Vereinigte Volksbank AG: Video conferencing solution provides an innovative tool for greater customer service, lower costs, and improved communication.

Vereinigte Volksbank AG: Video conferencing solution provides an innovative tool for greater customer service, lower costs, and improved communication.

Challenge
Under increasing competitive pressure, the Vereinigte Volksbank AG is relying on innovation management, but it is also searching for new solutions for the future viability of its banks with a focus on cost-intensive, strategically important branch offices.

Solution
Planning and implementation of a video conferencing solution for improving company communication, saving costs, and delivering better customer service.

Key Benefits
- Improved internal and external communication
- Increased competitiveness in a tight marketplace while gaining customer loyalty
- Reduced travel costs by improving IT-based collaboration options for employees
- Delivered impressive image and sound quality of video conferences
- Increased user satisfaction with reliable and predictable operations
- Innovation management as a survival strategy

The financial services sector is faced with considerable challenges. The banking business is going to change dramatically in the next few years. Integrated financial services will replace classic bank products. The times of pure price competition for standard products are long gone.

Even when it comes to structures and processes, banks have to reinvent themselves. The bank branch office, which was recently proclaimed dead, is undergoing a renaissance as a home base for customer service and as a stand-out benefit among the competition. Key factors enabling this change are innovative information and communication technologies with interfaces to customers and partners.

This means that the bank is pursuing both economic as well as strategic goals: Employee travel costs and travel times will be reduced, communication both in the bank as well as with partners in the cooperative financial services network will be simplified and customer service is going to be expanded with an innovative connecting link.

The Vereinigte Volksbank strategically plans to gain market share

The times are about to change at the Vereinigte Volksbank AG. Increasing competitive pressure is forcing the bank to act. Additionally, there are the specific challenges of the region. Even though the Vereinigte Volksbank has 3 regional areas and 5 main branch offices in Böblingen,
Calw, Schönaich, Sindelfingen, and Weil der Stadt all on the outskirts of Stuttgart, the regional competition is equally intense.

With 5 main branches and 43 branch offices, including 13 self service locations, 550 employees and over 130,000 customers, the Volksbank is strongly anchored in the region. The company understands that a local presence is necessary as a basis for successful customer loyalty. For this purpose, a service campaign is currently underway that is constantly aligning the branch offices with the needs of existing customers.

Nevertheless, for the Vereinigte Volksbank, questions remained on how to simultaneously make internal processes more efficient, lower costs, and guarantee the bank’s future viability. The bank has now found one answer to this question in the form of a video conferencing solution
designed and implemented by IBM.

A bank can only be supported by those who understand the banking business

Ulrich Prosch, Director of Corporate Services, which includes Human Resources, Organization, IT and parts of the production bank, succinctly describes the reasons for the cooperative partnership with IBM:

"A decisive factor was not only our already existing, long-term project partnership with IBM. What did it for us was IBM’s strategic expertise in the banking environment."

IBM sees itself as more than just a responsible technology partner. In order to develop successful solutions for banks, superior understanding of the specific business environment with its opportunities and risks is indispensable. By teaming with IBM, Vereinigte Volksbank gained the deep
industry expertise needed for solving their most complex business problems.

One example of IBM’s expertise in the field is the innovation forum “Banks & the Future” jointly initiated by the IBM e-Finance Center, the Fraunhofer IAO and other partners. Video conferencing solutions have proven themselves as cornerstones for the future viability of banks.

Measurable results that can be seen and heard

Ulrich Prosch was extremely pleased with how smoothly the project was implemented and with the benefits of the video conferencing solution:

In addition to reducing travel times and costs, video conferencing is striving to reach goals in three strategic directions:

• More effective internal communication within the company, between main branches, regional offices and branch offices
• Improved external communication with partners in the cooperative financial services network
• Increased customer communication, user satisfaction and loyalty

"More than anything, the strategic and economic results have met our objectives. In addition to cost savings, we were able to noticeably improve our corporate communication. This means that we are investing in greater customer service, which is what our future success depends on. What is impressive is the incredibly high detail in the acoustics and visual quality of our video conferences."

A milestone on the path of banking in the future

Video conferencing has now become part of the everyday routine at the Vereinigte Volksbank. "With this solution, we are taking a leadership role within our banking network," explains Ulrich Prosch. Thanks to its user-friendliness, the new solution has enjoyed quick acceptance among Vereinigte Volksbank employees. Conferences are now held without expensive and time-consuming travel time and effort. In addition, the solution can be used as a one-way channel in order to announce internal informational events.

An essential improvement can be seen in customer communication. The first medium-sized companies and customers are already benefiting from the option of speaking directly with their Vereinigte Volksbank via video conference. Depending on need, for example, portfolio managers or other experts from other locations can be contacted and linked in, improving response times and the overall customer experience.

n the future, the video conference will prove itself as an indispensable tool in the area of customer service with corresponding competitive dvantages. With the solution from IBM, the Vereinigte Volksbank has successfully invested in this future and has

done so earlier than most of its competitors. The company has therefore also gained a considerable reputation within its own banking network and is planning to gradually expand the system.