Changing customer behaviour, fast-changing context and how ABN AMRO Digital Banking responds to it for her Retail Banking customers (By Jessica Niewierra, Director (Grid Owner) Mobile, Internet & Design ABN AMRO Retail Banking)

1. Changing customer behaviour, fast-changing context and how ABN AMRO Digital
Banking responds to it for her Retail Banking customers
Jessica Niewierra, Director (Grid Owner) Mobile, Internet, & Design, ABN AMRO Retail Banking
ABN AMRO Underwriters meeting
Amsterdam, September 13th 2018

2. 1. Changing customer behaviour and needs
2. The changing world around us
3. Digital strategy of ABN AMRO Retail
Banking and examples of achievements
that address this changing environment
4. Way of working and lessons learned

3. The digital urgency in the Netherlands
77% of the Dutch
above 65 use
digital devices
We check our mobile phones
150 times a day
85% of the Dutch people does banking online
66% of the Dutch people uses mobile banking on
a regular basis
Globally, 50%
would rather prefer
to forget their wallet
than their mobile
phone
In China
this figure
is even
80%
20% of the Dutch consumers
would like to close a mortgage
online
€ 68
Around 80% of
Dutch internet
users shop online
The average price of
mobile purchases is
increasing in the
NetherlandsPoor mobile experience is a
deterrent:
52% considers to switch
to another bank after such
an experience
More than
12 million
people in the
Netherlands
own a
smartphone
48% stops using an app if it
doesn’t respond quickly enough
92%
online
penetration
73% of the customers
want a face-to-face
encounter with complex
banking products and
problems

4. They…
• ...are always connected, the distinction between online and offline is
blurring
• ...expect to be able to arrange things quickly and easily: one click away,
including smooth access to expertise and staffed advice.
• …need personal and relevant information distilled from an overwhelming
amount of data.
Dutch customers expect everything to be at their
fingertips immediately.
They want everything, everywhere, now.
Dutch customers are banking online more
and more

5. 0
200
400
600
800
1000
1200
2012 2013 2014 2015 2016 2017
MillionLogin
Internet Banking Mobile Banking app
A significant increase in the amount of logins at ABN AMRO
via Internet Banking and Mobile Banking App
More than one billion logins in 2017
The amount of logins via
Mobile Banking App is
5.5 times higher than the
amount of logins via
Internet Banking

6. Our customer’s context is key
Last-minute
decision maker
Wants personal
advice on demand
Time for finance
in the evening
Netherlands
On the way to
work
Wish to live in a
bigger house
No plan how to
achieve
financial goals
Does daily banking
on his or her own
Friends and
family
Know me. Empower me. Wow me.
Smartphone
Social Media

7. Our customer’s context is key
Last-minute
decision maker
Wants personal
advice on demand
Time for finance
in the evening
Netherlands
On the way to
work
Wish to live in a
bigger house
No plan how to
achieve
financial goals
Does daily banking
on his or her own
Friends and
family
Smartphone
Social Media
Be, with your services, in my context constantly to proactively add value
at the right moment in time.

8. Our customers want…
Quick & Easy
Customers want their financial
experiences quick and easy on any
device and want easy access to
personal advice.
Personal & Relevant
Customers want to receive relevant
products and services within their
context.
WOW factor
Customers expect to be proactively
amazed with surprising digital
experiences and innovative
propositions.

9. 1. Changing customer behaviour and needs
2. The changing world around us
3. Digital strategy of ABN AMRO Retail
Banking and examples of achievements
that address this changing environment
4. Way of working and lessons learned

10. The world around us is changing faster than
ever before
Fast technological
advances
More competition is
entering the market
The urgency for a
sustainable world is
increasing
Legislative and
regulatory changes

11. Society expects companies to become more transparent
on their environmental impact.
The urgency for a sustainable world is
increasing
More companies have started taking their
ethical responsibility in society

12. Companies experiment with new technologies to creates
better customer experiences.
The pace of technological innovation is
speeding up…
“It is not the strongest of the species that survives, nor
the most intelligent, but the one most responsive to
change’’ – Charles Darwin, 1809

13. … and customers are adopting new
technologies at a faster pace
Source: Mary Meeker; 2018

14. New laws and regulations lead to more transparency
and lowers the entry barriers to the financial sector for
new entrants.
Laws and regulations are changing

15. More startups in the financial sector
Investment in FinTech startups
has increased explosively; from
$3 billion in 2013 to $20 billion
in 2015 and $31 billion in 2017.

