First National Bank gives new meaning to the bank statement

First National Bank (FNB) has always recognised the value of its customers, and has aimed at developing its entire business around its customers` needs. The bank has also realised that, in order to strengthen that customer relationship, it needs to sustain the highest level of service by means of effective communication.

The statements sent to customers no longer met FNB`s communication requirements and added no information value to the customer. With this in mind, FNB made the decision to redesign all its bank statements, which includes its card, home loan and cheque-based products, namely Premier, Status, FirstCheque and selected business account statements to better serve customers` needs and to ensure that, as a communication mechanism, they were more effective. In addition, FNB wanted to enhance its brand and differentiate itself from its competitors.

In order to do this, FNB required a solution that would reflect its professionalism in the attractiveness of the design, layout and content of the statement, and that would provide customers with an easier way of managing their finances. FNB also appreciates that, to many customers, "you are your document". Each statement and letter presented to customers reinforces the FNB corporate image.

After careful consideration, FNB decided on CSF, a document composition solution, from Metavante, a software solution that the bank had been using since 1996. CSF has the functionality to enable the transformation of customer documents into targeted, customer-focused communication tools.

AST ESM, a business unit of the JSE-listed AST Group, is the sole distributor of CSF in SA, and originally provided FNB with the application. Currently, AST ESM`s Output Management division provides application support to the bank. It was a logical step to unlock the full functionality available from the application to meet FNB`s specific requirements.

CSF`s unique architecture provided FNB with the power, speed and flexibility required for the production of high-volume, data-intensive documents. CSF is the only tool that addresses the complete document composition process, from data integration to the document`s final destination.

CSF`s family of document-presentment products allows the user to provide clients with paper-based or interactive, online documents, satisfying both of these requirements - and everything in between - quickly and efficiently, from a single, integrated process. At the heart of this process lies CSF`s unique and powerful system architecture.

Regardless of the end result, the presentation of customer information always consists of four major elements: the collection and manipulation of data from one or more sources, the creation and maintenance of a document template, the specification of the output format(s) and the actual creation of documents. CSF`s tools handle every element of this flow, greatly expanding customers` options and improving time to market.

Founded in 1964, Metavante developed its CSF product line in 1989, redefining the document composition market. As a result of the exceptional growth of the company and the CSF licence revenue, the company is able to continuously develop and expand the CSF product line to the benefit of customers.

For more than a decade, the CSF team at Metavante has been dedicated to delivering the leading document composition tool to implement "mission-critical", customer-focused documents.

Metavante has more than 400 CSF clients worldwide, including 23 of the largest 25 US banks, 35 of the largest 65 gas and electric utility companies, three of the five largest US telecommunications firms, and 45 of the most prestigious investment and life insurance companies. Headquartered in Milwaukee, Wisconsin, Metavante is wholly owned by Marshall & Ilsley Corporation (NYSE: MI).

The new-look A4 statements, with their additional features and benefits, provide FNB with a competitive-edge - its customers are provided with far more valuable information with which to make their financial decisions. The new features are a visual and functional improvement.

Since improving the content and providing more valuable information on the statement, FNB receives fewer customer queries and this enables the staff to focus on providing better service and creating exceptional products for customers who demand more.

Because CSF allows for increased volumes and greater standardisation, FNB has realised significant cost savings. And the fact that the bank chose to utilise the available functionality of CSF, instead of investing in a new application that would need to be integrated into the other FNB business systems, has also resulted in considerable savings.

First National Bank has changed the face of cheque account statements forever, adding many new features that will enable customers to manage their money better. On the front of the statement, new features include:

A transaction analysis bar graph: This is a powerful tool that helps the customer to track his spending visually, summarising funds received and funds used, and providing the number of transactions that make up the amounts reflected. Funds used, or debits, are broken down into the various transaction types, for example cash withdrawals, debit/stop orders and petrol card transactions, to name a few.

Cash-flow summary: Here a breakdown of debits and credits is provided. Provision is made for deposits and payments that have been returned, as well as bank charges, adjustments and statutory charges. Pending transactions - outstanding authorisations that affect the available balance on the customer`s account - are also shown here, as is the available overdraft limit. The statement effectively shows the customer`s exact financial position and thus provides proactive communication.

Messages: In line with the bank`s objective of using the statement as a communication tool, the new format statement provides space for messages that keep the customer informed of new products and features.

The actual transactions, the major part of the traditional statement, are listed on the reverse, or second page, of the statement. The layout has been changed to include more detail.

Transaction narrations are clearer and more easily understood. The type of transaction, the location (for example, Sandton) and the reference number applicable to the transaction are all shown. The amount column indicates the amount of each transaction, and credits are highlighted. The balance column shows the balance on the account after every transaction (excluding accrued bank charges).

Tick boxes are provided next to each transaction to assist in the reconciliation of the account.

The accrued bank charges column shows the calculated charge applicable to certain types of transaction. These charges are debited to the account once a month as a single amount. Transactions that are subject to VAT are marked with a hash sign, and the amount of VAT included on the statement is reflected as a separate line at the end of the statement.

Where a tradition is to be changed, a great deal of circumspection is called for. Since the changes to the statement were implemented after thorough investigation of customers` comments, queries and complaints, First National Bank wanted to ascertain whether the new format statement satisfied the customers` requirements. A number of customers from various branches were invited to join focus groups to discuss the issue.

Besides gathering customer and staff input for the further improvement of the statement design, the objectives of the focus group research were to determine the information that the customers would like emphasised, to determine customer likes and dislikes with regard to the new format and to decide on a final statement design that would incorporate aesthetics, functionality and customers` requirements in an easily understandable format.

As a result of the findings, the new statement format features a number of innovations and simplifications: a more detailed explanation of bank charge notation; a date format that includes the month name; a convention of numbering statements and the pages of the statement, rather than only a sheet (statement) number and full branch contact details, as well as some important FNB contact information.

Some customers expressed the opinion that the transaction details were not always understandable, and this concern has been amply addressed. The display of debit and credit interest rates, as applicable and a clearer display of the directly debited charges (Saswitch and cash-handling fees) and accrued bank charges are further improvements.

The statement provides a reconciliation tick box, which turns the statement into a working document. This was well received by customers, as was the transaction analysis that allows quick reconciliation of regular transactions, saving the customers a great deal of time.

The overall look and feel of the new format statement was very well received by all the respondents. The additional detail, such as the "punch marker", larger fonts and news message also drew favourable comment from respondents. The bar-graph was seen as non-essential, but nice to have.

"First National Bank is more than satisfied with the new format statement - our research has shown the change to carry our customers` approval. And if our customers are happy, then the investment in the planning and research has been well worth it. CSF has allowed us to turn the humble bank statement into a powerful financial and marketing tool that will be available to all our clients," says a spokesman for FNB.