[email protected]@DigitalPlanner brilliantnoise.com
The digital transformationof BBVAWIRED MONEY 2015
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.
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http://www.bbva.com/TLBB/tlbb/ing/noticias/Junta_General_de_Accionistas_2015.jsp
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”
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http://www.bbva.com/TLBB/tlbb/ing/noticias/Junta_General_de_Accionistas_2015.jsp
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…
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"We are building the best digital bank of the 21st century"
Francisco Gonzàles - Chairman and CEO, BBVA
Credit: BBVA
BBVA started by untangling its back-end
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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)
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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
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New foundations to the core banking system
Customer Information Files
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Product catalogue
Pricing engine
Integrated accounts
balances/movements
Advice
Product processor
Risk management
engine
Events management
engine
Data warehouseClients contracts
Settlement Business rules
management system
New front-office and channels
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Branch
Mobile
Web Facebook
ATM
Call Centre
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"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
The transformation of BBVA
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2007-2013 201620152014
Building a world-class technology platform Creating the Digital Banking Area3,500+ professionalsend-to-end capabilitiestransformation of core-
functions. New customer-
centric relationship modelsNew digital productsRedesign processes,
partnerships, investments
and acquisition of Fintech
startups
New
organisational
structureNew senior
management in place
to put digital at the
front
Full
transformation100,000+ digital
employees, digital
product and services
The speed of change is accelerating,
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
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Enables the business to grow capacities on-demand and react rapidly to market changes
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.
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BBA Ventures
How do they manage innovation?
Digital M&A
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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
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http://www.finextra.com/news/fullstory.aspx?newsitemid=27080
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.
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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.
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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.
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For more inspiration
Brilliant Noise books are available for download:
Customer First A Guide to improving your omni-channel customer experience
Resilient BrandsA framework for brand building in the digital age
Stories that scale How to develop your branded content organisationCulture changeCulture change in the digital age
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http://brilliantnoise.com/Thank you