The digital transformation

of BBVA

WIRED MONEY 2015

isabelle.quevilly@brilliantnoise.com
@DigitalPlanner
brilliantnoise.com

Transforming banking via digital

On July 8th, 2015 in London, Francisco Gonzles - 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 eorts.

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

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

"We are building the

best digital bank of
the 21st century"
Francisco Gonzles - Chairman and CEO, BBVA

Credit: BBVA

BBVA started by untangling its back-end

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 oce (where they are now)

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

New foundations to the core banking system

Customer

Product

Pricing

Information Files

catalogue

engine

Integrated accounts

Advice

balances/movements

Risk management
engine

Product processor

Events management
engine

Data warehouse
Clients contracts

Settlement

Business rules
management system

New front-oce and channels

Branch
Call Centre

Mobile
ATM

Web

Facebook

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"We are reinventing the

new edge of the customer
experience but not the
banking system in itself."
Francisco Gonzles - Chairman and CEO, BBVA

Credit: WIRED

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The transformation of BBVA

2007-2013

2014

2015

2016

Building a world-class technology platform

Creating the

New

Full

Digital Banking Area organisational

transformation

structure

3,500+ professionals

New senior

end-to-end capabilities

management in place

transformation of core-

to put digital at the

functions. New customer-

front

100,000+ digital
employees, digital
product and services

centric relationship models

New digital products
Redesign processes,
partnerships, investments
and acquisition of Fintech
startups

The speed of change

is accelerating,

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The new BBVA structure is unique

It becomes a strong asset in a fast changing industry. Especially
the creation of a new core competenciesline of management
who manages together:

- Talent & culture

Enables the business to grow capacities ondemand and react rapidly to market changes

- Customer solutions
- Global marketing & digital sales
- Engineering
- New Digital businesses
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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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How do they manage innovation?

Digital M&A

BBA Ventures

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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

http://www.finextra.com/news/fullstory.aspx?newsitemid=27080

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Brilliant Noise:
fast change, lasting impact
Digital changes everything. Its 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.

Its 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 oers inspiration and an idea of how to do things dierently and
generate long-term value.

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Benefits for your team

- Immediate results leading to lasting change: theres tangible value
delivered by projects results that mean its 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.
- Eciency 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 Brands
A framework for brand building in the digital age
Stories that scale
How to develop your branded content organisation

Culture change
Culture change in the digital age

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Thank you
http://brilliantnoise.com/