Innovation in Retail Banking?

15 December 2011
Douglas Blakey, Editor
Retail Banker Interactive
Introduction
Benjami Puigdevall Esteve, Managing
Director,
e-la Caixa
Alison Estrada,
Director of Knowledge Network,
BAI
Alison Estrada,
Director of Knowledge Network,
BAI
Generally speaking, bankers feel that the industry is becoming more
innovative than in the past.
5 www.baiglobalinnovations.com
Innovation Trends
39%
31%
19%
17%
42%
52%
August '10 April '11
More innovative
No change
Less innovative
Do you think the banking industry in general has become more or less innovative in the last 2 years?
+10%
Data from the research series BAI/Finacle Consumer Sentiment
& the Innovation Imperative in Retail Banking
6 www.baiglobalinnovations.com
Importance of Innovation
Not only do bankers think their organizations are more innovative, the
industry is also recognizing the importance of innovation and making more
of a commitment to that effort.
73%
75%
Aug '10 April '11
% saying innovation is EXTREMELY or
VERY important to the overall future of
their bank or institution
47%
54%
Aug '10 April '11
% saying they have INCREASED their level
of investment in innovation in the past year
Data from the research series BAI/Finacle Consumer Sentiment
& the Innovation Imperative in Retail Banking
7 www.baiglobalinnovations.com
Innovation Strengths & Weaknesses
How innovative is your bank for?
(Scale of 1 to 5 with 5 Extremely Innovative and 1 Not at all Innovative)
3.09
3.07
3.01
3.35
3.03
2.96
3.17
3.16
3.09
3.48
3.11
3.01
Overall
Innovation*
Products Channels Customer
Experience
Customer
Relationship
Management
Operational
Processes
Aug '10 April '11
3.09
3.07
3.01
3.35
3.03
2.96
3.17
3.16
3.09
3.48
3.11
3.01
Overall
Innovation*
Products Channels Customer
Experience
Customer
Relationship
Management
Operational
Processes
Aug '10 April '11
Bankers were asked how innovative their bank is in each of the following areas?
(Mean Score with 5= Extremely Innovative; 1= Not At All Innovative)
Data from the research series BAI/Finacle Consumer Sentiment
& the Innovation Imperative in Retail Banking
8 www.baiglobalinnovations.com
Those financial institutions
with the strongest
commitment to innovation
are being rewarded with
improved consumer
sentiment towards their
institutions, including on
the key metrics of trust and
commitment.
Data from the research series BAI/Finacle Consumer Sentiment
& the Innovation Imperative in Retail Banking

The BAI-Finacle Global Banking Innovation Awards are designed to honor
banking organizations for game-changing products, services, practices and
other achievements in retail banking.

The inaugural year of the program brought in over 200 nominations from
more than 40 countries around the world:

Americas Middle/East-Africa
Asia-Pacific Europe

9 www.baiglobalinnovations.com
Awards Background

Awards Process

Nominations were judged in several rounds by the Innovation Circle
Judging Panel - a panel of 10 international retail banking
executives.

Two main criteria:
Innovation originality
Impact on the business

All nominations scored against the criteria, and five six finalists
were chosen for each category.

Deliberations were supplemented by additional research, including
further data submitted by finalists, as well as panelists seeking input
from industry experts.

10 www.baiglobalinnovations.com
Awards Categories

Awards Categories:
Product Innovation recognizing a new product that has excited
customers, created new revenue opportunities or improved the
banks competitiveness in the market.

Service Innovation recognizing excellence in providing an
integrated customer experience across all channels including
mobile, online, social media, self-service and branch.

Disruptive Innovation redefining business-as-usual in retail
banking with innovative products and services that change how
retail banking institutions serve their customers.

Most Innovative Bank celebrating one banking institution that
has demonstrated a culture of innovation and an ongoing
commitment to innovation through the organization.

11 www.baiglobalinnovations.com
Benjami Puigdevall Esteve,
Managing Director,
e-la Caixa

la Caixa Innovation,
an integral
part of our
culture
la Caixa, at a glance
Figures as of September 2011
14
la Caixa, a multichannel strategy

In just 10 years,
the volume of transactions
done through the branches
has divided by 3
2010 2000
32%
10%
90% of total transactions
are made through electronic
channels (2010)
15
la Caixa,
leadership in the Online
Banking industry
Spain International
Nielsen June 2011 on Home+Work panel in Spain, France, Italy, Germany,
England and USA
Lnea Abierta, la Caixa online banking
November
2011
Customers with Linea Abierta contract 6.9 Million
% Customers Linea Abierta /la Caixa customers 65%
Customers over 12 months

3.5 Million
Transactions availables 850
Transactions every day 5 Million
Total transactions 12 month 1,900 Million
16
CaixaMobil, la Caixa mobile services
November
2011
Customers during 1 month 551 000
Customers over 12 months

