Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Day (February 2019)
22 slides from Regions Financial's investor day presentation, Feb 27, 2019
Slide 1: Investor Day 2019: Customer Obsessed – Digital Everything – Continuous Improvement
EEExhibit 99.2 Investor Day 2019 Customer Obsessed – Digital Everything – Continuous Improvement John Owen | Chief Operating Officer
Slide 2: John Owen, Chief Operating Officer
John Owen Chief Operating Officer As Regions’ Chief Operating Officer, John Owen leads Enterprise Operations, Information Technology, Data and Analytics, Corporate Real Estate and Procurement, Corporate Marketing, and Digital Banking. Owen also leads the Steering Team for the Simplify and Grow strat
Slide 3: Key takeaways: Technology and continuous improvement
Key takeaways Technology and continuous improvement Strong technology platforms – CUSTOMER 1 FOCUSED 2 DIGITAL EVERYTHING – Multi‐channel delivery 3 Track record of INNOVATION Robust CYBER DEFENSES – CONTINUOUSLY 4 IMPROVING 5 CONTINUOUS IMPROVEMENT driving results INVESTOR DAY 2019 | Technology & C
Slide 4: Talented and innovative technology leadership team
Talented and innovative technology leadership team Chief Information Officer Chief Digital Officer Chief Data and Analytics Officer Amala Duggirala Andrés Hernandez Manav Misra 22 years 30 years 27 years of experience of experience of experience • Talented and innovative technology leadership team •
Slide 5: Significant spending on new technology initiatives
Significant spending on new technology initiatives 11% of 2018 revenue Technology Investment Cybersecurity & New technology Strong Technology Investments Risk Management investments in Place Continue 10% • Single branch platform • AI and Robotics • New SEI wealth platform • Voice 42% • New nCino com
Slide 6: Focused technology strategy to better serve our customers
Focused technology strategy to better serve our customers Customer Experiences Core Capabilities and Infrastructure • Mobile‐first thinking • New technology investments • Digitizing end‐to‐end customer • Leveraging data and analytics to better journeys serve customers • Customer‐driven investments •
Slide 7: Customer expectations for banking are changing rapidly
Customer expectations for banking are changing rapidly Expectations Digitization Personalization Omni‐channel Customer expectations Customers want banking Customers expect Customers are shifting to are heavily influenced by to be easy, fast, and relevant and timely digital channels, but all industri
Slide 8: Rapid digital adoption continues at Regions
Rapid digital adoption continues at Regions Usage Growth Recognition Regions digital 2.6M Active Digital Users 46% annual increase in checking channels ranked #1 6% Annual Growth accounts opened through digital in Online Banking 51% annual Top decile in of all customer increase in Customer Satisfact
Slide 9: Delivered digital consumer loan experience in 2018
Delivered digital consumer loan experience in 2018 Digital Application Application Status e‐Closing • Pre‐filled personalized experience • Secure document upload • Electronic signatures • Minutes to apply • Status portal • 24/7 e‐Closings • Increased adoption • Real‐time updates & alerts mortgage Yo
Slide 10: Delivering AI solutions to better serve customers and improve efficiency
Delivering AI solutions to better serve customers and improve efficiency REGGIE Reggie’s 2018 Performance our Contact Center Virtual Banker Answered 1.5 million customer calls Handles: Online banking FAQ’s Handles select customer calls Profile updates (phone, email, address) Card maintenance
Slide 11: Delivering real-time, personalized solutions (ROSIE)
Delivering real‐time, personalized solutions ROSIE, Regions Optimal Solutions Intelligence Engine ROSIE looks 2018 Results at more than 213GBs of Banker delivers data to deliver a personalized personalized personalized 65M recommendation to recommendations recommendation in customer less than a seco
Slide 12: Robust response to the cyber threat landscape
Robust response to the cyber threat landscape Regions Threat Map Active Threat Landscape • Processing more than 12 billion security events per month • Core cyber security investments up 8% YoY Robust Cyber Defenses • Strong risk culture and governance structure • Strong perimeter, network, endpoint,
Slide 13: Track record of innovation
Track record of innovation FinTech partnerships, strategic investments, and in‐house development 2015 2017 2019 2011 ‐ 2014 2016 2018 INVESTOR DAY 2019 | Technology & Continuous Improvement | 13
Slide 14: Simplify and Grow – a continuous improvement story
Simplify and Grow –a continuous improvement story 2018 Successes • Completed 10 of 45 Simplify and Grow initiatives • Completed organizational simplification • Completed spans and layers improvements • Back‐office and branch consolidations • Closed sale of Regions Insurance in July • Launched our AI
Slide 15: Continuous improvement driving staffing reductions
Continuous improvement driving staffing reductions Full Time Equivalent(1) 21,714 Key drivers of future reductions 19,969 • Technology deployment of AI, robotics Down 1,745 and digitization 8% • Operations • Contact Center • Fraud • Underwriting December 2017 December 2018 • Transaction migration to
Slide 16: Continued real estate and third-party expense reductions expected
Continued real estate and third‐party reductions expense expected Square Footage Reduction Cumulative 3rd Party Spend Reduction 13.7 M 2018 2021 11.6 M ‐15% $11M 2017 2021 $60‐$65M • Consolidations • Reengineered procurement process • Back‐office • Branch • Better demand management • Agile • Strateg
Slide 17: Customer experience and efficiencies through eSign
Customer experience and efficiencies through eSign BEFORE eSIGN AFTER eSIGN CUSTOMER CUSTOMER REDUCES REDUCES ALMOST • Schedules closing with branch • Receives email link to closing SAVES $300K IN • Drives to the branch package CLOSING TIME MAILING EXPENSE & 1 MILLION SHEETS OF • Provides ID • Enter
Slide 18: Investments for growth – funded by efficiency initiatives
Investments for growth – funded by efficiency initiatives Investments Efficiency & for Growth • Adding bankers • $15 entry‐level wage Effectiveness • Building branches • Merit increases Improvements • Investing in technology • Digital sales Net Impact • Making banking easier for our customers and as
Slide 19: Key takeaways: Technology and continuous improvement
Key takeaways Technology and continuous improvement Strong technology platforms – CUSTOMER 1 FOCUSED 2 DIGITAL EVERYTHING – Multi‐channel delivery 3 Track record of INNOVATION Robust CYBER DEFENSES – CONTINUOUSLY 4 IMPROVING 5 CONTINUOUS IMPROVEMENT driving results INVESTOR DAY 2019 | Technology & C
Slide 20: Appendix
Appendix INVESTOR DAY 2019 | Technology & Continuous Improvement | 20
Slide 21: Forward looking statements disclosure
Forward looking statements disclosure This presentation may include forward‐looking statements as defined in the Private Securities Litigation Reform Act of 1995, which reflect Regions’ current views with respect to future events and financial performance. Forward‐looking statements are not based on
Slide 22: Forward looking statements disclosure (continued)
Forward looking statements disclosure (continued) • Our ability to identify and address cyber‐security risks such as data security breaches, malware, “denial of service” attacks, “hacking” and identity theft, a failure of which could disrupt our business and result in the disclosure of and/or misuse