United Overseas Bank Limited · SGX:U11
United Overseas Bank — Investor Presentation (May 2020)
22 slides from United Overseas Bank's investor presentation, May 18, 2020
Slide 1: Banking for the digital generation
Banking for the digital generation Dr Dennis Khoo MD & Group Head TMRW Digital Group 18 May 2020 1
Slide 2: TMRW competes on Customer Intimacy, enabled by technology
TMRW competes on Customer Intimacy, enabled by technology to deliver operational efficiency & costs Competitive Strategies for Market Leadership “Best Total Cost” “Best Total Solution” “Best Product” Product Operational Excellence Customer Intimacy Leadership Instant & paperless processes Providin
Slide 3: Differentiated & advocated banking for tomorrow
Differentiated & advocated banking for tomorrow 1 2 Why did we build TMRW ? How is TMRW different ? • Young & digitally advanced ASEAN consumers • Laser focus to be the most engaging bank • Complex, universal and opaque banking • Unique ATGIE business model • Favorable regulatory environment • Three
Slide 4: Why did we build TMRW?
1 1 Why we WHY did we builtbuild TMRW? TMRW 4
Slide 5: ASEAN is young and digitally savvy
ASEAN is young and digitally savvy We are young We are mobile We are addicted We are influenced to mobile digitally 57% 66% 3.6 67% Under Owns a Hours of mobile Made an 35 years old Smartphone internet usage/day Online Purchase Source: Worldmeters projection 2020 data from United Nations; We Are Soc
Slide 6: Role of Digital Banks: Increasing financial inclusion
Role of Digital Banks: Increasing financial inclusion as majority of ASEAN is still unbanked & underbanked 400 55 181 70 5 23 67 2% 18% 15% Unbanked 38% No access to basic financial services 50% 51% 65% 69% 40% 45% Underbanked No access to credit, underinsured, no long-term saving products
Slide 7: UOB's view of the future of Retail Banking
UOB’s view of the future of Retail Banking The retail banking future The new business model The new Digital Bank Digital Banking & From Cross-selling to Making it Simple, Digital Bank Engaging Engaging and Transparent Digital banking (omni-channel) and the The data-centric Digital Bank’s advantage
Slide 8: We concluded that a compelling digital bank should:
We concluded that a compelling digital bank should: Know that millennials are unique Be a friend not a bank Different Generation, Different Solution Help them Save and Spend Better Make everything accessible Grow with your customers Bank, Chat, Find Solutions Learn to create personalised experiences
Slide 9: Which we built into TMRW's proposition
Which we built into TMRW’s proposition What millennials What millennials What TMRW is want don’t want Easy, accessible & Complex, time- fuss-free consuming Simple Anticipate & tailor to my needs One-size-fits-all Engaging Open & fair Opaque with hidden interactions fees & terms Transparent 9
Slide 10: TMRW markets selected by the highest potential
TMRW markets selected by the highest potential Banking penetration growth potential High Official launch in Mar 2019 Vietnam 8 Philippines 3 • Population 70 Mil (20% YP/YPF) • 71% smartphone penetration • Favorable regulatory environment Indonesia ✓ • First mobile-only digital bank ✓ Thailand UAE 21
Slide 11: How is TMRW different?
2 How is How TMRW is TMRW different? different? 11
Slide 12: Lifetime engagement differentiation towards profitability
Lifetime engagement differentiation towards profitability Extreme focus on customer engagement • To achieve high NPS and ultimately build long- term customer advocacy Serve customer of the future well today • Foundation for lifetime relationship Unique three stage approach • Mitigate risk and scale
Slide 13: How we designed TMRW for customers
How we designed TMRW for customers Pain points (E.g., avoiding fees, underserved, poor service) 8M YP/YPF in Greater Bangkok Habits Insights (E.g., over-spend, always on-the-go) (E.g., remove 50B to save) >500 Customers interviewed Customer 62% Reduction in fields and T&Cs Expectations Segmen
Slide 14: How we designed TMRW for business
How we designed TMRW for business TMRW Business Model Acquire • Fast & modular • Avatec.ai Transact Acquire • New UI capabilities & 24/7 fast digital service • Goal savings & control Transact Generate data • Access to real-time categorized transactions for high context & relevance Engage Generate In
Slide 15: How we built new capabilities for TMRW
How we built new capabilities for TMRW Design Fintech Agility (Customer centric: (Avatec, Meniga, (Scrum teams, colocation, Biometric unmanned kiosk) Personetics,Cloudcherry …) tradeoffs, discipline) 1st Global implementation Thai bank with non-face to face 1st biometric Enablers Bank to develop
Slide 16: Key engagement differentiators of TMRW
Key engagement differentiators of TMRW Insights cards Real-time expense tracking City of TMRW Enhancing Increasing Growing engagement balances transactions 16
Slide 17: 3-stage Path to Profitability: Exit Stage 1 by end 2020
3-stage Path to Profitability: Exit Stage 1 by end 2020 Goal: Cost-to-Income Ratio 35% Stage 3 NPS large enough allowing scale to spread >5 Years*, NPS >60 annual fixed costs over larger customer base Exit: Cost to Serve Stage 2 Push NPS higher for cost of acquiring customers to near ~$0 2-5
Slide 18: What have we achieved?
3 What have WHAT we we have achieved achieved? 18
Slide 19: NPS - 3rd in market 1YR after launch & ahead of ME
NPS 33 - 3rd in market 1YR after launch & ahead of ME Focus on reducing detractors to become market leader Est. 1904 1945 2019 2012 1957 1945 2005 NPS 44 40 33 31 31 28 -2 55% 53% 47% 46% 44% 53% 28% 38% 38% 41% 42% 33% 34% 27% -12% -13% -16% -15% -15% -20% -29% Promoters Passives Detractors 19 Sour
Slide 20: We've taken the 1st step to prove that it works in Thailand
We’ve taken the 1st step to prove that it works in Thailand… Advocacy Rate Active Rate 74% Customers spread the word for us 51% High percentage of active customers No. of Customers Cost of Acquisition per Active Customers 306% Acquired sizable & high quality customer base 75% Growing organic & de
Slide 21: ...and have won 10 awards along the way
…and have won 10 awards along the way Asia's Best Bank Most Innovative Digital Transformation Award Bank in Asia Pacific Best Digital Bank in TH Best Bank for Millennials Best New Digital Bank - TH Best New Mobile Banking Best customer centric App - TH business model Outstanding client onboarding Be
Slide 22: Make Tomorrow Yours
Make Tomorrow Yours TVRW
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