Customer Engagement: Transforming

the business in the age of the client

Alessandro Froio

CRM e Customer Experience Department, Intesa Sanpaolo

5th Annual Retail Banking

Berlin, 01-02 June 2017

Intesa Sanpaolo is among the top

banking groups in the euro zone...

18,9mln clients and 5.000+ branches in

Italy and abroad

Selective and strategic presence in retail

and commercial banking in 12 countries

in Central-Eastern Europe, in the

Middle-East and Northern Africa

Source: Intesa Sanpaolo Investor Relations

International network of specialists

supporting corporate customers across 29

countries

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… and the leading bank in Italy, growth

accelerator of the real economy

11,1 mln customers in Italy: 22% of the Italian

population >18 years of age is an Intesa Sanpaolo

customer

Intesa Sanpaolo is a nation-wide bank with a local

touch, with more than 3.700 branches in 20

different regions

Growth accelerator of the real economy:

48€ bn of mid/long-term loans given in 2016,

+80% vs. 2014

Leadership in Italy based on long-term

relationship with clients

Assets under management: 20% m.s.

Deposits : 17% m.s.

Investments : 16% m.s.

Life insurance: 19% m.s.

Source: Intesa Sanpaolo Investor Relations

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of clients made

operations through

digital channels(2016)

55%

Transactions on

Internet Banking(2014-2016)

+43%

Transactions on

mobile app(2014-2016)

6X

We are digitizing our business strategy,

with a customer-centric approach

New products and services stemming from clients

needs and changing expectations

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INTESA SANPAOLO CLIENTS

Source: BdT, Forrester The State Of Digital Banking, 2016

1. Private clients, >18, owners of banking products, who had a contact with the Bank, excluding

ATM, in the last 12 months (data: Apr. 2017)

Intesa Sanpaolo is one of the seven

most advanced global players in

digital transformation

42%

25%

33%

Physical

Digital

Phygital

Full channel integration on 80% of products

Complete redesign of

the online banking and

customer service

Dematerialization and simplification of processes

Branch and phone

branch only

Digital channels

only

Both traditional and

digital channels

% on total clients1

PREFERRED CHANNELS

Fintech companies are disrupting the

ecosystem: with “open banking” and the

automation of banking services

Client-centric experience. They enable simplification

and creation of new user experiences: from contract

management to loans, from investments to payments

Time-to-market e API. They are fast in the creation of

new services and in the integration of solutions with

external distribution platforms

Lower prices and costs. New business models allow

for competitive prices and lower operating costs

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Is it new technologies or new client experiences

that drives banking transformation?

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Traditional banks have the opportunity to

collaborate with Fintech companies to

improve customer experience…

Contextual. Supported by client-centric

technologies that enable contextual

communications

SUPERIOR

CUSTOMER EXPERIENCE

Intuitive. Inspired by the simplicity of the

front-end solutions of “digital native” non-

banking players

Innovative. Thanks to influences from other

industries and diversified skills (biotech,

design, ...)

FINTECH ECOSYSTEM

Personalized. Thanks to deep client-

knowledge, based on big data analysis

Crowdfunding

Lending

Payments

E-commerce

PFM

… to leverage on each others’ strengths

FINTECH

TRADITIONAL

BANKS

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Speed

Innovation

Ideas

Financial soundness

Local presence

Data

People

Simplicity

We build innovative services: flexible and personalized

Reputation

Security

Our collaboration with startups happens

in the Innovation Center, in close contact

with the business functions

Research and analyze innovative solutions on

national and international markets, to identify

opportunities for the development of new banking and

non-banking services for the Group and the clients

Define of guidelines, attitude and policies towards

innovation for the Intesa Sanpaolo Group

Enable innovative initiatives locally, building

relationships with the network of companies,

startups, incubators, research centers, universities

and other local entities

Spread the culture of innovation within the Group,

supporting and managing specific project phases

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In 2016 the Innovation Center launched Neva Finventures: a corporate venture

capital fund dedicated to fintech startups

INNOVATION CENTER

OBJECTIVES

We offer high-quality services, digital

interactions and a human touch

Everyday Banking. A digital and multichannel

experience in your everyday operations completely

renewed, distinctive and safer, allowing to monitor

expenses and to make payments in every moment. With

the app, on the website, in all branches and with a

proximity network of over 20.000 tobacco shops

“Speak with us”. Wide autonomy in mobility with

assistance and service, from local or online branch in

every moment (also from website and app). Just a shake

with the app and you are immediately in touch with our

online customer support

Moments that matter. Feeling welcome at the local

branch like at home, living an integrated experience with

the mobile app. Our RMs speak to the customers, also

remotely, offering advices and personalized solutions in

the most important moments of clients life

A customer-centric

and multichannel bank

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To develop new innovative solutions,

we work across departments but also

collaborate with fintech companies

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BUILDING

MEMORABLE

EXPERIENCES

Loyalty PFM

Accessibility

Customer

journey

New digital

experience

CONSTANT

COMMUNICATION

EVERYDAY

BANKING

SERVICES BASED

ON CLIENTS NEEDS

Digital

signature

Customer

feedback

New tone

of voice

Speak

with us

Remote

proposals

Piggy Bank

O-Key

Smart

5674

With the new mobile app we give clients

access to new services and

functionalities for their everyday

operations

CARDLESS

WITHDRAW

DOCUMENTS

SCAN

JIFFY

PAY

O-KEY

SMART

Nuova

esperienza

digitale

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The semantic search engine launch

