Banco De Credito E Inversiones · BCS:BCI
Banco De Credito E Inversiones — Investor Day (April 2021)
27 slides from Banco De Credito E Inversiones's investor day presentation, April 2021
Slide 1: MACH Day Investors Presentation April 2021
DAY INVESTORS PRESENTATION APRIL 2021
Slide 2: Today's Agenda
TODAY'S AGENDA A LITTLE BIT OF HISTORY How was MACH born and what is its mission? WHERE ARE WE TODAY? Current status & traction so far WHERE ARE WE HEADING? MACH strategy & monetization model HOW DO WE RELATE WITH THE BANK? MACH-BCI collaboration & governance model
Slide 3: A Little Bit of History
A LITTLE BIT OF HISTORY How was MACH born & what is its mission?
Slide 4: Challenge for the team and strategic logic
Challenge for the team Strategic logic Surface & solve Chileans' frictions Build a massive customer base related to payments by developing a winning solution Driving financial inclusion Customer-focused Focusing on daily needs Innovative 100% digital
Slide 5: We identified opportunities from two sources
WE IDENTIFIED OPPORTUNITIES FROM TWO SOURCES Voice of the Customer Art of the Possible We interacted closely with people to understand We studied local and global trends their real frictions and needs and sought inspiration from global benchmarks Team traveled to Manhattan Beach (USA) to work with e
Slide 6: We interacted closely with people
We interacted closely with people To surface their real needs DETAILED INTERVIEWS ON THE SPOT INTERVIEWS One-on-one interviews On-the-fly interviews to gather volume insights ~20 interviews 90 minutes each +30 interviews 20 minutes each
Slide 7: We developed concepts to solve the frictions, prioritized through shark-tanks
WE DEVELOPED CONCEPTS TO SOLVE THE FRICTIONS, WHICH WE PRIORITIZED THROUGH SUCCESSIVE SHARK-TANKS 40 CONCEPTS 12 4 1 Prioritization Desirability criteria Viability Feasibility
Slide 8: MACH was created to democratize the access to payments in Chile
MACH was created to democratize the access to payments in Chile Multiple frictions, especially MACH: Buy. Pay. Share at the base of the pyramid Online payments. Simple and free I can't use Netflix or Spotify because the banks won't give me a credit card. For everyone Seamless registration for any ad
Slide 9: Where Are We Today?
WHERE ARE WE TODAY? Current status & traction so far
Slide 10: MACH's current offering consists of three pillars
MACH's current offering consists of three pillars Complete payments offering P2M online (intl. & local) 100% digital account, opened P2M offline remotely with a couple of clicks In-app purchases Free P2P payments & collections Open for everyone Account Payments Physical card Virtual card QR Closed-l
Slide 11: High commercial traction at low acquisition cost
High commercial traction at low acquisition cost +2.9M registered customers Acquisition cost < US$5 CAC < US$5 CAC considers: • Commercial actions • Identity validation
Slide 12: Young customer base with limited overlap with Bci's customer base
We have a young customer base, with very limited overlap with Bci's customer base MACH's customer base Limited customer overlap considerably younger than Bci with Bci issuing businesses Cumulative distribution of customers (%) Emisión <10% Clients <5% Clients Working together with Bci's D&A area has
Slide 13: Transactions have grown exponentially: nascent acquiring business
Transactions have grown exponentially: nascent acquiring business with great potential Strong growth in individuals Exponential growth in transactions Individuals 60% 75% 110% Active client's growth Weekly client's growth Daily client's growth 300% YoY1 YoY YoY Transactions growth YoY2 Merchants 110
Slide 14: Customer satisfaction KPIs better than banking industry average in Chile
Customer satisfaction KPIs are much better than the average for the banking industry in Chile NPS AppStore evaluation PlayStore evaluation +70 4.6 4.0 3.2 50 2.9 30 Banks Banks Banks in in Chile1 in Chile2 Chile2 (1) Rank based on values reported by Bci, Banco de Chile and Santander. (2) Simple aver
Slide 15: MACH is a big commitment for the bank
MACH is a big commitment for the bank: we have invested in building strong capabilities We have heavily invested in building a first-class team MACH capabilities US$30M 110 Technology Product Cumulative investment1 MACH Operations Commercial Collaborators2 (+65% in product and technology) Risk Custo
Slide 16: MACH and BCI Pagos strongly complement each other
MACH and BCI Pagos strongly complement each other Generating a payment ecosystem has Win-win relationship valuable benefits for MACH Distribution channel for More clients MACH Increased value for customers More data and retailers More stores to leverage Differentiating element for BciPagos More pers
Slide 17: Where Are We Heading?
WHERE ARE WE HEADING? MACH strategy & monetization model
Slide 18: Ambition to become the leading digital bank for individuals in Chile
Our ambition is to become the leading digital bank for individuals in Chile Target segment: Digital customers Value proposition based on 4 pillars Complex Evolution of MACH Digital products Outstanding user experience offer that solve frictions and service Needs Evolution of customers behavior Simpl
Slide 19: Capturing customers' daily economy as a steppingstone to financial products
We are very close to capture our customers' daily economy, as a steppingstone to expand into financial products Step 1: Daily economy Step 2: Financial products Complete MACH account features Expand offering to become customers' main bank Money withdraw Receive money Provides Data Primary Daily econ
Slide 20: We have a clear monetization plan
We have a clear monetization plan Step 1: Daily economy Step 2: Financial products Monetization through merchants Monetization through individuals MACH as a distribution channel Loans Marketplace - In-app use cases Investments - Out-of-app traffic Financial Savings products Insurance Issuing … Payme
Slide 21: Low-cost model allows simple products while maintaining attractive margins
Low-cost model allows us to offer simple and convenient products, while maintaining attractive margins Light and efficient Efficient cost to serve, MACH has high operating model in line with digital banks operational efficiency 100% digital, no physical assets <1% Clients with tickets 18X Automated
Slide 22: Five key enablers for MACH strategy
Five key enablers for MACH strategy Technological Advanced First-level Efficient and Highly and modern D&A customer automated talented stack capabilities support operation team
Slide 23: Implementing Mambu, a state-of-the-art core banking system
We are implementing Mambu, a state-of-the-art core banking system that will enable us to deploy our strategy Advantages of Mambu implementation Mambu is a SaaS core banking system • Completely modular • Highly integrable via APIs • Cloud native Recognized by Gartner as a high potential challenger; s
Slide 24: How Do We Relate With the Bank?
HOW DO WE RELATE WITH THE BANK? MACH-BCI collaboration & governance model
Slide 25: MACH is a highly empowered business leveraging the capabilities of BCI
MACH is a highly empowered business, which effectively leverages the capabilities of BCI MACH capabilities BCI capabilities & standards & standards Full MACH Leverage of Application of empowerment Bank's capacities Bank standards Product & strategy Communications Compliance Commercial Data & analyti
Slide 26: Executive summary: MACH with proven success and high potential
Executive summary: MACH with proven success and high potential to disrupt local banking market CUSTOMER-CENTRIC UNPRECEDENTED PROVEN BUSINESS ALIGNMENT WITH BCI INNOVATION COMMERCIAL TRACTION MODEL STRATEGY Focus on addressing Largest fintech in Chile Clearly identified monetization Complements cust
Slide 27: MACH Day Investors Presentation April 2021
DAY INVESTORS PRESENTATION APRIL 2021
Banco de Crédito e Inversiones (Bci) — Investor Day (April 2021) on 6ix