Journey of discovery

ABN AMRO Self-OrganizationAgile Leadership Europe

Amsterdam 2019

Klaas Ariaans

The dream of Personal Banking is that every client who enters a branch or connects via video banking receives a warm welcome. Every question is answered, first time right, and our client leaves with an excellent experience.

Banking for better, for generations to come

5

WHAT DOES THE FUTURE OF

PERSONAL CONTACT LOOK LIKE?

HOW DO WE ORGANISE OURSELVES?

6

ABN AMRO has formulated a strategy based on two pillars

Beeldbankieren Self-Organization

47

22

39

39

42

43

44

45

46

50

51

52

55

63

72

16

25

15

24

14

20

15

13

18

10

14

10

12

3

4

Spain

European consumer

Turkey

Italy

Czech Republic

Netherlands

Romania

Belgium

Poland

France

Germany

Austria

Luxembourg

United Kingdom

Norway

Expect to use mobile bankingAlready use mobile banking

Mobile banking (expected) use (%)1

51

7

57

31

67

40

23

62

56

57

46

76

68

89

92

Czech Republic

Poland

Belgium

European consumer

Italy

Romania

France

Turkey

Germany

Austria

Spain

Luxembourg

United Kingdom

Netherlands

Norway

Individuals who use online banking

Online banking use (%)2

1.Source: Ipsos i.o.v. ING, July, 2016 ING International Survey Mobile Banking: ‘World on the Move for Mobile Banking’.2.Source: Eurostat 2018, January, ‘People Who Used Internet Banking, 2017’.

The Dutch are one of the frontrunners in adopting mobile and online banking in Europe.

In the Netherlands

mobile and online banking is adopted on a large scale

2

TODAY … ABN AMRO

is frontrunner in reducing the branch network in Europe …

The number of branches in the period between 1998 - 2018 in the Netherlands owned by ING, Rabobank and ABN AMRO (including specials for ABN AMRO)3,4

1. Source: Eurostat 2017.2. Source: Statista 2018.3.Source: BCG 2011, April, ‘Branch Footprint Optimization ABN AMRO Particulieren’.4.Source: Locatus 2018.

1.926

1.727

920

1.0521.100

510

617

510

135

ING Rabobank ABN AMRO

-68,0%

-70,5%

-85,3%

1998 2008 2018

86

161176

203 210 215

316

372390

436

498

568 571

690

NorwayTurkey Hungarythe Netherlands

United Kingdom

Denmark FranceIreland Poland Luxembourg Germany Austria Portugal Spain

The number of branches per 10,000 inhabitants

The number of branches per 10,000 inhabitants in Europe in 20181,2

The Netherlands has the lowest number of branches per 10,000 inhabitants in Europe… …among the three main banks in the Netherlands, ABN AMRO is frontrunner in reducing their branch network.

Banking for better, for generations to come

Despite the high digital adoption rate in the Netherlands

a majority of the Dutch people still values face to face contact for advise on complex products

The voice of the customer

Face to face contact Fully digital contact

87% 13%prefers to do all handlings, both for simple as complex, by themselves fully digital1

wants to have face to face financial advice in the acquisition of complex products1

62%

states that they are more likely to return to an organisation if they are helped by a person rather than they acquired a product fully digital2 59%

states that they are more likely to recommend an organisation if they receive personal service, rather than solely digital contact2

1.Source: McKinsey 20182.Source: Novio Research 2017

4

3

BEELDBANKIEREN

[1/2] Beeldbankieren is driving business forward in a digital age

1. Source: CoE Business Intelligence ABN AMRO Personal Banking

Advice conversations via BeeldbankierenTarget KPI 2019 of 50% has been met

%vs. 51% in March 2019Skillpools excl. Daily Banking

65%vs. 67% in March 2019

Skillpool Mortgages

8%vs. 7% in March 2019

Skillpool Daily Banking

50%vs. 49% in March 2019

Skillpool Advice

28%vs. 23% in March 2019

Skillpool New Business

The 2019 target KPI of Beeldbankieren for Skillpools (excl. Daily Banking) has been met… …Mortgages is still frontrunner, most growth is expected from Daily Banking.

