In an exuberant affair, the winners of the RBI Awards 2016 collected their prizes. Douglas Blakey discusses the winners and why each of them, ranging from various exotic locations, deserved their acclaim. From regional awards to more specific titles for innovation and security, there was certainly much to behold
Global Retail Bank of the Year:
Bank of America
Bank of America enjoyed a stellar 2015 in terms of retail banking market share gains, profitibility, successful cost-cutting, channel successes and digital innovation.
Go deeper with GlobalData
In fiscal 2015, the bank’s retail and wealth management businesses delivered $9.3bn in net income. Average deposits in consumer banking grew by 7% year-on-year.
The bank invested $3bn in technology-related growth initiatives, especially in areas of digital practice which has resulted in a number of industry-leading digital successes such as:
- Mobile banking users increased by 13% to 18.7 million by the end of 2015 and deposit transactions from these devices now represent 15% of deposit transactions.
- By the end of the first quarter of 2016, the bank now has nearly 20 million active users and deposit transactions from mobile devices now represent 16% of deposit transactions.
- Digital ambassadors in branch, digital sales, digital appointments, and customer digital satisfaction have achieved new highs.
- Bank of America is growing its online customer base by a net one million year-on-year.
- Remote cheque deposit capture has grown to such an extent that the bank processes 250,000 cheques a day this way.
- Visa Checkout: Bank of America holds 14% of all spending at Visa Checkouts with 1m-plus cards enrolled and growing.
In terms of rightsizing the branch network Bank of America is leading the industry in the US with branch numbers down from a peak of 6,100 branches to 4,600 today. At the same time its customer base has increased by 10%.
In the last year, Bank of America checking deposits are up by almost 10%.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataSuccessful cost-cutting has included a 3% fall in FTEs but sales specialists are up almost 900 year-on-year. US card credit quality was strong as net charge-offs remained at decade low levels of 2.5%.
African Retail Bank of the Year:
Nedbank
Despite a challenging economy, Nedbank enjoyed a stellar 2015 with headline earnings rising by 9.6% for the full fiscal and produced a return on equity of 17%.
Main banked retail clients rose by 8.5% in 2015. In the main banked middle market, customer numbers grew by more than 7% during 2015. Channel successes included:
- 36% of Nedbank outlets (255 outlets in 2015, up from 170) are now in ‘branch of the future’ format with plans on track for 77% of units to be branch of the future by 2018. Digitally enabled clients increased by 40% to 3.1 million. Nedbank App Suite users increased by 43% in 2015.
- Nedbank has accelerated digital innovation with a Go Mobile drive at the heart of its retail focus, accelerating time to market, new features on its Nedbank AppSuite.
- Nedbank also rolled out its new nedbank.co.za website, which leverages world-class technology to enhance the client experience and integrates product applications to enable seamless delivery across all mobile devices.
Nedbank’s acquisition of a 20% stake in 2014 in Ecobank is already paying off; customers now have access to a branch network of 2,350 outlets across 39 markets.
Best IT Transformation:
Santander Poland
Following the merger of Bank Zachodni WBK (BZWBK) with Belgian bank KBC’s Polish operations to form Poland’s third-largest lender with 867 branches and 4.3m active customers. The bank undertook a major IT project to bring the banks together.
To meet an ambitious 18-month timeline (2014-2015) BZWBK needed an agile and aggressive approach. The bank used the merger as an opportunity to optimise and transform business processes, and as a consequence existing systems, to ensure that current and migrated customers receive better quality service.
To complete the business and IT transformation, BZWBK spent over 23,000 man-days and launched over 100 operational changes. Notable IT and business transformation changes included:
- Unified the customer journey via digital channels for retail customers and SMEs by launching a single BZWBK24 internet and mobile platform. It also centralised its call centre service;
- Centralised the card management processes related to the issuance of payment cards and transaction processing, including authorisations and reconciliations ;
- Unified and optimised the most complex processes;
- Introduced a single back office for the amalgamated institutions, and
- Unified the customer experience by rebranding outlets and bank literature.
Asia-Pacific Retail Bank of the Year:
DBS
Singapore’s biggest bank made record full-year earnings – 10% growth from $3.67bn in fiscal 2014 to a record $4.05bn in FY2015.
At the heart of the bank’s current retail banking strategy is a huge emphasis on digital investment. In 2015, it took a 10% stake in a voice recognition company spun out from Stanford University’s research hub.
It has also begun a project in India that it hopes will attract five million online customers within the next five years.
The largest retail bank in Singapore – serving over 4.6 million customers – DBS expanded its online services during 2015 to 130 and has also expanded its suite of mobile banking services to more than 40. Its mobile banking customer base grew 13% to almost 2.5 milion users.
