Business intelligence is a way to turn raw data into meaningful and useful information. TD Bank uses business intelligence to be more effective, strategic, tactical and better with business decision making. For example, when lending TD Bank uses a Decision Support System (DSS) that collects and analyzes customers responses to questions about there property and finances. From this, the customer will be notified of the loan decision after 15 minutes. From a few questions, this system is able to let one know if they qualify for a loan without an actual person having to look through papers of information. TD Bank also collects raw data such as how many customers rent or own, apply for grants, request non-English speaking consultants, and need long term below market rate financing. With this raw data, they are able to come up with percentages and mine the data to see the need in the community. TD Bank found that there were more rentals than the owning of a home so this expressed the need for affordable housing. TD Bank saw the need for rehabilitation funds and grants; in this case, so they made sure they provided more of this needed service. And from the raw data they collect, they were and are able to prioritize their business decisions to fill the greatest need of the community first. Also, easy to read and understand tree views and cluster plots, is how TD Bank uses data intelligence to their benefit to mine data. This bank also has a data warehouse manager who measures and monitors the level of service, analyzes trends, agrees on service target levels and determines appropriate actions. This person is an invaluable person who uses data intelligence to make this company run smoothly. To top it off, TD Bank manages to deliver fast, consistent customer service with all the information coming into the business via web, email and phone. Much credit is due to there exceptional data and business intelligence.

Swift Network Information Flow

TD Bank's Swift Network

The database management system TD Bank uses is called the SWIFT Net Network. SWIFT stands for Society for Worldwide Interbank Financial Telecommunication. The Society for Worldwide Interbank Financial Telecommunication ("SWIFT") operates a worldwide financial messaging network which exchanges messages between banks and other financial institutions. SWIFT also markets software and services to financial institutions, much of it for use on the SWIFTNet Network, and ISO 9362 bank identifier codes (BICs) are popularly known as "SWIFT codes".

The current version of SWIFT, SWIFT Phase 2, is where the banks connect to this network to use a Relationship Management Application (RMA) instead of the former Bilateral Key Exchange (BKE) System. The RMA is more secure and easier to update with information than the BKE.

TD Bank along with 8,000 financial institutions in 200 countries and territories joined the SWIFT network because it is an industry-owned co-operative that provides secure, standardized messaging services and interface software. Since SWIFT is an industry-owned co-operative, any improvements are made as requests that become decisions through consensus.

As well as with offering fast, reliable transactions from anywhere under SWIFT, TD Bank develops new software to make banking easier. TD Bank developed a TD Bank Software that can be downloaded for free online which allows customers to print business bank checks for the USA and Canadian Banks. They also have software called Quicken which is personal finance management tool that allows customers to pay bills, view statements, and access online services with the click of a finger from their desktop home screen.

Mobile Banking

TD Bank is streamlining its customer service operations via mobile applications for Apple’s iPhone, BlackBerry, and Google’s Android-powered devices. It was ahead of the curve with the release of its mobile banking applications.

“We choose iPhone, BlackBerry and Android because these are the devices our customers requested are using the most.” Said Rebecca S. Acevedo, a public relations manager at TD Bank, Portland, ME

The growth of mobile banking is driven by the quick growth of smartphones. Customers are able to use mobile banking applications to find stores, ATMs, view pending transactions, loan and credit card balances, transfer funds, make bill payments and view account history.

Mobile banking has gained popularity, and in the last year institutions have begun offering the service. IDC Financial Insights recommended that financial institutions begin to expand what they offer as far as mobile banking goes and providing more opportunities around payments and fund movement.

Demographics are also driving momentum behind mobile banking because younger people are more likely to do their banking over the mobile device than they are using a computer or store.

Strategy

TD Bank's slogan is “America’s Most Convenient Bank” and they strive to make this true by incorporating personalization and diversity into their business strategy and providing accessible services for all of their customers/clients. TD is a Click and Mortar business; as such they service their client in branch locations (over 1,300 locations operating 7 days a week) as well using e-commerce and e-business solutions as another form of convenience.

TD Bank uses the B2C – Business to Customer, and the B2B – Business to Business e-business model approach. They service customers on an individual basis as well as small businesses and corporations. For the personal banker, TD offers a wide variety of e-commerce services at your fingertips including but not limited to applying for loans and credit cards, purchasing CD and gift cards, opening Individual Retirement Accounts (Roth & Traditional IRAs), transferring funds between accounts and even paying your bills for FREE via “billpay”, all online.

For the small business account, TD offers Free Small Business Workshops, online, to help you start your business or further your existing business.

