Bank of Montreal 1998 Annual Report Download - page 40

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32
BANK OF MONTREAL GROUP OF COMPANIES
RE-INVENTING RETAIL BANKING
Group Description:
It is the vision of Personal and Commercial Financial
Services (PCFS) to be a premier provider of financial ser-
vices, using innovative technology to provide customers
with clear choices and alternatives in order to achieve an
appropriate value proposition for each relationship. PCFS
currently provides financial services to about six million
households and commercial businesses across Canada, and
in 1998 contributed 48.1% of our net income for the year
and 27.9% of our total average assets.
Customer Profile:
PCFS provides a full range of financial products and ser-
vices to Canadian individuals and small to medium-sized
busi
nesses in all market sectors. Changing demographics
in the PCFS marketplace are causing a shift in customer
focus to wealth management, investment and retirement
planning. Our customers are increasingly knowledgeable
and sophisticated and demand value on their terms
for their banking business. Customers expect to build a
relationship with us, moving past the individual transaction
interaction from prior years. PCFS works in partnership
with other operating groups, such as Electronic Financial
Services and Investment and Corporate Banking, to pro-
vide the excellence of service and value-driven technology
expected by customers.
Environmental Overview:
Low inflation and interest rates, together with reduced
unemployment, are creating greater consumer demand for
loans. However, an overall flattening of the yield curve,
caused by short-term interest rate increases throughout
1998, put pressure on the net interest margin, mitigating the
i
mpact of loan growth on results. Competition in Canada
is increasing, from both the global banking sectors as well
as new non-bank and niche players. Increased competition
leads to lower fees and places further pressure on spread.
To address these various challenges PCFS key business
strategies are aimed at meeting the needs of customers
through the development of a competent workforce sup-
ported by value-driven technology.
PERSONAL AND COMMERCIAL FINANCIAL SERVICES
KEY BUSINESS STRATEGIES:
■improve technology and access channels to enter new markets
and reduce operating costs;
■improve knowledge management to profitably retain and grow
customer relationships;
ACCOMPLISHMENTS IN 1998:
Improved Technology and Access Channels:
■
Announced agreements with The Great Atlantic and
Pacific Company of Canada Limited and Canada Safe-
way Limited to open in-store branches. In fiscal 1998,
10 in-store branches were opened. In-store branches
have on-site financial experts to assist shoppers with
personal financial services. Customers can arrange
everything from mortgages to GICs in a private office
environment that also has netbanking facilities and
automated banking machines.
■Installed 560 new InstaBank Extra®printers for ABMs
in the current year, providing customers with on-line
access to detailed statement information.
■Opened two additional Pathways-Financial Growth
Centres, providing a unique banking store where
customers and non-customers alike can explore and
implement solutions to their financial services needs
in an
interactive, friendly environment.
■
Commenced development of a National Telephone
Service strategy to improve the efficiency of our national
c
ustomer service lines, with a focus on sales and inquiries.
Implementation will extend into 1999.
■
Supplied mobile sales force with technological access
to
retail products and services, enabling them to provide
■redesign key processes; and
■further develop workforce competence in two distinct streams –
sales and service management.
financial advice to customers anywhere and anytime.
Facilities include access to sales tools, credit approval
systems, e-mail, the Internet/Intranet and printers.
Improved Knowledge Management:
■Introduced a customer knowledge-based decision pro-
duction system to provide timely and comprehensive
information concerning existing
customer profitability
and retention.
Redesigned Key Processes:
■
Rolled out the Independent Business Credit Adjudication
Processing System, improving productivity in the com-
mercial credit area. The reduced turnaround time assists
in improving overall customer service and also provides
lenders with additional capacity for business development.
Improved Sales and Service Management:
■Enhanced PCFS management information tools, aimed
at monitoring individual sales performance to support a
sales-focused environment.Also,tools were developed to
improve identification of drivers associated with build-
ing customer loyalty and enabling the identification of
opportunities to improve customer service.
®InstaBank Extra is a registered trade mark of Bank of Montreal.