Efma journal articles
Article for members
EFMA Magazine n°221 september october 2009
Strategy
CRM - DnB NOR automates its loan process
Marit Giske, Retail Banking, Internet bank/IT, DnB NOR, Norway
The self-service option in the Internet bank and on other web pages is made possible through the use of a BankID signature. BankID is a personal and simple electronic proof of identity for secure online identification and signing. BankID has been developed and is offered by Norwegian banks. This spring, DnB NOR also launched BankID via mobile phones in cooperation with Telenor, Norway's largest telecom company.
The number of BankID users in Norway now exceeds 2.3 million, which means that approximately 90 per cent of all Internet banking customers are using the solution.
Karin Bing Orgland, group executive vice president in charge of DnB NOR's retail operations, says that DnB NOR has ambitious plans in relation to BankID as it enables the Group to develop highly competitive service concepts.
“BankID opens up new opportunities for both retail and corporate customers, not only in electronic dialogue with DnB NOR, but on all Norwegian websites that accept BankID,” she says.
DnB NOR has developed a sophisticated signature solution which makes it possible for several customers to sign the same loan documents. To the Group's knowledge, DnB NOR is at the leading edge among banks in this field. The solution has been developed in cooperation with BBS (the Banks' Central Clearing House), which is DnB NOR's supplier of operational services in this field.
“This solution is one of the factors that enable us to automate the loan process. The other factor is electronic registration of mortgage certificates directly in the Norwegian Mapping and Cadastre Authority's real property register,” says Karin Bing Orgland.
From autumn 2009, customers wishing to increase their loan within the limits of the approved collateral may carry out the whole process in the Internet bank, without visiting a branch office, sending loan documents by regular mail and signing in person. BankID also enables co-borrowers who are customers in another bank to log on to their Internet bank, gain access to the documents and sign them. Karin Bing Orgland is looking forward to DnB NOR being able to also approve new housing loans electronically. This option is scheduled to become available during the first half of 2010.
For the whole Group and all its customers. Not only DnB NOR Bank will benefit from the electronic multiple signature solution. All companies in the DnB NOR Group can use this solution in electronic communication with customers, including corporate clients. Now that the multiple signature solution is in place, a greater selection of electronic solutions will soon be available to all of DnB NOR's corporate clients. They will also be able to sign loan documents and register mortgage certificates electronically.
Streamlining. Karin Bing Orgland is convinced that customers will find that they receive more efficient service once electronic signatures are adopted for a wider range of services. Customers will save time as they will no longer need to print, collect or be sent documents which they must thereafter deliver in person or return by regular mail. Another advantage is that they at all times will have access to the relevant documents in the electronic archive in the Internet bank. This is also an environmentally-friendly, paper-free solution.
Karin Bing Orgland regards electronic signatures and identification as the key to streamlining operations and increasing income. “When customers use self-service solutions in the Internet bank, the data input is automatically sent to our customer system. Not least, this will boost sales as our customers complete their purchases while they are in a buy mode. We also save postage costs and costs relating to document processing, in-house dispatches and scanning,” she explains.
Environmental gains. BankID and the shift to fully automated processes will also give significant environmental gains. Once half of DnB NOR's loan agreements in the retail market are signed electronically, the reduction in DnB NOR's paper consumption will correspond to a 130 metre pile of paper. In addition, there will be reductions in paper use for corporate clients.
“The environmental aspect of the automation is of great value in the current market. DnB NOR wishes to take environmental considerations while being at the leading edge in developing more user-friendly and effective services for customers,” adds Karin Bing Orgland.
eSignature since 2008. With respect to products and services requiring only one signature, the DnB NOR Group's retail customers have been able to complete purchasing processes online by using electronic signatures and identification since February 2008.
For example, Vital, which is owned by DnB NOR, was the first Norwegian life insurance company using eSignature with BankID. Vital offers a fully automated solution which includes both agreement signing and payments. The solution is in use for savings insurance agreements, payment transfers and transfers of paid-up policies. The company is also planning to use eSignatures for authorisations to obtain health information and make amendments to existing policies.
“DnB NOR wishes to use BankID in all electronic customer processes where this is relevant, including credit products such as consumer finance and credit cards, savings products and insurance products,” says Karin Bing Orgland.
Merchants. The Norwegian BankID concept has a great potential for all operations wishing to streamline their customer service, not only banks and bank customers. BankID's eID and eSignature open up for more business in the online channel and are important tools in the development of fully automated services in a number of industries. BankID gives all customers the opportunity to sign agreements electronically.
