Presentation Innovation, Key Success Factor for Growth

1. Copyright ABN AMRO Bank N.V. 2010
Innovation, Key Success Factor for Growth
Pascal Spelier
5th
Annual SME Banking
20th – 21st October 2010, Hotel Hilton Vienna, Austria

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Pascal Spelier, that’s me

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ABN AMRO, this was then, this is now
ABN AMRO (since 1824) was a global top-15 bank
– 4 home markets: Netherlands, US, Brasil and Italy
– Total Assets EUR 987 bln at end 2006, 105.000 employees globally
In 2007:
– Lasalle sold to Bank of America
– Banco Real & Antonveneta to Santander
– Dutch Wholesale clients + international network to RBS
– The Dutch bank excluding Wholesale clients has been bought by Fortis
In 2008:
– The Dutch government bought ABN AMRO and Fortis Netherlands
In 2010:
– Integration of ABN AMRO and Fortis Netherlands, total assets EUR 408 bln,
28.000 employees

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Introduction
What are the key drivers for innovation?
Trends to be taken seriously
Innovative cases from around the world: get inspired!

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Introduction
What are the key drivers for innovation?
Trends to be taken seriously
Innovative cases from around the world: get inspired!

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Key drivers for innovation
Growth by distinction
Changing World, changing customer
New rules imposed by the Network Economy
The Credit Crunch, let’s start all over

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Key drivers for innovation
Growth by distinction
Changing World, changing customer
New rules imposed by the Network Economy
The Credit Crunch, let’s start all over

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Growth by distinction
Innovation is making companies grow
Gartner predicts:
By 2013, 50 per cent of banks will still lack a formal innovation
programme and budget, severely restricting growth potential.
Competition forces banks to become more efficient and
stimulates innovative behaviour

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Key drivers for innovation
Growth by distinction
Changing World, Changing Customer
New rules imposed by the Network Economy
The Credit Crunch, let’s start all over

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Changing World, Changing Customer
Customers become ‘self directed’
and listen to the ‘wisdom of crowds’
Customers demand transparancy
and simplicity
The future is about service: listen,
learn and adapt

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Customers become ‘self directed’

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Customers become ‘self directed’
ABN AMRO YourBusiness Banking:
Service concept for Small Companies (< 1 mil. turnover)
Arrange the most of your banking business online and
via a customer contact center (24/7)
Specialist is available in case of ‘tailored made’ events
This concept led to an increase of
cross-sell from 2.3 to 4.1

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Customers listen to the ‘wisdom of crowds’

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Customers listen to the ‘wisdom of crowds’

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Customers demand transparancy and simplicity

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Customers demand transparancy and simplicity

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Key drivers for innovation
Growth by distinction
Changing World, changing customer
New rules imposed by the Network Economy
The Credit Crunch, let’s start all over

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New Rules imposed by the Network Economy

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Network Economy rules
Scarcity versus Plentitude
Capital, Labour and Materials versus Media, Sofware and Services
(knowledge driven society)
Gradually versus Exponential Growth
Buying versus Free
Harmony versus Disruptive Innovation
The elimination of intermediate trade
People are spending more time online

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Scarcity versus Plentitude

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Scarcity versus Plentitude

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Gradually versus Exponential Growth

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Harmony versus Disruptive Innovation
September 15th
1995
→ Registration of www.google.com domain
December 1998
→ The best search engine

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Buying versus Free

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Buying versus Free

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Buying versus Free

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The elimination of intermediate trade

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People are spending more time online

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Key drivers for innovation
Growth by distinction
Changing World, changing customer
New rules imposed by the Network Economy
The Credit Crunch, let’s start allover

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The Credit Crunch, let’s start all over
An 8 trillion bubble in the US Housing market created a financial
crisis

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Credit Cruch versus Innovation and Marketing
The Credit Cruch created the current recession
Immediate damage control diminishes innovation power in the
short term
The fundament of trust must be rebuild.
The meaning of marketing will change

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The future of finance is back to the roots
Greed
Reliability
Profit and shareholders
value
Global bank = trust (bigger
is better)
Fear (for the present)
Transparent and simple
Ethical, sustainable
Nearby banking = trust
(small is beautiful)
Purchase drivers before the
credit crunch
Purchase drivers after the
credit crunch
Source: The Future of Finance, From Credit Crunch to New
Perspectives, Roger Peverelli & Ajiedj Bakas, nov. 2008

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World’s smallest quiz
Who said:
“The Internet? We are not interested in it“

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Introduction
What are the key drivers for innovation?
Trends to be taken seriously
Innovative cases from around the world: get inspired!

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Trends to be taken seriously*
Non-banking competitors, such as retailers, online companies
and telecommunications companies, are making inroads into the
banking industry
Social Media is not a fad
Crowdfunding, will it survive the hype?
* Just a few

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Non-banking competitors enter banking industry

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Is Social Media a Fad?
Social Media isn’t a fad, it’s a fundamental shift in the way we
communicate
Stills from Youtube movie ‘Social Media Revolution 2’

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What are they saying about your brand?

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What are they saying about your brand?

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What are they saying about your brand?
No webcare team
It took a few weeks
to react

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Crowdfunding, will it survive the hype?
Crowd funding describes the collective cooperation, attention
and trust by people who network and pool their money together,
usually via the Internet, to support efforts initiated by other
people or organizations

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Crowdfunding, will it survive the hype?

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ABN AMRO Incubator does research on crowdfunding as a
alternative means of financing
Does the equitygap exist?
Or is it all about the success gap or readiness gap?
ABN AMRO does research on a crowdfunding platform

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Introduction
What are the key drivers for innovation?
Trends to be taken seriously
Innovative cases from around the world: get inspired!

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Case: The Receivables Exchange
Usual sources of credit and loans are tighter than ever
An eBay-Like Receivables Site Eases Liquidity Crunch
Monetizing receivables into cash
Access to working capital when a company needs it, on their
own termsWho needs a bank for Asset Based Lending?

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Case: Outright, free companies from accounting
Small business companies can import bank statements and
invoices
Get an overview of your expenses and your profit and loss
Save time

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Case: ABN AMRO, bookkeeping in 5 minutes
Integration of online banking and online bookkeeping
No data entry anymore, let your SME-customer import bank
statements automatically in their bookkeeping.
Save your SME-customers time
Bookkeeping
in 5 minutes
Banks can do more than just providing
bank statements

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Case: Barclays Credit Focus
Late payments and bad debt are two of the most common
causes of business failure
Barclays created a comprehensive and easy-to-use online credit
management service
Checking, monitoring and chasing the businesses you trade with

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Case: ABN AMRO Creditfocus
Together with Barclays, ABN AMRO introduced Creditfocus
(DebiteurenZeker) in the Netherlands
Barclays delivers the service, ABN AMRO get’s a kickback fee
New services arise from partnering with other
banks and / or companies in the supply chain

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Lessons Learned
Changing World, Changing Customers, Competition and the Credit
Crunch are drivers for innovation
Non-banking competitors are making inroads into the banking industry
Social Media: do you like what they say about your brand?
Out-of-the-Box thinking can lead to new services for your
SME-customers.
What did you learn from this presentation?

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Thank you for your attention
Pascal Spelier
Senior Marketing Manager
ABN AMRO Commercial & Merchant
Banking
www.abnamro.nl
pascal.spelier@nl.abnamro.com
www.twitter.com/spelier