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Changing customer behavior and how ABN AMRO responds to it
Jessica Niewierra, Director Digital Development & Interaction, ABN AMRO Retail
5th Annual Retail Banking Forum 1st June 2017
01 Changing customer behavior and the changing world
around us
02 Digital strategy of ABN AMRO and examples of
achievements that address this changing environment
03 Way of working and lessons learned
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Then
1820
1860
1990
1720
2008
2010
1960
Retail
Private Corporate
100.000>customers
70.000±customers
5± million
retail customers
1st in mortgage
2nd in saving
#1 bank for 21% the Dutch
300SME customers
k 1.247FY 2016 profit
m€
199FY 2016 profit
m€ 876FY 2016 profit
m€
Now
CREATING SPACE FOR
DREAMS AND AMBITIONS
17
ABN AMRO: our purpose
Driven by passion, guided by expertise
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01 Changing customer behavior and the changing
world around us
02 Digital strategy of ABN AMRO and examples of
achievements that address this changing environment
03 Way of working and lessons learned
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we check our mobile phones
150 times a day
52%)
poor mobile
experience is a
deterrent - 52%
decide to switch to
another bank
88% does banking via a screen
85% has used mobile banking
64% does so on a regular basis
globally, 50% would prefer to
forget theirwallet as
opposed to theirmobile phone
in China this figure
rises to
80%
€ 68
around 80% of internet
users in the Netherlands
shop online
mobile purchase
amount
increasing in the
Netherlands
20% of consumers would
like to be able to take out a
mortgage online
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Digital urgency in the Dutch market
48% stops using an app if
it doesn’t respond quickly
enough
More than
11 million
Dutch people
have a
smartphone
65% of the 65+
customers use
digital devices
96%
penetration>
8© 2017 FORRESTER. REPRODUCTION PROHIBITED.
Internet Population 2016 - 2022
92% 92% 92% 92% 92% 92% 92%
79% 80% 81% 82% 83% 84% 84%
44%47%
50%52%
55%58%
60%
40%
50%
60%
70%
80%
90%
100%
2016 2017 (F) 2018 (F) 2019 (F) 2020 (F) 2021 (F) 2022 (F)
Online population as a % of total population
Netherlands EU-7 Global
The Netherlands’ online population will largely stabilize in comparison to EU-7 and the world
Source: Forrester Data World Online Population Forecast, 2017 To 2022 (Global)
© 2017 Forrester, Reproduction Prohibited
9© 2017 FORRESTER. REPRODUCTION PROHIBITED.
PC, mobile and tablet banking penetration
75%
44%
21%
68%
33%
16%
67%
42%
19%
0%
10%
20%
30%
40%
50%
60%
70%
80%
PC bankers Mobile bankers Tablet bankers
Banking penetration by device as % of total online population
Netherlands EU-7 Global
The level of PC, mobile and tablet banking in the Netherlands is
higher than the EU-7 and global averages
Base: Online adults – 1,281 Netherlands; 22,673 EU-7; 112,528 Global
Source: Consumer Technographics Global Online Benchmark Survey, 2016
© 2017 Forrester, Reproduction Prohibited
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Across markets, banking customers are becoming increasingly
self-directed and are increasingly seeking digital channels
2 Share of online and mobile channels in total number of customer touchpoints with a bank
1 Customers who do not require guidance or advise
Sources: McKinsey Retail Banking Consumer Surveys 2012 and 2016; HSBC “The role of digital technology in enhancing customer engagement with Insurance (February 7th 2017)
Branches
235 branches
Decreasing demand for face-to-face services
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Digital
21%
79%
2011 2012 2013 2014 2015
MobileBanking
InternetBanking
+216%
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in Mobile Banking app loginsSignificant increase
Today's customers...
Our customers are banking online more and more
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Mobile customers expect everything to be at
their fingertips immediately.
They want everything, everywhere, now.
...are always connected, the distinction between online and offline is blurring
...expect to be able to arrange things quickly and easily: one click away
…need personal and relevant information distilled from an overwhelming
amount of data.
fast technological advances
more start-ups in the financial sector
legislative and
regulatory changes
The world around us is changing faster than ever before
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“Banks are looking for that one major
competitor that will replace them
completely, but that isn't going to
happen.
The risk is that the banking industry will
come to an end in 1,000 pieces, with
services being taken over piece by
piece.”
The urgency is severe
Example: Wells Fargo
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Amsterdam
smartphone
last-minute
decision-maker
on the way to
work
time in the evenings
for dealing with finances
desire for
larger home
freelance professional
with no pension
family and friends
rarely wants
people-based help
Social Media
Our customers’ context is key
Our mission
Enthusiastic and financially successful customers by surpassing their digital expectations!
