Natwest Group Plc · LSE:NWG
Natwest — The Royal Bank of Scotland Group — Technology Transformation Investor & Analyst Webinar (June 2015)
32 slides from Natwest's conference presentation, June 2015
Slide 1: Technology Transformation Investor & Analyst Webinar
Click to edit Master title style Technology Transformation Investor & Analyst Webinar Simon McNamara & Team June 2015
Slide 2: Presenter biographies
Presenter Click to editbiographies Master title style Simon McNamara Chief Administrative Officer Simon McNamara was appointed Group Chief Administrative Officer, RBS Group in September 2013. Prior to joining RBS Simon was Chief Information Officer of Standard Chartered Bank Consumer Bank based in S
Slide 3: The Services Team
The ClickServices Team to edit Master title style Kevin Hanley Design Michael Geslak Transformation Calvin O’Brien Marion King CAO Payments Personal & Simon Jacobs Business Banking Core Patrick Eltridge CAO Technology Functions Commercial & Private Banking John Ellington Customer Business Alignment
Slide 4: Summary
Summary Click to edit Master title style Strong 2014 track-record of delivery Progress to date Further substantive progress underway for 2015 £3.5bn of planned total investment spend Mix of addressing legacy issues, improving automation of core 2015-17 Plan processes and innovation The 201
Slide 5: Transforming the Bank
Transforming thetitle Click to edit Master Bankstyle Progress to date 2015 – 2017 Transformation Plan Innovation Summary Q&A 5
Slide 6: Our focus has been clear
Our Clickfocus to edithas been Master clear title style Our ambition: to be number one for customer service, trust and advocacy in each of our business areas by 2020 Theme Objective RESILIENT Customer trust: safe, secure and resilient foundations SIMPLER Customer experience: simpler, easier and fast
Slide 7: Good progress against our commitments
Good progress Click to against edit Master title styleour commitments Processor, memory grid and storage upgrades RESILIENT Remediation of single points of failure for 23 critical systems Change/Incident Management processes improved Key components of Batch Transformation plan complete
Slide 8: Our resilience improvements have contributed to a safer bank
Our resilience improvements Click to edit Master title style have contributed to a safer bank Since Q4 2014 we have We have spent more than 35,000 sustained 99.74% system hours training our people on a availability for our customers new Risk Framework Reduced the complexity of Implemented our ‘mirro
Slide 9: We have significantly simplified our change portfolio
We have Click significantly to edit simplified our Master title style change portfolio… Number of Programmes 550 programmes down to under 200 in just 12 -67% 550 months -18% Investment levels 182 retained 150 Targeted at transformation, not 2013 2014 2015 maintenance (Actual) (Target) 97 8
Slide 10: …continued to streamline our property portfolio
…continued to streamline Click to edit Master title style our property portfolio… Bank-wide London case study Total Number of Properties1 Number of London Offices2 -14% -16% -9% -40% 11 2,900 2,800 2,500 10 2,100 7 6 1,500 4 2013 2014 2014 2015 2016 2014 2014 2015 2016 (Target) (Actual) (Forecast) (
Slide 11: …and focused on fewer, more strategic supplier relationships
…and focused on fewer, Click to edit Master title style more strategic supplier relationships Number of RBS Suppliers (‘000s) £700m reduction in spend -19% -33% 77 On track to meet 42 14,000 target 26 21 19 14 Focus on valuable 2011 2012 2013 2014 2015 2015 SME suppliers (Orig Target) (Rev Tar
Slide 12: We continue to simplify how our customers do business with us
We continue to simplify Click to edit Master title style how our customers do business with us TouchID goes live to our Significant upgrade to the customer base, increasing app Group Mortgage System security Handled peak FX volumes WiFi installed in all major following removal of Swiss Euro offices
Slide 13: Transforming the Bank
Transforming thetitle Click to edit Master Bank style Progress to date 2015 – 2017 Transformation Plan Innovation Summary Q&A 13
Slide 14: Our Priorities help define our 2015-17 Transformation Plan
Our ClickPriorities help to edit Master define title style our 2015-17 Transformation Plan 11
Slide 15: Our Priorities help define our 2015-17 Transformation Plan
Our Priorities help define our 2015-17 Click to edit Master title style Transformation Plan Strength & Customer Simplifying the Supporting Employee Sustainability Experience Bank Growth Engagement Resilience Digital Technology Mortgages Sales & Service Training Security Branch Transformation CIB Re-
Slide 16: We continue to invest over £1bn per annum in our Transformation Plan
We continue Click to invest to edit Master over £1bn per title style annum in our Transformation Plan Strategic Theme 2015 Target 2015 – 2017 Target Strength & Sustainability (640) (1,560) Employee Engagement (90) (190) Simplifying the Bank (200) (590) Customer Experience & (410) (1,150) Supporting
