paperless branches in bank zachodni wbk sa

PAPERLESS BRANCHES IN BANK
ZACHODNI WBK SA
INTERNATIONAL BIOMETRICS CONGRESS
SEROCK, 22-23 September 2015
1
Agenda
2
1
Santander Group
2
BZWBK SA
3
Simple Bank - background of biometrics
in BZWBK
4
Finger Vein Pilot in BZWBK SA
5
PILOT - SUMMARY AND FINDINGS
We are part of Santander Group
Strong, stable, international Group
3
SANTANDER GROUP
•
117m customers
•
185 000 employees
•
Largest international network with
12 951 branches
•
Leading bank in euro zone
regarding capitalization: 90,000m €
•
4
Assets 1,200bn €
BZWBK awards
BZWBK SA financial results
H1 2015
Bank Zachodni WBK Group reported PLN2.1bn EBIT. Net
profit due to BZ WBK shareholders amounted to PLN 1.5 bn,
with the Group’s top line of PLN 4.1 bn.
Record high level of cash loans sale totalling PLN 1.9 bn. Sale
of mortgage loans totalled PLN 2.5 bn which represents a 38%
growth yoy
We generated over PLN1bnfunds on structured deposits (ranked
2ndon the market).
Ranked 2nd on leasing market with 40% growth yoy,
i.e. 27% above the market.
SME portfolio growth by 11% yoy and the sales dynamics by
14%.
Growth in Corporate Banking credit volumes
by 6% vs. market 5% and deposit volumes
by 9% vs. market -0.8%.
We conducted the biggest IPO on WSE in 2015
(motor company, value: PLN 504 m).
We conducted the sale of 15.4% of shares worth PLN 189 m
of a company from energy sector. We refinanced the debt
(PLN 350 m) of a Group from chemical industry.
Bank Zachodni WBK has
received the prestigious title
of ”Best Bank in Poland” in
the Euromoney Awards for
Excellence 2015
competition.
Bank Zachodni WBK
Marketing Team chosen the
best team in the marketing
industry in 5th edition of a
prestigious competition for a
Marketing Director of the Year
held by Mediarun.
BZWBK24 mobile
application ranked best
in Poland and second
best in Europe by
Forrester Research.
Bank Zachodni WBK
recognised as the best
bank for SME customers
in competition ”Portfele
Wprost 2015” (weekly
magazine).
We were ranked second
best bank in terms
of the quality of call
center contact by
mojebankowanie.pl.
BZ WBK Aviva has been
awarded the ”Customer
Friendly Company” title
for the fifth consecutive
year.
We arranged the sale of 60% of shares (PLN 300 m)
of a leading fleet management company.
5
8
9
BRANCH NETWORK AND KEY FINANCIAL HIGHLIGHTS
Bank no. 3 in Poland
y/y
Results*
PLN
95.4 bn
29%
93.7 bn
21%
108.0 bn
20%
1,700.4 bn
*31%
1,557.4bn
*21%
Loans (gross)
Deposits
Client funds
Consolidated profit
16
26
Profit attributable to majority
shareholder
117 22
107 14
Łódź
43
Cz
10
ochowa
Warsaw
Market share**
24
3
Loans
Deposits
9.45%
+1.5bp
10.11%
+1.1bp
Branches and customers
BZ WBK
Branches
ATMs
CDMs
Staff
Customers
6
* Financial performance adjusted for non-recurring prrofit on sale of the revised bancassurance model
** BZ WBK Group’s market share as at 30 June 2015
769
1 320
274
11 572 k
4.2 m
SCB
172
2.7 k
RETAIL BANKING
•
•
•
CARDS
ACCOUNTS
• 881 k prepaid cards
• 2.9 m personal PLN accounts
• 768.8 k credit cards
• Investor account
• 3.2 m debit cards
• Big Family Card
• First time customer card (Karta na
start)
MORTGAGE LOANS
CASH LOANS
171 k home mortgage loans and equity releases totalling • Portfolio of PLN 5,783.7 m*
over PLN 29.5 bn.
