week 4 t

Strategic Plan Part I: Proposal of a New Division

Carlos Perez

BUS/475

University of Phoenix

Professor Linda McKee

October 2, 2017

Introduction

Ally Bank has a reputation for being relentless when it comes to providing our customers with a differentiated customer experience. We pride ourselves in doing what’s right for our customers, even if it means we make less so that our customers make more. I guess this is why our vision statement is to “be a relentless ally for your financial well-being” (Ally.com, 2017).

We hold true to our mission statement when it comes to being “a leader in [the] digital financial services” (Ally.com, 2017). We’ve managed to change the online banking landscape by offering services such as 24/7 customer service, great rates, and rewarding credit and lending products.

We are committed to “do right by our customers” (Ally.com, 2017). In support of our commitment, we work effortlessly in developing award-winning technology and services that make the lives of our customers easier; we develop products that are never status quo and diverse thinking that inspires new ideas.

Service for the new company division

Our fierce dedication to putting our customers at the center of everything we do is what has led for me to introduce Ally Bank’s Relationship Banking. Ally Bank’s Relationship Banking is a service that is tirelessly innovative, reinventing the way we work with customers in their time of need during a matter of an account takeover/compromised account. The purpose of this service is a singular purpose, to make a real difference for our customers.

Ally Bank’s Relationship Banking will be aligned with the company’s vision, value, and mission statements; we will continue to be relentless in being an ally for our customers while maintaining our focus of becoming a leader in the digital financial services. Ally Bank’s Relationship Banking’s objective is to enhance our customer’s experience, retain our customer’s relationship, and deepen our relationship by providing services to strengthen our relationship with customers and increase customer loyalty.

But what differentiates Ally Bank’s service from those of its competitors? Ally Bank is a direct bank; this means that Ally Bank offers its services predominately or exclusively over the internet. In other words, Ally Bank is a virtual bank that offers normal banking services.

Describe how the division addresses customer needs and achieves competitive advantage

By being a direct bank, banking is no longer personal as it would be in a brick-and-mortar bank. If your debit card becomes compromised or your account becomes compromised, one would walk into a branch and get the matter resolved right away. If a customer has an account with a direct bank, rectifying the matter can take a significantly long time and may minimize or diminish some, if not all, customer loyalty.

Therefore, to apply the full banking experience, I have created the Ally Bank Relationship Banking service. This service would provide a direct point of contact to an experienced banker that would specialize in matters of account takeovers/compromised accounts, all deposit banking products, provide referrals to Ally Invest, Ally Mortgage, and/or Ally Financial – Auto Division. By providing a one on one service, similarly to personal banking, will deepen our relationship with our customers, improve customer service and efficiency, provide a point of contact, cross-sell banking products, retain customers, and improve customer retention and loyalty.

Our competitor, Synchrony Bank, offers multiple layers of security, similar to the same services we provide. What differentiates Relationship Banking from their service, is the interaction; customers prefer an immediate point of contact when their accounts have been compromised. Synchrony Bank offers an Identity Theft Protection Service through a third-party vendor, CyberScout™. This would mean that CyberScout™ would provide all the necessary information regarding their service, whereas Ally Bank’s Relationship Banking would assist the customer in mitigating any additional and potential risks by providing antivirus software, WebRoot Secure Anywhere™ at no additional cost to the customer. Additionally, we’ll be providing up to 3 years of complimentary Credit Bureau Monitoring with Equifax©. This service will alert all other credit bureaus and protect our customers with up to one million dollars in identity theft.

In providing the differentiated security from that of Synchrony Bank and other competing banks, we would gain an advantage by increasing customer confidence and loyalty; we take our customers’ personal and account information very seriously, and have multiple systems and processes set in place to protect our customers. We will do right by our customers to protect them when they need us most with the tools and additional services most banks would only mention, but not provide.

Vision and Business Model for the new division

While Ally Bank’s visions statement is to “be a relentless ally for your financial well-being” (Ally.com, 2017), Ally Bank Relationship Banking’s vision is to become the primary provider of financial solutions that build success for our customers. With this vision statement, we align our core values with Ally Bank’s mission statement to “do right by our customers” (Ally.com, 2017); we will build long-term relationships with our customers by providing superior value with integrity and personalized service. This will contribute to the growth and development of the communities and customers we serve.

To achieve success, our business model must generate a revenue and make a profit. Additionally, it must be effective and efficient. A bank is successful if customers continue to make deposits, and customers make deposits into a financial institution if they trust the entity with whom they do business. When a customer’s account is compromised it certainly isn’t a wonderful call; however, it can be managed in a timely and personalized manner. A compromised account proves to be the moment of truth, when a bank’s customer service is put to the test in retaining a customer, boosting the customer’s confidence and trust, and ultimately providing a diligent sense of security.

Relationship Banking’s targeted base are customers whom have been affected by account takeovers/compromised accounts. Once the customer has been obtained through this method, it is Relationship Banking’s responsibility to provide a white-glove experience to the customer, address any concerns the customer may have, and be fully knowledgeable of the bank’s processes for protecting our customers’ personal and account information. This will be achieved by providing a personalized service to an assigned Relationship Banker, but also have access to a team of Relationship Bankers specializing in these matters should their assigned banker be absent.