It enjoyed further digital success in 2015. In February it launched a new series of gamification modules while its DBS i-Banking Fresh project – on which the bank invested S$4.2m ($3m) – produced a 5% increase in log ins folowing its the September 2015 launch, and a 10% increase in transaction numbers.
Other 2015 highlights included Apple Touch ID with DBS’ PayLah! This service offers Touch ID finger print recognition log ins to provide users to with both security and convenience.
Best Mobile Banking Strategy:
Caixabank
In a highly competitive category Caixabank is a deserved winner for a mobile offering that represents the gold standard in global mobile banking.
In terms of onboarding, log-in, account information, service features, marketing, sales and user experience, Caixa’s mobile services excel at providing both basic and next generation banking services.
More than 2.5 million customers are regularly using the bank’s mobile services with more than 25% of the bank’s transactions already being made from mobile accounts. By the end of 2015, it passed two billion mobile banking operations. The firm’s mobile banking channel already registers four banking operations per minute.
The judges were impressed with the bank’s drive to optimise the customer experience, with more than 70 apps offering new services and functionality, such as predictive tools for future spending based on customers’ past history and behaviour rather than payments they have set up manually.
In addition, Caixa has enjoyed success with CaixaMóvil Store, the first mobile app store to be run by a bank.
Finally, Caixa has led the way with mobile-first services initiated from mobiles such as P2P payments or biometrics-based developments. Caixa was the first bank in Europe to offer a basic app that enables customers to log in via voice command. It has also pioneered developments in wearable technology along with the integration of financial services into ‘smart’ car systems.
European Retail Bank of the Year:
ING
The judges were impressed with ING’s innovative Smart Banking app. It is available on smartwatches and its ‘balance offline’ feature enables clients to check their balance in real-time without having to log on.
In 2015, ING delivered a strong commercial and financial performance, and made progress on implementing its Think Forward strategy adding 1.4 million new retail customers in 2015.
In FY2015, ING reported an underlying net profit of 4.2bn ($4.6bn), up 23.2% from 2014. In Poland, the bank introduced a number of digital banking features such as receipt storage, bill splitting and impressive customer uptake of contactless mobile payment solutions.
Product Innovation of the Year:
Touch Bank
The Touch Bank Card from Touch Bank, Russia’s first digital only bank – a subsidiary of Hungary’s OTP – is a personal financial assistant which gives and supports access to all banking services in real-time, via an online application run on desktops or mobile devices.
The card incorporates a suite of products and services and offers customers a range of tools that can be personalised. In the 11-month period since it was rolled out in April 2015, the bank acquired over 60,000 customers and 30m ($33m) in deposits.
North American Bank of the Year:
Wells Fargo
Despite a challenging economy, Wells Fargo enjoyed a strong 2015 with impressive sales growth and beat analyst forecasts with a net profit of $23bn.
It continued to lead the sector with stellar cross sales stats of more than six products per household on average.
The bank’s focus on optimising the customer experience resulted in its highest ever net promoter score, while sales successes included a near 6% rise in the number of primary checking accounts. Wells Fargo’s list of channel successes included 26.4 million active online customers, up 7% year-on-year, and 16.2 million active mobile customers, up 14% year-on-year.
Best Digital Strategy:
Scotiabank International
With a record nubmer of nominations this year, it was a tightly fought contest for best digital strategy.
In 2015-2016, Scotiabank International has been rolling out a state-of-the-art digital platform in Mexico, Panama and 21 Caribbean countries in one of the largest digital transformation programmes in global retail banking.
The first phase is already successfully driving transactional growth and channel adoption, with a consistent look and feel both across markets and channels as well as increasing speed to market and reducing costs for the bank.
The bank invested heavily in optimising the Customer Experience Design so that it is screen and device-agnostic; it provides web analytics to understand customer journeys and provides targeted, timely content and offers on the channel of choice at the most relevant time.
The judges were also impressed by Scotia’s use of account and money management tools. The bank’s ‘help’ feature provides task-specific content while its virtual assistant technology from IntelliResponse makes it easy for customers to find and use.
The bank’s recent digital investment encompasses digitally equipped branch models, initially piloted in Mexico, and then in Canada.
Other digital projects include a new lending platform, iPad tools and improved scanning and imaging, as well as an accelerated onboarding process for mortgages, credit cards, day-to-day accounts, and small-to-medium companies.
Latin American Bank of the Year:
Bradesco
A combination of risk management, IT and infrastructure investment – digital and customer service – paid off for Bradesco.