• Value of cash loans extended in H1 2015 –
Nowoczesność i innowacje
10% share of the market of new mortgage lending*
PLN 1,896.5 m (3.3pc up y-o-y) – best ever
20% share in sales of State-subsidised home loans
in the Bank’s history
(’Home for the Young’ Programme) after July 2015
MOBILE AND ONLINE BANKING
•
•
7
570 k active users of mobile banking solutions
Over 3 m customers have access to BZWBK24 – online banking platform
*Data after H1 2015
WHAT WE DO
8
•
Culture – Polish History
Museum: patron of interactive
exhibition „Under the Common
Sky” to commemorate the
150th anniversary of January
Uprising, multimedia exhibition
in the Warsaw Uprising
Museum and BZWBK Press
Photo competition
•
Community – BZ WBK
Foundation - grant
programmes: Here I Live,
Here I make Changes;
Ambitious Youth
Programme; Children’s
Smiles Programme;
corporate volunteering
•
Science – 53 cooperation
agreements with leading
Polish universities under
Santander Universidades
Programme; Academic
Entrepreneurship
Incubators; 130 k School
Cards
•
Market – first commercial
company in Poland
recognised with a
dedicated certificate for
services offered to
disabled customers as
part of the No Barriers
Programme
SIMPLE BANK CHALLENGES
BENCHMARK
DIGITAL BANKING
FRAMEWORK
Best-in-class digital players in banking follow the digitalization
strategy in each area
•
Offering (products and pricing; value added services)
•
Marketing (CRM; promotion)
•
Delivery (distribution channels, omnichannel)
•
Paperless process (Client ID and authentication; sales and services
processes, internal processes )
WYMAGANIA
Source: BCG perspective on biometrics
9
•
Digital organisation (organisation culture; work methods)
•
Digital IT Platform (architecture, Big Data)
SIMPLE BANK CHALLENGES
PAPER REDUCTION:
internal processes by 90%
external processes with clients by 80%
BZWBK SA CONTEXT
FACTS
•
•
200m sheets of paper in Customer-oriented processes
•
70m sheets of paper sent to customers
•
Millions sheets of paper received from customers in the form of documents
•
New regulations make paper volume grow .
•
Only electronic document circulation and electronic signature can eliminate paper
Agreement in an electronic form can replace a printed one only if it is signed by
both parties in the same way
REQUIREMENTS
•
The electronic signature must ensure: Data integrity, Undeniable nature,
Confidentiality
•
The new method of “signing” agreements must be approved by Customers
10
11
FV PILOT – SELECTION CRITERIA
Non biometric
SMS code/
token
Tablet
signature
Biometric
Biometric
signature
Identification
Authorisation
Buying new
products
Probably not for largest
transactions
Signing new
agreements
Little customer convenience
11
Source: BCG perspective on biometrics
TouchID
FingerVein
Voice
recognition
FV PILOT – SELECTION CRITERIA
Finger Vein in other distribution channels
12
Channel
Example
ATM
Customer authentication - ATM
• Finger Vein replaces PIN to authorise
withdrawals
• Other potential uses, e.g. to
authorise transfers at multifunction
devices
POS
Biometric authorisations of payments at
POS
• Customers authenticated via FV terminals
at vendor’s (e.g. shop)
• Replaces Paywave/ Paypass/ PIN-based
authentication
Internet
Customer authentication – corporate
customers
• FV readers offered to corporate customers
• FV solutions to access online platform and
authorise transactions
Pros
• Lower risk of fraud
• Fast and convenient
authentication
• Alternative to Paywave/ Paypass
High security
• Fast and convenient authentication
• High security
FINGER VEIN PILOT IN BZWBK SA BRANCHES
Objectives
Scope
•
•
•
•
•
•
15 April 2015: pilot implementation in 2 branches in
Lubin
June 2015: 2 branches in Warsaw
July 2015: branch in Poznań and branch in Wrocław
Pilot implementation is based on the minimum
integration with the Bank’s systems
the signed documents are automatically emailed to
Customers and saved in Altair
•
61%
Getting employees and customers feedback on the new
biometric technology
Review of biometric enrolment and authentication of
customers and employees and electronic signature
processes
•
Identification of necessary IT changes and
infrastructure for mass roll-out
•
Assessment of the potential use of
Finger Vein technology in other
channels
•
Assessment of benefits and costs
3700
2259
Processes
•
•
•
•
•
•
13
Components
Number of
Number of customers
customers invited
who had their
to the pilot
biometric templates
enrolled
Biometric enrolment and authentication of
customers
Biometric enrolment and authentication of employees
Electronic signing of deposit documents for retail
customers
Electronic document circulation
Customer survey (among customers participating in the
pilot and those who have refused to take part)
Staff survey
•
•
Finger Vein reader FV-BR-02-ETH used for:
• Registration , identity, verification
• Electronic document signing
Screen for customers (12” touchscreen) HLC10-FVS-02-B i H_LC12_FVS_02_NP used
for:
•
presentation of documents and
messages
•
Survey completion
UNIVERSAL DIGITAL PROCESS
EXAMPLE: PILOT PROGRAMME IN BZWBK SA
Customer
data
collected via
different
channels
Customer
identification
and
authentication
Processing, archiving
etc.