16. More startups in the financial sector
Dutch
Fintech
scene 2016

17. More startups in the financial sector
Dutch
Fintech
scene 2018

18. Examples for ABN AMRO

19. Bigtechs are exploring their opportunities as
well

20. So: the world around us is changing faster
than ever before
Fast technological
advances
More competition is
entering the market
The urgency for a
sustainable world is
increasing
Legislative and
regulatory changes

21. 1. Changing customer behaviour and needs
2. The changing world around us
3. Digital strategy of ABN AMRO Retail
Banking and examples of achievements
that address this changing environment
4. Way of working and lessons learned

22. Our customer’s context is key
Last-minute
decision maker
Wants personal
advice on demand
Time for finance
in the evening
Netherlands
On the way to
work
Wish to live in a
bigger house
No plan how to
achieve
financial goals
Does daily banking
on his or her own
Friends and
family
Know me. Empower me. Wow me.
Smartphone
Social Media

23. 9
/
1
3
/
2
0
1
8
WE WANT TO BE THE FINANCIAL HEART AND
BRAIN OF OUR CUSTOMERS,
delivered through delightful digital experiences.
So, our mission of Digital Banking is…

24. So, on the following three principles we want
to outperform
Quick & Easy
Customers want their financial
experiences quick and easy on any
device and want easy access to
personal advice.
Personal & Relevant
Customers want to receive relevant
products and services within their
context.
WOW factor
Customers expect to be proactively
amazed with surprising digital
experiences and innovative
propositions.

25. QUICK & EASY
Quick & Easy - Example of best practice in the market

26. Quick & Easy - best practice example: Amazon Go store
Quick &
Easy
Shopping without checkout.
The Amazon Go app registers the products
you take (and put back) and charges these
to your Amazon account after you leave the
store.
Albert Heijn, a Dutch supermarket, is
experimenting with this technology in their
To Go supermarkets
Source: amazon.com/b?node=16008589011

27. PERSONAL &
RELEVANT
Personal & Relevant - Examples of best practices in the market

28. Demographic: two man; both born in 1948, both married for the second time, both enjoy holidaying in the
Alps and like dogs. Both are successful in business.
The first is Prince Charles, the other Ozzy Osbourne – two very different man.
Using demographics versus personalisation…

29. Personal and relevant - best practice example: Smart Ladies
Rooms
Personal &
Relevant
Alibaba has introduced Smart
Ladies Rooms: a smart mirror in
the rest rooms of malls using AR
technology to show how make-
up looks like without using it

30. Personal and relevant - best practice example: Vi Personal
Trainer
Personal &
Relevant
The first ever personal trainer
using artificial intelligence.
Vi Personal Trainer is a
futuristic-looking headset
capable of providing data-driven
advice.
Source: GetVI.com
“Say hello to Vi, the artificially intelligent
personal trainer that sounds like Scarlett
Johansson”

31. WOW FACTOR
WOW Factor - Examples of best practice in the market

32. Wow-factor - best practice example: medicines by drone
At one of the Dutch islands,
Schiermonnikoog, medication is
delivered by drone.
Wow-Factor

33. QUICK & EASY
Quick & Easy – Examples of realizations at ABN AMRO

34. A single digital ecosystem: same experience for our Mobile
Banking app and Internet banking as the basis for the ‘bank
in your pocket’ Quick &
Easy

35. A single digital ecosystem: log in to both the Mobile Banking
app and Internet Banking using a 5-digit code
Quick &
Easy

36. And use your smartphone to confirm payments
Quick &
Easy

37. Change the limit on your debit card in the mobile banking
app
Quick &
Easy
90% van de klanten wijzigt paslimiet nu online, dit was 25%
Contact Center
IB or MB
90% of the customers change debit card limit online. This was 25%
Branches