Corporate clients use TD bank to set up payroll services for their employers. TD also offers insurance and investment option through their affiliates TD Insurance and TD Ameritrade.

In addition to corresponding with the bank via email and in person, TD Bank also offers live 24-hour phone customer service. And if you’re not by a computer and don’t wish to speak to a customer service representative, you can access your account information and perform transactions right form your smart phone/PDA via Mobile Banking.
Banking with TD Bank has truly never been more convenient.

Diversity

The ability to provide their diverse Customer base with the same quality Customer experience across the board is an important focus for TD Bank. They’re doing this every day through multi-language services and materials, and ongoing improvements to the accessibility of our Customer locations.

TD Bank's Key priorities for the year ahead:
• Overall diversity program: Continue implementing our diversity strategy to make a difference over the long term.
• Women in leadership: Continue to expand leadership opportunities for women.
• Members of minority groups in leadership: Continue to expand leadership opportunities for members of visible minority groups.
• People with disabilities: Continue to remove barriers and increase access for employees and Customers with disabilities.
• Diverse communities: Embed inclusiveness within Customer and client focus and ensure business ownership of targeted objectives to establish relationships and serve diverse customers.
• Lesbian, gay, bisexual, transgendered and ally (LGBTA) employees, Customers and clients: Continue to enhance and promote an inclusive environment for this community.

Business Strategy

T.D Bank follows a focused generic business strategy. They are a customer focused Bank who is constantly working on customer relationship. They focus on creating convenience for the customer by building new branches, staying open later than competitors.

Buyer Power is not that high. The individual doesn't pose much of a threat to the banking industry, but one major factor affecting the power of buyers is relatively high switching costs. If a person has a mortgage, car loan, credit card, checking account and mutual funds with one particular bank, it can be extremely tough for that person to switch to another bank. In an attempt to lure in customers, banks try to lower the price of switching, but many people would still rather stick with their current bank.

There are many substitutes in the banking industry. Banks offer many different services over and above taking deposits and lending money, but whether it is insurance, mutual funds or fixed income securities, chances are there is a non-banking financial services company that can offer similar services. For example when financing a car, the actual car company can offer 0% interest, but if you take a car loan from a bank the interest rate might be 5-10%.

The banking industry is extremely competitive. The financial services industry has been around for hundreds of years, and just about everyone who needs banking services already has them. Because of this, banks must attempt to lure clients away from competitor banks. They do this by offering lower financing, preferred rates and investment services. The banking industry is in a race to see who can offer the best and fastest services.

Introduction

TD Bank

TD Bank is one of the 15 largest commercial banks in the U.S and a member of TD Bank Financial Group of Toronto, Canada, a top 100 financial services company in North America. TD Bank is also rated one of just three triple-AAA-rated banks on the New York Stock Exchange. There are more than 23,000 employees in over 1300 retail stores from Maine to Florida. The Bank offers retail, small business and commercial banking products and services to more than 6.5 million Customers.

In addition to banking products, the Bank and its subsidiaries provide their customers with wealth management services through TD Wealth Management, and insurance products and services through TD Insurance, Inc. which is one of the largest insurance agencies in the Northeast. They are known for their legendary customer service and open 7 days a week and closed four days out of the year.

History

Td bank has been providing service for over 150 years. In 1852, the company first opened its doors as Portland Savings Bank in Portland, Maine. Over the years and through a series of mergers, they became Peoples Heritage Bank in 1983. After the millennium and several acquisitions, they took the name Banknorth. In 2004, Banknorth caught the eye of TD Bank Financial Group of Toronto, Canada and they were Banknorth’s majority shareholder which lead to the name TD Banknorth and the purchase by TD Bank Financial Group in 2007. TD Bank Financial Group acquired Commerce Bank on March 31, 2008, and the company rebranded as TD Bank, America's Most Convenient Bank. The mergers of Commerce bank and TD Banknorth was completed in September 2009 under the TD Bank brand name.

CEO Bharat B. Masrani

Bharat B. Masrani is Group Head, U.S. Personal and Commercial Banking, TD Bank Financial Group and President and Chief Executive Officer of TD Bank, America's Most Convenient Bank. Bharat has over 22 years of banking experience and is a member of the TD Bank Board of Directors. He began his banking career with TD Bank Financial Group in 1987.  Prior to his role at TD Bank, he served as Vice Chair and Chief Risk Officer of TD Bank Financial Group. His previous roles also include Senior Vice President and Chief Executive Officer of TD Waterhouse Investor Services in Europe; Senior Vice President, Corporate Finance and Co-Head in Europe; Vice President and Country Head for India; and Vice President and Head, Corporate Banking Canada.