The Bank of Everyday
Positioning banks on the digital revolution

The reality is that change will be driven by emerging customer behaviors
Digital Revolution Drivers
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Digital can become, as well, a lever to help ROE to come back to a new normal
Impact on Common Equity Tier 1 ratio from 2013 to 2016 in the adverse scenario by country and for individual banks sorted by size of the impact
Source: European Banking Authority
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Banking mega macro trends are reshaping the world
banks operate in the digital world
Serve new pools of customers efficiently
Digital and mobile technology allow to access new pools on under
banked or unbaked population across the globe
Differentiate and segment Customer experience for different
customer pools
New customers behavior differ by segment : millennials, aging
population, women, etc .
Create new products and services in the digital ecosystem
Collaboration y the ecosystem create new opportunities
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Customer behaviours (1/3)
Global customer behaviours are changing extensively…
1. Data as of 2012. Source: Accenture Global Consumer Survey 2013
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Customer behaviours (2/3)
…and leading digital players are transforming the essence of customer interactions and relationships
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Customer behaviours (3/3)
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New digital competitors
New digital competitors are contesting specific business areas, which are currently typical strongholds of Banks
Source: Accenture analysis
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Innovative players are already exploiting opportunities associated with pre- and post-sale interactions: 5-7 times larger than the payments fee
New profit pools
1. Source: MagnaGlobal, Bloomberg Industries
2. Source: Accenture Researh analysis and estimations on BIS, ECB and central banks data
3. Source: Kelton Research/Bazaarvoice, September, 2011
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How Banks will orchestrate the fulfilment of life needs
Banks can now satisfy all customer life needs in their entirety by developing 3 new
roles
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Benefits for the main stakeholders
The “Everyday Bank” proposition provides clear value for Customers, the Bank and other parties in the Ecosystem
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JUST IN TIME
Business
+ Customer
+ Interactions
+ Transactions
+ Variable cost
+ Assembling services and utilities
+ Flexible & fast
Embedded into customer digital life
Multiplying customer interactions with bank thru ecosystem
Advice benefits & New banking facilitator thru ecosystem
Banking services ecosystem internal / external
Explaining potential business thru digital
UBIQUOUS AND MOBILE
Just in time personalized marketing and analytics services
The Everyday Bank’s obsession will be to pursue the following imperatives…
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Operating Income % as of today
Revenues at risk impact1
Impact of defensive actions
Potential Everyday Bank upside
Operating Income % by 2020
Money on the table for the Bank (% on operating income – year by 2020)
100%
-10/ 30 p.p. (Up to -32 p.p.)
+15/20 p.p. revenues increase
+30/35 p.p. costs decrease2
125-135%
Money on the table
The decision to evolve into the Everyday Bank is “mission-critical”: we expect a gap of at least 50% in Operating Income between Banks who conduct the journey and those who do not
Impact of “revolutionary” actions
1. The value of Revenues at Risk is relative as it is compared to that of a Bank that is not evolving their business and operating model
2. Data includes Operating costs and Cost of risk. Source: Accenture analysis. Note: Operating income = Revenues - Operating costs - Cost of risk.
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In summary
•“True Omnichannel”
•Branches YES but different
•Open to ecosytem
•New Entrants YES , but …at core?
•Trust & Reputation
•Migration vs transformation
•Service y customer Experience Matters : new segmentation?
•Just in time Banking
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Two speeds , Three Hats
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