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Bank of Queensland Limited ABN 32 009 656 740. AFSL No 244616.

VIMPI JUNEJA, GROUP EXECUTIVE PRODUCT & STRATEGY, BOQ

The Future of Banking & Financial Services Conference, Sydney Australia10 November 2016

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99%

The use of customer data and data analytics creates a competitive advantage for FIs today and in the future

(% completely agree)

When faced with making an important decision at my financial institution, data always trumps experience

23%(% completely agree)

Source: Celent

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<1%

… of analytics leaders interviewed by McKinsey

said the degree of revenue or cost

improvement achieved through the use of data and advanced analytics

was …

Source: McKinsey & Company “Getting big impact from big data”

75%

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3 YEARS AGO TODAY

• Acceptance

• Data scientists

• Data infrastructure

• Adoption

• Data translators

• Data culture

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Is there real business value to be realised from analytics?

Can we build the capabilities to extract and action analytical insights?

Are we prepared to acceptanalytics that challengeour ‘convenient’ truths and beliefs?

HANDSHEAD

HEART

Sweet spot

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What we need to do to reach our goal?What are our obstacles?What is our goal?

Outperform sector EPS

growth over the long-term

Lower NIM

Less non-interest income

Higher cost of deposits

Higher cost of doing business

• Grow higher margin segments: SME, BOQS

• Grow higher margin products: BOQF, Personal loans

• Increase Markets income

• Expand credit cards; insurance; acquiring x-sell

• Reduce fee leakage

• Increase transaction deposits

• Optimise term deposit pricing

• Automate manual processes

• Consolidate functions; reduce duplication

• Eliminate waste

BOQ Majors

NIM 1.97% 2.52%

BOQ Majors

OOI 29 bps 54 bps

BOQ Majors

COF 2.33% 2.18%

BOQ Majors

CTI 46% 38%

and/or

and/or

and/or

1

2

3

4

5

6

7

8

9

10

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Balance sheet management Customer retention

30-Jan 29-Feb 31-Mar 30-Apr 31-May 30-Jun

ActualPredicted

Cap

85%

90%

95%

100%

105%

M0 M1 M2 M3 M4 M5 M6

Control group balance sheet retention

Pilot group balance sheet retention

>20 years

52

16-20 years

65

11-15 years

6-10 years1-5 years

34

Branch manager recruitment

76

58

Campaign effectiveness Price elasticity Voice of the customer

Branch performance index based on previous banking experience

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• Loss aversion

• Incentives

• Political costs

• Customer expectations

• Legal, governance settings

• Regulation

• How do I help others to understand what’s in it for them?

• How can I make it ‘safe’ for people to make the transition?

CHALLENGES TO OVERCOME ROLE OF LEADERSHIP

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CIO + Digital + Operations leaders

Retail Banking Executives + Sales capability + Sales

Operations leaders

BOQ Customer Lab

•Cross-functional leadership forum responsible for converting analytical insights into performance outcomes

•Driving aligned, decisive actionProduct Executives + Analytics + Customer

Experience leaders Business Banking Executives + SME

distribution leaders

“Ensuring internal processes are changed to

enable action”

“Ensuring our front line has the desire, skills and fit-for-

purpose tools to use the insights”

“Ensuring analytics agenda is grounded in business priorities and customer offers positioned

appropriately”

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https://www.youtube.com/watch?v=-pC_sPusWjc

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• What problems to solve

• What analytic techniques to employ

• What data sources to mine

• How to present findings

• How to convert insights into actions

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How much time are you investing in leading the human side of your analytics execution plan?

How much time should you be investing in leadingthe human side of your analytics execution plan?

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Vimpi.Juneja@boq.com.au

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The material that follows is a presentation of general background information about Bank of

Queensland Limited’s (BOQ’s) activities at the date of this document. BOQ does not warrant

the accuracy or completeness of the information contained in this document and has no liability

for any reliance by any party on the information contained in this document or for any direct or

indirect, special, consequential losses or punitive damages under any cause of action, whether

in contract, tort, under indemnity or statute (including for loss of data, loss of reputation, loss of

business opportunity or loss of anticipated savings) in connection with this document. It is not

intended to be relied upon as advice to investors or potential investors and does not take into

account the investment objectives, financial information or needs of any particular investor.

All information contained herein is confidential and proprietary to BOQ. No part of this

document may be reproduced or transmitted in any form or by any means, electronic or

mechanical, including photocopying, recording or information retrieval systems, except where

expressly permitted by BOQ.

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