38. Opening a current account for non-customers via the
Mobile Banking app
Quick &
Easy

39. Change your mortgage or mortgage interest via Mobile
Banking App and Internet Banking
Quick &
Easy

40. Visual search
Quick &
Easy
Easily all transactions
categorized by pushing on
the logo’s

41. Contactless payment using an Android phone
Quick &
Easy
..current pilot: paying contactless with your watch, ring or keychain

42. Real-time blocking and de-blocking of debit cards
33% of our customers find their debit card after having blocked
their card and are able to de-block their debit card again
Quick &
Easy

43. Making a payment with Voice
Quick &
Easy
ABN AMRO is the first bank in
the Netherlands to use Siri to
make a P2P payment (Tikkie)
It is expected that one in five
customers will pay with voice in
2021

44. PERSONAL &
RELEVANT
Personal & Relevant - Examples of realizations at ABN AMRO

45. Each customer creates his/her personal bank
Personal &
Relevant
For example, by
adding photographs
and customising the
accounts shown
and their names and
sequence.

46. Real-time free alerts
Personal &
Relevant

47. Send a picture or an “Eurogami” with a transaction
Personal &
Relevant
A transaction is not an
unpersonal action
anymore

48. Identified phone calls using the Mobile Banking app
Personal &
Relevant
More personal contact with
customers and able to help the
customer quick, because we
immediately know who is calling.

49. Overview and insight of income and expenditure using the
Grip-app
Personal &
Relevant
Real-time free alerts
when you are overdue
on your chosen budgets
In collaboration
with Swedish
Fintech Tink

50. WOW FACTOR
WOW Factor - Examples of realisations at ABN AMRO

51. Personal advice via the webcam for business and private
individuals 7 days a week
Wow-Factor
Customers increasingly prefer Video Banking over
visiting a Branch
0%
20%
40%
60%
80%
100%
201701
201702
201703
201704
201801
201802
Face-to-face
Beeldbankieren

52. Send payment requests using the Tikkie-app, also for non-
ABN AMRO customers
Wow-Factor
NPS +75!
Over 3 million users of Tikkie
for peer to peer payment and
over 2.7 million requests per
month
jun jul augsep okt novdec jan feb mrt apr mei jun jul augsep okt novdec jan feb mrt apr mei
Registered Users
per month
1
MIO
2
MIO
3 MIO
2016 2017 2018
jun
jul
aug
sep
okt
nov
dec
jan
feb
mrt
apr
mei
jun
jul
aug
sep
okt
nov
dec
jan
feb
mrt
apr
mei
Amount of requests
per month
2016 2017 2018
+2.7
MIO

53. With Tikkie, we tried to solve a real customer
problem: reminding friends that they need to pay
Wow-FactorYearly, over €20 billion
P2P payments are made
Over 50% of the people who paid
something in advance, wait a week
to be repaid. More than 20% wait
even longer than one month!
Why? More than 60% simply
forgets. The other 40% struggle
with IBAN numbers
Customer problem:
reminding your friends
they need to pay you

54. Why is Tikkie a success?
Wow-Factor
NPS +75!
4,7 rating in app store
Simple &
Fun
Open
& for
everyone
Solves a REAL
customer
problem
87% pays the
money back within
a day!

55. For business

56. Our customers highly appreciate our social media presence
Wow-Factor

57. Appreciation
Source: ABN AMRO, Google Playstore, Apple Store
An annual increase in customer satisfaction
for our digital channels
Customer
Satisfaction
in %
2011
2012
2013
2014
2015
2016
2017
Most features and highest appreciation score for
mobile banking apps in NL market 2018 (banken.nl)
Digital transformers
2018 (Dutch Financial
Times)

58. 1. Changing customer behaviour and needs
2. The changing world around us
3. Digital strategy of ABN AMRO Retail
Banking and examples of achievements
that address this changing environment
4. Way of working and lessons learned

59. Changed way of working due to fast changing
environment
Fast technological
advances
More competition is
entering the market
The urgency for a
sustainable world is
increasing
Legislative and
regulatory changes