“A number of DnB NOR's corporate clients are both potential users of BankID and relevant as merchants for BankID. However, many potential merchant clients have been hesitant, even though it is obvious that BankID will help streamline their operations and minimise paper work. However, after Norway Post started using BankID from DnB NOR for online address changes and the number of users passed two million, an increasing number of customers have shown an interest in the solution. The more merchants, the more useful BankID will be to the general public,” says Karin Bing Orgland.
“A number of additional retail services are available, and more are in the offing. We are in dialogue with a number of companies, municipalities and public institutions which offer or wish to offer their customers and the general public better and more effective electronic services, which means that they need BankID. www.altinn.no is a key example, allowing individuals and companies to electronically dispatch their tax returns, VAT returns, statistics and annual accounts to public institutions,” explains Karin Bing Orgland.
Socio-economic benefits. She believes that in the longer term, electronic signatures will provide large socio-economic cost savings, simplifying and streamlining procedures for both banks, companies and individuals. “This will also reduce processing time from days to a few minutes,” maintains Karin Bing Orgland.
International perspective. For the time being, DnB NOR's solution can only use electronic signatures from BankID, but will be expanded to handle electronic IDs in international markets.
“To our knowledge, no other country or bank has such a well-developed system with respect to the use of PKI (Public Key Infrastructure) solutions such as BankID. Norway and DnB NOR are world-leading in adopting eID and eSignature on a large scale,” precises Karin Bing Orgland.
Electronic establishment of customer relationships. Norwegian banking customers will soon be able to establish a customer relationship by using electronic identification and signatures. They will no longer need to visit their branch office. This opportunity is enabled through the new Money Laundering Act, which entered into force on 15 April 2009.
And Karin Bing Orgland insists:“We have started to look into how we can use these new opportunities and how we can adapt our systems accordingly. However, it is too early to say when this will all be in place."
Karin Bing Orgland believes that the option to establish customer relationships without the customer meeting in person will create both opportunities and challenges for DnB NOR.
“It will make it easier for customers to change banks, as this will be possible from their PCs, which can cut both ways. It will be easier for existing customers to change banks, while there could be a greater inflow of new customers. Thus, it is important that we, parallel to facilitating a high degree of self-service solutions via electronic processes, also ensure sound multi-channel cooperation and thus good advisory services and satisfied customers. Automating our products and services has good internal effects, reducing manual operations and giving customer advisers more time to identify and meet customer needs. We want to give our customers good advice, and those who use self-service options must therefore be able to ask questions and consult us. This is how DnB NOR now wishes to serve its customers,” she concludes.
The number of BankID users in Norway now exceeds 2.3 million, which means that approximately 90 per cent of all Internet banking customers are using the solution.
Karin Bing Orgland, group executive vice president in charge of DnB NOR's retail operations, says that DnB NOR has ambitious plans in relation to BankID as it enables the Group to develop highly competitive service concepts.
“BankID opens up new opportunities for both retail and corporate customers, not only in electronic dialogue with DnB NOR, but on all Norwegian websites that accept BankID,” she says.
DnB NOR has developed a sophisticated signature solution which makes it possible for several customers to sign the same loan documents. To the Group's knowledge, DnB NOR is at the leading edge among banks in this field. The solution has been developed in cooperation with BBS (the Banks' Central Clearing House), which is DnB NOR's supplier of operational services in this field.
“This solution is one of the factors that enable us to automate the loan process. The other factor is electronic registration of mortgage certificates directly in the Norwegian Mapping and Cadastre Authority's real property register,” says Karin Bing Orgland.
From autumn 2009, customers wishing to increase their loan within the limits of the approved collateral may carry out the whole process in the Internet bank, without visiting a branch office, sending loan documents by regular mail and signing in person. BankID also enables co-borrowers who are customers in another bank to log on to their Internet bank, gain access to the documents and sign them. Karin Bing Orgland is looking forward to DnB NOR being able to also approve new housing loans electronically. This option is scheduled to become available during the first half of 2010.
For the whole Group and all its customers. Not only DnB NOR Bank will benefit from the electronic multiple signature solution. All companies in the DnB NOR Group can use this solution in electronic communication with customers, including corporate clients. Now that the multiple signature solution is in place, a greater selection of electronic solutions will soon be available to all of DnB NOR's corporate clients. They will also be able to sign loan documents and register mortgage certificates electronically.
Streamlining. Karin Bing Orgland is convinced that customers will find that they receive more efficient service once electronic signatures are adopted for a wider range of services. Customers will save time as they will no longer need to print, collect or be sent documents which they must thereafter deliver in person or return by regular mail. Another advantage is that they at all times will have access to the relevant documents in the electronic archive in the Internet bank. This is also an environmentally-friendly, paper-free solution.
