BBVA Digital Transformation-pepe.pdf · BBVA Agile methodology expansion scope In the early stages...

October 2018

BBVA Digital TransformationA successful 4-year journey

BBVA Digital Transformation / 2

01OVERVIEW

BBVA

Is a worldwide bank

operating in more

than 30 countries

BBVA around the world

BBVA Digital Transformation / 5

02BEGINNINGS

BBVA

Detected a customer

behavior change in early

2010’s and decided to

address a digital

transformation

Post-crisis banking changes

Increased supervision

New structures and merging

New regulatory requirements

New players

Startups and fintech

New business models: big

players

New technologies

Connected mobile devices

overpassed world population in

2014

10x mobile data from 2014 to

2019

By 2019 >50% mobile devices

will be “smart”

Customer behavior

Back in 2014, we’ve detected some indicators

Branch activity was decreasing firmly

At the same time, mobile interactions

started to grow significantly

Digital sales, became a remarkable

part of total sales

Path

BBVA has to

- Move the bank to the

smartphones

- Be where its customers

are

- Lever on digitization

- Look into the big digital

ones

So we decided to change the way we did the things

• We started using agile methodology placing together

Business Units, CX/UX experts, designers, analysts, scrum

masters, developers & technical teams

• We even moved the team to a new building, isolating

(“Isla”) the agile practise from the rest of the teams

• We virtually founded an fintech within the bank

• We’ve got the expertise from the best worldwide masters

By defining four simple principles

• MooM: We realized that the Smartphone has to be the remote control

• New digital products: We created different products for different strategies.

• New distribution model: We changed relationship model, roles, actions in the branches

• New digital sales: We designed a new digital marketing strategy

5 3-week sprints per PIFour PI per year

• We’d got some initial problems, solved with some generosity, common

sense, professionalism and motivation. There was no difference between

technology, business line and design teams.

• We achieved the transition from a waterfall to an agile methodology,

starting the BBVA Digital Factory

• In the first stages our Digital Transformation was structured in 10

Programs and 10 scrums, after some months we scaled up to +50 scrums

• Surprisingly, we quickly started to get some great results.

The digital factory started to run

BBVA Digital Transformation / 16

03CURRENT SITUATION

So BBVA decided…

“To bring the age of opportunity

to everyone”

Helping people to take their

best financial decisions

This is the new…

BBVA Agile methodology expansion scope

In the early stages our Digital

Bank (Spain only) was

structured in 10 Programs

and 10 scrums, after some

months we scale up to 36

scrums, in BBVA Digital bank

Currently our Spain’s Single

Digital Agenda (only retail

banking), is structured in 106

(x10) initiatives and 172 teams,

showing the great engagement

with road to Agile

We’ve decided to expand de agile organization

After first results BBVA decided to

expand agile organization to the

entire company. Worldwide.

Currently the agile expansion is

reaching all areas and all countries,

with no exception

Digital transformation to Agile is been

adapted to help in every discipline.

Training is key stone to achieve the

required transformation

01

02

03

Wealth

management

Commercial

Banking

Retail banking

Corporate

Investment

Banking

Holding

units

Agile expansion

04

We also changed the way we do the things

Amazing “I love when BBVA shows me what I don’t expect”

Lean principles to help us to keep the right path

Transparent “Everything is easy to understand”

Convenient “All is automatic. Like magic”

Enablers “I feel I’m making my best decisions”

We eventually have changed our internal values

BBVA Digital Transformation / 23

04RESULTS

Digital transformation…

Is working at full speed. We put

3 new features and 10

refinements in the market.

Is now a real sales enabler:

We’re selling 12 million units

through digital channels

worldwide

Monthly

BBVA Spain digital statistics (Jul ‘18)Channel use BBVA Spain 12 month

BBVA Spain main digital achievements

Remote

signature

Bizum

New

app

Remote

appointment

PFM

Selfie

Forrester

#1

92%

DIY

BBVA

Invest

*4.5*

Market

BBVA worldwide digital sales (Jul ‘18) (1/2)

BBVA worldwide digital sales (Jul ‘18) (2/2)

Web & Mobile is +50% selling

channel.

Consistently distribution and

evolution between channels

01

02

BBVA NPS digital results

Spain only

Peer

1

Peer

2

Peer

3Peer

4

Peer

5

Peer

6

Peer

7

Best historic results in client

promotion.

Think of correlation between

Digital transformation and

leadership

01

02

Mobile banking

BBVA NPS digital results

Spain only

Youngest segment, shows a remarkable

promotion of our digital experience01

BBVA NPS digital results

Spain only

Mobile banking use Mobile banking use

Reviews Transacts Contracts Reviews Transacts Contracts

NPS Mobile NPS BBVA

BBVA worldwide digital sales increase

Non-Digital85%

Digital15%

2016

Non-Digital78%

Digital22%

2017

Non-Digital59%

Digital42%

2018

Spain only, Jan-Jul

BBVA Digital Transformation / 33

05WHAT’S NEXT

Digital transformation…

We put the technology to

better-serve our customers

We look at open markets as a

potential opportunity

Push digital DIY to the last

consequences

Smart Interactions and open-markets

Helping our customers to make their lives easy

Financial

health

Self-driven

bankSmart events

Smart

assistant

My retirement

3rd party aggregation

My everyday life

Life Goals

Valora

Home center

Baby planner

Follow up

BBVA helps me to

solve day-2-day

financial issues

automatically

Push notifications

with proposed actions

included

Amazon Alexa®,

Google Home® and

others are going

help me to interact

with BBVA

Open markets

Sell our digital

product to non-

customers through

an amazing

experience

Our achievements in a nutshell

BBVA Digital Transformation / 37

06USING DIGITAL TRANSFORMATION

FOR ENABLING

We detected issues…

User feedback

Quality assurance

IT

So we decided address a pilot

• Focus in one single funcionality

• Take advantage of BBVA Architectures

• Development made simple

• Low cost

But we’d several issues

Our ATM usually don’t have

required hardware.

Having a huge network, big

costs, with heavy maintenance

Smartphone is the new blind

cane

01

02

03

BBVA solution for this

To communicate

ATM and the smartphone

Challenge: The communication

between two such different channels.

Communicate tradition and innovation

Great results in less than one minute

Great media impact too

Simultaneously we’ve improved our app and web

+ 75% of our transactions are

currently full accessible in our

BBVA App.

We’ve deployed a dedicated

team to improve this in our

next releases

BBVA has a clear commitment

with our customers to put the

technology to better serve them.

All of them

BBVA Digital Transformation / 45

07CONCLUSION

“What got us here

won’t get us there”Marshall Goldsmith

Thank you for

your attention

Further questions?

pepe@bbva.com