Finecobank Spa · MIL:FBK
Finecobank Spa — Investor Day (September 2021)
29 slides from Finecobank Spa's investor day presentation, Sep 9, 2021
Slide 1: IT Day 2021
IT DAY 2021 Milan, September 9th, 2021 1
Slide 2: ICT: A Key Business Driver
THE START ICT: A KEY BUSINESS DRIVER 2 3 4 1 SIMPLICITY OMNICHANNEL BIG-DATA TIME TO MARKET & CUSTOMIZATION Client front-ends are built IT provides a seamless user Data management in-house and designed experience through a full unified data archive is Internal IT infrastructure and for simple and in
Slide 3: 1. Simplicity
1. SIMPLICITY 3
Slide 4: Unusual Fintech, Competitive Advantage
AN OVERVIEW OF UNUSUAL FINTECH, COMPETITIVE 3 PLATFORM EFFICIENCY ADVANTAGE 4 SMOOTHER DELIVERY AND 1 PROPRIETARY PLATFORM REDUCED TIME-TO-MARKET 2 STRONG OPERATING LEVERAGE KEY TO DEVELOP FOREIGN 5 TOP-TIER PERFORMANCE MARKETS 4
Slide 5: Our Technology
AN OVERVIEW OF OUR TECHNOLOGY cost/income(1) 215 2+1 FTEs in IT Dept. Data Centers (2 OnPrem, 1 Virt. ) > 2,500 > 200 Servers managed Applications 11,000 >3,650 Changes TB under per year management 44 40 39 37 36 36 32 2014 2015 2016 2017 2018 2019 2020 5 (1) Figures adjusted for non recurring items
Slide 6: 2. Omnichannel
2. OMNICHANNEL 6
Slide 7: Omnichannel Integration
AN OVERVIEW ON OMNICHANNEL INTEGRATION Clients Financial Advisors Third parties Cyborg Open Channels banking advisory IT Architecture Infrastructure layer INTELLIGENCE Network Security, Transaction, Interceptor, Message Broker Virtualization CORE BROKERAGE FUNDS CLOUD Storage BANKING Server Predicti
Slide 8: 3. Big-Data
3. BIG-DATA 8
Slide 9: Extracting Business Value from Big Data Analytics
1 2 3 FROM BIG DATA ANALYTICS EXTRACTING BUSINESS A PROPRIETARY, INTEGRATED BACK- END2END DATA DRIVEN IN-HOUSE DEVELOPMENT AND AUTOMATED PROCESSES VALUE END APPROACH Customer Marketing Products Back-office PFAs Care BUSINESS INTELLIGENCE to serve and protect our customers Fraud Management Cybersecur
Slide 10: 4. Time to Market & Customization
4. TIME TO MARKET & CUSTOMIZATION 10
Slide 11: Tech Sourcing Strategy
TECH SOURCING STRATEGY Focus on core business Value and Differentiation Make and invest Speed of change (Agility) Buy and Invest Keep control on architecture Excellent customer experience Day-by-Day Innovation Buy, Retain, Once effective, focus on Outsource Spin Off efficiency Competence and Perform
Slide 12: Tech Infrastructure
TECH INFRASTRUCTURE 100% NETWORK Full control, ownership, CONNECTIVITY responsibility IN BARE METAL SERVERS Flexibility and v-low dependency on 3° party providers MIDDLEWARE & Cost savings & Efficiency DATABASES 0% Security and Expertise HYPERVISORS, OUT VM & CONTAINERS V-low Total Cost of Ownership
Slide 13: Brokerage, Investing, Funds, X-Net
BROKERAGE, INVESTING, FUNDS, X-NET OUT 100% IN Typically based on customers Platforms designed and built in-house. Very low TCO COSTS headcount or total AUM compared to external solutions and very scalable Depending on contractor SDLC Frequent updates and new features LEAD TIME (Software Development
