M&I integration, including
nine branch consolidations and significant reductions in non-branch
office space.
‰ Grew our distribution capacity:
o Built sales capacity in our Canadian branch network with a focus on
attractive growth locations, opening or upgrading 86 branches and
significantly expanding our automated banking machine (ABM)
network, adding more than 300 machines since last year.
o Invested to improve online sales processes, resulting in increased
contributions from our online channel. Online retail banking sales
levels in Canada are now equivalent to sales at 90 branches.
o Began delivering sales leads online in addition to existing branch
and call centre programs.
3. Leverage our consolidated North American platform to deliver
quality earnings growth.
‰ Continued to develop consolidated North American capabilities and
platforms in priority areas:
o Launched our first North American creative platform with the
PayCheck / Paycheque campaign. The advertisements were
aired across Canada and the United States and have increased
brand awareness.
o Established North American leadership mandates for key roles,
including the appointment of Frank Techar as Chief Operating
Officer (effective November 1, 2013). In this role, Frank will
oversee our North American Personal and Commercial Banking and
Wealth Management businesses, further driving collaboration
across borders and businesses.
o Aligned our North-South risk management capabilities, creating
consistency and eliminating duplication.