ATM & Payments Innovation Summit Madrid 17-19 October 2018 NBG offers Banking Services in remote locations using ATM Cash Recycle and i- Bank Pay Spot Georgia Botsika Head of ATM Channel Digital Channels Division
Agenda 1. National Bank of Greece 2. The new banking model - digital transformation 3. Digital transformation drives banking business 4. Statistics of Digital Channels in NBG 5. ATM Cash Recycle in i-bank stores 6. ATM Cash Recycle in retailers 7. Banking Services in the Greek Islands 8. Customer Experience 9. NBG Benefits 10. Future Plans 02
National Bank of Greece - Overview National Bank of Greece Founded in 1841, enjoyed the right to issue banknotes until the establishment of the Bank of Greece in 1928 Strongest financial group in Greece ~26% of the market share in retail banking in Greece with > 9,3 m deposit accounts >482 Full Retail branches + > 56 Small Branches NBG Group Now operating in 7 countries Assets of 65 m (FY2017) 11,200 total group staff 578 branches NBG is a key player in Greece, servicing >9,3 m customers 03
ATM Market Share in Greece Net Branches On-site ATM Off-site ATM Total ATM NBG Eurobank Alpha Bank Piraeus Bank OTHERS TOTAL 482 385 458 559 170 2.054 792 489 621 865 172 2.939 674 403 499 1.133 63 2.772 1.466 892 1.120 1.998 235 5.711 % ΑΤΜ 25,7% 15,6% 19,1% 35,0% 4,1% 100% ratio ΑΤΜ / Branch On-site / Branch Off-site / Total 3,0 2,3 2,4 3,6 1,4 2,8 1,6 1,3 1,4 1,5 1,0 1,4 46% 45% 45% 57% 27% 49% as of 30/06/2018 4
The new banking model - Digital transformation Branches Net Internet Banking Mobile Banking Customer ΑΤΜ/APS POS Contact Center
Digital Channels from 2010 to 2017 Internet Banking Active Users Mobile Banking Active Users i-bank New Internet Banking Capital Controls i-bank New Mobile Banking Capital Controls Total Digital Revenues (IB, MB, ATM) Transaction transition 2016 2017 2018 E 22% 47% 31% Branches ATM / APS IB / MB 27% 45% 28% Branches ATM / APS IB / MB Electronic Channels > 75% * Electronic Channels 69% Electronic Channels 72% * adjustment 06
Bill payments via 3rd Party Networks Total 300 300 Registered Merchants 696 +24% 362-14% 20 1078 +10% To reach 2,000 spots total in 2018 Active Merchants 496 +21% 320-17% 12 828 +4% Devices 748 +30% 412-18% 22 1182 +10% 211 th. +75% 415 th. +14% 0,05 th. 626 th. +29% Transactions 16,6 mn +62% 35,6 mn +5% 0,005 mn 52,1 mn +18% 07
Digital Transformation drives banking business Branches Internet Banking ATM APS Contact Center Mobile Banking POS i-bank Pay Spot Digital channels provide the banking services needed in places where branches are expensive to maintain. 08
NBG Digital Channels Transactions Statistics ~1466 machines in 2017 ~3.6m debit cards, >2m used monthly >140m transactions of value >16bn ~8000 transactions per ATM per month >74m withdrawals of value > 14bn >4m deposits of value ~1.4bn > 1000 registered merchants ~ 800 active merchants Extended list of transaction types and payments ~ 500th incoming calls >130 outgoing calls 86% < 20 sec answering time ~400K registered users Rapid significant growth especially in iphone users Mobile banking available to most smartphone types > 900K registered users Double digit growth in users yoy Extended list of transaction types and payments 09
ATM Types in National Bank of Greece ATM Deposit online 44 5% Branches / onsite offsite 6 1% ATM ΜΕ BNA - RECYCLING 778 95% ATM Instalation 101 12% 21 3% 272 18% NCR GBRU DBL GBRU NCR BNA TTW LOB 454 55% DBL BNA / ENA WIN BNA 240 29% 1200 82% as of 31/08/2018
