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

2. www.innofis.com Retail Banking Transformation www.innofis.com2

3. Lower margins 2015 >100,000 banking jobs lost in US-Europe Reduce distribution costs www.innofis.com3

4. Fintech disruption “Disrupt the disruptors” www.innofis.com4

5. 5 New customers behavior Adapts well to new generation of customers

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

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

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

9. www.innofis.com What we offer From efficient execution to lead generation 9 www.innofis.com 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

10. www.innofis.com 10 98% 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 Email Instant messaging Source: EY Mena

11. www.innofis.com 11 Public website Login Account SummaryLogout Typical customer navigation flow GCC Mobile first SIMPLE FAST

12. www.innofis.com What we offer Digitalizing traditional channels 12 www.innofis.com 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

13. www.innofis.com Initial focus on critical areas BBVA Case 13 www.innofis.com 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

14. www.innofis.com Customer Loyalty & Retention 14 www.innofis.com Trust Data Analytics Social Media Analytics: contextual advice

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

16. www.innofis.com Campaign Management

17. www.innofis.com Customer targeting

18. www.innofis.com Predictive Analytics

19. www.innofis.com Microtargeting

20. www.innofis.com Contextual behavioural actions

21. www.innofis.com Content & Distribution Channels

22. www.innofis.com Total control

23. www.innofis.com Real Time Analytics

24. www.innofis.com 24 +10% 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

25. www.innofis.com Use the information efficiently Questions