March 16, 2015

YELLOW - VS - GREYDigital Transformation in CheBanca!

Antonio Fratta Pasini – Head of CRM & Omnichannel Banking @ CheBanca!

CHEBANCA! – A TRULY MULTICHANNEL BANK

2 Apps

52 Branches

Advisors/RMs

E-mail / SMS

Customer Service

Digital Banking

Social Media

CLIENT

FULL DIGITAL ACQUISITION

780 STAFF, 60 IT

MAY 2008 – part ofMEDIOBANCA GROUP

CHEBANCA! – COMMERCIAL STRATEGY

1st phase2008-2012

2nd phase2013-2015

3rd phase2016…

• Acquisition• Brand Awareness

• CRM• Customer Development

• Digital Affluent• Acquisition• Customer Value

Few Simple Products Product-Offer Expansion Advisory Service Launch

Focu

s on

CHEBANCA! – OUR KEY NUMBERS

580,000 CLIENTS

OUR CHALLENGE: SELLING INVESTMENTS ONLINE

In Jan 2014 we started selling mutual funds through an open-architecture model – later came insurance products and now the robo-

advisor platform

WE NOW HOW TO SELL SIMPLE PRODUCTS ONLINE, BUT WHAT ABOUT INVESTMENTS?

THANKS TO A NEW DIGITAL PLATFORM + API ARCH. + COLLABORATION

FROM… …TO

WE WERE FACING A BIG CHALLENGE: TIME!

LIVE: 1 SEPTEMBER 2015

AWARENESS: NEED TO FIND A NEW DELIVERY MODEL (AGILE?)

BECAUSE THE STANDARD WATERFALL WON’T MAKE IT

FROM THE TOP

DIGITAL TRANSFORMATION

CHANGE

Digital Transformation: It’s the ability to quickly reshape your business in an endless journey

FASTThe moment you say “I did something” in the digital space you’re about to become obsolete

““Next play.” In other words, don’t dwell on the past, lingering for too long on a lesson learned, or the celebration of a special accomplishment, but rather focus on the task at hand.” – Jeff Weiner CEO LinkedIn

HOW?

DIGITAL PLATFORM WAS THE MAIN PROJECT FOR THE WHOLE BANK- Can you afford to cut the rest?

WORKING TOGETHER FROM THE DESIGN PHASE WITH ALL THE RELEVANT FUNCTIONS

- Can you afford to dedicate the key people (otherwise they can’t make decisions!) to a single initiative? Do they want to be part of the design or will they wait for functional

requirement? Do you have enough space (logistic)?

MINIMUM VALUABLE PRODUCT TO GET FEEDBACK-From “ALL”to “MVP” in order to be faster and get feedback from customers

-Can you afford to market a MVP? APP or Digital banking platform with limited features? Can you be BETA?

HOW?

SKILLS, TALENT RECRUITMENT & RETENTION-Do you have the rights skills in your Organization? Outsourcing vs insourcing?

Standard selection process doesn’t work! - Retention retention retention!

FUNCTIONAL REQUIREMENTS ONLY WHEN NEEDED - ALIAS DON’T EXPLAIN THE OBVIOUS

- Empower people to develop – test – fail fast in order to promote a really proactive development phase (otherwise they will wait for functional requirements)

NEW IT ARCHITECTURE BASED ON MICRO-SERVICES AND APIs-APIs brings in a new type of culture and requires a specific vision and go-to-market

strategy – Who will manage APIs catalogue and its update?

OUR EFFORT (1/2)

• First line of code written on 7/1/2015, F&F started in July

• 2 main portals: digital banking and branch/customer service portal

• Architects: for every aspect (security integration, API gateway integration, release chain, javascriptcore evolution, Backbase internal customization) at least 1 committedarchitect all working together

• Backbase support in house for 6 non-consecutive weeks

• Widget developers: an average of 20 external consultants, 8 internals for a total of:

• 316 widgets definitions

• 16 containers definitions

• 13 masterpages

• 214 pages

OUR EFFORT (2/2)

RESULTS: MUTUAL FUNDS SALES MIX

~52%

% OF SUBSCRIPTIONS % OF AMOUNT

~48% ~69% ~31%

Off-line On-line

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