Volume mn Value bn ATM is still a frequently used digital channel 160 140 120 100 80 60 40 20 0 2014 2015 2016 2017 2Q 2018 20.000 18.000 16.000 14.000 12.000 10.000 8.000 6.000 4.000 2.000 0 2014 2015 2016 2017 2Q 2018 total transactions withdrawals others total transactions withdrawals others 2014 2015 2016 2017 2Q 2018 number of transactions 111.893.098 130.085.460 134.368.555 140.694.998 69.551.731 value of transactions 16.509.479.169 17.351.934.243 16.868.428.672 16.038.165.660 7.635.871.328 2014 2015 2016 2017 2Q 2018 number of withdrawals 67.974.971 79.702.837 74.809.617 74.107.486 36.497.475 value of withdrawals 14.762.888.382 15.596.718.628 14.957.677.737 13.852.991.589 6.536.246.495 average of withdrawal amount 217 196 200 187 179 2014 2015 2016 2017 2Q 2018 number of others (deposits, payments, interactions) 43.918.127 50.382.623 59.558.938 66.587.512 33.054.256 Value of others (deposits, payments, interactions) 1.746.590.787 1.755.196.895 1.910.724.980 2.184.996.914 1.099.138.315 011
NBG s Business Plan for ATM Channel ATM to remain a key contact point to NBG customers Offer enhanced and competitive banking services Support pre-staged mobile transactions Offer personalized services Support Internet Banking transactions Decrease operational cost Increase cash deposits 012
NBG Recycle Cash to decrease ATM cost in specific business areas 1.i-bank stores the new digital branch model Need to support a high volume of transactions Satisfy customer need for cash deposit 2.Retail Customers Offer Instant Cash, a new banking service 3.Remote Areas Greek Islands ATM is the bank, since no branch is available in small islands. 013
Significant milestones of ATM Cash Recycle in NBG 2000: The Starfish project started in 2000. Installation of 2 Recycling ATM in 2 islands (Sikynos & Psara) 2007: Installation of 6 Recycling ATM in 6 Branches in the Metropolitan area of Athens and Thessaloniki 2009: Installation of 2 Recycling ATM in the new branch of NBG (ibank store) 2010-2012: Installation of 6 Recycling ATM in 3 new i-bank stores (2 in Thessaloniki and 1 in Athens). 2015: New i-bank store in Larisa installation of 2 Recycling ATM 2017-2018: Installation of 5 Recycling ATM in 2 i-bank stores (Xanthi & Syntagma Sq. Athens) 2018: Installation of 3 Recycling ATM in islands (Kasos, Kythnos, Amorgos) Andros Island Tinos Island SIKINOS PSARA Mykonos Island Naxos Island Chios island Ikaria island Recycling ATM Phara 014
NBG New Branch Model i-bank store is supported by Recycling ATMs XANTHI IOANNINA LARISA THESSALONIKI i- Bank Stores - The Mall Athens - Athens Metro Mall - Kifissia - Syntagma Square - Aristotelous Square - Thessaloniki - Medicosmos -Thessaloniki - Larisa - Xanthi PATRAS ATHENS Future points - Patras - Heraklion - Ioannina HERAKLION 015
NBG i-bank stores 016
NB0717H1 NB07174R NB07173Q NB07176T NB08699Q NB08690R NB08691T NB08694P NB08692T ATM Recycle Cash in i-bank stores 10 9 8 7 6 5 4 3 2 1 0 i-bank stores 800.000 700.000 600.000 500.000 400.000 300.000 200.000 100.000 0 Replenishments # Withdrawals Deposits ATM_ID NAME Replenishments # Withdrawals # Withdrawals Deposits # Deposits Deposits / withdrawals % NB0717H1 i-bank store Larissa 4 2.639 500.727 949 651.859 130% NB07174R i-bank store Mediterranean Cosmos Thessaloniki 1 3 2.675 514.989 453 278.148 54% NB07173Q i-bank store Aristotelous Sq 3 2.521 470.379 395 251.148 53% NB07176T i-bank store Mediterranean Cosmos Thessaloniki 2 4 3.716 665.269 450 352.226 53% NB08699Q i-bank store The Mall Athens 1 3 2.943 528.319 331 151.738 29% NB08690R i-bank store The Mall Athens 2 4 3.736 628.434 345 130.959 21% NB08691T i-bank store Kifissia Athens 1 2 1.628 417.529 199 80.369 19% NB08694P i-bank store The Mall Athens 3 4 4.656 744.206 369 131.361 18% NB08692T i-bank store Kifissia Athens 2 3 2.116 482.040 188 63.503 13% 017
NB07173Z NB086954 NBG Recycle Cash in Specific Retail Customers 10 9 8 7 6 5 4 3 2 1 0 Retail Customers 1.200.000 1.000.000 800.000 600.000 400.000 200.000 0 Replenishments # Withdrawals Deposits ATM_ID NAME Replenishments # Withdrawals # Withdrawals Deposits# Deposits Deposits / withdrawals % NB086954 Froneri Hellas Ice Cream S.A. 16 183 27.676 625 1.116.023 4032% NB07173Z Super Market Gountsidis AE Drama 5 2.250 499.846 131 259.816 52% 018
NBG Cash Recycle in the Greek islands PSARA Chios island Kavala Xanthi ATHENS THASOS Andros Island KYTHNOS Syros Island Tinos Island MYKONOS Ikaria island FOURNOI Samos island Serifos Island Naxos Island AMORGOS Kos island SIKINO S Folegandro s Island SANTORINI ATHENS CHANIA KASO S CRETE 019
