Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — Corporate Update (November 2021)
45 slides from Bendigo & Adelaide Bank's corporate update, Nov 26, 2021
Slide 1: ASX Announcement: Digital Transformation Market Briefing
ASX Announcement Digital Transformation Market Briefing – Presentation and script 26 November 2021 Appended is the Bendigo and Adelaide Bank Limited (ASX:BEN) presentation and script for the market briefing on the Bank’s digital transformation today at 10am (Australian Eastern Daylight Time). Approv
Slide 2: Market Briefing: Digital Transformation
Market Briefing Digital Transformation 26 November 2021
Slide 3: Welcome and Agenda
Marnie Baker Welcome Managing Director Ryan Brosnahan Chief Transformation Agenda Our Strategy Officer Digital Transformation Up Xavier Shay Q&A Chief Executive Officer, Up 2
Slide 4: Our strategy: Shaping the future of banking
Our strategy Shaping the future of banking Vision Purpose Imperatives Australia’s To feed into prosperity, Reduce complexity bank of choice not off it Invest in capability Tell our story Customer Centric Customer Growth & Operating Model Value Proposition Transformation Strategy Digital by design, h
Slide 5: Reimagining banking
Reimagining banking Changing customer expectations Innovation and partnerships Delivering new ways of banking Executing digital transformation 4
Slide 6: Ryan Brosnahan, Chief Transformation Officer
Ryan Brosnahan Chief Transformation Officer 5
Slide 7: | Wh LLY
| Wh LLY ee mg icro X ) Z. U; g A
Slide 8: The world is 'on' 24/7
The world is ‘on’ 24/7 7
Slide 9: Strengths
Partnering to enhance capability Adaptability and innovation Our genuine and authentic human connections Strengths 8
Slide 10: Modernisation, Digitisation, Simplification
Modernisation Digitisation Simplification 9
Slide 11: Digital Transformation roadmap
Digital Transformation roadmap Done FY20/FY21 Doing FY22/FY23 Planned FY24 Partnered with Tyro, reducing merchant Delphi Bank integration Rural Bank integration systems from 7 to 1 completed Alliance Bank integration Reduced Technology applications by 13% Adelaide Bank integration Simplification Ena
Slide 12: Executing against our transformation plan
Executing against our transformation plan We have clear measures in place to drive value from our digital transformation # brands: % applications in the Cloud: Average time to decision (home loan): FY19 13 FY24 3 FY19 1% FY24 50% FY19 22 days FY24 1day % automated credit decisioning (home loans) 0%
Slide 13: 12
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Slide 14: Building the bank for younger generations
Building the for younger generations ~ or" @ up.com.au 6 kis3icio| jer ‘onriron
Slide 15: Up's mission for customers' financial wellbeing
x» We believe we can take people from a place where money is a cause Of stress and anxiety to a happier place where you feel empowered Flivesin control of your finances. UP.COM.AU ‘ae #UPYEAH 14
Slide 16: Customer reviews
KaKKKK “Life changing. No joke, Up Bank has drastically changed the way | interact with my money for the better.” KkKKK* “I've never been able to save before but this app saves for me.” KKKKK “Bank app that helps you actually save money. The customer service is great too!” KaKK* “Makes banking a who
Slide 17: Customer growth and referrals
A Two thirds of new customers |Were referred by a friend. month on month active customer growth. Active customers make more than one purchase per day sremonntoiy “ a 16
Slide 18: Current Tech
Current Tech ©) Google Cloud Platform First cloud-hosted retail bank in Australia 7WISE 350 mins First and only bank integration in Australia . downtimeever _ Planned & . “unplanned Me afterpay<> First and only bank integration globally B Bendigo Bank Leading fintech-bank partnership @ mastercard Up
Slide 19: Public roadmap
(Q) memes =. (ft) accouns Transparency — Public roadmap A. The Tree of Up - PROFILE oi tin ; Ol Of: @ji O1-@1-@ 1-O!.@1-Oe @! wie OO) @;-O7-©-Oi- gz mi pmisal ak,
Slide 20: 19
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Slide 21: Applying (hours-days)
APPLYING (HOURS—DAYS)
Slide 22: Your home payment: Up Home
2UF HOME PAYMENT = 32 OTTER ST. eA digital, financial manifestation of your home in Up « Home Saver — save up and understand your deposit. e@ Home Insights — understand and budget for your running costs @ Tools to help you easily manage your repayments (e.g. round ups, repayment boosts) e Helping pe
Slide 23: Start your UpHome application
Start your UpHome application © © rapesrromeup.comsa oO Start your UpHome applicatic Are you looking to buy a new property or are you refinancing y: existing one? When are you planning to buy? 22
Slide 24: Customer and industry feedback
“So much more than a feature — an _ outcome, financial health and literacy” — Pauline Theobald Wray, MD Global Lead,.BCG Expand:Fintech Control-Tower ‘ff (7-may-202) . “Is this the best product launch landing page ever?” . — Jax Vullinghs, Principal, AirTree {J (7-mey-202%) Bloody brilliant ¢ Beyond
Slide 25: Monday, June 3
a 9:41 Monday, June 3. we uP New purchase $84,00 by Clement Coffee Balance: $50
Slide 26: Building the bank for younger generations
Building the for younger generations or @ up.com.au a isis) > Esser |
Slide 27: Q & A
Q & A 26
Slide 28: Appendix
Appendix 27
Slide 29: History of firsts and awards
Launched Best use of AI in Garmin and Fintech Award – Fitbit Pay Tic:Toc First lender to 1st Excellent launch digital Banking App – home loan Bendigo Bank – Bendigo Bank Mozo Expert’s First to Express Choice Award launch First to offer internet Launched Launched 4th Excellent First to mortgage banki
