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

1. KBC Bank “Developing a Challenger Brand to target the New Retail Banking Consumer” Sales Institute of Ireland Dara Deering Executive Director KBC Bank Ireland 18th June 2014

2. Contents • Today’s Consumer • KBC’s Response- A Digitally Led Bank

3. Attitude to Banks Remains Adverse • Trust is at an all time low (15% in Ireland – Edelman Survey) • Banks “have lost the personal touch” Trust • Banks are trying to “squeeze money out of their customers” Loyalty Personal Service • Customers crave transparency & simplicity • Little differentiation between the offerings of the banks Competition Transparency • Customers “spreading their money around. No reason to be loyal” Source: KBC Research

4. Consumer Expectations Have Changed Source: KBC Research

5. And Digitalisation is Rapidly Changing Behaviour 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 Majority of customers prefer digital channels High levels pre-purchase search & research The internet also plays a key role in switching behaviour Almost 20% of internet users change their main bank online Many channels to complete single process Multiplicity of devices changing experiences Adoption of technology Creating game changers Digitalisation • Customers expect an ‘omni’ channel approach • Anytime, Anywhere Banking Research Engaging Purchasing Transacting Source: Eurostat, Mintel, CSO, Amarach

6. 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 • 1bn YouTube users • 40% of traffic from mobile • 53% growth in web traffic from 2012-2013 Source: Digital Marketing Ramblings Digital Operations growing customer base much quicker

7. Contents • Today’s Consumer • 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

9. Digitally Led Omni Channel Distribution Contact Centre Multi-channel, multi-product, Inbound/Outbound, Advice, Sales & “First-Point Resolution” Service Highly trained Sales force Digital Channels Accessible, Personalised & Innovative Sales & Service Retail Hub Modern, Welcoming & Engaging Urban Physical presence with Professional Advice & Service Agile • Mobile Bank • Mobile Advisors • Workplace Banking • Pop-ups Supported by Technology, CRM and Big Data Analytics Capability

10. Simple, Transparent Product Suite Simple, core retail financial products… Service is the New Product

11. 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

12. Supported through Social Media and Digital Marketing Social Media Pillars Followers Twitter: 594 Facebook: 5951 LinkedIn: 4308 Digital Marketing Streams

13. Creating a High Performance Sales and Service Team • 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 • Capability matrix identifies gaps within the team • Recruit right people with right skills • Culture of Flexibility and Support embedded • Staff competitions to identify process improvements • Staff recognition – daily/weekly • Monthly team communication sessions Building a ”One Team” Mindset…… Performance, Accountability, Capability & Empowerment

14. Feedback on our Service Quality and Team is Very Positive It is refreshing to see a bank taking proper care of its products and customers Really good dealings with them, you can ring them any time, any problem I've had has been dealt with so quickly 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 was hassle free and unlike other banks your could talk to someone They are easy to deal with and customer service is good and you can do a lot of your banking online without any hassle. The staff were helpful and enthusiastic I was especially impressed at the professionalism and assistance given by KBC Staff

15. Customer Satisfaction • 25% increase in customers 2013 • 82% overall avg. satisfaction with KBC staff • NPS • +29 NPS overall • +35NPS in KBC Retail Hubs • Easiest to do business with • +36 Net Easy ratingoverall • +46 in KBC Retail Hubs • Reputation • Number 1 reputation for 3rd year in a row (in RepTrack voted by the General Public) • Best New Debit Card - UK & IRELAND CARD & PAYMENTS AWARDS • Champion Sales Team - ANNUAL IRISH SALES CHAMPION AWARDS And Overall Response is Really Encouraging

16. Thank You