Quick and easy –
digital banking is quick and
easy on any device
Personal and relevant –
we offer relevant products and
services within the customer’s
context, for example by working with
our customers on digital
developments
Wow factor –
we want to exceed our
customers’ expectations
proactively by means of
suprising digital experiences
and innovative propositions
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We work from a clear vision on digital services
QUICK AND EASY
digital banking is quick
and easy on any device
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Quick and easy - examples of best practices in the market
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Quick and easy - best practice example: Bitlock
Open and close a key-less
bicycle lock using a
smartphone.
Quick &
Easy
Source: Bitlock.com
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Shopping without checkout.
The Amazone Go app registers the
products you take (and put back)
and charges these to your Amazone
account after you leave the store.
“No lines. No checkout.”
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Quick &
Easy
Source: amazon.com/b?node=16008589011
Quick and easy - best practice example: Amazone Go store
PERSONAL &
RELEVANTwe let customers experience
relevant products and services
within their context, for example
by working with them on digital
developments
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Personal and relevant - examples of best practices in the market
Personal and relevant - best practice example: VI Personal Trainer
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The first ever personal trainer
using artificial intelligence.
VI is a futuristic-looking
headset capable of providing
data-driven advice.
Personal &
Relevant
Source: GetVI.com
Personal and relevant - best practice example: Uber, Spotify & Pandora
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Uber lets passengers stream music
from their smartphone to the
vehicle’s audio system.
Personal &
Relevant
Source: uber.com/drive/music
WOW FACTOR
customers find that we
proactively exceed their
expectations through
surprising digital
experiences and
innovative propositions
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Wow-factor - examples of best practices in the market
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Parkingrobot ‘Ray’ at
Düsseldorf Airport
Wow-factor - best practice example: parkingrobot
Wow-Factor
Source: Serva-ts.com
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Wow-factor - best practice example: PareUp
This platform and app alerts buyers
to unsold food at low prices.
Wow-Factor
Source: Pareup.com
Dutch platform and app with the
same purpose.
Around 100 Dutch supermarkets
have already joined.
01 Changing customer behavior and the changing world
around us
02 Digital strategy of ABN AMRO and examples of
achievements that address this changing
environment
03 Way of working and lessons learned
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QUICK AND EASY
digital banking is quick
and easy on any device
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A single digital ecosystem: same design for our Mobile Banking
app and Internet Banking, as the basis for the ‘bank in your pocket’
Quick &
Easy
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A single digital ecosystem: log in to both the Mobile Banking app
and Internet Banking using a 5-digit code
Quick &
Easy
Quick and easy - debit card: change location from Europe to World
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Quick &
EasyCustomers with an iPhone
get an in-app message if
they go outside of Europe
(based on GPS) and their
debit card is not set to
World.
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Quick and easy - ordering on your mobile
Quick &
Easy
ABN AMRO is
the first major
Dutch bank to
combine
payments,
savings and
investments in a
single app.
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Quick &
Easy
Quick and easy - change your mortgage type and interest rate
Quick and easy - Touch ID
Fingerprint identification for logging in and sending
(payment) orders. iDEAL payments can also be sent using
fingerprint identification.
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Quick &
Easy
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Quick and easy - contactless payment using an Android phone
Quick &
Easy
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Quick and easy - responsive Internet Banking
Quick &
Easy
39
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Quick &
Easy
Quick and easy - mobile transfers (iDEAL) without e.dentifier
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Quick and easy - change the limit on your debit card
Quick &
Easy
Percentage from 25% to 90% !
Change limit has reached a 90% channel share
Added in IB/MB
PERSONAL AND
RELEVANTwe let customers experience
relevant products and services
within their context, for example
by working with them on digital
developments
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Personal and relevant - each customer creates his/her personal bank
For example, by adding photographs andcustomising the accounts shown andtheir names and sequence.
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Personal &
Relevant
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Personal &
Relevant
Transactions are no longer impersonal.
Personal and relevant - sending a photo or ‘eurogami’ with a
transaction
More personal contact with customers, because we immediately know who is calling
Naam:
J. Rozenhart
Onderwerp:
Internet & Mobiel
Authenticatie:
Ingelogd in app
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Personal &
Relevant
Personal and relevant - identified phone calls using the Mobile Banking
app
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Zjef is a chatbot: a computer program that communicates with people via chat.
Zjef focuses on subjects that are important when starting a freelancing career and answers questions related to these subjects.
In case Zjef does not fully answer your questions, our freelance experts are on standby and ready to help you out
Personal &
RelevantYou are now
ready to start
freelancing!
