Itau Unibanco Holding S.a. · BMFBOVESPA:ITUB3
Itau Unibanco — 14th Annual Itaú BBA Conference 2019
38 slides from Itau Unibanco's conference presentation, May 16, 2019
Slide 1: Announcement to the Market
Exhibit 99.1 ITAÚ UNIBANCO HOLDING S.A. CNPJ. 60.872.504/0001-23 Public Company NIRE 35300010230 Announcement to the Market Itaú Unibanco Holding S.A (“Company”) informs that will make a presentation for investors and shareholders today at the 14th Annual Itaú BBA Conference, in New York. The conten
Slide 2: Digital strategy
Digital strategy Candido Bracher | President and CEO Ricardo Guerra | CIO Itaú Unibanco | May 2019Digital strategy Candido Bracher | President and CEO Ricardo Guerra | CIO Itaú Unibanco | May 2019
Slide 3: Customers expectations have changed
Does not want Customer needs to waste time in traffic MOBILITY Wants access to nice and easy LEISURE entertainment Customers expectations Needs to communicate with his/her network COMMUNICATION have changed. anytime, anywhere They demand high-quality Seeks to have new experiences and convenience TRA
Slide 4: The game changer: technology
The game changer: technology Solving real customer needs through tech. BIOMETRICS BIG DATA ANALYTICS AI/ML CHATBOTS SMARTPHONE WEARABLES CLOUD BLOCKCHAIN SOCIAL MEDIAThe game changer: technology Solving real customer needs through tech. BIOMETRICS BIG DATA ANALYTICS AI/ML CHATBOTS SMARTPHONE WEARABL
Slide 5: Customer ownership is the new rule
Customer ownership is the new rule Respect customer privacy Continuously listen to customers and follow up to get their feedback Motivate employees to stay engaged Act proactively to anticipate needs Adapt to customer demands and circumstances in real time Build customer empathy into processes and p
Slide 6: How to achieve customer ownership?
How to achieve customer ownership? Innovators Incumbents X Challenge: change Challenge: scale “Incumbents must find innovation before innovators find distribution” How to achieve customer ownership? Innovators Incumbents X Challenge: change Challenge: scale “Incumbents must find innovation before in
Slide 7: What is Itaú Unibanco doing to achieve customer ownership?
What is Itaú Unibanco doing to achieve customer ownership? Bulding digital capabilities on top of major strenghts. Leverage Develop + The capability to Lots of data continuously transform Large customer base A full range of products + speed to extend our digital offer value proposition and services
Slide 8: What is Itaú Unibanco doing to achieve customer ownership?
What is Itaú Unibanco doing to achieve customer ownership? + speed to extend our digital offer value proposition addressing deep knowledge of customer real customer needs Itaú Unibanco | Maio 2019What is Itaú Unibanco doing to achieve customer ownership? + speed to extend our digital offer value pro
Slide 9: What is Itaú Unibanco doing to achieve customer ownership?
What is Itaú Unibanco doing to achieve customer ownership? + speed to extend our digital offer value proposition addressing deep knowledge of customer real customer needs Itaú Unibanco | Maio 2019What is Itaú Unibanco doing to achieve customer ownership? + speed to extend our digital offer value pro
Slide 10: Speed to extend our digital offer (10x)
Speed to extend our digital offer (10x) 10x 2x CI/CD Methodologies Processes Business + tech Test automation Delivery integration using AI Cloud Technologies Communities (digital channels) Legacy modernization Business + tech Analytics Cubo Agile and integration (all Delivery Ops (innovation design
Slide 11: Working model | Digital-oriented organization
Working model | Digital-oriented organization Customer centricity means managing the organization in a new way. DELIVERY COMMUNITIES Moving from command and control to autonomy TRADITIONAL MODERN User Experience Technology Project management Continuous evolution of Product and execution our digital
Slide 12: Technology platform | Legacy modernization
Technology platform | Legacy modernization Microservices advantages: Benefits of • Scalability and flexibility • More frequent deliveries • Availability modernization • Time-to-money reduction Batch processing architecture Event-driven • Cost and lock-in reduction ONLINE SYSTEMS BATCH SYSTEMS • Digi
Slide 13: Technology platform | Cloud
Technology platform | Cloud Technology tools that support our working model. Cloud Why is cloud computing important to us? more 8x • Time-to-money reduction solutions • Application modernization in cloud • Cost efficiency • Operational risk reduction 2017 2018 • Access to public cloud tools 2018 201
Slide 14: Technology platform | DevOps and SRE
Technology platform | DevOps and SRE Accelerate integration, continuous deployment and software delivery. DevOps and SRE Waterfall Design Code Test Deploy DevOps CI/CD Waterfall Incorporate Agile practices to shorten the development life Code Test Code Test Code Test Deploy Design cycle while delive
Slide 15: CUBO | Innovation ecosystem
CUBO | Innovation ecosystem 70+ projects 1,100 between the bank residents (120 startups) and Cubo startups Cubo is the largest hub 13 floors startups for technological 400 members + rooftop entrepreneurship promotion in 215,000+ ft² Latin America. 2,000 people/day + 4 events/day 1,000 events/year 24
Slide 16: What is Itaú Unibanco doing to achieve customer ownership?