APRIL 2019

Note: new target KPIs are now determined for 2019.

4

BEELDBANKIEREN

[2/2] Beeldbankieren is driving business forward in a digital age

1. Source: CoE Business Intelligence ABN AMRO Personal Banking

NPS Beeldbankieren

+vs. +46 in March 2019(NPS Face-to-Face = +37)

Promotors

vs. 51% in March 2019(Promotors Face-to-Face = 44%)

Detractors

vs. 4% in March 2019(Detractors Face-to-Face = 7%)

49%

4%1,420 unique users

vs. 1,352 in March 2019

More and more employees are using Beeldbankieren… …Beeldbankieren is the highest rewarded channel of ABN AMRO.

Employee adoption

APRIL 2019

Banking for better, for generations to come10

I honestly believe

‘’I don’t know better than my 3500 colleagues’’

1

12

ConnectMe acts as a linking-pin which enables advisors

to connect and to either join or take over a conversation

ConnectMe

In 2019 ABN AMRO is on the move

towards an integrated digital and human customer journey

1. Beeldbankieren 2. ConnectMe 3. Click-to-Video & Client Video Portal

FROM A FUNDAMENT

WITH BEELDBANKIEREN

VIA AN INTERCONNECTED JOURNEY

WITH CONNECTME AND THE EXPERTISE OF 3,000 EMPLOYEES

TOWARDS A DIGITAL AND HUMAN INTEGRATED JOURNEY

WITH CLICK-TO-VIDE0 & A CLIENT VIDEO PORTAL

13

Advisor Mortgages Advisor Pensions

Advisor Mortgages Advisor Pensions

5

WHAT DOES THE FUTURE OF

PERSONAL CONTACT LOOK LIKE?

HOW DO WE ORGANISE OURSELVES?

Banking for better, for generations to come

Our history

…with supervision

We introduced a management control system…

Banking for better, for generations to come

…we pioneered in 1950 with mobile

banking…

Banking for better, for generations to come

But most of all … we are a company dealing with …

Banking for better, for generations to come

200 years of HIERARCHY

we needed something newBanking for better, for generations to come

AND SOMETIMES

THE BEST STRATEGY IS

TO JUMP

Banking for better, for generations to come

Banking for better, for generations to come

Banking for better, for generations to come

Banking for better, for generations to come

What is your first question?

WHAT DO WE ACTUALLY MEAN WITH

SELF-ORGANIZATION?

Banking for better, for generations to come

So what did we do?Our story in 195 seconds

o Complex and unmanageableo Politics and power playo Little autonomy and freedom

Strategy formation

Banking for better, for generations to come

The existing hierarchical model was too complex > Self-Organization

Personal Banking MT

Regional Director

Market Area Director

Branch manager

Deputy branch manager

Teams and advisers

Clients

Stra

tegi

cdi

alog

ue

1

2

3

4

5Teams and advisers

Clients

Personal Banking MDT

Skill lead

Stra

tegi

cdi

alog

ue

o Common goal at all levelso Facilitating leadershipo Room for entrepreneurial thinking and

creativity

What does Self-Organization mean for leadership?

Larger Span of Control

From directing to facilitating leadership

More e-mail due to shorter communication lines

Coaching is now done by coaches

The teams do their performance assesment themselves

Banking for better, for generations to come

The voice of the employee

Face to face contact Adequate opportunities

80% 85%85% of employees feel they have adequate opportunities to learn and work on their development

Our employee engagement is solid at 97%

of employees think about the client when making important decisions. This is 30% up on last year.

Employee Engagement Important decisions

o The psychological safety of the individuals in our teams is higher than average after major changes!

o The business simply carries on, our NPS has gone up, commercial results are improved, Lower Costs.

We learn and adjust on key topics

Managing the work pressure

Giving feedback

Making decisions

Some employees with longer tenure find it harder to adjust

Employees who prefer directive leadership leave

Klaas AriaansManaging Director Personal Banking

Please feel free to contact me if you want more info!