ATM & Cash Innovation Europe 2017: London, 13rd-14th June 2017

Leveraging cash automation and technology for a new branch experience

Matteo Baido Head of IT Innovation

London, 14 June 2017

UBI Banca is a major player in the Italian retail banking industry

2,310 Cash-out ATMs

4.5m Customers

1,916 Branches

321 Cash-in/out ATMs

1

2

3

5

4

Net Assets Territory coverage

2017 Update of Strategic Plan

1403

1916 +513 - 270 =1646

Former UBIBranches

Bridge Banks Total UBIBranches

FootprintRationalization

Target

Integrated multichannel distribution Model

2016 Strategic Plan announces a re-think of the distribution model

Full customer access to all banking channels

Branches network enhancement for private customers

Branch renovation of more than 40% branches

Simplification of branches territorial distribution

Omnichannel commercial promotion (70% of products sold cross channel in 2020)

Nuova Banca Marche Nuova Banca Etruria Nuova Carichieti

Footprint review

New Branch concept

700 New concept

Digital-Emotional Better Engagement New ancillary services No barriers (internal vs external)

Automation and self services Paperless and efficient processes Phygital customer Journey New technologies exploration

Modern and dynamic bank image Integrity and reliability From “closed” to “open” office

Distinctive Customer Experience

Digital Innovation

Bank Brand Awareness

The project started with the definition of the new Customer Experience driven by a Customer expectation survey

Branding Recognition and

awareness

• Transaction automation

• Commercial impact maximization

• Customized customer experience

• Digital equipment for staff support

• On-time, simple and dynamic communication

• Services remotization

• Indoor-outdoor connection • Armored entry elimination • New meeting and support experience areas • Digital and omnichannel education areas • Different privacy-level areas

Specialized advisory

For relevant moments

Cash, Checks and Passbooks

management

Education Digital migration

Acquisition Customer

Project Challenges Service Model Architectural

The role of the branch in the new distribution model

Video Rooms Area External and Self Area

Advisory Area Welcome Area

Modular branch model adaptable to different formats

Education area to educate the customers to the best product/service usage

Customer Digital Development (in team with the consulting area) to welcome and address customer

Lounge area to foster dialogue and online content exploration

Showcase for communication, Open Branch concept

Cash-in and cash-out accessible 24/7

Assisted self service machine for low value

added transactions

Consultants’ position for basic, people & family advisory

High-value consultants’ position with higher privacy level and “desktop sharing” customer interaction

Advisory room to run informal and digital interactions

Video Conference for Remote Specialists interaction

Showcase

Waiting

Assisted self

Service

Video Room

High Value Advisory

Meeting Room

Ext. Self Area

Welcome

Advisory

Education

Always on

Pag. 8

Needs Solutions

• Brand communication

• High impact on the Group values

• Clear messages on the services offer • To capture attention of prospects and

customers, encouraging them into the branch

• Digital Showcase • Messages with simple and innovative layout • Indoor transparency

Showcase

Pag. 9

Dynamic showcase for higher brand awareness

Branding in the local area

Centralized Dynamic Digital Signage

Full branded showcase

Synergies between digital and analogical solutions for an Innovative communication to strengthen the local brand awareness

First step into customer relationship improvement

Video

Rooms

Area

External and

Self Area

Advisor

y Area Welcome

Area

Pag. 10

Needs Solutions

• Safe and comfortable area for quick self service transaction (24/7)

• Idea of openness and easy access

• Wide space in the lobby • Cash-in and Cash-out ATM • Armored entrance removal

Self Service Area

Pag. 11

Enhanced Customer Experience

Quick Cash-in and out self services

Recycling cash in – out in every self service area

• Saving staff time for high value added transaction • Enhanced Customer Experience

Next generation recycling ATM available 24/7 in a safe lobby

Video

Rooms

Area

External and

Self Area

Advisory

Area Welcome

Area

Our Technology Partner Selection: why we choose Auriga

Full omnichannel solution Common management of the ATM and the ASD/ASST channels with integrated Mobile & Tablets support

Complete and highly modular solution Great flexibility to replace or augment our existing infrastructure to optimally balance functionality, time to market and investment objectives

Next-generation, Web-based, multivendor technology Smoothly introduce new services while reducing the TCO

Scope for enhancing customer experience WWS gives us the ability to actively enhance our customer satisfaction

Proven Multivendor & vendor independent solution Embraced by 67% of the market in Italy (over 33.000 ATMs), 12% in Western Europe

Pag. 12

A proven

pathway to

gain more from

our existing

ATM

investments

17 different ATMs models 2 different hardware vendors

Technologies implemented

ATM + QR code

Integrating the next generation

functions also in existing ATM

Cardless Withdrawal

Digital Frontend

Smart ATM Menu

From Staff time saving to Customer time saving

Enhancing ATM frictionless User Experience with standard and new Technologies

Pag. 13

Needs Solutions

• Personalized experience and improve customer satisfaction

• Customer education to select the right interaction channel

• Effective customer management

• Dedicated staff for reception, assistance and education to digital & self service channels