It posted a net income up by an impressive 16.4% in fiscal 2015 while its efficiency ratio fell by 170 basis points to an impressive 39.2%.
In 2015, it controlled loan loss provisions despite the worst recession in Brazil in a quarter century.
In 2015, Bradesco also acquired the local business unit of HSBC in one of the most significant banking M&As of the year, in the process reinforcing Bradesco’s presence in the high-end income segment.
Best Customer Facing Technology:
Alior Bank
Alior has pioneered the use of Dronn, an artificial intelligence system to support remote customer service, which uses an automatic voice recognition, semantic analysis, speech synthesis, natural language processing and biometrical voice authentication.
The goal in implementing the Dronn system was to increase customer satisfaction, improve the bank’s internal processes, and promote the Alior Bank brand as an innovation leader in Polish banking.
Following the implementation, Alior reported an 31% increase in efficiency. The cost of servicing each individual customer case fell by 85% compared to the previous process.
Retail Banking Launch of the Year:
Number 26
Berlin-based app-only bank, Number 26 has more than doubled its customer numbers over the past 12 months, since launching internationally in France, Greece, Ireland, Italy, Slovakia and Spain.
Having started out with a fairly niche product — an account and a card, Number 26 is developing a fintech hub around its marketplace, with all of its services available from one app.
Growth has been achieved with a minimal marketing spend; over 80% of the bank’s growth has been driven organically. Other recent Number 26 innovations include a joint venture with Transferwise enabling Number26 customers to use TransferWise without leaving their banking app.
Retail Banker of the Year:
Gonzalo Gortazar, CaixaBank
In a highly competitive category, the winner of the Retail Banker of the Year category delivered an outstanding 2015 with a number of eye-catching achievements including:
- The launch of the digital subsidiary: Imagin Bank;
- The successful integration of Barclays’ retail unit in Spain;
- Strong results; profits rose by 31% in fiscal 2015;
- The bank’s class-leading digital channels continue to go from strength-to-strength, and
- Already this year it is grabbing headlines with its ambitions such as the proposed acquisition of Bank BPI.
Best Branch Strategy:
Bank of Ireland
Bank of Ireland impressed the judges with its innovative and imaginative approach to differentiating its branch offering – in particular its Mainguard branch project.
The branch is an outstanding example of an open, retail outlet, demonstrating a new open-front design, innovative interior design and state-of-the-art digital zones that allow customers to interact with the full range of Bank of Ireland services.
Other notable branch successes in 2015 include Bank of Ireland’s start-up incubator in Galway.
The outlet is designed to support technology start-ups and offers a dedicated workspace and education programme as well as a range of support services designed to help tech startups scale their operations.
Bank of Ireland continues to demonstrate branch innovation such as the ongoing success of its bold, retail in-campus branch at Dublin City University.
Best Use of Digital Marketing and Social Media:
State Bank of India
In a very young market, many Indian banks are looking to social media as a method of attracting customers. State Bank of India have excelled this year with regards to social media and marketing.
According to RBI‘s research, State Bank of India saw an increase of over 1,000% in terms of its likes on Facebook and has the most subscribers to its YouTube channel of any bank in India.
Best Use of Data Analytics:
Royal Bank of Canada
RBC’s data collection, analysis and utilisation revolves around three core areas: Performance Media, e-CRM, and RBC Websites.
In 2015, RBC employed cost-effective and targeted digital marketing capabilities combined with integrated social media and advertising campaigns to outperform its banking peers across North America.
RBC produced superior business results across a spectrum of measures, at a much lower cost-per-click, and with a much higher click through rate.
Whether it was transaction migration to self-serve channels, the proportion of the total product sales made in the digital channel, digital sales penetration rate for deposit accounts and credit cards, the adoption rate for digital bill pay, or eStatement enrollment for chequing, savings and credit card customers, RBC led the way.
Best Payment Innovation:
Royal Bank of Canada
RBC Secure Cloud, the bank’s patented mobile payment and security process and technology is able to turn most technologies – from smartphones to wearables – into a secure, simple to use payment device. This was the first cloud-based payment solution from a financial institution in the world.
In September of 2015, RBC upgraded RBC Secure Cloud solution to remove the SIM-dependency and meet the network specifications for HCE. This made RBC the first financial institution in North America to introduce a fully cloud-based payment solution. It also made it even easier for clients to use mobile payments with RBC.
The provisioning of payment cards that previously took 60 seconds was now instant, and clients could now use any NFC-enabled Android phone to pay using their RBC Wallet.
RBC is now reimagining its payments loyalty program, RBC Rewards, as a currency that can be used at the point of sale (physical or digital) and is adding ‘Pay with Points’ to enhance the value of the RBC Mobile app and give clients a compelling reason to use it over competing options.
