jessica niewierra, director digital development & interaction,...

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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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

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13

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14

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15

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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: jessica.niewierra@nl.abnamro.com

Questions?

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