KBC Bank

“Developing a Challenger Brand to target the New Retail Banking Consumer”

Sales Institute of Ireland

Dara Deering

Executive DirectorKBC Bank Ireland

18th June 2014

Contents

1. Today’s Consumer

2. KBC’s Response- A Digitally Led Bank

Attitude to Banks Remains Adverse

Source: KBC Research

Trust

Personal Service

Loyalty

TransparencyCompetition

Banks are trying to “squeeze money out of their customers”

Little differentiation between the offerings of the banks

Customers “spreading their money around. No reason to be loyal”

Banks “have lost the personal touch”

Customers crave transparency & simplicity

Trust is at an all time low (15% in Ireland – Edelman Survey)

Consumer Expectations Have Changed

Source: KBC Research

And Digitalisation is Rapidly Changing Behaviour

5

Customers expect an ‘omni’ channel

approach Anytime, Anywhere

Banking

43% of adults use Online PC Banking (33% in 2012)

By 2020, c.70% of all adults will be using online banking

15% of adults use Mobile banking (9% in 2012)

By 2016, over 50% of consumers will shop online in the EU (BCG)

Online spending expected to reach €5.7bn by 2016 (7% of all spending)

-access to payment and banking systems essential

Research

Engaging

Purchasing

Transacting

Source: Eurostat, Mintel, CSO, Amarach

Meanwhile The ‘Benchmark’ Lies Outside the Industry

• 1 billion enabled accounts• 359 million active monthly users• 87% share of U.S. mobile market

• 1.28bn Facebook users• 757 million daily active users• 28%-32%Estimated Facebook user growth by 2015

Source: Digital Marketing Ramblings

• 1bn YouTube users• 40% of traffic from mobile• 53% growth in web traffic from 2012-2013

Digital Operations growing customer base much quicker

Contents

1. Today’s Consumer

2. KBC’s Response – A Digitally Led Bank

8

Ambition – The Bank of Choice

• KBC large Group with 9 million Clients in core markets of Belgium, Central and Eastern Europe• KBC operating in Ireland for 41 years- Traditionally a Home Loan and Corporate Bank• Today it has 800 employees and 170k customers• Changing Competitive Landscape and Market Dynamics has created a Near Term Opportunity for

a new Retail Bank to emerge in Ireland

Challenger Bank Bringing a Fresh Innovative Approach to Banking

Digitally Led Omni Channel Distribution

Retail HubModern, Welcoming & Engaging

Urban Physical presence with Professional Advice & Service

Digital Channels Accessible, Personalised

& Innovative Sales & Service

Contact Centre Multi-channel, multi-product,

Inbound/Outbound, Advice, Sales & “First-Point Resolution” Service

Highly trained Sales force

Agile•Mobile Bank

•Mobile Advisors•Workplace Banking

•Pop-ups

Supported by Technology, CRM and Big Data Analytics Capability

Simple, Transparent Product Suite

Simple, core retail financial products…

Service is the New Product

Compelling Brand & Communications Platform

WE THINK YOU ARE THE HERO OF THIS STORY

WE ARE YOUR HELPFUL SIDEKICK

IF YOU SEEK RESPONSIBLE PEOPLE TO LOOK AFTER YOUR MONEY

ACCORDING TO YOUR WISHES.

IF YOU CRAVE FINANCIAL FREEDOM

THEN KBC IS

Supported through Social Media and Digital Marketing

Social Media Pillars

Digital Marketing Streams

FollowersTwitter: 594

Facebook: 5951LinkedIn: 4308

• Management presence and visibility• Real time performance on Whiteboards• Daily/Weekly performance tracker

• Side by side coaching• Weekly call/meeting calibration

sessions• Cross training to uplift capability• Performance feedback & coaching

• Staff competitions to identify process improvements• Staff recognition – daily/weekly• Monthly team communication sessions

• Capability matrix identifies gaps within the team

• Recruit right people with right skills • Culture of Flexibility and Support

embedded

Creating a High Performance Sales and Service Team

Building a ”One Team” Mindset……Performance, Accountability, Capability & Empowerment

Feedback on our Service Quality and Team is Very Positive

14

I was especially impressed at the professionalism and assistance

given by KBC Staff

The staff were helpful and enthusiastic

Thank you for the follow up. It is good to know that you have a good after sales service should I have any issues in the future’.

It is refreshing to see a bank taking proper care of its products and

customers It was hassle free and unlike other banks your could talk to

someone

Level of Courtesy and Professionalism 86% Very Satisfied

Staff Knowledge of products & services 80% Very Satisfied

Level of Interest shown by staff in dealing with you 79% very satisfied

Queries followed through within agreed timeframe 80% very satisfied

How easy it is to make contact by phone 78% very satisfied

Staff willingness to help you 81% very satisfied

They are easy to deal with and customer service is good and you can do a lot of your banking online without any hassle.

Really good dealings with them, you can ring them any time, any problem I've had

has been dealt with so quickly

And Overall Response is Really Encouraging

Thank You