What is Itaú Unibanco doing to achieve customer ownership? + speed to extend our digital offer value proposition addressing deep knowledge of customer real customer needs Itaú Unibanco | Maio 2019What is Itaú Unibanco doing to achieve customer ownership? + speed to extend our digital offer value pro
Slide 17: Technology platform | Data analytics and AI
Technology platform | Data analytics and AI Understand customers and leverage the business. Generated value Training and capacity building Analytics Ops Value capture with AI and analytics has Human capital training and knowledge Efficient strategy for been increasing dissemination model deployment
Slide 18: Technology platform | Open banking
Technology platform | Open banking More data about our customers. PHASE 1 PHASE 2 PHASE 3 PHASE 4 2022 2020 2021 CURRENT ACCOUNT INFORMATION PRODUCT INFORMATION CUSTOMER DATA PAYMENT CREDIT INFORMATION Location of points of service, product Name, parents’ names, address etc. Data related to deposit
Slide 19: Human capital | Initiatives
Human capital | Iniciatives Performance based New ways to on cooperation attract talent Evaluation combines collective indicators and individual efforts Hackathons + 5,000 pre-select new people (2018) employees Data scientist Analytics Education New technology Program building Redesigned spaces to e
Slide 20: Our initiatives are reflected in numbers
Our initiatives are reflected in numbers Significant improvement in indicators: Lead time Regulatory environment More value Reduced delivery time for Attended more regulatory requirements Highest return on financial technology solutions using technology benefit projects (Base 100) (Base 100) (Base 1
Slide 21: Digital experience | Customers are increasingly going digital
Digital experience | Itaú Unibanco customers are increasingly going digital 1 Use of digital channels % of transactions through digital channels Transaction volume (%) Individuals (millions) Companies (millions) 74% 73% 1Q17 1Q19 2 Credit 16% 18% 11.5 2 Investments 37% 46% 27% 1.2 10.0 1.1 26% 1.0 8
Slide 22: Digital experience | Efficiency focus, while investing in technology
Digital experience | Efficiency focus, while continuously investing in technology Technology investments 160 130 122 100 111 106 101 18% 100 Inflation (IPCA) 70.1 accumulated in the 64.2 61.2 60.7 46.4 47.6 46.3 45.3 period 2016 2017 2018 2019 (E) Efficiency Ratio (%) Risk-Adjusted Efficiency Ratio
Slide 23: Digital experience | Continuous updates for a better experience
Digital experience | Continuous updates for a better experience 1st bank APP ITAÚ (INDIVIDUALS) offering bank account opening by mobile phone 4,6 + 11 MM individual clients using digital channels 1st bank + 40 new features on the offering a leaner mobile channel smartphone app 318 updates in our app
Slide 24: What is Itaú Unibanco doing to achieve customer ownership?
