Branching out

The future of the high street bank is an issue that has attracted a wide range of industry and media attention – and not all of the ‘publicity’ has been positive. Initially, the planned closure of local branches was heralded as the future, with huge investments being made to entice the uptake of online banking services. Of late, however, many banks have begun to recognise the importance of the branch network, and are duly embarking on innovative ‘branch renewal’ strategies.

The focus of that renewal is driven by a realisation that every branch provides the focal point for a wealth of interactions with a given bank’s customers, and is thus privy to a considerable amount of information that would be highly valuable to many departments across the organisation as a whole.

How, though, does this new interest in the branch network impact on the thinking and policy of those responsible for maintaining physical security within the host company?

Interactions at branch level

In the high street branch of any bank, customer interactions are numerous and varied, ranging from over-the-counter conversations, ATM usage, telephone conversations and e-mail queries through to the simple act of someone popping in to pick up a leaflet on mortgages.

Senior managers at head office are beginning to envisage how these interactions might be harnessed and thereby provide an unprecedented insight into how customers use the branch, and how each branch is run. It is here that security has a somewhat surprising – and yet hugely significant – role to play.

Advances in security technology are realising applications that reach far beyond the remit of physical security, with CCTV systems being viewed as the ‘eyes’ of the bank. CCTV monitoring is ceasing to be considered a passive medium, instead becoming an active management tool capable of delivering tangible benefits to all parts of the organisation – at the same time improving overall security.

Traditionally, branch security monitoring has tended to be used as an insurance policy, with limited investment and out-dated technology offering only the minimum delivery of a stated physical security requirement. Indeed, many banks are still using analogue CCTV recording systems to this day. They’re stuck in a rut, with management teams adhering to the old adage of: “If it ain’t broke, don’t fix it”. The fact that the on-site VCR is indeed broken is all-too-often discovered only when a serious event occurs and no recordings have been made!

With the ongoing convergence of security and IT onto a common network infrastructure, security managers in the financial sector are learning how they can invest and upgrade their systems to ‘smart’ video solutions that offer more security and functionality, while at the same time yielding truly valuable insights from interactions with customers in the branch.

Investing in IP infrastructures

World-renowned IT networking company Cisco Systems is championing a vision of retail banking that supports a given bank’s commitment to branch renewal. In its ‘Branch of the Future’ concept, an Internet Protocol (IP) infrastructure enables the roll-out of advanced applications such as those used in Call Centres for customer management, bringing voice and video onto a common network.

Cisco is adamant that its AVVID – Architecture for Voice, Video and Data – set-up aims to integrate a bank’s front and back office terminals and servers, customer relationship management applications, voice communications, alarm systems, video surveillance and ATMs. It also exists to “lay the groundwork to enable new services including e-learning, video and audio conferencing and e-advertising, all of which reduce operational costs and enhance customer service”. A most interesting theory, it must be said.

On its company web site (www.cisco.com), Cisco also states that IP video surveillance technology now allows retail banks to replace their old security systems by converting a digital IP-based solution, improving in-branch security and saving time and money. IP video surveillance is designed to run on the bank’s intelligent, converged IP infrastructure, providing the scalability and quality of service needed to broadcast live video – when required – to any remote location such as a head office or local police station.

“Digital recording allows a retail bank to manage its branch security more efficiently and cost effectively,” Cisco claims. “Branches can be monitored in real-time, using features such as PTZ in order to capture all the required views. It is now possible to locate specific footage almost instantaneously by way of accurate time logs and standard search facilities. Storage and maintenance can be performed centrally, and at minimal cost.”

Putting theory to the test

Nice Systems is currently working alongside Cisco in a joint project to provide accurate measurement and analysis of recorded video that will assist not just with security provision, but also in the marketing and operational elements of a bank’s day-to-day business.

On the security side, the proposed solution offers “video-based insights” (including access and intrusion detection, the spotting of abnormal behaviour, abandoned baggage detection, instances of ATM loitering and the monitoring of cash loading). This will tie-in with operational functions, whereby further voice and video-based insights will be offered into queue control, queue reduction, customer movement and behaviour, foot-fall, regulatory compliance and overall quality management.

