New Participants and Banking Competitors: The ......CCL Redbanc CuentaRUT 2 MM CuentaRUT 4.500...
Transcript of New Participants and Banking Competitors: The ......CCL Redbanc CuentaRUT 2 MM CuentaRUT 4.500...
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New Participants and BankingCompetitors:
The BancoEstado Case
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About Chile
Total estimated population17,819,054 Inh.Source: INE Population Projection 2014
Gini Coefficient50,8Source: World Bank, 2011
At September 2014, mobile subscribers totalled 128.6 per every100 inhabitants. 76.9% of internet accesses are mobile, principallysmartphones.
Source: Ministry of Transport and Telecommunications: Telecommunication Subsecretaryship
December 2014
Chile is among the 5 Latin American countries that consume more internet hours per month.
Source: comScore Media Metrix, Junio 2014
Chilean Social Media audience totalled 6.16 MM users(The market leaders
are Facebook, Taringa and LinkedIn ).
8th in the world ranking of hours spent on the social networkssociales.
Internet accesses comScore report: Digital Future for Chile 2014
Per capita GDP23.165 US$ Source: IMF(Estimated ppp: purchasing power parity)
Banking services accessibility:58% of all adults has at leastone debit card.December 2012
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BancoEstado Overview:
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Building the BancoEstado ecosystemFinancial Inclusion: Business model based on the use of alternative channels
CuentaRUT: A simplified debit account with
an wide spectrum of serviceslike payments, deposits, cash transfers and withdrawal.
CajaVecina:A service channel for
BancoEstado clients and non-clients.
A focal point for reducing cash and increasing the use of accounts
106 966 4.66415.868
31.801
62.867
102.057
145.144
322 350 371 405 411 417 441 459
216 956 2.0003.327
4.564
7.130
10.28911.461
2006 2007 2008 2009 2010 2011 2012 2013
Trxs
en
miles
Puntos CV
Evolution of CajaVecina
Evolution of CuentaRUT
Source:BancoEstado
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Mobile: The universal channel
1 out of every 4 clients that visitwww.bancoestado.cl do so from a mobiledevice.
The fastest growing transactional channel: 9 million transactions per month, with anannual growth of 122%.
BancoEstado campaigns viewed on mobilesurpass internet visits .
Internet: BancoEstado’s largest branch
4.6 million active clients on the Web. 37,6 million transactions per month . More than 31 thousand simultaneous
connections. 23 million visits per month to the public
website. The 4th most visited portal in Chile, 1st
among business and financialwebsites(ComScore) .
Evolution of the Internet
Evolution of Mobile Banking
Building the BancoEstado ecosystemFinancial inclusion: business model based on the use of alternative channels
Dec. 2013. more than 900 thousand clientsAlmost 10 million transactions48% more than in 2013
Source:BancoEstado
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Financial inclusion: Significant growth in alternate channels transactionalityThe strong impact of BancoEstado
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11MM
ServiEstado
CajaVecina
CCL
Redbanc
CuentaRUT 2 MMCuentaRUT
4.500CajaVecina
3 MMCuentaRUT
Dec 2013
111.8 MM Txs / month
MM CC purchases15.3 MM Redcompra
42.3 MMInternet and Mobile
18.0 MM Selfservices
15.1 MM CajaVecina
11.5 MM Redbanc3.4 MM Telephony2.9 MM ServiEstado3.3 MM Branch
Mobile Portal
Evolution of Client Transactions(In Millions of N°)
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Financial EcosystemTraditional competitors and other actors
“In the next few years, the financial sector should look out for the threat of the entry of large Internet companieslike Google, Apple or Amazon, and of credit card companies”
Deutsche Bank, Report “The future of (mobile) payments. / New (online) players competing with banks”, 2013
Ban
ks
Credit SavingsPayments
New
P
rod
ucts
CuentaRUT
MMFF Seguros
DebitWeb Mobile
CorrespondenceSubsidiariesNew
C
han
ne
ls
Compaies that support the business
Transbank / Redbank
Ne
w s
ect
ors
Social Lending
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Future Challenges:• Regulation that supports remote acceptance
• Adoption of new tehnologies to strengthen our mediums of payment: Mobile Payments and Prepaid cards or accounts
• Development of digital business models that identify new profit spaces and consider how to connect with other actors:
Partnerships / Competition / Absorb them
• Financial Education: Improve transparency and provide permnent advisory services for better informed clients.
Future spaces
Our strengths
• Brand positioning54% recall among consumers (top of mind). GFK Adimark.
• Our clients percieve us as close and reliableOne of the most valued brands Brands and Lifestyles of Chiileans 2014”,
GFK Adimark.
The 6th State institution to achieve an international standard, with 74.3
points in the “Corporate Transparency Ranking”
• Large client baseMore than 8 million active clients
• The largest service network.
Our challenges:
• To develop a digital strategy that gives more flexibility
to respond to the market and that favours innovation
• To Protect our client base from disintermediation.
• To safeguard the security of clients operating outside
our ecosystem
• To stregthen our medium of payment, so that it is
not the only feeder of digital accounts generated by other
actorss
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What are we doing?
Transformation Program
2015-2016
Financial inclusion
CoverageDigital
Transactions
Selfservice & Automated
Sales processes
To be where people are: extendour coverage with multiple formatsthat enable us to offer betterservices to the community.
20 new branches. 92 small branches in
boroughs where we are notpresent today.
500 new ATMs. Reach a total of 150,000
CajaVecinas.
Modernity Reduce cash, improvepersonal safety, with lower travelcosts, bringing everyboy in to thedigital world.
Non-cash payments at CajaVecina for clients and non clients.
Mobile payments: payingthrough the cellular phoneand inter cellular payments.
Simplicity and Dignity: makinglife easier for people, offeringclients experiences that makethem feel happy about theirrelationship with BancoEstado
Redesign of sales and post sales processes throughBPM: For 2015 CuentaRUT and Consumer Credits.