• Information support to direct the Customer to specific areas

• Digital queue management

Reception

Pag. 14

Tech supports proactive reception

The welcome desk can give first assistance, information

and quick services to the customer

Enhanced customer experience and

education

Staff can assist customers in medium

complexity transactions

Queue management

The Digital Assistant can also show the digital education area to the customer

Video

Rooms

Area

External and

Self Area

Welcome

Area

Advisory

Area

A new customer-oriented and value-added way to welcome the customer

Pag. 15

Needs Solutions • Making waiting time more comfortable

• Inform Customers about all the available services giving assistance and support

• Meet customer reporting requirements (Transparency Regulation)

• Encourage Customer adoption of multichannel and digital behavior

• Lounge area with waiting sofas • Free Wi-Fi for customers • Educational Tablet featuring video tutorial, DEMO and

APP concerning the bank products • Digital Banking transparency .

Education

Pag. 16

Omni-channel education for the best in-branch experience

Branch staff can start education sessions

Customer are taught how to use internet banking to fulfill their

needs in the best way

Free Wi-Fi Digital signage allows direct advertising about the new products Interactive screen to navigate simulators and product catalogues Video

Rooms

Area

External and

Self Area

Advisory

Area Welcome

Area

Implementing dedicated areas where Customers can discover digital channels

Pag. 17

Needs

• Customer time optimization

• Branch staff time optimization

• Giving an assistance level based on Customer needs and values

• New Self-Assisted technologies for basic operations • Digital devices for a paperless experience • Comfortable furniture

Teller

Solutions

Pag. 18

Automation of the most used services

• Still one “classic” teller for high complexity transaction and to keep offering choice of human interaction.

• Dematerialization of teller documents

Assisted Self teller allows the Customer to manage low/medium complexity transaction.

Strong automation of the in-branch operational area

Video

Rooms

Area

External and

Self Area

Advisory

Area Welcome

Area

Each Assisted Self Teller can

free up to 0.8 Full Time

Equivalent of teller’s time.

Pag. 19

A proven

pathway to

affordable

innovation and

Branch

Transformation

Possibilities are the Fuel for Growth

Making transactions shift to frictionless self-services

The evolution path towards Assisted Services

Pag. 20

Step 1 Basic

Transactions

Step 2 Evolved

Transactions

Step 3 Marketing

Integration

Cash-out

Cash-in

Transactions history

MAV

Cash exchange

RAV

Postal Bills

Optical Character Recognition

Tax payment forms

S. Credit Transf.

Check-in with any bank card

Specific pricing

CRM integration

Contractual docs

Login with Internet banking credentials or OTP

Customer communications

Checkbook issuing

Banker’s draft

Passbook withdrawal

Passbook deposits

Foreign currency

Certificates

9% NO SELF

Step 1

Step 2

91%

Potentially

automated

Assisted Self Tellers implemented with an incremental approach aiming at 91% of transactions potentially automated

The Assisted Self Teller rollout project

Test of different hardware makers

Pag. 21

Needs Solutions

• Providing advice in a comfortable way with the due privacy level

• Branch areas optimization

• New way to show bank products and offers

• Leveraging the branch visits, also for low frequency visitors

• Meeting areas with comfortable spaces for face-to-face advising with different privacy levels

• “Smart Desk”, staff workstation • Technologies for real time offering

Advisory

Pag. 22

Areas fitted out offer the right level of privacy needed

The smart desk connected with Wi-Fi in the whole Branch allows the advisor to move from the office to the semi-private and private rooms with laptop

Customer value added advisory is made in a more comfortable way with a maximized relationship

Advisory in private and semi-private areas for the best experience

Video

Rooms

Area

External and

Self Area

Advisory

Area Welcome

Area

Pag. 23

Needs

• Video conference for remote specialists • Dedicated meeting room for remote communication

• Giving skilled advisory even with no in-branch specialist

• Integration of traditional and evoluted solutions

Solutions

Remote Advisory

Pag. 24

Videoconference rooms enable us to provide high value added service even in small Branches

Specialist advisory for all branches through remote channels

High level service for small branches

Remote advisory for mortgages, insurance and other services

Advisory in small branches can be managed with Remote Specialists

Video

Rooms

Area

External and

Self Area

Advisory

Area Welcome

Area

Pag. 25

Recap: Branch equipped for an omnichannel experience

Technology enables a personalized customer journey

Welcome area

Outside /self

service area

Advisory area

Video Rooms

Area Cash-in/out

Video Room

WI-FI Laptop

Tablet CSA

Digital showcase

Digital signage

Graphometric signature

Interactive Totem

Branch Customer Management

Beacons

Customer Management

Systems

Notification

Customer Identification

Gamification

Queue Remote Booking

Branch Analytics

Next Technologies Technologies implemented

Thank you