Meantime, marketing analysis will offer voice and text-based information on branch optimisation, advertising, promotion and promotional effectiveness, cross-selling/up-selling, screen/advertisement positioning and competitor information. The bank’s Marketing Department will be able to cost-effectively manage volumes of promotional materials and their placement, and identify training requirements. Most importantly, there is an opportunity to entrench physical security as an even more integral part of the organisation.

On the security side, the proposed solution offers ‘video-based insights’ including access and intrusion detection, the spotting of abnormal behaviour, abandoned baggage detection and the monitoring of cash loading

“Placing CCTV video onto an IP network delivers much more than security,” comments Tim Giles, NiceVision product marketing manager for EMEA at Nice Systems. “It also provides other parts of the organisation with a host of previously untapped information assets that have traditionally been locked away on its own private infrastructure. IP-based digital video recording and analysis enables surveillance that can identify security threats such as intrusion detection in real-time and then provide automatic alerts.”

Giles continues: “The new information rendered by the security system delivers to head office a real-time, 360-degree view of every branch’s operations and their customers.” He firmly believes that streamlining security operations over an IP network increases overall business performance through reduced costs and the more efficient allocation of resources.

The ‘Branch of the Future’

Cisco’s entire ‘Branch of the Future’ concept integrates a number of different IP-based technologies alongside the security functionality of IP CCTV and access control.

For example, its IP ATM technology will allow banks to integrate their ATMs with other delivery channels such as the now ubiquitous Call Centre and the Internet, enabling them to communicate with corporate applications such as CRM and, in turn, deliver a range of new services to customers.

“When linked to an IP-based Virtual Private Network, the machines offer faster response times due to the ‘always on’ connection,” claims Cisco. “The same technology enables ATMs to operate more efficiently. For example, they can inform the branch or data centre that they are running out of supplies without incurring extra connection charges. Bringing the ATM network onto the bank’s main IP infrastructure also reduces software development and maintenance costs.”

IP-Enabled Teller Workstations

The IP-Enabled Teller Workstation is based on a secure, scalable IP infrastructure, and designed to enable the replacement of the mainframe-oriented installations still found in many European banks. “Key applications such as client server-based teller front-end systems need no longer reside in individual branches,” Cisco says. “Banks can introduce browser-based environments that permit software distribution and support from one point.”

The reverse is also true. “If any problems occur, software can be rolled back to the centre both quickly and easily without disrupting business. Cost savings on IT equipment, maintenance and downtime are significant.”

Meanwhile, the IP Mobility aspect of Cisco’s ‘Branch of the Future’ embraces wireless technology, offering “a secure wireless environment within the branch” which aims to “enhance employee productivity and service capacity by releasing branch staff from the cables that bind them to their desks. Branch employees will be able to handle customer enquiries, provide assistance and access the full range of corporate applications from anywhere within the branch.”

IP Telephony with IP Contact Centre

The IP Telephony aspect of the ‘Branch of the Future’ aims to reduce costs because banks no longer need to equip branches with switchboards, instead using network-based call processing software to replace them.

The cost of calls between branches and headquarters is eliminated, as they are carried over the bank’s converged IP network. Banks can also use the integration between CRM databases and IP phones to identify customers as they call and instantly retrieve information – such as previous calls – which then helps staff to deal with a problem more efficiently.

The IP Contact Centre interconnects retail branches and Call Centre operations, allowing banks to allocate resources flexibly according to workloads, and meaning agents are not tied to a particular geographical location.

The opportunities ‘smart’ surveillance systems offer to banks embarking on branch renewal programmes are considerable and tangible. There is now an ideal opportunity to centralise and integrate decision-making across the sales, service, marketing, security and IT functions.

At the same time, the Security Department is able to depend on a fully-maintained, high quality backbone infrastructure that allows a 100% focus on security issues.