1. Next generation banking starts with the customer
9 October 2017
Jaidev Janardana (CEO)

2. What do customers want?
Fairness
Intuitive Experience
Security

3. Customer outcomes don’t match expectations
Credit cards - balance transfer
49% of people who took the 0% deal, ended up paying £267 more interest 1 VS
80% of customers don’t understand the features of their balance transfer card 2 3
Sources: 1. uSwitch.com; 2. FCA, Credit card market study, 2016; 3. Zopa

4. Leading to adversarial relationships
Savings rates
66% of savers don’t like that banks advertise a rate and cut it after a year 1
20% of savers with a fixed-term account don’t know what happens to the interest rate at the end of the term 1 2
Rates (less than 2 years)
Rates (more than 5 years)
Sources: 1. Zopa; 2. FCA, Cash savings market study report, 2015

5. Customer experience: held back by tech & structure Net Promoter Score
-14 -4 13 27 74
Biggest obstacles in banks delivering the best possible customer experience?
Outdated tech
Siloed systems
Lack of a consolidated customer view
Lack of clear CX strategy & exec commitment
Siloed organisation / conflicting KPIs
Lack of data for personalised experience
Lack of funding
Source: company filings
Source: Digital Banking Report, Improving the Customer Experience in Banking, 2017

6. 1 out of 3 1 out of 2 All leading to continuing erosion of trust
More than 50% of customers don’t have full trust that their money and personal details are safe with their banks 1
don’t trust fingerprint recognition in place of passwords 4
think they are likely to be a victim of bank fraud over the next 5 years 2
1 out of 3
1 out of 2
Sources: 1. EY, Customer trust: without it you’re just another bank, 2016; 2. Populus, Inevitable or preventable?; 3. Which?, 2016; 4. HSBC, Trust in Technology, 2017

7. Next generation banking starts with the customer
A fair business model designed to win when customers win,
with simple and transparent products and services based on customers needs,
delivering personalised customer experience driven by proprietary technology.

8. Zopa Bank Customer aligned products…
Unsecured Personal Loans
No early repayment fees
Credit cards
No 0%
Saving & investments
No front book and back book pricing differentiation
Prioritising existing customers
Auto loans
Soft check
Transparent pricing
…delivered through award winning experience…
…embracing open banking to enable customers to get in control of their finances
Simplifying finances: Everything in one place, securely and in customers’ control
Snappy insights:
To act on, whether
to avoid charges
or work towards
a bigger goal
Great value:
Personalised
pricing

9. What does it take?

10. Strong credit risk management
Strong sector specific expertise
Financial engineering
Strong credit risk management
Advanced analytical skills
Prudent risk management
Regulatory knowledge

11. Customer obsession 182 hours Exceptional customer service
Zopa customer
“This is my second loan from Zopa and I have been so impressed by the staff and how easy you make the whole process”
Customer obsession
Exceptional customer service
Satisfaction surveys
182 hours
of usability testing
Continuous testing
Insight to empower customers
Simple & intuitive experience
Zopa employee
“Zopa is a fantastic place to work, great teamwork, great work ethic, great customer service, putting customers at the heart of what we do”

12. Multi-disciplinary teams
Structure and culture that
attracts and nurtures talent
Technology
Great
customer proposition
Product
Regulation UX
Design
Finance
Data-science
Risk
Glassdoor
Multi-disciplinary teams
Ratings out of 5
Source: Zopa engagement survey, Glassdoor

13. lower operating costs than UK banks for similar products1
Control of the technology stack
99.6%
service availability
Secure and stable architecture
Short release cycles
Built in-house for scalability & flexibility
Nimble and low-risk development
Lean and agile operating model
53%
lower operating costs than UK banks for similar products1
Data source all Zopa
+3000
software releases
Sources: 1. Deloitte Study
1. Source: Deloitte

14. Customer aligned products delivered through award winning experience
Zopa Bank
Customer aligned products
delivered through award winning experience
embracing open banking to enable customers to get in control of their finances

15. We need to change the narrative
42%
have experienced stress or anxiety due to financial difficulties 1
only 20%
believe their primary financial services provider will provide unbiased advice 3
4 / 10
adults are not in control of their finances 2
36% of the UK population cannot calculate the impact of a 2% interest rate on £100 in savings 
22% of adults can’t read a bank statement, and 43% aren’t comfortable managing money
1 in 5
adults cannot read a bank statement 2
Sources: 1. Equifax, 2016; 2. Financial Capability Board and Money Advice Service, 2015; 3. EY, The Relevance Challenge What retail banks must do to remain in the game, 2016