The Role of Digital Banking in the business transformation process Use the information efficiently David Moreno CEO

Retail Banking Transformation

Lower margins 2015 >100,000 banking jobs lost in US-Europe Reduce distribution costs

Fintech disruption “Disrupt the disruptors”

5 New customers behavior Adapts well to new generation of customers

What we offer Traditional vs digital approach 6 Price Cost Traditional Digital Product Value Placement Convenience Promotion Community Flow Functionality Feedback Loyalty

What we offer Digital transformation is not only about front-end functionality Digital Transformation 7 Organizational Silos Disconnected systems Manual information processes CHALLENGES

8 Key transformation areas Digital Branch Transformation Banking Simplification Contextual Advice (Analytics & Big Data) User Experience

What we offer From efficient execution to lead generation 9 Build an audience first and drive sales then Distribution model transformation Traditional channels upgraded Upgrade digital channels to sales Simple transactions to digital Migration process STRATEGIC ROADMAP CUSTOMER EXPERIENCE

% own modern smartphones 75% would switch better digital experience 64% could switch to a digital-first bank 14% interactions on smartphones GCC Mobile first More than 70% use daily Social Media Instant messaging Source: EY Mena

11 Public website Login Account SummaryLogout Typical customer navigation flow GCC Mobile first SIMPLE FAST

What we offer Digitalizing traditional channels 12 Digitalize branches: More focus on products that need advisory Branches to adopt multichannel concept Implement self service in branches (training) Branch lovers Multichannel Self-directed

Initial focus on critical areas BBVA Case 13 Digital as an independent unit leading across areas Mobile & Big data analytics IT managing digital Small branches self service Big branches for specialized services Centralized Cross Selling Model Branch transformation

Customer Loyalty & Retention 14 Trust Data Analytics Social Media Analytics: contextual advice

What we offer Personal and relevant: Innofis approach 15 To convert the Bank as a trusted advisor VALUE CONTEXT BEHAVIO R CONTENTCHANNEL FEEDBAC K CUSTOMER DATA

Campaign Management

Customer targeting

Predictive Analytics

Microtargeting

Contextual behavioural actions

Content & Distribution Channels

Total control

Real Time Analytics

% increased revenues using data to cross sell +30% from automation/digitalization +5% new business models -29% lower margins and competitors Impact on P&L due to digital 64% to 50% efficiency ratio Northern Europe Source: McKinsey

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