webinar slides innovation retail banking

Innovation in Retail Banking?

15 December 2011

Douglas Blakey, Editor

Retail Banker Interactive

Introduction

Benjami Puigdevall Esteve, Managing

Director,

e-la Caixa

Alison Estrada,

Director of Knowledge Network,

BAI

Alison Estrada,

Director of Knowledge Network,

BAI

• Generally speaking, bankers feel that the industry is becoming more

innovative than in the past.

5 www.baiglobalinnovations.com

Innovation Trends

39% 31%

19% 17%

42% 52%

August '10 April '11

More innovative

No change

Less innovative

Do you think the banking industry in general has become more or less innovative in the last 2 years?

+10%

Data from the research series BAI/Finacle Consumer Sentiment & the Innovation Imperative in Retail Banking


Importance of Innovation

• Not only do bankers think their organizations are more innovative, the

industry is also recognizing the importance of innovation and making more

of a commitment to that effort.

73% 75%

Aug '10 April '11

% saying innovation is EXTREMELY or VERY important to the overall future of

their bank or institution

47% 54%

Aug '10 April '11

% saying they have INCREASED their level of investment in innovation in the past year



Innovation Strengths & Weaknesses

How innovative is your bank for…?(Scale of 1 to 5 with 5 ‘Extremely Innovative’ and 1 ‘Not at all Innovative’)

3.09 3.073.01

3.35

3.032.96

3.17 3.163.09

3.48

3.11

3.01

Overall Innovation*

Products Channels Customer Experience

Customer Relationship Management

Operational Processes

Aug '10 April '11

3.09 3.073.01

3.35

3.032.96

3.17 3.163.09

3.48

3.11

3.01

Overall Innovation*

Products Channels Customer Experience

Customer Relationship Management

Operational Processes

Aug '10 April '11

Bankers were asked how innovative their bank is in each of the following areas? (Mean Score with 5= Extremely Innovative; 1= Not At All Innovative)



Those financial institutions

with the strongest

commitment to innovation

are being rewarded with

improved consumer

sentiment towards their

institutions, including on

the key metrics of trust and

commitment.


The BAI-Finacle Global Banking Innovation Awards are designed to honor

banking organizations for game-changing products, services, practices and

other achievements in retail banking.

The inaugural year of the program brought in over 200 nominations from

more than 40 countries around the world:

Americas Middle/East-Africa

Asia-Pacific Europe


Awards’ Background

Awards’ Process

• Nominations were judged in several rounds by the Innovation Circle

Judging Panel - a panel of 10 international retail banking

executives.

• Two main criteria:

– Innovation originality

– Impact on the business

• All nominations scored against the criteria, and five – six finalists

were chosen for each category.

• Deliberations were supplemented by additional research, including

further data submitted by finalists, as well as panelists seeking input

from industry experts.


Awards’ Categories • Awards Categories:

– Product Innovation – recognizing a new product that has excited customers, created new revenue opportunities or improved the bank’s competitiveness in the market.

– Service Innovation – recognizing excellence in providing an integrated customer experience across all channels including mobile, online, social media, self-service and branch.

– Disruptive Innovation – redefining business-as-usual in retail banking with innovative products and services that change how retail banking institutions serve their customers.

– Most Innovative Bank – celebrating one banking institution that has demonstrated a culture of innovation and an ongoing commitment to innovation through the organization.


Benjami Puigdevall Esteve,

Managing Director,

e-la Caixa

“la Caixa” Innovation,

an integral part of our

culture

“la Caixa”, at a glance

Figures as of September 2011

14

“la Caixa”, a multichannel strategy

In just 10 years, the volume of transactions

done through the branches has divided by 3

2010 2000

32% 10%

90% of total transactions are made through electronic

channels (2010)

15

“la Caixa”, leadership in the Online

Banking industry

Spain International

Nielsen June 2011 on Home+Work panel in Spain, France, Italy, Germany, England and USA

Línea Abierta, “la Caixa” online banking

November 2011

Customers with Linea Abierta contract 6.9 Million

% Customers Linea Abierta /“la Caixa” customers 65%

Customers over 12 months

3.5 Million

Transactions availables 850

Transactions every day 5 Million

Total transactions 12 month 1,900 Million

16

CaixaMobil, “la Caixa” mobile services

November 2011

Customers during 1 month 551 000

Customers over 12 months

1 Million

Alerts service Customers 1.8 Million

Transactions every month 14 Million

Downloaded applications 2.3 Million

“la Caixa”, leadership in the mobile Banking industry (42% market share in Spain )

