PosteItaliane BancoPosta - Postal Financial Inclusion

Highlights on BancoPosta
Strong market position
9 >370 bln€ Total Customer Assets (>10% market share)
9 ~14.000 Post Offices (~ 30% market share, >2x vs banking leader)
9 >23 mln. Customers (>2x vs banking leader) of which more than
10 mln cards holders:
ƒ 4,6 mln PostePay (50% market share prepaid cards)
ƒ 6,1 mln Postamat (16% market share debit cards)
9 Low cost approach keeps BancoPosta immune from price competition
Main Weaknesses
¾ 70% of > 23 mln. Customers are “monoproduct” or near
¾ BancoPosta is not “the” relationship bank for ~50% of its 6,5 mln.
Customers with current account
¾ Marginal penetration in key Retail Products
(Mutual Funds, Consumer Lending, Credit Cards)
31/03/2010
2
3
BancoPosta regulatory framework
Release of BancoPosta
Government regulatory
framework
(DPR n. 144/2001)
Set-up of
BancoPosta
Division
1998
2000
1999
Poste Italiane turned
from Government body
into a joint stock
company owned by:
• 65% Government
• 35% CDP
BancoPosta turns into a
Business Unit,
with full ownership of
control system
2004
2001
Launch of
“Conto BancoPosta”
2007
Release of
BoI rules
for BancoPosta
activities
9
BancoPosta is not a legal entity, but a Business Unit
9
BancoPosta has no balance sheet and no capital allocated
9
BancoPosta can take no credit risk and limited market and operational risks
31/03/2010
4
Group structure and revenue split by BU
Poste Italiane
Territorial
Network
9,1
9,1 bln€
bln€
0,2bln€
0,2bln€
4,1
4,1 bln€
bln€
4,8
4,8 bln€
bln€
BU
Express
and Parcels
BU Mail
and
Philately
BU
BancoPosta
~14.000
~14.000 P.O.
P.O.
One, single,
generalist
distribution
infrastructure,
supporting all Poste
Italiane Business
Units
BancoPosta
Fondi SGR
PosteVita
Poste
Tributi
BancoPosta’s
BancoPosta’s revenues
revenues represent
represent >> 50%
50% of
of Poste
Poste Italiane
Italiane total
total revenues
revenues
As of YE 08
31/03/2010
5
BancoPosta’s revenue breakdown
Total Revenues FY08: 4,8 bln€
Pension Payments
Lending 1,5%
3,9%
Money Transfer 1,7%
0,6%Others
28,9%
Courrent Account Deposits
10,4%
Investment Products
8,7%
Current Account
Payment Services
15,7%
Bill Payments
28,5%
Postal Savings
As of YE 08
31/03/2010
6
BancoPosta’s product positioning
Asset Gathering
Postal
Products
“Banking”
Products
Payments
• Interest-Bearing
Postal Certificates
ƒ Bill Payments
• Postal Saving Books
ƒ Postal Money Transfer
ƒ Current Account Deposits
ƒ Current Account
Payment Services
ƒ Structured Bonds
ƒ Mutual Funds
ƒ Bank insurance
ƒ Pension Payments
ƒ Debit/Credit Cards
ƒ Prepaid Cards
ƒ International Money Transfer
“Banking”
“Banking” Products
Products account
account for
for >>50%
50% of
of total
total revenues,
revenues,
as
as aa result
result of
of the
the ongoing
ongoing innovation
innovation and
and up-selling
up-selling strategy
strategy
31/03/2010
7
BancoPosta’s revenue split by Product
By Postal vs Banking financial products
By Product category
(mln€)
(mln€)
CAGR
CAGR
CAGR
CAGR
+4,5%
+4,5%
4.594
4.709
+4,5%
+4,5%
4.781
4.709
4.594
4.195
4.195
4.781
1%
1%
1%
1%
CAGR
CAGR
53%
54%
53%
CAGR
CAGR
+7,5%
+7,5%
+5,6%
+5,6%
48%
66%
66%
67%
68%
33%
32%
31%
CAGR
CAGR
52%
47%
46%
47%
+1,4%
+1,4%
33%
Y05
Y06
Postal products
Banking products
31/03/2010
Y07
Y08
Y05
Y06
Payments
Asset gathering
Other
Y07
Y08
CAGR
CAGR
+2,5%
+2,5%
8
Key Success Factors: 1. Distribution Channels
Post
Post Offices
Offices
(~14.000)
(~14.000)
Staff
Contact
Contact Center
Center
(1.200
(1.200 HR)
HR)
ƒ Consumer Specialists
5.400
ƒ Transactional Product
all
ƒ SME Specialists
1.000
ƒ Bonds
all
ƒ Cashiers
Internet
Internet Banking
Banking
(>
(> 900.000
900.000 users)
users)
Poste
Poste Mobile
Mobile
(~1.200.000
(~1.200.000 SIM)
SIM)
31/03/2010
Product Distribution
38.600
ƒ Banca insurance
11.500
ƒ Personal Loans
9.400
ƒ Mutual Funds
6.300
ƒ Mortgages
3.400
9
Key Success Factors: 2. Customer Base
Consumer: 23,2 mln. Retail Individuals
Business & P.A.: 256.000 Companies
Corporate
Affluent
SME &
SOHO
Associations
Mass
Market
Public
Administration
As of FY08
31/03/2010
10
Key Success Factors: 2. Customer Base
Penetration Rates of “Fully Banked Customers” (with Current Account)