Personal and relevant - Chatbot for starting freelancers
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Personal and relevant - &Meer customer loyalty programme
Personal &
Relevant
WOW FACTOR
customers find that we
proactively exceed their
expectations by means of
surprising digital
experiences and
innovative propositions
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We are the first major bank to let new customers join in a fully online process
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Wow-factor - become a customer using a selfie
Wow-Factor
with free alerts on iPhone and Apple Watch
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Wow-factor - Alert & Check app
Wow-Factor
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Wow-factor - Alert & Check: 6 unique designs
Wow-Factor
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Wow-factor - webcam advice for private individuals and businesses
Business services include- credit management agreements- preliminary discussions of credit applications- discussions with intermediary- paper discussions
Wow-Factor
Mortgages, asset management and credit management
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Wow-Factor
also for non-ABN AMRO customers!
NPS +75!
Wow-factor - send payment requests using the Tikkie-app
Digital Impact Fund
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Wow-factor - Grip app: partnership with start-up
Wow-Factor
Wow-factor - Constellation
By connecting our apps to each other, ABN AMRO apps are easier to find and download.
In this first version, the Grip, &Meer, Wallet andTikkie apps can all be accessed through the Mobile Banking app.
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Wow-Factor
Quick & Easy
Personal & Relevant
Wow Factor
Proactive
interaction
Constellation
Quick & Easy
Personal & Relevant
Wow Factor
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Quick & Easy
Personal & Relevant
Wow Factor
Proactive
interaction
Constellation
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Quick & Easy
Personal & Relevant
Wow Factor
Proactive
interaction
Constellation
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Quick & Easy
Personal & Relevant
Wow Factor
Proactive
interaction
Constellation
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Quick & Easy
Personal & Relevant
Wow Factor
Proactive
interaction
Constellation
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Quick & Easy
Personal & Relevant
Wow Factor
Proactive
interaction
Constellation
01 Changing customer behavior and the changing world
around us
02 Digital strategy of ABN AMRO and examples of
achievements that address this changing environment
03 Way of working and lessons learned
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Validated learning: development in conjunction with our customers
Ideas and implementations are
tested at all stages of development,
online, in our usability lab, on the
high street and in branches.
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The use of Agile and Scrum enables us to work flexibly andrespond rapidly to customer feedback. Working in multi-disciplinary teams also results in increased empowerment
and, correspondingly, increased pleasure.
Agile working with scrum for increased tempo andempowerment within development paths
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Tikkie - Our Way of Working
We can implement functionalities and new apps for our
customers more frequently this way
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Mobile Banking
Monthly release – App & Web
Single-purpose apps
Insights
Grip
Alert & Check
ICS
ABN app
ZZP Assistent
TikkieHuizenkijker
Private LiveXpert
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0
50
100
2012 2013 2014 2015 2016 2017
Lo
g-i
ns in
mill
ion
s
= Mobile Banking = Internet Banking
Use of Mobile Banking app versus Internet Banking:
On average over the last year, 65 million log-ins a month on the Mobile Banking app and 13 million on Internet Banking
More than five times as many log-ins using the Mobile Banking app!
More mobile logins 2x more mobile logins 3x more mobile logins 4x more mobile logins 5x more mobile logins
Customer recognition and appreciation
Source: ABN AMRO, Google Playstore, Apple Store
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Annual increase in KTV/NPS for Mobile Banking
in
%
2013, 2014 & 2016: Top 10 global retail banks
In 2016, our Mobile Banking apps were in sixth place in the world
Customers say the app is extremely easy to use.
The Net Promoter Score for the Mobile Banking app users is 48% higher than that for non-users.
ABN AMRO app – rating Android
ABN AMRO app – rating Apple
2011
20
12
20
13
20
14
20
15
20
16
Quick and easy – digital banking is quick and easy on any device
Personal and relevant - we offer relevant products andservices within the customer’s context, for example by working with our customers on digital developments
Wow factor - we want to exceed our customers’ expectations proactively by means of suprisingdigital experiences and innovative propositions
Touch ID
Alerting in app
In conclusion
Tikkie App
A single digital ecosystem: we provide a contextual experienceacross all devices, with easy access to the advisors
We have accomplished a great deal already, but there is still a long way to
go
Ultimate goal: to be the Jarvisfor the customer's finances
Facebook: www.facebook.com/abnamro
Twitter: @ABNAMRO
YouTube: www.youtube.com/user/abnamro
LinkedIn: www.linkedin.com/company/abn-amro
Slideshare: www.slideshare.net/abnamro
Twitter: @NiewierraLinkedIn: Jessica Niewierra
Email: [email protected]
Questions?
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