Slide 14: Tech Boosts Customer Satisfaction through CRM & BO Efficiency
TECH BOOSTS CUSTOMER SATISFACTION THROUGH CRM & BO EFFICIENCY CRM and Back-office managed in-house and fully integrated with IT systems and data warehouse, enabling the highest level customer experience. That's why we have 94% of satisfied customers. Information Source: KANTAR TNS - December 2020 14
Slide 15: 5. Cost Efficiency
5. COST EFFICIENCY 15
Slide 16: Comparative Analysis: Fineco vs Benchmark CIPA-ABI
AN OVERVIEW OF COMPARATIVE ANALYSIS: FINECO VS BENCHMARK CIPA-ABI Below is a comparison between Fineco's IT cost values and the indicators reported in the "Survey on IT in the Italian banking system", edited by CIPA (Interbank Convention on Automation, chaired by Bank of Italy) and ABI (Italian Ban
Slide 17: Fineco vs Competitors
SUMMARY REPORT ADEQUACY AND ICT COSTS 2020 FINECO VS COMPETITORS KPI COMPETITOR 1 COMPETITOR 2 COMPETITOR 3 FINECO 6.5% 6.8% 16.8% IT Operating spending/ Revenue 4.3% (+51%) (+58%) (+290%) IT Operating 6.5% 7.9% 18.9% spending / Gross 4.3% operating result (+51%) (+84%) (+340%) IT Operating 132.40€
Slide 18: FinecoBank IT Spending Analysis
AN OVERVIEW OF FINECOBANK IT SPENDING ANALYSIS The Gartner cost value matrix is designed to understand the THE GARTNER COST VALUE MATRIX (CVM) relationship between IT costs and the is a 2x2 table that evaluates the relationship between IT costs and the implied value of IT investments. value IT inves
Slide 19: Cost Value Matrix (2020 Banking and Financial Services)
COST VALUE MATRIX (2020 BANKING AND FINANCIAL SERVICES) REVENUE-EFFICIENT VALUE FOR MONEY COST-INEFFICIENT COST-EFFICIENT 19
Slide 20: 6. Technology
6. TECHNOLOGY 20
Slide 21: Fineco Innovation Technological Stack
A DETAIL OF FINECO INNOVATION TECHNOLOGICAL STACK Microservices 21 21
Slide 22: 7. Reliability
7. RELIABILITY 22
Slide 23: Service Availability Internet Banking
SERVICE AVAILABILITY INTERNET BANKING Way more reliable and faster than competitors! 0.1% = 2.1h downtime on a Quarterly basis. downtime 100% 100% AVAILABILITY (%) 99.81% 99.65% 99.64% 99.64% 99.59% 99.36% 14h 4h 8h 8h 9h 8h COMPETITOR 1 COMPETITOR 2 COMPETITOR 3 COMPETITOR 4 COMPETITOR 5 COMPETITOR
Slide 24: Unexpected Event: Pfizer Vaccine - Nov 9th, 2020
UNEXPECTED EVENT PFIZER VACCINE - Nov 9th, 2020 FROM 100 TO > 4,000 EXECUTIONS IN ONE MINUTE 24
Slide 25: Unexpected Event: Pfizer Vaccine - Nov 9th, 2020
UNEXPECTED EVENT PFIZER VACCINE - Nov 9th, 2020 BEFORE AFTER 25
Slide 26: 8. Cyber Security & Fraud Management
8. CYBER SECURITY & FRAUD MANAGEMENT 26
Slide 27: Strong Risk Control
STRONG RISK CONTROL Able to manage very high volumes last year 313Mln 32Mln 30Mln 8K/Sec Accesses to Banks Logins/Month Requests/sec by digital channels transfers/year clients 1,355,000 Logins/Day NO MAJOR CYBER SECURITY INCIDENT IN 10 YEARS 27
Slide 28: Strong Risk Control
STRONG RISK CONTROL TX volume > 20 bn € TX volume > 6 bn € 0.00005 bps 0.015 bps Net Fraud loss rate Net Fraud loss rate on banks transfers on cards WITH A STATE-OF-THE-ART TRACK RECORD ON RISK CONTROL 28
Slide 29: Thank You
THANK YOU 29