Karin Bing Orgland regards electronic signatures and identification as the key to streamlining operations and increasing income. “When customers use self-service solutions in the Internet bank, the data input is automatically sent to our customer system. Not least, this will boost sales as our customers complete their purchases while they are in a buy mode. We also save postage costs and costs relating to document processing, in-house dispatches and scanning,” she explains.
Environmental gains. BankID and the shift to fully automated processes will also give significant environmental gains. Once half of DnB NOR's loan agreements in the retail market are signed electronically, the reduction in DnB NOR's paper consumption will correspond to a 130 metre pile of paper. In addition, there will be reductions in paper use for corporate clients.
“The environmental aspect of the automation is of great value in the current market. DnB NOR wishes to take environmental considerations while being at the leading edge in developing more user-friendly and effective services for customers,” adds Karin Bing Orgland.
eSignature since 2008. With respect to products and services requiring only one signature, the DnB NOR Group's retail customers have been able to complete purchasing processes online by using electronic signatures and identification since February 2008.
For example, Vital, which is owned by DnB NOR, was the first Norwegian life insurance company using eSignature with BankID. Vital offers a fully automated solution which includes both agreement signing and payments. The solution is in use for savings insurance agreements, payment transfers and transfers of paid-up policies. The company is also planning to use eSignatures for authorisations to obtain health information and make amendments to existing policies.
“DnB NOR wishes to use BankID in all electronic customer processes where this is relevant, including credit products such as consumer finance and credit cards, savings products and insurance products,” says Karin Bing Orgland.
Merchants. The Norwegian BankID concept has a great potential for all operations wishing to streamline their customer service, not only banks and bank customers. BankID's eID and eSignature open up for more business in the online channel and are important tools in the development of fully automated services in a number of industries. BankID gives all customers the opportunity to sign agreements electronically.
“A number of DnB NOR's corporate clients are both potential users of BankID and relevant as merchants for BankID. However, many potential merchant clients have been hesitant, even though it is obvious that BankID will help streamline their operations and minimise paper work. However, after Norway Post started using BankID from DnB NOR for online address changes and the number of users passed two million, an increasing number of customers have shown an interest in the solution. The more merchants, the more useful BankID will be to the general public,” says Karin Bing Orgland.
“A number of additional retail services are available, and more are in the offing. We are in dialogue with a number of companies, municipalities and public institutions which offer or wish to offer their customers and the general public better and more effective electronic services, which means that they need BankID. www.altinn.no is a key example, allowing individuals and companies to electronically dispatch their tax returns, VAT returns, statistics and annual accounts to public institutions,” explains Karin Bing Orgland.
Socio-economic benefits. She believes that in the longer term, electronic signatures will provide large socio-economic cost savings, simplifying and streamlining procedures for both banks, companies and individuals. “This will also reduce processing time from days to a few minutes,” maintains Karin Bing Orgland.
International perspective. For the time being, DnB NOR's solution can only use electronic signatures from BankID, but will be expanded to handle electronic IDs in international markets.
“To our knowledge, no other country or bank has such a well-developed system with respect to the use of PKI (Public Key Infrastructure) solutions such as BankID. Norway and DnB NOR are world-leading in adopting eID and eSignature on a large scale,” precises Karin Bing Orgland.
Electronic establishment of customer relationships. Norwegian banking customers will soon be able to establish a customer relationship by using electronic identification and signatures. They will no longer need to visit their branch office. This opportunity is enabled through the new Money Laundering Act, which entered into force on 15 April 2009.
And Karin Bing Orgland insists:“We have started to look into how we can use these new opportunities and how we can adapt our systems accordingly. However, it is too early to say when this will all be in place."
Karin Bing Orgland believes that the option to establish customer relationships without the customer meeting in person will create both opportunities and challenges for DnB NOR.
“It will make it easier for customers to change banks, as this will be possible from their PCs, which can cut both ways. It will be easier for existing customers to change banks, while there could be a greater inflow of new customers. Thus, it is important that we, parallel to facilitating a high degree of self-service solutions via electronic processes, also ensure sound multi-channel cooperation and thus good advisory services and satisfied customers. Automating our products and services has good internal effects, reducing manual operations and giving customer advisers more time to identify and meet customer needs. We want to give our customers good advice, and those who use self-service options must therefore be able to ask questions and consult us. This is how DnB NOR now wishes to serve its customers,” she concludes.
