The document summarizes the digital transformation journey of Touch Bank, a fully digital retail bank in Russia, in 3 sentences or less: Touch Bank launched in April 2015 after a one year build, has over 70,000 customers accessing banking services through internet, mobile, and call centers with no physical branches or ATMs, and has received awards for innovation including Best Online Bank of 2015 and Most Innovative Retail Bank in Russia 2016.

1. 1
The Journey to Digital Transformation
Andrei Kozliar, CEO of Touch Bank
Backbase webinar
22nd June 2016

2. Part of OTP Group
Fully Digital retail bank
1 Year from concept to market launch
Start of build: April 2014
Launch: April 2015
Employees: 260
Number of brunches & ATM: 0
Touch Bank at a glance
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70 000 + clients in 1 Year
Customer service channels: Internet, mobile, call center
The Journey to Digital Transformation

3. Our acheivements
3The Journey to Digital Transformation
Best Online Bank 2015
“National Banking Magazine”
Product of the Year 2015
Finance Innovation Award for
“Cards in Card” service
Product Innovation
of the Year 2016
Most Innovative
Retail Bank Russia 2016

4. Touch Bank services today
4The Journey to Digital Transformation
Current account
Savings
Credit Card
Loyalty
Personal Loan
VAS

5. Digital Transformation - within or outside?
Does Digital mean ‘Real Time’?
Is innovation limited to technology only?
Key Questions
5The Journey to Digital Transformation

6. ONLINE
APPLICATION
Internal:
• Corporate culture
• Bureaucracy
• Processes
• Habits
• Resistance to change
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Digital Transformation - within or outside?
May stifle:
• Innovation
• Agility
• Flexibility
• Speed
• Decision freedom
The Journey to Digital Transformation

7. Does Digital mean ‘Real Time’? (onboarding)
Presentation 7
1. Download a Mobile App / Sign Up for Internet Bank / Register
in App
2. Wait up to 5 working days for the letter containing a Mobile
App PIN / Internet Bank PIN (they are DIFFERENT!)
3. Wait up to 5 working days for the card
4. Only one mobile device is allowed to be used for Mobile
Banking
5. A new client receives 3 different envelopes containing PINs
for Mobile Bank, Internet Bank, Telephone Banking
1. Complete 1 online application (2-7 min, depending on a product)
2. Receive log-in details via sms instantly
2. Sign up for Mobile App / Internet Bank, start using instantly
3. Receive card (1 working day, delivered at the time and to a place
convenient to you)
The Journey to Digital Transformation

8. Does Digital mean ‘Real Time’? (financial & transactional info)
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1. Card (and some other) transactions appear in Mobile / Internet
Bank with at least a 24-hour delay
2. Up-to-date balance is impossible to get online
3. Loyalty / Reward programme: accumulation, redemption,
balance are all administered off-line
4. Absence of online transaction confirmation (e.g. via sms, push)
to reduce fraud, increase convenience
Just real-time and no more excuses
The Journey to Digital Transformation

9. Does Digital mean ‘Real Time’? (accounts & cards management)
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Transactional limits
Online, one click
account opening
Online PIN
management
Online card
(un)blocking
The Journey to Digital Transformation

10. Does Digital mean ‘Real Time’? (instant money transfer)
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• To support money send to any people (any bank clients)
• To work with any phone numbers and e-mails (including
for transfers between Touch Bank clients)
• Card to Card transfers
From account details to phone number & e-mail
The Journey to Digital Transformation

11. How many users were on site?
From what channels did they come?
How much did we pay?
How many of them
started application?
Completed
Application?
How many cards
were ordered/
delivered?
Are they being used?
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Optimization based on data on the sales funnel – orders, activations and first transactions (based on
LTV in prospective)
The Journey to Digital Transformation
Does Digital mean ‘Real Time’? (performance strategy)

12. Real-time follow up for abandoned
applications using Multi-Channel
Campaign Management System for
maximizing conversion rate
12The Journey to Digital Transformation
Does Digital mean ‘Real Time’? (performance strategy)

13. ONLINE
APPLICATION
Innovation is not only about
technology, it should also be in
products and services
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Is innovation limited to technology only?
Product & Service innovation:
• ‘Cards in Card’ – wallet in a plastic card
• Savings account with daily capitalisation paid onto
client’s account
• Distribution of credit line between Cash Loan and
Credit Card accounts
• Revolving Cash loan with changable term
• One card to serve all accounts
• Real-time currency and stock trading via Mobile /
Internet Bank
The Journey to Digital Transformation

14. Thank You!
The Journey to Digital Transformation 14