Debit Cards
(Postamat)
84,6%
Postal Saving Books
47,2%
Salary/Pension
payment
35,7%
Insurance
14,0%
Prepaid Cards
(PostePay)
12,8%
Structured Bonds
9,0%
Home Banking
9,2%
Personal Loans
4,7%
Mutual Funds
3,3%
Asset under Custody
(Treasury Bonds, Equities)
2,7%
Postal products
Banking products
Credit Cards
Revolving Cards
As of FY07
31/03/2010
2,7%
1,1%
Mortgages 0,4%
11
“Focus on the BancoPosta success in launching a
diversified portfolio of prepaid cards”
31/03/2010
12
Postepay: key figures
5.500.000
4.200.000
3.600.000
2.400.000
1.700.000
800.000
160.000
2003
2004
2005
2006
2007
2008
2009
PostePay today is the leading prepaid product in Italy and in Europe:
Italian market share: 65%
European market share : 40%
31/03/2010
13
The Postepay top up channels
Post
offices
Cash
Debit card or
Bank account
Internet
ATM
9
9
9
9
Credit cards
Postepay
31/03/2010
Mobile
phone
9
9
9
9
9
9
The key functionalities and the multi-channel approach
14
ATM (other banks)
Cash withdrawals
(VISA Electron)
ATM (domestic)
MOBILE
• cash withdrawals
• m-commerce
• money-transfer through
pre-paid top up
• SIM top up
• Card account
informations
• SIM & card top up
• card account
information
POS (Post Office)
INTERNET
• cash withdrawals
• payments (charging services)
• card account information
• e-commerce (VISA)
• bill payments on internet
• card account information
31/03/2010
MERCHANTS
Paying goods and
services
(VISA Electron –
MasterCard)
15
The Launch – November 2003
Target
Positioning
9 Young people
9 Easy
9 Travellers
9 Convenient
9 Net surfers
9 Unique
Strategy
9 Offer an easy product to all the customers going daily to the Post
offices and to everyone that hasn’t a credit card or a bank account
Results
9 1ml card in 13 months
9 2,4ml cards in 3 years
9 High cross selling rate
31/03/2010
16
The key success drivers
D
Product Features
9
Flexible
9
Easy
9
Accepted
9 ATL
Communication
Key Drivers
C
9
BTL
9
Direct
Marketing
9 14k Branches
B
A
Top up Network
5000 ATM
9
Web Site
9
Retailers
9 14.000
Branches
Distribution Network
Success
31/03/2010
9
Cardholder demographics
Cacrudsthom
oledres rs
5.5
million cards
in 6 years
48%
Male
are under
the age of
30
63% / 37% Female
31/03/2010
30% are
between
the ages of
31 and 50
17
Postepay is still a
young product but not only
for young people
65%
Italian mkt
share
Customers under the
age of 30 account for
55%
over
off all
transactions
Cardholder demographics
Cacrudsthom
oledres rs
transactions
that take place
on the web
54%
30% of all
transactions
are abroad
18
10% of customers are non-Italian
46% are on
a physical POS
The market itself found new way to use
the card abroad
travel card
to money transfer
card
from
Postepay is steal perceived as
the secure way to
buy online
31/03/2010
52% of prepaid
customers have another
Poste Italiane product
Diversification – Co-branding
Prepaid Corporate platform
An online platform to enable all the companies that need a
co-branded prepaid card to for their customers to:
ƒ Personalize the card design
ƒ Request the card “on-demand”
ƒ Reload the cards
31/03/2010
19
20
Diversification – Product Innovation
The “mobile” represent a new channel for the Postepay
35% of mobile
1,3 MILION
subscribers
have their sim linked to a
PostePay
Sim Card
Value Added Services
• Card Enquiry (all mobile operators)
•Telegram
• Reload other postepay
• Bill Payments
• Reload sim Postemobile
• urgent money transfer
31/03/2010
Diversification – Product Innovation
21
In 2007 we launched the first a Contactless pilot on prepaid in Italy
Launched to test the customer appeal
on the contactless technology
60.000 active card today on the market
result
The
: innovative customers appreciate using
userfriendly payment sistems
Future evolution mobile
31/03/2010
NFC payments
Diversification – The Money Transfer
Postepay TWIN
9 Postepay Twin is specifically targeted on the remittances market
9 Easy, two prepaid cards to send and receive money and in all the world
9 Cheep, no other Money Transfer product is so convenient
9 Fast, buy the card in one of the 14.000 branches and send money in real time
31/03/2010
22
23
Diversification – The New Markets
Transit
Lunch
Lunch
31/03/2010
Access