1 Million
Alerts service Customers 1.8 Million
Transactions every month 14 Million
Downloaded applications 2.3 Million
la Caixa, leadership in the
mobile Banking industry
(42% market share in Spain )
20%
of la Caixa customers
are mobile users
17
2011
Total ATM (units) 7,902
Transactions available 200
Customers 4.4 Million
Total Transactions 12 month 535 Million
% Channel Absorption 71%
Total deposits: 21.709 million
% Coverage withdrawal 83%
Absorption of deposits 28%
la Caixa, 1st ATM network in Spain

Our ATM network has the strongest
Deposit capabilities in the Spanish market
Envelope deposit: 25 %
Automated bank note deposit 39 %
Automated check deposit 67 %
Spanish Market
Punt Groc,
a new concept in ATM,
designed by our clients
18
Innovation is an integral part of our culture based in:
Clients
1
3
3 drivers
Open Innovation
19
1
In 2011 we have received every month from our
employees over 1,000 suggestions about our products
and services through the tools they have at their disposal
in la Caixa:

e-novation, the internal platform through which
employees can submit their ideas and
the Suggestion Mailbox where employees make
their contributions to the improvement of products
and services of the entity.
Employees
Major issues that receive employees suggestions:

ATMs
Quality
Online banking
Financial services
Terms deposits/assets products
Cards

20
2
Clients
We are very interested in our clients feedback
as well as their suggestions. Thats why we
create the tools to encourage their
participation.
In 2011, we have organized as well, the 1st
Contest about Innovative Ideas for
mobile services and, in less than 1 month,
our clients have contributed with more
than 1.000 ideas.
As a result of this efforts, in 2011 more than
10.000 customers have validated our
products and services, providing ideas that
allow us to improve every day a little more.
21
3
We want to learn from the very best and
therefore, in 2011 we celebrated the
1
st
FinApps Party, a 24 hours
marathon to develop mobile applications
for financial services.

Over 100 developers participated
and had a total of 40 proposals for
different applications.
Open Innovation
22
We regularly test our products and services

Improved user experience
Test of new services
Test of new mobile devices
Test with users
Usability Laboratory
We work to improve our customers experience in
electronic channels (Internet, mobile phones and
ATMs).


CaixaMobile Laboratory
Example of Innovation
23
Punt Groc, a new concept in ATM, design by our clients
The 1st ATM in the world with Contactless technology
the worlds fastest cash withdrawal
More comercial and with marketing capabilities
Designed for all more accesible
Ergonomics and usability as its finest
Innovative: Ready to incorporate new operational capabilities and technologies
... A step towards leadership in ATM
Dual screen
Alphanumeric
Barcode reader 2D
Security Camera (Mirror)
Automated unit income, bills and checks
Ready to incorporate new features such as biometric control devices
(Palms), bar code reader more powerful unit recycler tickets, etc..
Some features that defines the new ATM
Example of Innovation
The first ATM in the world designed by users
2.000 user interviews and focus groups
24
+ 2 Milions
downloads
All services and downloads of "la Caixa" in the mobile
It is very easy to use, fast and error free
+ 40 appl.
available
la Caixa, 1st financial institution in the world with a mobile Appl. Store
The purpose is to offer customers the best possible user experience for downloading "la Caixa"
mobile applications.
Access from its
own wapicon

Example of Innovation
25
1.500 customers 500 merchants July to October 2010
* After the pilot, the infrastructure is maintained
First experience of mobile payments in Spain
During the pilot, there has been an increase in operations,
both in number of transactions and payments

70% of customers rate Mobile Payment higher than 8
points (over 10)

Customers value the flexibility, speed and security of the
system.

Payment using NFC technology and la Caixa VISA card in Sitges
Example of Innovation
26
Oriented to a more commercial online banking,
... and to increase absorption of transactions done through Lnea Abierta
Modern, functional
Designed with more than 400 users
Simplicity in the shopping process
New Lnea Abierta, constant evolution in design, navigation,
operations and shopping processes
Example of Innovation
Easier operation
Optimized shopping processes
Incorporated new searching tools
Contextualized advertisements
Lnea Abierta was a runner up in the
Most Innovative Service category in the
Global Innovation International Awards (BAI).
27
OnLine Community CaixaEmpresa, the 1st business social network
exclusive for customers of la Caixa
More than 15.000
companies are
members
New opportunities for our customers to make
networking and grow their business
Give more visibility to their companies.
A good way to get new customers, providers, partners...
Reliability to be contacting people and real businesses.
Example of Innovation
28
And the future...?
29
Benjami Puigdevall Esteve,
Managing Director,
e-la Caixa
Alison Estrada
Director of Knowledge Network
BAI
Douglas Blakey
Editor
Retail Banker
Interactive
This webinar will be available for replay at Retail Banker
Interactive from 16 December 2011
The next webinar in this series is on 25
th
of January at 2pm
GMT and looks at e-banking. Please register by following
the link at the www.retailbankerinteractive.com site.