Multichannel Strategy

Retail Banking

17th September 2013

The Transformation into a „Digital‟ Bank

|

Trends that best players deliver as new experiences

Customer

Digitalization

Omnichannel

Customer

Demand of native

services in channels

New

Omnichannel

Experience

1

0

10

20

30

40

50

60

70

80

90

100

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

South Korea

Japan Switzerland

Middle

East

United States

Canada

Australia

Mexico

India

Norway

Macedonia

United

Kingdom

Sweden

Finland

Slovenia

Portugal Poland

Austria

Netherlands

Online banking penetration Percentage1, 2011 or last available

Luxembourg

Italy

France

Spain

Greece

Ireland

Hungary

Denmark

Czech

Republic

Bulgaria

Belgium

Internet penetration

Percentage1, 2011 or last available

Russia

Germany

“Bricks &

mortar”

“Multi-

channel”

“Online

adaptors”

“Self-first”

1 Porcentaje de clientes bancarios que han usado internet / banca online, al menos una vez, en los últimos tres meses

Fuente: Eurostat; ITU; national statistics; World Bank

The digitalization process in banking will advance

structurally with the growth of internet

2

Potential “jump” with massive

smartphone adoption

Nota: Datos para países AdS correspondientes a 2012, sobre población bancarizadas

Customer

Digitalization

|

3

Our starting point: customer channel profile at BBVA:

The branch is still the key channel

•Note: Data from Chile

Source: BBVA 2013

|

4

The real challenge for a bank:

• It‟s not the „arriving‟: a world in which customers are

mainly digital and branches are rarely visited

•The challenge is the „roadmap‟, the „course‟ to the

arriving

•There is no previous experience: no bank has gone

through the course yet

|

5

Transformation framework:

MAIN FOCUS NOW

| 6

Goals of Omnichannel Strategy in BBVA

Ensure capture of the

benefits resulting from

the transformation of the

distribution model

Raise digital channels penetration in our client base

and become leaders vs. competitors

Become the bank best valued in Customer

Experience in all geographies, segments and

channels (IReNe)

1

2

Become real omnichannel, increasing sales and

transactions in non-branch channels

3

|

IReNe

Internet

Mobile

ATM

Contact Center

Branch

2015

Become the bank best valued in Customer

Experience in all geographies, segments and

channels (IReNe)

1

7

in digital channels

in any other

Nº1

Top 3

| | 8

17% 20% 25% 31%

x 2

Online Customers and Penetration (%)

Leaders in Online Banking

4% 6% 9% 12%

x4

Mobile Customers and Penetration (%)

Best of the Class in Mobile Banking

Raise digital channels penetration in our client base and become leaders vs. competitors

2

46% 62% 69% 73%

x2

Customers with informed Mobile and Penetration (%)

Maximize the capture of Customer´s Digital Data: Mobile phone and Email address

27% 44% 54% 61%

x3

Customers with informed Email and Penetration (%)

(USA not included)

|

Customers use digital channels in a simple and convenient way

Omnichannel strategy to “lead the change”

Plans

Customers move within channels in a seamless and consistent way

Trends

Omnichannel Customer

Digitalization Plan

Omnichannel Experience

Transformation Plans

Customer Digitalization

“Lead the Change”

Customers receive a complete, contextual and native product / service value proposition

Demand of native services in channels Channel Development

9

| | 10

Protocols

Processes

Advantages

Campaigns

Every new client is

born digital

“Take advantage of

the moment”

Promote Enrollment

through All Channels

Knock down Security

Barriers “Make it simple”

Differentiated Pricing

Strategy

Digital services with

a differential value “Advantages

offering”

“Cause the

movement” Massive

Digitalization

Keep up with your commercial and

Marketing campaigns

Digitalization in the

moment of truth with

the customer

Digitalization

Incentives for the Sale

Force

Encourage

employees to use

Digital Channels Incentivation

Digitalization Plan

Action plan based on global drivers

| 11

• New Web Launches:

• Spain

• USA

• Mexico

• South America

• Corporate Model for LOBs and

Segments:

• SMEs

• Consumer Finance

• Insurance

Channel Development

Digital Channels: New web launches and corporate models

| 12

• “Mobile First”: Mobile

Solution by Platform and

Country

Channel Development

Digital Channels: New generation of mobile banking

| 13

• Branch:

• Hub & Spoke to ensure flexibility

• ATM: • From transaction oriented to „full channel

choice‟

• Contact Center:

• Boost sales and service • Remote manager • Integration in the omnichannel experience

• Field sales forces :

• Digitalization and industrialization of sales

Channel Development

Branch & ATM, Contact Center & Field Sales Forces

| 14

From Multichannel… …to Omnichannel

• Customer perceives multiple

touch-points

• Multiple touch-points with

connectivity gaps

• Customer finds limited choice in

digital channels

• Customer perceives a consistent

experience (the brand), no matter

which channel is using

• Seamless experience across

channels in the customer journey

• Customer has the ability to

choose any channel, anytime,

anywhere

Consistent

Experiences

Seamless

Journeys

Full Channel

Choice

Omnichannel Experience as a qualified multichannel

experience

| 15

Omnichannel Experience transformation plans

Client segments: “Business science behind the curtain”

• Apply advanced analytics to target meaningful client segments and better fulfill their needs

Value proposition:

“Compelling customer

proposition”

• Develop simple,

customizable and

bundled banking

products

Touchpoint experience:

“Front line that thinks

customer first”

• Ensure streamlined,

automated and high

quality processes

Cross channel

orchestration

“Well-grooved mini-

journeys”

•Design and deploy

consistent relationship

models

Individual channel capabilities:

“Constant innovation”

• Continuously improve individual channel capabilities to ensure optimal quality service and

easy customer access

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4

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Multichannel Strategy

Retail Banking

17th September 2013

The Transformation into a „Digital‟ Bank