NBG offers Banking Services in remote locations using ATM Cash Recycle and i-Bank Pay Spot

Georgia BotsikaHead of ATM Channel Digital Channels Division

ATM & Payments Innovation Summit Madrid 17-19 October 2018

02

Agenda

1. National Bank of Greece

2. The new banking model - digital transformation

3. Digital transformation drives banking business

4. Statistics of Digital Channels in NBG

5. ATM Cash Recycle in i-bank stores

6. ATM Cash Recycle in retailers

7. Banking Services in the Greek Islands

8. Customer Experience

9. NBG Benefits

10.Future Plans

03

National Bank of Greece - Overview

National Bank of Greece

Founded in 1841, enjoyed the right to issue banknotes until the establishment of the Bank of Greece in 1928

Strongest financial group in Greece

• ~26% of the market share in retail banking in Greece with > 9,3 m deposit accounts

• >482 Full Retail branches +

• > 56 Small Branches

NBG Group

• Now operating in 7 countries

• Assets of 65 € m (FY2017)

• 11,200 total group staff

• 578 branches

NBG is a key player in Greece, servicing >9,3 m customers

4

Net

NBG Eurobank Alpha Bank Piraeus Bank OTHERS TOTAL

Branches 482 385 458 559 170 2.054

On-site ATM 792 489 621 865 172 2.939

Off-site ATM 674 403 499 1.133 63 2.772

Total ATM 1.466 892 1.120 1.998 235 5.711

% ΑΤΜ 25,7% 15,6% 19,1% 35,0% 4,1% 100%

ratio

ΑΤΜ / Branch3,0 2,3 2,4 3,6 1,4 2,8

On-site / Branch1,6 1,3 1,4 1,5 1,0 1,4

Off-site / Total46% 45% 45% 57% 27% 49%

as of 30/06/2018

ATM Market Share in Greece

The new banking model - Digital transformation

Internet Banking

ΑΤΜ/APS

Contact Center

Branches Net

Customer

Mobile Banking

POS

06

Digital Channels from 2010 to 2017

Internet Banking Mobile Banking

Active Users Active Users

New Internet

Banking

Capital

Controlsi-bank New Mobile

Banking

Capital

Controlsi-bank

Total Digital Revenues (IB, MB, ATM) Transaction transition

* adjustment

*

31%

47%

22%

2016

Branches

ATM / APS

IB / MB

28%

45%

27%

2017

Branches

ATM / APS

IB / MB

2018 E

Electronic

Channels

> 75%

Electronic Channels

69%

Electronic Channels

72%

07

Bill payments via 3rd Party Networks

Registered

Merchants

Transactions

Active Merchants

Devices+30%

211 th.

16,6 mn

+75%

+62%

696

496

748

+24%

+21%

1078

828

1182

626 th.

52,1 mn

Total

362

320

412

415 th.

35,6 mn

-14%

-17%

-18%

+14%

+5%

+10%

+4%

+10%

+29%

+18%

300 300

To reach 2,000 spots total in

2018

20

12

22

0,05 th.

0,005 mn

08

Digital Transformation drives banking business

Branches Contact CenterATM APS

POS

Internet Banking

Mobile Banking i-bank Pay Spot

Digital channels provide the banking services needed in places where branches are expensive to maintain.

09

NBG Digital Channels Transactions Statistics

• ~1466 machines in 2017

•~3.6m debit cards, >2m used monthly

• >140m transactions of value >16bn

• ~8000 transactions per ATM per month

• >74m withdrawals of value > 14bn

• >4m deposits of value ~1.4bn

•~400K registered users

•Rapid significant growth especially in iphone users

•Mobile banking available to most smartphone types

•> 900K registered users

•Double digit growth in users yoy

•Extended list of transaction types and payments

• ~ 500th incoming calls

• >130 outgoing calls

• 86% < 20 sec answering time

• > 1000 registered merchants

• ~ 800 active merchants

• Extended list of transaction types and payments

ATM Types in National Bank of Greece

213%

61%

45455%

24029%

10112%

ATM ΜΕ BNA - RECYCLING

NCR GBRU

DBL GBRU

NCR BNA

DBL BNA / ENA

WIN BNA

120082%

27218%

ATM Instalation

TTW

LOB

77895%

445%

ATM Deposit online

Branches /

onsite

offsite

as of 31/08/2018

011

ATM is still a frequently used digital channel

2014 2015 2016 2017 2Q 2018

number of transactions 111.893.098 130.085.460 134.368.555 140.694.998 69.551.731

value of transactions 16.509.479.169 17.351.934.243 16.868.428.672 16.038.165.660 7.635.871.328

2014 2015 2016 2017 2Q 2018

number of withdrawals 67.974.971 79.702.837 74.809.617 74.107.486 36.497.475

value of withdrawals 14.762.888.382 15.596.718.628 14.957.677.737 13.852.991.589 6.536.246.495

average of withdrawal amount 217 196 200 187 179

2014 2015 2016 2017 2Q 2018

number of others (deposits, payments,

interactions) 43.918.127 50.382.623 59.558.938 66.587.512 33.054.256

Value of others (deposits, payments,

interactions) 1.746.590.787 1.755.196.895 1.910.724.980 2.184.996.914 1.099.138.315

