A&L automates account switching
Bank uses BI system to cut operational costs by two-thirds
UK bank Alliance & Leicester (A&L) has reduced operational processing costs by 66 per cent in six months using automated account switching technology.
The system, from vendor Digital Vision, automates the creation of new customer accounts and transfers salary payments, direct debits and standing orders.
In the past, up to 20 per cent of customer account switches were queried, creating inefficiencies in the switching process, says A&L programme manager Mary Monkhouse.
‘Since going live we have improved efficiency and boosted customer service levels by cutting account switching times from four weeks to one,’ she said.
The bank’s previous paper-based system was labour-intensive, requiring 20 dedicated processing staff.
‘We have saved in excess of 10 full-time positions in our contact centres so we have already realised a significant benefit from the system,’ said Monkhouse.
The technology scans the account switching request form, which automatically generates an electronic letter that is sent to the customer’s old bank to obtain direct debit and standing order details.
Its success has prompted interest from other A&L departments. ‘We want to extend the account switching to the commercial side,’ said Monkhouse.
Gartner analyst Mark Raskino says there is an enormous perceived hurdle by customers about switching accounts.
‘The slicker banks make that process, the lower the friction with banking customers, so it is not just an administrative issue it is definitely a competitive frontline issue in retail banking,’ he said.
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