Confirmation is
sent to the
customer via
various distribution
channels
Branch
Mobile
Online
CC
Branch
Mobile
Online
CC





Customer is identified
based on ID, as per
standard procedures plus
biometric authentication
14
Customer folder, sales & post
sales are managed as per
standard Banking System
procedures
Document is
signed, e-mailed to
customer and
archived
Customer and
employee fill out
satisfaction
survey
PAPER-BASED VS PAPERLESS BIOMETRIC PROCESS
Customer’s
signature
Bank’s
stamp
One copy sent to
Documents areDocumentation Digital image
Advisor’s customer/the other to transported to is scanned
is archived /
signature
Document is
scanning unit
scanning unit
sent to off-site
archive
Altair
Altair
Document
printed in 2
copies
Document
displayed on the
screen
15
Customer’s
signature
Advisor’s
signature
Document sent automatically to
customer and stored in digital archive
FINGER VEIN PILOT
opinions from customers who agreed
•
•
•
•
opinions from customers who did not agreed
to take part in the pilot
increases security – 91% of customers
is user-friendly and convenient – 95% of customers
reduces turnaround times – 88% of customers
improves customer authentication – 96% of customers
• reduces the number of logins, cards, PINs, passwords etc. –
95% of customers
• reflects well on the Bank if it is eco-friendly – 95% of customers
• the customer advisor has explained everything well – 99%
• the reader is very intuitive and does not raise any objections or
concerns – 93%
• template enrolment was a smooth process - 95%
• I did not feel uncomfortable during the enrolment process –
80%
Reasons indicated
I don't have time today
9%
9%
I didin't want to take part in
the pilot
16%
I don't trust this technology
66%
I prefer to get everything on
paper
Potential factors that could change customers’ attitude
Often in pilot take part:
•
•
•
•
customer <25
customers wiht gold or diament relationship
holders of emaila, e-banking, active products
Customers who agree to electronic contact or marketing
belief that the technology is
safe
31%
widespread use of biometric
technology
52%
5%
12%
Customer survey: N=1661
16
better services for cu
I don't think I will ever change
my opinion about it
PILOT – SUMMARY AND FINDINGS
• Digital Bank – less paper, limited use of printers and multi-use devices, lower costs
of archiving, printing and control
• Paperless branch – clean desks
• First step towards E2E - Fully Digitised Document Flow – and e-documents.
• Customers must be made aware of multiple benefits of the new solution
• The solution may be offered as part of :
• Customer satisfaction surveys – questionnaire displayed on FV screen
• Support for Customer Journey process – a diagnosis of customer
requirements displayed by the Advisor of FV screen, product simulators,
as product offer etc.
• Customer Education to increase awareness of digital solutions – access to
demo and live versions of BZWBK24 and Mobile24; presentation of new
mobile functionalities
• Promotion scheme (Save and retrieve – e.g. the offer filled out on the screen
by the Customer and Advisor together during sale/acquisition)
• New advertising channel – videos and ads (to replace printed leaflets)
• May be used across various sales channels.
17