Changing customer behavior and how ABN AMRO responds to it

Ronald van Baardewijk, Digital Banking, ABN AMRO Retail 15th Annual Retail Banking Forum October 10th 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

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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

300 SME customers

k 1.247 FY 2016 profit

m €

199 FY 2016 profit

m € 876 FY 2016 profit

m €

Now

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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

85% of the Dutch does banking online

66% of the Dutch uses mobile banking on a regular basis

globally, 50% would prefer to

forget their wallet as

opposed to their mobile phone

in China this figure

rises to 80%

€ 68

around 80% of internet users in the Netherlands

shop online

average price of mobile purchases 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

12 million Dutch people

have a smartphone

77% of the 65+ customers use digital devices

92%

online

penetration

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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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.

No, seriously.”

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Quick &

Easy

Source: amazon.com/b?node=16008589011

Quick and easy - best practice example: Amazone Go store

PERSONAL &

RELEVANT we 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 1

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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

“Say hello to Vi, the artificially

intelligent personal trainer that

sounds like Scarlett Johansson”

Personal and relevant - best practice example: Uber, Spotify & Pandora 1

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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

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Quick &

Easy

Quick and easy - Login and transfer money using pin-5 or Touch ID

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Quick and easy - Visual search

Easily view all transactions of

one kind by clicking the logo. Quick &

Easy

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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

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Quick and easy - contactless payment using an Android phone

Quick &

Easy

..recent pilot: paying contactless with your watch or ring!

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Quick and easy - change the limit on your debit card

Quick &

Easy

90% of the customers now changes card limit online, this was 25%

Added in IB/MB

Contact centre

Digital

Branch

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Quick and easy - Temporary overdraft

Everything is arranged

online. There is no need to

send us documents.

If everything is in order, the

customer can immediately

access the overdraft credit

on his or her account.

Quick &

Easy

PERSONAL AND

RELEVANT we 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 and

customising the accounts shown and their 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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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

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 and Tikkie apps can

all be accessed through the Mobile

Banking app.

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Wow-Factor

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

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Ideas and implementations are tested at

all stages of development, online, in our

usability lab, on the high street and in

branches.

The use of Agile and Scrum enables us to work flexibly and respond rapidly to customer feedback. Working in multi-disciplinary teams also results in increased empowerment

and, correspondingly, increased work pleasure.

Agile working with scrum for increased tempo and empowerment within development paths

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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

Tikkie Huizenkijker

Private LiveXpert

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2012 2013 2014 2015 2016 2017

Lo

g-in

s in

m

illio

ns

= 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

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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

In conclusion

A single digital ecosystem: we provide a contextual experience across 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 Jarvis for 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

LinkedIn: Ronald van Baardewijk

Questions?

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