Slide 17: The Transformation Plan includes technology, mandatory, process improvement and cost reduction programmes
The Transformation Plan includes technology, mandatory, Click to edit Master title style process improvement and cost reduction prog’s Strength & Customer Simplifying the Supporting Employee Sustainability Experience Bank Growth Engagement Resilience Digital Technology Mortgages Banker Tools Securit
Slide 18: Key Process Improvement and Cost Reduction Programmes
Key Process Click Improvement to edit Master title styleand Cost Reduction Programmes 2015 Target 2016 & 2017 Target >400 branches transformed Branch transformations, 93% refurbished by 2016 Continued investment in Mobile Branches Further install/upgrade of >900 ATMs, CDMs and ADUs Install
Slide 19: Key Technology Led Programmes
Key Technology Click to edit Master Led Programmes title style 2015 Target 2016 & 2017 Target • CIB UK data centre rationalisation complete • Amstelveen Data Centre Exit complete • Technology incidents experience a year on year reduction of 15% • Movement of the third-party hosted service for mobi
Slide 20: Key Technology Led Programmes
Key Technology Click to edit Master Led Programmes title style 2015 Target 2016 & 2017 Target SWIFT gateway consolidation Unified payments capability, rationalising the number of EuroDebit platform decommissioning plans in place payments systems and gateways (80 to 10) Payments Over 500 Nost
Slide 21: Transforming the Bank
Transforming thetitle Click to edit Master Bank style Progress to date 2015 – 2017 Transformation Plan Innovation Summary Q&A 21
Slide 22: Innovative companies out-perform their peers and traditional business models are being redefined
Innovative companies out-perform their peers and Click to edit Master title style traditional business models are being redefined The Opportunity The Challenge 55 4.5 Top Top Innovators innovators The worlds largest The worlds most popular FTSE FTSE 350 350 taxi company media content owner 4 Custome
Slide 23: Customers are demanding innovative solutions, delivered at speed
Customers are demanding innovative solutions, Click to edit Master title style delivered at speed, enabled by new technologies Areas of Innovation ……the universal truth in technology is 1. Mobile increasing processing power being 2. Social placed in the hands of consumers… 3. Wearables DIGITAL SOCIE
Slide 24: Disruption in banking is real, with the threat most evident from non traditional players
Disruption in banking is real, with the threat most Click to edit Master title style evident from non traditional players Banks used to own the entire value chain, but the banking ecosystem is being split Savings, investments, Aggregators Payments mortgages Loans You no longer need a bank to… …buy o
Slide 25: We have strengthened our scouting network around the world
We have Click tostrengthened ourstyle edit Master title scouting network around the world and our ability to pilot new ideas Silicon Valley Israel UK / Innovate Finance An RBS solutions outpost An RBS scouting A more robust RBS in Silicon Valley capability in Israel scouting capability across
Slide 26: We have a strong pipeline of ideas progressing to proof of concept and pilot
We have Click toaedit strong pipeline Master of ideas that we are title style progressing to proof of concept and pilot Research Ideas Qualification Proof of Concept Pilot Facebook Pay Scouting at Work Azure Corporate Hub Cloud Analytics Atsora Encryption on Hadoop Coinbase Conferences 700+ ideas Vo
Slide 27: We continue to focus on new ways of working together
WeClick continue to edittoMaster focus on titlenew ways of working style together across the Bank and with others Ulster Bank Ripple Code Spike Crypto Currencies Hackathon Collaboration Chiasma Ripple – disruptive Code spike – 3 day Aim to explore Ripple 2.5 day design 30 people from all walks of Or
Slide 28: Transforming the Bank
Transforming thetitle Click to edit Master Bankstyle Progress to date 2015 – 2017 Transformation Plan Innovation Summary Q&A 28
Slide 29: Summary
Summary Click to edit Master title style Strong 2014 track-record of delivery Progress to date Further substantive progress underway for 2015 £3.5bn of planned total investment spend Mix of addressing legacy issues, improving automation of core 2015-17 Plan processes and innovation The 201
Slide 30: Transforming the Bank
Transforming thetitle Click to edit Master Bankstyle Progress to date 2015 – 2017 Transformation Plan Innovation Summary Q&A 30
Slide 31: Click to edit Master title style
Click to edit Master title style
Slide 32: Forward Looking Statements
Click to edit Forward Master title Looking style Statements Certain sections in this document contain ‘forward-looking statements’ as that term is defined in the United States Private Securities Litigation Reform Act of 1995, such as statements that include the words ‘expect’, ‘estimate’, ‘project’,