Old National Bancorp

Improving the Deposit Acquisition Process

All retail banks strive to enhance the customer experience while reducing time and cost. This project demonstrates how major divisions within a bank can work together to accomplish change quickly while streamlining the processes that pave the way for the introduction of new technology.

With assets approaching $9 billion, Old National Bancorp is the largest bank holding company headquartered in Indiana. They own multiple banking centers in Indiana, Illinois, Kentucky, Ohio, and Tennessee. Old National boasts a 165-year history of solid performance as a result of the company’s unfailing commitment to meeting the diverse needs of its customers, employees and shareholders.

Background

Old National wanted to stabilize and obtain expense control from their "One Bank Consolidation," an initiative to bring about standardization in recently acquired and merged banking offices. Their current account opening process was slow, redundant, generated too many errors and created confusion.
Old National’s major focus was to improve the customer account opening experience while reducing the time and cost associated with gathering deposits. They engaged Nolan to work with them to redesign the new business deposit process from point of sale through all aspects of deposit operations.

Deposit Acquisition Redesign

To begin, the existing deposit account process was divided into five components: sales, verification, account opening, account closing (completed sale) and paperwork. In addition, back-room processes were evaluated to complete the account opening cycle from branch-opening tasks to the first statement cycle.
Next, a team was formed, comprised of representatives from each banking region plus the regional deposit committee. All team members were required to have had direct customer contact, as their role was to develop recommendations from the customer’s point of view. Additionally, representatives from the Continuous Improvement department assisted in team facilitation and data gathering. Subject matter experts throughout the bank were active in developing recommendations that affected their specific areas.

One challenge the team faced was the requirement to continue to use the current version of our application software. Additionally, the team understood that no out-of-pocket money would be spent to improve their information systems.

Throughout the project, a strong emphasis was placed on quality. This meant that in an environment where several banks were recently consolidated, many tasks had to be standardized, as well as be pushed forward in the processing stream. The first person in the process would be accountable for doing each activity right, the first time. Not surprisingly, the team discovered many Customer Service Representatives (CSR’s) were performing unnecessary tasks without adding value to the customer or the bank.

Results

The redesign team successfully developed over 35 recommendations. One major improvement was moving the account maintenance functionality to the field where the CSR’s can perform customer updates directly to the system. With this change, the CSR’s no longer needed to complete forms and calm down customers who were complaining that their requested maintenance was not getting done.
Time evaluations, done by the project team before and after, identified a time savings and a CSR capacity improvement of over 50 percent. This translates into an improved capacity equivalent of 69 FTE or more than $2.3 million in cost avoidance. Furthermore, the bank will significantly enhance the customer’s experience through improved account set-up time and customer service.