mbank - the most design-driven digital bank in the world - netfinance, miami 2014

NetFinance, Miami, April 29th 2014

mBank: the most design-drivenDIGITAL bank in the

worldMichał PanowiczManaging Director | Products, Marketing & Digital

1.Introducing mBank

3

New mBank gained global recognition for banking innovation6 top global awards in 14 months

London

ParisDigital & Mobile Excellence#1 out of 130 projectsMost Disruptive Innovation#1 out of 330 projects

2013Innovation

Awards

158 biggest banks56 countries330 project

New York

4x Golden Banker2014 Bank Innovation

4

The biggest innovator in banking

Customers:

Fidor Bank

0.06 M

Simple

0.1 M

Moven

~0.01 M

mBank

4.4 M

2.Customers want US to change…

First online banking svcs in the 90s

AD 2014

8

Just 1 year ago we were still deep in TABLE-BASED BANKING

9

Meanwhile Digital Life Has Become SO MUCH MORE

Intuitive

ContextualInteractive

IntelligentBeautiful

Apple

Amazon

GoogleSpotify

Mint

MobileAndroid

10

► State-of-the-art user interface

► 2nd-gen personal finance management

► Video banking► Google-like quick search

► Gamification► P2P payments► Facebook

integration

► 2nd gen mobile application: user interface, LBS, selling, deals, PFM, P2P

► Mobile payments

“New” mBank: 11 major digital financial innovations

11

Over 600 final UI/UX models

(over 2000+ draft models)

2.9 M

0.16 M0.44 M

0.6 M

Core team: ~200FTEsat peaks: ~300FTEs+

Large scale change mgmnt program

mBank PL

mBank SKmBank CZ

Completely redesigned online banking in just 14 months… >200 new features

3.5M customers covered by now

Former MultiBank PL will merge by end 2014

Jan

3.mBank’s online banking

13

Organic adoption of new services growing fast% of clients who log in to the new mBank

INNOVATION ADOPTION ATTITUDE:

innovators

early adopters

early majority

late majority

laggards

Aug '13 Sep Oct Nov Dec Jan '140

20

40

60

80

100

18 25

32

45

69 71

14

Landing page

15

Account balance forecast

16

Quick „Google-style” search

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Payments calendar

18

2nd generation PFM: features blended into core scenarios

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Videobanking: video, voice, chat, real-time collaboration

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Financial products market providing eCommerce-like experience

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Quick loan application available on main screen of online banking

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Three simple steps to obtain a non-mortgage loan in online banking1. Determining amount and tenor

3. Loan available in less than 1 minute from starting the application

2. Confirming terms and conditions

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Personalized real-time targeted offers based on customer behavior patterns

~20 types of messages spread across the platform

24

Contextual advisory, real-time targeting, online advertising

25

P2P payments: Facebook, text, mobile

26

Merchant-funded deals, payments marketing (mOkazje)

27

Gamification: integrated into online banking

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New features in 2014: investments

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Investments: simple and interactive way of investing in mutual funds

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Investments: quick search across funds’ attributes

31

Investments: overall portfolio performance

32

New features in 2014: consumer balance sheet summary

external account aggregation

33

New features in 2014: loans – all types

34

New features in 2014: insurance – (almost) all types

35

New features in 2014: international expansion to CZ and SK

36

New mBank available in Czech Rep. and SlovakiaLaunch in Feb 2014

• For early migration to new IB signed up 40,510 customers (7% of total number of CZSK customers)

• In total we recorded 11 tutorial video which have been viewed by 44,640 viewers (~2x more views than tutorials for Polish NmB)

• Awarenes about change to new IB among CZ clients is 80% (according to survey in old IB)

• The first spot „Financial me“ has already over 48,000 views on YouTube and became the most successful video on CZ mBank profile

LAUNCH CAMPAIGN HIGHLIGHTS [actual for 07.02.2014]

and more…

400 and over 200 features

over

screens

4. mBank’s mobile banking

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mBank in >20% mobile bank now. 104% growth in 6 wks.

Growth in logins by 104%Avererage monthly logins in old apps – 9,5 while in new apps – 33Share of mobile logins raised from 9,5% to 18,3%

Jan Feb Mar0%

5%

10%

15%

20%

Total in mobileNew mBank APPPrevious mBank APP

40

1. convenience – instant gratification

Mobility

1Simple login

42

What most popular services do is a no-no in bankingULTIMATE CONVENIENCE… COPIED IN BANKS WOULD LAND US IN JAIL

43

mBank: always one step ahead of competitors

How long does it take to log in?

5 s

30 - 60 s

5 s 30 s

other banks

login & password

PIN bal. payment / bill pay / money transfer

44

Quick and easy access via 5-8 digit PIN

Mobile device has to be connected with customers’ account via internet banking platform

45

Mobility2

Usability before login:▸ balance▸ alerts▸ credit card

balance▸ mOkazje▸ ATMs

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Most important information accesible pre-login

Account balance (PLN or %), places near me

Credit card limit (PLN or %) Important information

And more: merchant funded offers – mDeals, information about technical breaks, special marketing offers

Demo: mobile login

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Mobility

2. mobile redefines business model

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Mobile means completely redesigned business modelFacebook & Google example

230 second loan

51

mBank: always one step ahead of competitors

ABC of credit risk management

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mBank: always one step ahead of competitors

A. banking standard

ABC of credit risk managementB.

innovativeparabanks

C. mobilemBank

Hours (branch)

26%* 3879%*900 sec. 30 sec.

26%**fully APR equivalent, includes fees

Design-driven change management

Loan process in 30 s?

Organisational change

BusinessITRisk management

LegalCompliance

SecurityAuditSupervisor

ZBP

Others

54

Impossible process? We just did itLOAN IN 30 SECONDS ?

WTF ??!!

Demo: one-click loan

56

Additional money in just 30 seconds via one-click loan application

Money bar with individual credit limit One-click loan application

57

Mobility

3. taking the bank out of banking experience

3Text message payments

59

Real-time communication with customers - unique feature in Poland

Textpaymen

tsMobile context needs text messaging

Demo: other cool features

61

Extended transactional scenarios: PFM features

Transaction list: Google like searchTransactions categorization

62

New and simple all money transfers

Re-build address book with searching through historical payments.

Re-designed payment form.

New authorisation method – PIN code.

63

Location based services

The nearest useful places(ATM, branch, discounts)

Map view Real time notifications near useful places

5. Change to innovate

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We were just like most other banks: PRETTY SILOED

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We were just like most other banks: PRETTY SILOED

67

We needed to change to deliver a BIG job

Break silos:

:Non-standard motivation

Core value: Collaboration

Freedom & Accountability

:

:Dedicated location

Team of 200

1.6 million lines of code50k test conditions

200 innovative features1700 screens

All products & services

30M Euro budgetJust 14 months

4 million customers3 countries

Corporation not startup

68

Break silos: creativity flourishes on diversity, commitment on inclusion

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Dedicated location: fresh start for teams and unequivocal focus

70

Freedom & accountability = Ideas…. Organized in coherent direction

71

Non standard motivation: e.g. grass-roots „Say Thanks”

72

Collaboration: x-functional teams with balanced decision-making

73

UX evangelisation and balance between 3 professions

BranchOnlineMobileDigital first

NetFinance, Miami, April 29th 2014