20%

of ”la Caixa” customers are mobile users

17

2011

Total ATM (units) 7,902

Transactions available 200

Customers 4.4 Million

Total Transactions 12 month 535 Million

% Channel Absorption 71%

Total deposits: 21.709 million €

% Coverage withdrawal 83%

Absorption of deposits 28%

“la Caixa”, 1st ATM network in Spain

Our ATM network has the strongest Deposit capabilities in the Spanish market

Envelope deposit: 25 %

Automated bank note deposit 39 %

Automated check deposit 67 %

Spanish Market

“Punt Groc”, a new concept in ATM, designed by our clients

18

Innovation is an integral part of our culture based in:

Clients

1

3

3 drivers

Open Innovation

19

1 In 2011 we have received every month from our employees over 1,000 suggestions about our products and services through the tools they have at their disposal in “la Caixa”:

e-novation, the internal platform through which employees can submit their ideas and

the Suggestion Mailbox where employees make their contributions to the improvement of products and services of the entity.

Employees

Major issues that receive employee’s suggestions:

ATMs

Quality

Online banking

Financial services

Terms deposits/assets products

Cards

20

2 Clients We are very interested in our clients feedback as well as their suggestions. That’s why we create the tools to encourage their participation.

In 2011, we have organized as well, the 1st Contest about Innovative Ideas for mobile services and, in less than 1 month,

our clients have contributed with more than 1.000 ideas.

As a result of this efforts, in 2011 more than 10.000 customers have validated our products and services, providing ideas that allow us to improve every day a little more.

21

3

We want to learn from the very best and

therefore, in 2011 we celebrated the 1st FinApps Party, a 24 hours

marathon to develop mobile applications for financial services.

Over 100 developers participated and had a total of 40 proposals for different applications.

Open Innovation

22

We regularly test our products and services

Improved user experience

Test of new services

Test of new mobile devices

Test with users

Usability Laboratory

We work to improve our customers experience in electronic channels (Internet, mobile phones and ATMs).

CaixaMobile Laboratory

Example of Innovation

23

“Punt Groc”, a new concept in ATM, design by our clients

The 1st ATM in the world with Contactless technology the world’s fastest cash withdrawal

More comercial and with marketing capabilities Designed for all… more accesible Ergonomics and usability as its finest Innovative: Ready to incorporate new operational capabilities and technologies

... A step towards leadership in ATM

Dual screen Alphanumeric Barcode reader 2D Security Camera (Mirror) Automated unit income, bills and checks Ready to incorporate new features such as biometric control devices

(Palms), bar code reader more powerful unit recycler tickets, etc..

Some features that defines the new ATM


The first ATM in the world designed by users 2.000 user interviews and focus groups

24

+ 2 Milions downloads

All services and downloads of "la Caixa" in the mobile

It is very easy to use, fast and error free

+ 40 appl. available

“la Caixa”, 1st financial institution in the world with a mobile “Appl. Store”

The purpose is to offer customers the best possible user experience for downloading "la Caixa" mobile applications.

Access from its own wapicon


25

1.500 customers 500 merchants July to October 2010

* After the pilot, the infrastructure is maintained

First experience of mobile payments in Spain

During the pilot, there has been an increase in operations, both in number of transactions and payments

70% of customers rate Mobile Payment higher than 8 points (over 10)

Customers value the flexibility, speed and security of the system.

Payment using NFC technology and “la Caixa” VISA card in Sitges


26

Oriented to a more commercial online banking, ... and to increase absorption of transactions done through Línea Abierta

Modern, functional Designed with more than 400 users Simplicity in the shopping process

New Línea Abierta, constant evolution in design, navigation, operations and shopping processes


• Easier operation • Optimized shopping processes • Incorporated new searching tools • Contextualized advertisements

Línea Abierta was a runner up in the

“Most Innovative Service” category in the

Global Innovation International Awards (BAI).

27

OnLine Community CaixaEmpresa, the 1st business social network

exclusive for customers of “la Caixa”

More than 15.000 companies are

members

New opportunities for our customers to make networking and grow their business

Give more visibility to their companies. A good way to get new customers, providers, partners... Reliability to be contacting people and real businesses.


28

And the future...?

29

Benjami Puigdevall Esteve,

Managing Director,

e-la Caixa

Alison Estrada

Director of Knowledge Network

BAI Douglas Blakey

Editor

Retail Banker

Interactive

This webinar will be available for replay at Retail Banker

Interactive from 16 December 2011

The next webinar in this series is on 25th of January at 2pm

GMT and looks at e-banking. Please register by following

the link at the www.retailbankerinteractive.com site.

http://www.retailbankerinteractive.com/

webinar slides innovation retail banking

Documents