RBC Rewards cardholders accumulate over $1.2bn worth of points each year and redeem $800m for travel, merchandise and financial rewards.
Best use of Online Banking:
Sacombank
Sacombank wanted to transform its online banking service by providing new features and products which are highly flexible, scalable, secure and robust.
When the new online platform went live, the bank experienced an increase of over 60% in online users year-on-year in 2015.
The bank also reported an increase of over 80% in revenue as a result of an increase in fees from products sold through the new online banking platform.
Middle East Retail Bank of the Year:
Mashreq
Despite the challenging economic environment affecting all the GCC economies, Mashreq delivered strong and stable profits for fiscal 2015.
Lending and deposits grew by 4% and 7.5% respectively, driven especially by impressive gains in Islamic finance.
Channel highlights in 2015 included the launch of i-mashreq – the first fully-automated branch in the region.
The service enables Mashreq customers to access all the services of a regular branch, including applying for bank products and services, ordering cheque books and bank statements, updating customer records, and initiating online video-chats with Mashreq’s customer agents.
Also in the last 12 months, Mashreq upgraded its mobile banking app, by introducing new functionality and making it the most comprehensive mobile banking app in the region.
In another first for the region, Mashreq’s mobile banking customers can now make mobile-to-mobile (P2P) payments to other Mashreq customers and non-customers.
Security Innovation of the Year:
Nationwide
UK mutual institution Nationwide Building Society, the largest building society in the world, has developed a prototype within its mobile banking app designed to provide an extra layer of what it describes as ‘behavioural biometrics’ security.
The initiative recognises unique patterns from people’s natural interactions with their tablet or smartphone.
The aim is to offer an additional level of security for more traditional methods such as PINs and passwords, while using biometric features such as voice recognition and fingerprint scans.
Nationwide’s Innovation Team has developed the feature in partnership with tech firms BehavioSec and Unisys.
Research from Nationwide found that the average UK adult now has to remember six different passwords – with one in four people having more than 10 passwords to remember.
Seven in 10 people surveyed for Nationwide said they struggle to remember their passwords and end up clicking ‘forgotten password’ links twice a month on average.
Best Non-Bank Competitor:
Alipay
China’s leading third-party online payment platform provides online, mobile, cross border e-commerce payments, payment collections, payment transactions, auto debit services, recurring payments and secure payment services.
According to research from Timetric, Alipay is the world’s largest digital and mobile wallet in terms of billing volume.
As of December 2014, 42.3 billion transactions went through its system, with around 10 million merchant accounts.
Sebastian Siemiatkowski, CEO of Klarna, at Money 20/20 Europe, commented: “I would never go to China because Alipay is one of the most impressive companies I’ve ever met. They’re amazing, so impressive, so smart, so dedicated, and so hard-working, that there’s just nothing [for Klarna] to do in China.”
Alipay accounts for 69.7% of China’s total third-party online and mobile payment market.
In 2015, Alipay extended its mobile wallet services to South Korea and Taiwan and in Spring 2016 announced service expansion into Europe.
Most Disruptive Innovation of the Year:
Apple Pay
In the last year Apple Pay has negotiated with banks everywhere, forging further into global markets such as the UK, where it finally got Barclays on board.
More recently, ANZ Australia signed up, then in Canada Amex, RBC, CIBC and ATB Financial. The Toronto Star hailed it as ‘a wake-up call to Canada’s banks’.
Biometric security gives retailers peace of mind and enables high-value contactless purchases.
Adoption figures show this is a slow burn, but it has already done its work in disrupting the mobile payments market.
IT Innovation of the Year:
Royal Bank of Scotland
After a rough year in terms of back-office function, Royal Bank of Scotland has bounced back, and recently pledged to spend £750m ($1.08bn) on upgrading its systems.
Part of this has included SAS Visual Analytics, enabling the analysis of large data sets to deliver tangible benefits to customers.
In addition, DigiDocs from Vizolution streamlines various processes regarding loan origination and verification, reducing the timeline to less than 48 hours.
Rising Star:
Tom Blomfield, Mondo
Mondo CEO Tom Blomfield has had a stunning 12 months.
Mondo, his third startup venture, raised £1m ($1.4m) from investors in just 96 seconds. Mondo saw 1,861 individuals invest on average £542 at over £10,000 per second.
Mondo now has a pre-launch valuation of over £30m. Demand exceeded supply of the initial Mondo 2,000 alpha-cards in circulation.
The Mondo launch is one of the most eagerly awaited banking events of the next 12 months.
