isabelle.quevilly@brilliantnoise.com@DigitalPlanner brilliantnoise.com

The digital transformationof BBVAWIRED MONEY 2015

Transforming banking via digital

On July 8th, 2015 in London, Francisco Gonzàles - Chairman and

CEO at BBVA shared how they lead their transformation and

what digital means to the bank.

Although Brilliant Noise was not involved in this work, we are

inspired by their efforts.

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http://www.bbva.com/TLBB/tlbb/ing/noticias/Junta_General_de_Accionistas_2015.jsp

The digital ambition of BBVA

“Our goal is to turn BBVA into a totally

digital company, including all our products

and services, and with our over 100,000

employees working digitally”

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http://www.bbva.com/TLBB/tlbb/ing/noticias/Junta_General_de_Accionistas_2015.jsp

People trust tech companies more than banks

29% of people would bank with Apple if they could, based on a

North American Accenture survey.

Those new customer needs are impacting banks on two levels:

- direct threat from new competitors coming from the tech

industry

- new structure to the bank sector with entrants like Simple,

Square, Coinbase, LendingClub…

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"We are building the best digital bank of the 21st century"

Francisco Gonzàles - Chairman and CEO, BBVA

Credit: BBVA

BBVA started by untangling its back-end

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It took 7-years of commitment and leadership

The CEO coming from a CTO background was able to bring

clarity and detangle the legacy tech systems that were in place.

The transformation took from 2007 to 2013 in 3 steps:

1 - Foundations: platform

2- Processes, culture, organisation, products

3- Front office (where they are now)

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A new smart IT platform fo the 21st century

The change of platform has enabled BBVA to grow its core

capacities to address future customer needs, including:

- Real-time

- Big/Smart data

- Open inovation

- Cybersecurity

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New foundations to the core banking system

Customer Information Files

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Product catalogue

Pricing engine

Integrated accounts

balances/movements

Advice

Product processor

Risk management

engine

Events management

engine

Data warehouseClients contracts

Settlement Business rules

management system

New front-office and channels

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Branch

Mobile

Web Facebook

ATM

Call Centre

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"We are reinventing the new edge of the customer experience but not the banking system in itself."

Francisco Gonzàles - Chairman and CEO, BBVA

Credit: WIRED

The transformation of BBVA

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2007-2013 201620152014

Building a world-class technology platform Creating the Digital Banking Area3,500+ professionalsend-to-end capabilitiestransformation of core-

functions. New customer-

centric relationship modelsNew digital productsRedesign processes,

partnerships, investments

and acquisition of Fintech

startups

New

organisational

structureNew senior

management in place

to put digital at the

front

Full

transformation100,000+ digital

employees, digital

product and services

The speed of change is accelerating,

The new BBVA structure is unique

It becomes a strong asset in a fast changing industry. Especially

the creation of a new core competencies line of management

who manages together:

- Talent & culture

- Customer solutions

- Global marketing & digital sales

- Engineering

- New Digital businesses

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Enables the business to grow capacities on-demand and react rapidly to market changes

The result? An exponential growth

Between December 2011 and May 2015, Digital Active customers

have grown x 1.87 to now being 13.3 million customers.

80% of loans are made through digital channels

Mobile active customers have grown x13.4 to 6.7 million mobile active customers

The latest BBVA app enables customers to contact an advisor in

once click.

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BBA Ventures

How do they manage innovation?

Digital M&A

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BBVA: transforming a bank

- Support from the C-Suite

- Long-term commitment (years)

- Cut out the legacy to old IT structures

to free up the business model

- Create an organizational chart for

innovation not an innovation line in

your organizational chart

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http://www.finextra.com/news/fullstory.aspx?newsitemid=27080

Brilliant Noise: fast change, lasting impact Digital changes everything. It’s the force driving shifts in markets and customer behaviour.

As described in this example by BBVA, organisations need to stay ahead of the competition while transforming themselves.

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Practical lessons to support change

At Brilliant Noise we talk about the spark for digital transformation

coming from ‘instances of change’.It’s a practical example of how an organisation can behave more like

a disruptor than an incumbent, more like a start-up than a behemoth.

It offers inspiration and an idea of how to do things differently and

generate long-term value.

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Benefits for your team

- Immediate results leading to lasting change: there’s tangible value

delivered by projects – results that mean it’s not speculative thinking.

- Ability to scale success quickly: you capture new ways of working and

pass them on to colleagues elsewhere in the organisation.

- Hitting the innovation/value sweet spot: you move faster than with big

consultancy thinking. Commercial relevance is clearer than with typical

digital agency approaches.

- Efficiency savings: our pilot and scale method means that investment

follows the needs of customers and you learn from experience.

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For more inspiration

Brilliant Noise books are available for download:

Customer First A Guide to improving your omni-channel customer experience

Resilient BrandsA framework for brand building in the digital age

Stories that scale How to develop your branded content organisationCulture changeCulture change in the digital age

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http://brilliantnoise.com/Thank you