The Bank of Everyday

Positioning banks on the digital revolution

Digital Revolution Drivers

The reality is that change will be driven by emerging customer behaviors

1
4

Copyright 2014 Accenture. All rights reserved.

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

Copyright 2014 Accenture. All rights reserved.

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

Copyright 2014 Accenture. All rights reserved.

Customer behaviours (1/3)

Global customer behaviours are changing extensively

1. Data as of 2012. Source: Accenture Global Consumer Survey 2013

Copyright 2014 Accenture. All rights reserved.

Customer behaviours (2/3)

and leading digital players are transforming the essence of
customer interactions and relationships

Copyright 2014 Accenture. All rights reserved.

Customer behaviours (3/3)

Copyright 2014 Accenture. All rights reserved.

New digital competitors

New digital competitors are contesting specific business
areas, which are currently typical strongholds of Banks

Source: Accenture analysis

Copyright 2014 Accenture. All rights reserved.

New profit pools

Innovative players are already exploiting opportunities associated with
pre- and post-sale interactions: 5-7 times larger than the payments fee

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

Copyright 2014 Accenture. All rights reserved.

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

Copyright 2014 Accenture. All rights reserved.

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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

Copyright 2014 Accenture. All rights reserved.

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The Everyday Banks obsession will be to pursue the

following imperatives
Embedded into
customer digital life

Explaining
potential
business thru
digital

Business
+ Customer
+ Interactions
+ Transactions

Multiplying
customer
interactions with
bank thru
ecosystem

UBIQUOUS AND MOBILE

JUST IN TIME

Advice benefits &

New banking
facilitator thru
ecosystem

+ Variable cost
+ Assembling services and
utilities
+ Flexible & fast

Just in time personalized

marketing and analytics
services

Banking services
ecosystem internal /
external
Copyright 2014 Accenture. All rights reserved.

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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
Money on the table for the Bank
(% on operating income year by 2020)
125-135%

100%

-10/ 30 p.p.
(Up to -32 p.p.)

+30/35 p.p.
costs
decrease2

+15/20 p.p.
revenues
increase

Operating
Revenues
Income %
at risk impact1
as of today

Impact of
Impact of
defensive revolutionary
actions
actions

Potential
Everyday
Bank upside

Operating
Income %
by 2020

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.

Copyright 2014 Accenture. All rights reserved.

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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

Copyright 2014 Accenture. All rights reserved.

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Two speeds , Three Hats

Copyright 2014 Accenture. All rights reserved.

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