processes for you and simplify the

navigation also for the less experts

Accessibility

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We create a personalized relationship with

clients through multichannel customer

journeys

…complete. To our clients we offer assistance and

propose commercial offers

…contextual. We develop innovative solutions to

communicate with our clients in real-time

…interactive. Our product and service offer is generated

from interactions and data collected around client behavior

The communication with our clients is…

…personal. We use advanced technologies to send the

best message to each client

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…the contact unit

immediately reaches out to

give instruction on how to

modify his security code

Marco is

travelling

aboard with his

family…

…he cannot use

his credit card in a

store…

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Customer

journey

An insight driven approach. We leverage on digital

solutions to integrate unstructured data which, along with a

360° view of the client, allows us to adopt a real time

marketing approach

Thanks to our CRM, we obtain a deep

knowledge of our clients…

2013 2014 2015

Analytics and Big Data. We profile our clients based on

their behavior on different channels, gathering internal and

external data, to capture and foresee their needs and

wishes

…we suggest them

to discover more

about our loans

Marta e Marco

are looking for

a house...

…they often search for

loans on comparative

websites…

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…through advanced technologies, we

communicate contextually …

Real time marketing engine. We study clients

interactions and behaviors on different channels

New channels. We create new opportunities to

communicate in a renewed digital experience

~2,8 mln

Contact points with

clients every day

7X

Success rate on

clients called back

within 5 days

80%

of clients receive a

real-time, personalized

and contextual message

on digital channels

A constant dialogue. We make use of all touch points to

communicate with clients

720k pages visited on the website

475k logins on the internet banking

650k sessions on ATM, MTA e CSA

560k logins on the mobile app

130k transactions at the counter

9k inbound contacts to the Contact Unit

93k meetings in the branches

EXTENDED COMMUNICATION

EVERY DAY

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200k email sent to clients

Higher customer satisfaction

… to offer the best product, to each client,

at the right time

THE BENFITS OF A CUSTOMIZED

COMMUNICATION

Increased effectiveness of commercial campaigns

OUR AMBITION

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Our personalized offer goes beyond

banking products and services

Personalization. We propose offers based on

interests and past purchases

Localization Age and

Gender

Income

bracket

Family

composition

Habits and

Interests

PROFILING PARAMETERS

Daily benefits. Through IN OFFERTA we give access

to savings and daily benefits to clients

IN OFFERTA

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With IN OFFERTA we support our

corporate partners towards a digital

transformational journey

Performance measurement to know even more

deeply their clients

Customer profiling. Partner companies are put in

contact with the ideal client

Increased sales

Exposure

New clients Loyalty

Seasonal adjustments

Digitalization

BENEFITS FOR THE MERCHANTS

Digital marketing skills leveraging on the Bank

infrastructures and digital marketing skills

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Listening to our clients is at the core of

our value-creation strategy

The client is at the center of

our thoughts, activities, decisions,

in all phases of the development process

Clients contacted

>10mln

Scores collected

>1mln

Comments analyzed

>360k

CLIENTS FEEDBACK

Source: Survey INS e NPS, Personal, Retail e Corporate, 2015-2016

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We improve

We co-create

We involve

We use the NET PROMOTER SCORE to

measure customer satisfaction and create

long-lasting, sustainable value

“How likely is it that you would recommend

Intesa Sanpaolo to a friend or colleague?”

Detractor Passive PromoterCould you tell us why

you would not want to

recommend us?

In your opinion,

what should we

improve?

Could you tell us

why you would

recommend us?

Source: Bain&Company

Simple

Comparable

Predictive

Actionable

THE NET PROMOTER SCORE

ADVANTAGES

Increase in

Customer Value

x3-5

Growth

speed

>2x

Decrease in

cost of service

-15%

VALUE CREATION

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0 1 2 3 4 5 6 7 8 9 10

We listen to the voice of customers: the

NPS supports processes and services

improvements and shapes employees

behaviors

Customer advocacy culture: we select best-in-class

behaviors that are useful to improve client relationship

The NPS to improve clients relationship and internal

processes

Clients suggestions: we collect and highly value our

clients’ comments

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RELATIONSHIP VARIBALES are the main

determinants of customer satisfaction

Source: Bain Retail Banking NPS Survey 2016

BAIN Global Survey NPS 2016, NPS gap from loyalty leader

Worst bankBest direct bank

Relative NPS to local loyalty leader (indexed to zero)

Intesa Sanpaolo is the leading Italian

traditional bank in terms of NPS

Best traditional bank

-100

-80

-60

-40

-20

0

Handels-

banken

Raiffeisen

Bank

ING Bank,

Bank

Millennium

ING Direct,

Boursorama

Deutsche

Kreditbank,

ING-DiBa

ING

Direct

First

DirectFineco

Intesa

SanpaoloLa Banque

Postal

Sparda-Bank

Bankinter, BBVA,

Banco Sabadell

Nationwide

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5

We want to spread a customer-obsessed

culture within the whole Bank

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I've learned that people will

forget what you said, people

will forget what you did,

but people will never forget

how you made them feel

“

“

Maya Angelou

Simple

Personal

Multichannel

Fast

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Alessandro Froio

CRM e Customer Experience Department, Intesa Sanpaolo