Main Challenges for Greek Banks to support customers in the Islands CIT Cost Time to reach ATMs (6h, 12h, 24h) Ferry s Timetables (daily for big islands, every second day for most, once a week for some) Weather conditions Departure s detention Intense seasonality in demand Population (inhabitants + visitors) might vary *10 or even *20 Availability and capacity of 3 rd Party Providers and Partners Security issues (Police force capacity, Stand-by personnel per ATM, Increased security measures) Infrastructure issues (Power and/or communication outages) 020
Two digital channels support transactions in the Greek Islands Recycling ATM Transactions: Withdrawals Money transfers Mini statements Deposits Bill payments (Cards, Loans, Telco's, etc) Balance Inquires Personalized Campaigns and Marketing i-bank pay spot: an integrated payment service in cash or debit/credit card for retail stores Bill Payment Q Cards Loans Telco s. Payment of Public Authorities Depts: Tax Depts Road Depts. Recycling ATM in Kasos 021
NBG Recycle Cash in the Greek Islands KAVALA XANTHI THASOS ATHENS Andros Island Tinos Island KYTHNOS Syros Island Mykonos Island Serifos Island Naxos Island Folegandros Island SIKINOS SANTORINI 022
Merihas Kythnos limenaria Thasos Phara Sikinos Oia Santorini Greek Islands - Efficient ATM Cash Recycle 10 9 8 7 6 5 4 3 2 1 0 Recycling ATM in islands 500.000 450.000 400.000 350.000 300.000 250.000 200.000 150.000 100.000 50.000 0 Replenishments # Withdrawals Deposits ATM_ID NAME Replenishments # Withdrawals # Withdrawals Deposits# Deposits Deposits / withdrawals % NB0869L8 Merichas Kythnos 1 1.353 242.273 133 267.033 110% NB0717V0 NB0717N4 limenaria Thasos Phara 3 2.001 446.499 368 263.461 59% 2 510 115.289 119 56.689 49% NB0869N4 Sikinos 1 451 98.635 81 34.821 35% NB0869I0 Oia Santorini 4 2.620 465.815 208 139.539 30% 023
NBG Recycle Cash in the Greek Islands Tinos Island Ikaria island Samos island Kythnos Island Syros Island MYKONOS FOURNOI Serifos Island Naxos Island AMORGOS Kos island Folegandros Island SIKINOS SANTORINI CHANIA KASOS SFAKIA CRETE 024
Merihas Kythnos limenaria Thasos Phara Sikinos Oia Santorini Greek Islands non efficient ATM Cash Recycle 10 9 8 7 6 5 4 3 2 1 0 Recycling ATM in islands 600.000 500.000 400.000 300.000 200.000 100.000 0 Replenishments # Withdrawals Deposits ATM_ID NAME Replenishments # Withdrawals # Withdrawals Deposits# Deposits Deposits / withdrawals % NB0869I7 Myconos 4 3.239 562.538 316 101.218 18% NB0869N3 Fournoi ikaria 2 1.188 223.454 53 29.118 13% NB0869N6 Aigiali Amorgos 1 2.192 333.053 91 32.413 10% NB071747 Platanias Chania 4 2.104 382.199 82 20.567 5% NB0717R9 Fry Kasos 1 429 83.425 16 4.205 5% NB071751 Sfakia Chania 3 1.179 272.809 14 5.604 2% 025
Customer Experience Bank s presence in places where no branch is established Bank s presence in places where branches are closed Full Digital Banking Services Bill Payments supported by different channels Cash Deposit Capability Capability to pay bills by cash or debit/credit card 026
NBG Benefits Bank s presence in places where no branch is established Bank s presence in places where branches are closed Customer satisfaction One more step to digitalization Increase number of transactions Increase deposits Decrease transaction cost Work on the next generation ATM 027
Future Plans 1. NBG will expand the service model to the islands of: SERIFOS Astypalaia, Folegandros, Sifnos island Antiparos island Paros island Naxos island Amorgos island Serifos Milos island Sikinos island Ios island 2. NBG will enhance the ATM transaction offering FOLEGANDROS ASTYPALAIA implementing : Santorini island Pre - staged Mobile Transaction Web transaction 028
In the Greek Case Study Cash Wins the War Thank you Georgia Botsika Head of ATM Channel mpotsika.georgia@nbg.gr Digital Channels Division 029