Relationship Banking’s objective will serve to be that of retention and to mitigate additional losses by providing a personalized and controlled interaction. Ally Bank guarantees that our customer will not liable for fraudulent transactions as long as they are reported to the bank within 60 days from the date their statement was made available. There will be no charge for the service as the service will utilize the services the company has acquired within the limits of their third-party contract for checks, debit cards, new account numbers, antivirus software, and credit bureau monitoring.

However, Relationship Banking will track the bank’s “out of pocket” cost to track the operating losses incurred due to fraud, track trends in frauds and root cause, and obtain direct feedback from our customers, which will help improve our customer service and efficiency. The assets available to us are the systems set in place to access our customer’s account information, online profiles, systems to create and/or mirror accounts, third-party vendor access for additional services such as check orders and debit card orders, Individual Retirement Account (“IRA”) servicing, and additional services and tools for antivirus software and credit bureau monitoring.

Our key partners are Loss Prevention, Deluxe for check orders, Electronic Funds Transfer (“EFT”) Services, Citrix, additional lines of business within Ally Bank & Ally Financial, and FIS Global for additional account servicing tools. In order to make our service successful, we must engage customers one on one, provide the necessary tools to circumvent additional risks and mitigate current risks; this would take place during the customer’s one on one personalized interaction in which the customer would be provided assistance with credit bureau monitoring, antivirus software, security question and answer updates, new User ID and password for access to Ally Online Banking, and new accounts and internal transfers.

Internal research shows that a check order of 20 checks within our contractual agreement is free of charge; however, an expedited, 4 business day check order delivery will cost the organization $21.47, a debit card is $3.50, and expedited debit card (shipping only) is $15.00. If a customer incurs an external fee, it estimated that we may refund up to $50.00. Our forecast shows possible fraud trends and root causes for fraudulent activity; preliminary research shows that nearly 70% of cases of fraud were caused by lack of antivirus software on the customer’s part, 20% on phishing emails, and 10% on vishing attempts (telephone banking attempts to obtain access to a customer’s profile). Additionally, our forecast shows what areas we are to focus on to assist our customers in circumventing future potential threats, and how we can educate all our customers in protecting themselves against fraud and identity theft.

Explain how the vision, mission, and value of the new division align with the company's mission and vision.

Ally Bank Relationship Banking’s vision is to become the primary provider of financial solutions that build success for our customers. This aligns with the Ally Bank’s vision statement in becoming a relentless ally for our customers’ financial well-being. My vision statement for Relationship Banking also aligns with the company’s mission statement of becoming a leader in the digital financial services; Relationship Banking’s vision is to become to become the primary provider of financial solutions that build success for our customers. My vision statement will further empower our core values to “do right by our customers” (Ally.com, 2017) and build long-term relationships with our customers by providing superior value with integrity and personalized service as our core values dictate.

Summarize how the vision, mission, and values guide the division's strategic direction

Ally Bank’s Relationship Banking is guided by our core values, LEAD; LEAD is to look externally by focusing on innovation and meeting the needs of our customers, execute with excellence because good enough is never enough – our customers are satisfied when we listen to them and find ways to make their interactions extraordinary, act with professionalism by operating with integrity, holding each other accountable, and treating others with respect, and ultimately, deliver results by measuring our success not by our performance, but by how it was achieved.

Define your guiding principles and values for your division in the context of culture, social responsibility, and ethics.

Ally Bank’s Relationship Banking will utilize these core values, mission statement, and its vision to provide its customers with the differentiated customer experience they not only come to expect from Ally Bank, but also from a personal banking relationship; we value our customers and we stand by them as their ally, with our sole focus being what’s best for customer’s and their financial well-being.

Our culture is to “Do It Right!”. Our commitment to our customers has been the core of who we are. Our LEAD core values are fiercely dedicated to customers and communities we serve; we have a sincere respect for our customers and pride ourselves in providing our customers with a differentiated banking experience by placing our customers at the center of everything we do.

Conclusion

Ally Bank’s Relationship Banking will become the primary provider of financial solutions that build success for our customers by providing a personalized service. It aligns with Ally Bank’s vision, mission, values statements when it comes to maintaining our focus on our customers’ financial well-being. Ally Bank’s core values are the foundation by which Ally Bank’s Relationship Banking will be built on, providing our customers with a differentiated customer experience, making Ally Bank and Ally Bank Relationship Banking a relentless leader in the digital financial services and a primary provider of financial solutions.

References

1. Another plus. Security. (n.d.). Retrieved October 02, 2017, from https://www.synchronybank.com/why-synchrony/secure-banking/?UISCode=0000000

2. F. (2012). Can Fraud Alerts Raise Customer Loyalty? Retrieved October 02, 2017, from http://www.fico.com/enterprisefraud/assets/64_Can_Fraud_Alerts_Raise_Cust_Loyalty_2930WP_EN.pdf

3. E. (n.d.). Equifax Cybersecurity Incident:. Retrieved October 02, 2017, from https://www.equifax.com/personal/

4. Fernandes, P. (2017, April 10). What Is a Vision Statement? Retrieved October 02, 2017, from http://www.businessnewsdaily.com/3882-vision-statement.html

5. Lavinsky, D. (2015, September 20). Strategic Plan Template: What To Include In Yours. Retrieved October 02, 2017, from https://www.forbes.com/sites/davelavinsky/2013/10/18/strategic-plan-template-what-to-include/#18ecc12647e1

6. Log in. (n.d.). Retrieved October 02, 2017, from https://my.webrootanywhere.com/

7. Our Company. (n.d.). Retrieved October 02, 2017, from https://www.ally.com/about/company-structure/