0

20

40

60

80

100

120

140

160

2014 2015 2016 2017 2Q 2018

Vo

lum

e m

n

total transactions withdrawals others

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

20.000

2014 2015 2016 2017 2Q 2018

Valu

e b

n

total transactions withdrawals others

012

NBG’s Business Plan for ATM Channel

• ATM to remain a key contact point to NBG customers

• Offer enhanced and competitive banking services

• Support pre-staged mobile transactions

• Offer personalized services

• Support Internet Banking transactions

• Decrease operational cost

• Increase cash deposits

013

NBG Recycle Cash to decrease ATM cost in specific business areas

1.i-bank stores – the new digital branch model

• Need to support a high volume of transactions

• Satisfy customer need for cash deposit

2.Retail Customers

• Offer Instant Cash, a new banking service

3.Remote Areas – Greek Islands

• ATM is “the bank”, since no branch is available in

small islands.

014

Significant milestones of ATM Cash Recycle in NBG

• 2000: The Starfish project started in 2000. Installation of 2

Recycling ATM in 2 islands (Sikynos & Psara)

• 2007: Installation of 6 Recycling ATM in 6 Branches in the

Metropolitan area of Athens and Thessaloniki

• 2009: Installation of 2 Recycling ATM in the new branch of NBG (i-

bank store)

• 2010 - 2012: Installation of 6 Recycling ATM in 3 new i-bank stores

(2 in Thessaloniki and 1 in Athens).

• 2015: New i-bank store in Larisa – installation of 2 Recycling ATM

• 2017-2018: Installation of 5 Recycling ATM in 2 i-bank stores

(Xanthi & Syntagma Sq. Athens)

• 2018: Installation of 3 Recycling ATM in islands (Kasos, Kythnos,

Amorgos)

PSARA

SIKINOS

Chios island

Mykonos Island

Naxos

Island

Ikaria islandTinos Island

Andros Island

Recycling ATM Phara

015

NBG New Branch Model i-bank store is supported by Recycling ATMs

Future points

- Patras

- Heraklion

- Ioannina

i- Bank Stores

- The Mall Athens

- Athens Metro Mall

- Kifissia

- Syntagma Square

- Aristotelous Square - Thessaloniki

- Medicosmos -Thessaloniki

- Larisa

- Xanthi

ATHENSPATRAS

LARISAIOANNINA

THESSALONIKI

HERAKLION

XANTHI

016

NBG i-bank stores

017

ATM Recycle Cash in i-bank stores

ATM_ID NAMEReplenishments

#

Withdrawals

#

Withdrawals

€

Deposits

#

Deposits

€

Deposits /

withdrawals %

NB0717H1 i-bank store Larissa 4 2.639 500.727 949 651.859 130%

NB07174Ri-bank store Mediterranean Cosmos Thessaloniki 1 3 2.675 514.989 453 278.148 54%

NB07173Q i-bank store Aristotelous Sq 3 2.521 470.379 395 251.148 53%

NB07176Ti-bank store Mediterranean Cosmos Thessaloniki 2 4 3.716 665.269 450 352.226 53%

NB08699Q i-bank store The Mall Athens 1 3 2.943 528.319 331 151.738 29%

NB08690R i-bank store The Mall Athens 2 4 3.736 628.434 345 130.959 21%

NB08691T i-bank store Kifissia Athens 1 2 1.628 417.529 199 80.369 19%

NB08694P i-bank store The Mall Athens 3 4 4.656 744.206 369 131.361 18%

NB08692T i-bank store Kifissia Athens 2 3 2.116 482.040 188 63.503 13%

0

100.000

200.000

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800.000

0

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2

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NB

0717H

1

NB

07174R

NB

07173Q

NB

07176T

NB

08699Q

NB

08690R

NB

08691T

NB

08694P

NB

08692T

i-bank stores

Replenishments # Withdrawals € Deposits €

018

NBG Recycle Cash in Specific Retail Customers

ATM_ID NAME Replenishments # Withdrawals # Withdrawals € Deposits# Deposits €

Deposits /

withdrawals

%

NB086954 Froneri Hellas Ice Cream S.A. 16 183 27.676 625 1.116.023 4032%

NB07173Z Super Market Gountsidis AE Drama 5 2.250 499.846 131 259.816 52%

0

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1.000.000

1.200.000

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7

8

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10

NB

07173Z

NB

086954

Retail Customers

Replenishments # Withdrawals € Deposits €

019

NBG Cash Recycle in the Greek islands

CRETE

KASO

S

SANTORINI

MYKONOS

KYTHNOS

FOURNOI

SIKINO

S

CHANIA

AMORGOS

ATHENS

Chios islandPSARA

Naxos

Island

Ikaria islandTinos Island

Andros Island

Samos island

Kos island

Folegandro

s Island

Serifos Island

Syros Island

XanthiKavala

THASOS

ATHENS

020

Main Challenges for Greek Banks to support customers in the Islands

• CIT Cost

• Time to reach ATMs (6h, 12h, 24h)

