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The digital transformation of the BBVA bank

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Transforming banking via digital

On July 8th, 2015 in London, Francisco Gonzàles - Chairman and CEO at BBVA shared how they lead their transformation and what digital means to the bank.

Although Brilliant Noise was not involved in this work, we are inspired by their efforts.

Published in: Business

The digital transformation of the BBVA bank

  1. 1. isabelle.quevilly@brilliantnoise.com
 @DigitalPlanner brilliantnoise.com The digital transformation
 of BBVA
 
 WIRED MONEY 2015

  2. 2. Transforming banking via digital On July 8th, 2015 in London, Francisco Gonzàles - Chairman and CEO at BBVA shared how they lead their transformation and what digital means to the bank. Although Brilliant Noise was not involved in this work, we are inspired by their efforts. 2 http://www.bbva.com/TLBB/tlbb/ing/noticias/Junta_General_de_Accionistas_2015.jsp
  3. 3. The digital ambition of BBVA 
 “Our goal is to turn BBVA into a totally digital company, including all our products and services, and with our over 100,000 employees working digitally” 3 http://www.bbva.com/TLBB/tlbb/ing/noticias/Junta_General_de_Accionistas_2015.jsp
  4. 4. People trust tech companies more than banks 29% of people would bank with Apple if they could, based on a North American Accenture survey. Those new customer needs are impacting banks on two levels: - direct threat from new competitors coming from the tech industry - new structure to the bank sector with entrants like Simple, Square, Coinbase, LendingClub… 4
  5. 5. 5 "We are building the best digital bank of the 21st century" Francisco Gonzàles - Chairman and CEO, BBVA Credit: BBVA
  6. 6. BBVA started by untangling its back-end 6
  7. 7. It took 7-years of commitment and leadership The CEO coming from a CTO background was able to bring clarity and detangle the legacy tech systems that were in place. The transformation took from 2007 to 2013 in 3 steps: 1 - Foundations: platform 2- Processes, culture, organisation, products 3- Front office (where they are now) 7
  8. 8. A new smart IT platform fo the 21st century The change of platform has enabled BBVA to grow its core capacities to address future customer needs, including: - Real-time - Big/Smart data - Open inovation - Cybersecurity 8
  9. 9. New foundations to the core banking system Customer Information Files 9 Product 
 catalogue Pricing 
 engine Integrated accounts balances/movements Advice Product processor Risk management engine Events management engine Data warehouse
 Clients contracts Settlement Business rules management system
  10. 10. New front-office and channels 10 Branch Mobile Web Facebook ATM Call Centre
  11. 11. 11 "We are reinventing the new edge of the customer experience but not the banking system in itself." Francisco Gonzàles - Chairman and CEO, BBVA Credit: WIRED
  12. 12. The transformation of BBVA 12 2007-2013 201620152014 Building a world-class technology platform Creating the 
 Digital Banking Area
 
 
 3,500+ professionals
 end-to-end capabilities
 transformation of core- functions. New customer- centric relationship models
 New digital products
 Redesign processes, partnerships, investments and acquisition of Fintech startups New organisational structure
 
 New senior management in place to put digital at the front Full transformation
 
 
 100,000+ digital employees, digital product and services The speed of change is accelerating,
  13. 13. The new BBVA structure is unique It becomes a strong asset in a fast changing industry. Especially the creation of a new core competencies line of management who manages together: - Talent & culture - Customer solutions - Global marketing & digital sales - Engineering - New Digital businesses 13 Enables the business to grow capacities on- demand and react rapidly to market changes
  14. 14. The result? An exponential growth Between December 2011 and May 2015, Digital Active customers have grown x 1.87 to now being 13.3 million customers. 80% of loans are made through digital channels Mobile active customers have grown x13.4 to 6.7 million mobile active customers The latest BBVA app enables customers to contact an advisor in once click. 14
  15. 15. BBA Ventures How do they manage innovation? Digital M&A 15
  16. 16. BBVA: transforming a bank - Support from the C-Suite - Long-term commitment (years) - Cut out the legacy to old IT structures to free up the business model - Create an organizational chart for innovation not an innovation line in your organizational chart 16 http://www.finextra.com/news/fullstory.aspx?newsitemid=27080
  17. 17. Brilliant Noise: 
 fast change, lasting impact
 Digital changes everything. It’s the force driving shifts in markets and customer behaviour. As described in this example by BBVA, organisations need to stay ahead of the competition while transforming themselves. 17
  18. 18. Practical lessons to support change At Brilliant Noise we talk about the spark for digital transformation coming from ‘instances of change’.
 
 It’s a practical example of how an organisation can behave more like a disruptor than an incumbent, more like a start-up than a behemoth. It offers inspiration and an idea of how to do things differently and generate long-term value. 18
  19. 19. Benefits for your team - Immediate results leading to lasting change: there’s tangible value delivered by projects – results that mean it’s not speculative thinking. - Ability to scale success quickly: you capture new ways of working and pass them on to colleagues elsewhere in the organisation. - Hitting the innovation/value sweet spot: you move faster than with big consultancy thinking. Commercial relevance is clearer than with typical digital agency approaches. - Efficiency savings: our pilot and scale method means that investment follows the needs of customers and you learn from experience. 19
  20. 20. For more inspiration Brilliant Noise books are available for download: Customer First
 A Guide to improving your omni-channel customer experience Resilient Brands
 A framework for brand building in the digital age Stories that scale
 How to develop your branded content organisation
 
 Culture change
 Culture change in the digital age 20
  21. 21. http://brilliantnoise.com/ Thank you

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