61. Adopting an Agile way of working
The use of Agile and Scrum enables us to work flexible and respond
rapidly to customer feedback. Working in multidisciplinary teams also
results in increased empowerment and, correspondingly, increased
pleasure.
Context of the
customer

62. Development fact-based and in continuous
conjunction with our customers
In all stages of the development phase, ideas and implementations are tested with our
customers, online, in our usability lab, on the street, in our local offices etcetera, and with
facts, user figures and tests, such as A/B testing. We continuous make decisions based on
the feedback we receive from our customers via for instance Usabilla and NPS reports
Context of the
customer

64. We strive for a continues wow-factor by offering
innovative financial propositions and by
providing a killer-UX.
‘’We should fall in love with the
problems of our customers’’
Jason Bates, co-Founder Monzo Bank
Instead of transforming existing processes into
digital processes, we design new optimal digital
processes using design thinking.
Design thinking

65. FUNCTIONAL
RELIABLE
USABLE
CONVENIENT
PLEASURABLE
MEANINGFUL
MVP
MWP
From MVP to MWP
(Minimal Wow product) Context of the
customer

66. Blending digital technology and a human
touch
ABN AMRO keeps exploring new ways to
combine human interaction. We even help
our clients by experimenting with a first
live stream store.
The number of video calls has almost doubled since 2016,
which shows how our customers appreciate the human
touch in combination with digital technology.
Context of the
customer

67. Taking an active role in society: Mission 2030
Sustainable
world
40% of the total CO2-emission in the Netherlands is from
urban areas, and large part of this emission consists of the
use of natural gas such as heating and electricity of houses
and offices. ABN AMRO’s mission is to ensure that all
homes and offices we help finance have an average energy
label A by 2030. We call this Our Mission 2030.
In 2017 ABN AMRO opened CIRCL, a building
constructed according to sustainable and circular
principles. CIRCL is a living lab, a place where anyone
and everyone with good ideas about sustainability and
circularity can find the space they need.

68. Enabling Open Banking
ABN AMRO is the first major Dutch bank that
opened up its developer portal, which can be
used for third parties to create new
propositions using ABN AMRO’s technology.
During ABN AMRO’s Beyond Banking Days we invite
outside developers and partners to create the future
of banking during a hackathon.
Technological
development

69. Experimenting with new technology early on
At ABN AMRO, we have an Innovation Centre and
a Technology Lab. In the centre and the lab, we
experiment with new technologies like Blockchain,
Artificial Intelligence, Quantum Computing and
Internet of Things and trends like circular economy.
Technological
development
Together with LDC, Bohi, ING and Societe
Generale, ABN AMRO created the first full
agricultural commodity transaction using a
blockchain platform.

70. Shifting to an AI first mindset
Tech lab
We have made some initials steps with AI. 2017 ABN AMRO
opened the AI lab, a one-stop shop for AI-related knowledge
and skills for ABN AMRO departments. In addition, we have
launched several bots, for instance chatbot Anna, using AI
technology to help our customers.
Technological
development
Digital First Mobile First AI First

71. Embracing Fintech
Moreover, we have internal start-ups
within ABN AMRO, that challenge our
products, services and mindset.
More
competition
We have acquisitions of, investments in
and partnerships with Fintechs. For this,
we have a Digital Impact Fund.

72. So, on the following three principles we want
to outperform
Quick & Easy
Customers want their financial
experiences quick and easy on any
device and want easy access to
personal advice.
Personal & Relevant
Customers want to receive relevant
products and services within their
context.
WOW factor
Customers expect to be proactively
amazed with surprising digital
experiences and innovative
propositions.

73. With the goal to become the
FINANCIAL HEART AND
BRAIN OF OUR CUSTOMERS,
delivered through delightful digital experiences.

74. We have accomplished a great
deal already, but there is still a
long way to go
Ultimate goal: to be
the Jarvis and Pepper
for the customer's
finances

75. Slideshare: www.slideshare.net/abnamro
Twitter: @Niewierra
LinkedIn: Jessica Niewierra
Email: jessica.niewierra@nl.abnamro.com
Questions?
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