• Ferry’s Timetables (daily for big islands, every second day for most, once a week for some)

• Weather conditions – Departure’s detention

• Intense seasonality in demand – Population (inhabitants + visitors) might vary *10 or even *20

• Availability and capacity of 3rd Party Providers and Partners

• Security issues (Police force capacity, Stand-by personnel per ATM, Increased security measures)

• Infrastructure issues (Power and/or communication outages)

021

Two digital channels support transactions in the Greek Islands

Recycling ATM in Kasos

i-bank pay spot:an integrated payment service in cash or

debit/credit card for retail stores

• Bill Payment Q

• Cards

• Loans

• Telco’s

• …….

• Payment of Public

Authorities Depts:

• Tax Depts

• Road Depts

• …….

Recycling ATM Transactions:• Withdrawals

• Money transfers

• Mini statements

• Deposits

• Bill payments (Cards,

Loans,

Telco's, etc)

• Balance Inquires

Personalized Campaigns and Marketing

022

NBG Recycle Cash in the Greek Islands

SANTORINI

Mykonos Island

KYTHNOS

SIKINOS

ATHENS

Naxos

Island

Tinos Island

Andros Island

Folegandros

Island

Serifos Island

Syros Island

THASOS

XANTHIKAVALA

023

Greek Islands - Efficient ATM Cash Recycle

ATM_ID NAME Replenishments # Withdrawals # Withdrawals € Deposits# Deposits €Deposits /

withdrawals %

NB0869L8 Merichas Kythnos 1 1.353 242.273 133 267.033 110%

NB0717V0 limenaria Thasos 3 2.001 446.499 368 263.461 59%

NB0717N4 Phara 2 510 115.289 119 56.689 49%

NB0869N4 Sikinos 1 451 98.635 81 34.821 35%

NB0869I0 Oia Santorini 4 2.620 465.815 208 139.539 30%

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

450.000

500.000

0

1

2

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Meri

has

Kyth

no

s

lim

en

ari

a T

haso

s

Ph

ara

Sik

ino

s

Oia

San

tori

ni

Recycling ATM in islands

Replenishments # Withdrawals € Deposits €

024

CRETE

KASOS

SANTORINI

MYKONOS

Kythnos Island

FOURNOI

SIKINOS

CHANIA

AMORGOS

Naxos

Island

Ikaria islandTinos Island

Samos island

Kos island

Folegandros

Island

Serifos Island

Syros Island

NBG Recycle Cash in the Greek Islands

SFAKIA

025

Greek Islands – non efficient ATM Cash Recycle

ATM_ID NAME Replenishments # Withdrawals # Withdrawals € Deposits# Deposits €Deposits /

withdrawals %

NB0869I7 Myconos 4 3.239 562.538 316 101.218 18%

NB0869N3 Fournoi ikaria 2 1.188 223.454 53 29.118 13%

NB0869N6 Aigiali Amorgos 1 2.192 333.053 91 32.413 10%

NB071747 Platanias Chania4 2.104 382.199 82 20.567 5%

NB0717R9 Fry Kasos 1 429 83.425 16 4.205 5%

NB071751 Sfakia Chania 3 1.179 272.809 14 5.604 2%

0

100.000

200.000

300.000

400.000

500.000

600.000

0

1

2

3

4

5

6

7

8

9

10

Meri

has

Kyth

no

s

lim

en

ari

a T

haso

s

Ph

ara

Sik

ino

s

Oia

San

tori

ni

Recycling ATM in islands

Replenishments # Withdrawals € Deposits €

026

Customer Experience

• Bank’s presence in places where no branch is established

• Bank’s presence in places where branches are closed

• Full Digital Banking Services

• Bill Payments supported by different channels

• Cash Deposit Capability

• Capability to pay bills by cash or debit/credit card

027

NBG Benefits

• Bank’s presence in places where no branch is established

• Bank’s presence in places where branches are closed

• Customer satisfaction

• One more step to digitalization

• Increase number of transactions

• Increase deposits

• Decrease transaction cost

• Work on the next generation ATM

028

Future Plans

1. NBG will expand the service model to the islands of:

• Astypalaia,

• Folegandros,

• Serifos

2. NBG will enhance the ATM transaction offering

implementing :

• Pre - staged Mobile Transaction

• Web transaction

SERIFOS

FOLEGANDROSASTYPALAIA

Amorgos island

Naxos

island

Sikinos islandIos island

Milos island

Paros island

Antiparos islandSifnos

island

Santorini island

029

In the Greek Case Study

Cash Wins the War

Thank you

Georgia BotsikaHead of ATM Channel

mpotsika.georgia@nbg.gr

Digital Channels Division