What is Itaú Unibanco doing to achieve customer ownership? + speed to extend our digital offer value proposition addressing deep knowledge of customer real customer needs Itaú Unibanco | Maio 2019What is Itaú Unibanco doing to achieve customer ownership? + speed to extend our digital offer value pro
Slide 25: Offers | REDE customer centricity case
Offers | REDE customer centricity case Rede eliminated the prepayment rate on credit card transactions without installments. Come to Rede. • Use of any Rede’s point of sale machine with a bank domicile in Itaú Unibanco • Annual sales up to R$30 million Stimulate the Pursue even Influence We developm
Slide 26: Offers | Credicard ZERO
Offers | Credicard ZERO Paperless, zero fee credit card. Zero annuity and distinguished Customer • 100% digital sale: 691k new customers loyalty program that converts recognition into miles of any company • 45% lower operational costs and 69% lower acquisition costs Global NPS 74 Available on: Digit
Slide 27: Offers | personalized investment offer
Offers | personalized investment offer A customized selection of investment products by Itaú or other companies. Transparent + knowledge and understanding recommendations, respecting of customer. investor profile and goals. Main products and services Funds Stocks Tesouro Savings Retirement CDB and f
Slide 28: Offers | insurance open platform
Offers | insurance open platform Expansion of insurance portfolio with complementary products offered by partner insurance companies. Residential / Auto Corporate 2018 Healthcare 2017 Capitalization 07 categories 11 Life Card protection 02 insurers 08 Smartphone Assistance protection 05 channels 07
Slide 29: Iti multi-purpose platform
Iti is a multi-purpose platform that allows clients and non-clients to pay, buy, transfer and receive money instantaneously peer-to-peer or through a QR code. Individuals • No minimum income or bank account requirements • Pay, buy, transfer and receive money easily and instantly, using just a smartp
Slide 30: Product evolution
Product evolution layer 0 layer 1 layer 2 layer 3 hypothesis (to be determined Digital prepaid Open banking Beyond by customers) Lending platform account banking Investments Payments Marketplace Credit card Human chat service Personal financial management Conversational interface Scale and Monetize
Slide 31: Digital experience | Recurring net income and value creation
Digital experience | Recurring net income and value creation ROE Average cost of capital Recurring net income Value creation Cost of capital Itaú Unibanco | May 2019 R$ billionDigital experience | Recurring net income and value creation ROE Average cost of capital Recurring net income Value creation
Slide 32: Digital strategy
Digital strategy Candido Bracher | President and CEO Ricardo Guerra | CIO Itaú Unibanco | May 2019Digital strategy Candido Bracher | President and CEO Ricardo Guerra | CIO Itaú Unibanco | May 2019
Slide 33: Attachments
Attachments Itaú Unibanco | May 2019Attachments Itaú Unibanco | May 2019
Slide 34: Economic models
Economic models Traditional Digital products market Several High initial CAPEX $ opportunity short investment becomes delivery OPEX: cycles Variable costs Financial Low return Fixed costs initial Costs Free is too investment different Investment from cheap $ (behavioral Delivery economics) Low custo
Slide 35: Technology as business enabler
Technology as business enabler MOBILE EVENT-DRIVEN AND INTERNET ARCHITECTURE 1 3 1 2 SOCIAL CLOUD 1 2 3 DATA BLOCKCHAIN 1 2 2 MICROSERVICES AGILE (business + tech) 2 2 3 1 WHAT DO WE NEED TO PURSUE? Customer obsession Low capex 1 3 Freemium 2 Speed 4Technology as business enabler MOBILE EVENT-DRIVEN
Slide 36: Agile working model | Delivery communities and continuous delivery
Agile working model | Delivery communities and continuous delivery Evolution of working model +6000 employees Technology Technology + bj d bj d bj d bj d in this model other areas of the bank Delivery communities Integrated communities 2018-2021 2015/2016 (operational improvements) 2017 Lead time 10
Slide 37: Technology platform | Open banking regulation
Technology platform | Open banking regulation Open Banking is moving in many countries and each one is creating models to fit local specifications. Canada is Russia is exploring analyzing the Open the Open Banking / Banking subject Data model UK Implementation in Implementation is 2018 EU PSD2 USA t
Slide 38: Technology platform | Open banking regulation
Technology platform | Open banking regulation Itaú Unibanco is closely following the regulation evolution of open banking. Access and aggregation of transactions from different IFs in a Aggregates data and single data environment to offer several analysis and solutions to analitycs decisions 1 suppo
Itau Unibanco Holding — 14th Annual Itaú BBA Conference 2019 on 6ix