Slide 30: Disclaimer
Disclaimer This document is a presentation of general background information about the Group’s activities current at the date of the presentation. It is information in a summary form and no representation or warranty is made as to the accuracy, completeness or reliability of the information. It is t
Slide 31: Analysts and Media contacts
Analysts Karen McRae Head of Investor Relations T: +61 3 8414 7060 M: +61 417 186 500 E: karen.mcrae@bendigoadelaide.com.au Alex Hartley Manager Investor Relations T: +61 8 8300 6290 M: +61 478 435 218 E: alex.hartley@bendigoadelaide.com.au Media Lauren Andrews Acting Head of Public Relations T: +61
Slide 32: Script: Welcome by Marnie Baker
Bendigo and Adelaide Bank Digital Transformation Market Briefing Friday 26 November at 10am EST. Marnie Baker Slide 1 Good morning and welcome to Bendigo and Adelaide Bank’s Digital Transformation Market Briefing. I acknowledge the Traditional Custodians of the many lands on which we are meeting tod
Slide 33: Script: Xavier Shay introduction and outlook
After starting his career as a software engineer in Melbourne's start up scene, Xavier spent almost a decade working in the engineering leadership team for global payments company, Square, leading and coaching teams across the United States. He returned to Australia in 2019 where he joined Ferocia a
Slide 34: Script: Customers at the centre of transformation
Fundamentally, it’s our customers who are at the centre of our transformation program – they must be. Slide 4 And at the centre of our acquisition of Melbourne based Fintech, Ferocia is a simple, crystal-clear mandate. We are reimagining banking. When we launched Up, Australia’s first and largest mo
Slide 35: Script: Ferocia acquisition and unique strengths
The acquisition of Ferocia cements a 9-year partnership between Ferocia and the Bank, uniting our collective innovation, heritage and matched capabilities to accelerate the Bank’s digital transformation and further grow a unique digital banking proposition. We are responding to our customers and the
Slide 36: Script: Competitive advantages and digital banking
We have unique competitive advantages that can’t be easily replicated and our digital transformation will amplify these along with providing us the ability to scale efficiently Slide 7 We recognise that customer preferences are radically changing. Customers expect a Netflix or Uber like experience f
Slide 37: Script: Simplification and modernising technology
a) We are reducing the number of Brands we have in market to 3, this means we can use the power of the Bendigo brand more which is already one of the most trusted brands in Australia b) We have narrowed our focus on fewer customer segments, we are now focused on; young people starting out, those who
Slide 38: Script: Digitisation and Up
that we work together, the way we design experiences, and the way we develop, test and deploy software We are focused on digitising the right experiences and interactions with our customers to make these interactions easier and more convenient. This focus on digitisation through an operational excel
Slide 39: Script: Progress on simplification and modernisation
3. Sold non-core Businesses 4. Commenced integrating Delphi and Alliance businesses into the Bendigo products and systems, the first of which we will complete in the next quarter. As far as Modernisation goes: 1. We have established multi-cloud capability and have containerised our workloads in a wa
Slide 40: Script: Building the future and handover to Xavier
Slide 12 We have made a great start to building the future over the last 2 years by significantly progressing our simplification, modernisation and digital transformation roadmap. This has enabled us to both grow in parallel to transforming, to walk and chew gum. And we have a lot to look forward to
Slide 41: Script: Up customer metrics
And while we see this every week from all of our five-star reviews that we're getting from our customers, we see it come through in our metrics as well. Slide 16 More than two thirds of our new customers are from Referrals, which leads to a very low cost of acquisition. We’ve been able to grow to ou
Slide 42: Script: Up Home customer journey
While you could just think of this as offering home loans to Upsiders, I wanted to use this as an example to talk through how we approach this type of feature from a customer experience. Typically, with a home loan you’ll hear people talking about how long it takes to apply, the rate, and all of tha
Slide 43: Script: Multiplayer banking and 2Up
Slide 23 So that's Up home. The second thing I wanted to talk about was our multiplayer banking strategy, or was we like to say, making Up better with mates. 2Up is something we launched earlier this year that is a really good example of this. 2Up is our take on joint accounts, and like we’re doing
Slide 44: Script: Slices feature and low-cost growth
We've got a bit of a leader board there to help encourage everybody to pay back quickly. As part of this, we've also done a fun little promotion where if you split a purchase more than $30, you’ll have a chance of us chipping in and getting a slice on us, which is pretty cool. It's a continuing on a
Slide 45: Script: Closing and questions
community connection to position us for ongoing success and shape the future of banking for all our stakeholders. I will now open for any questions from those on today’s call. 14
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