Just would like to tell you and share with you a certain number of convictions and of course explain the agenda for today. First of all, I mean, I'm not sure we need to reiterate how important the digital world, the new technologies are for World of banking. You mentioned in your answer 50% interface. We understand that, of course, the clients It's very important. It changes their habits.
We can discuss about the pace, the magnitude of the transformation, but it changes the habits. Clearly, we are facing potentially new competitors. The digital technology can bring down barriers of entry in particular I think in the B2C business. Regulators they are still in a learning curve. Let's face it With of course certain elements regarding for example infrastructure and security cyber risk, but also They are entering into new world of regulation.
And I think that we are all facing the world of data for example regulation, which is fundamentally new. The new technologies themselves, as you know, they are changing permanently. I must say, probably in terms of industrial usage, We are still at the beginning, but you will see that it is already a reality for certain businesses and certain experiences. The war for talents, may I say it's a crucial element. And when I say this, the talents Of tomorrow might not be the talents we were fighting for of the past.
And of course new risks In particular, the cyber risk, which has become probably maybe today one of the biggest worries of investors. What I'd like to tell you is in this world where so much is changing, I have really a conviction that in order to succeed there are some key elements. We need to be Customer focused, driven by data. We need to have definitely the infrastructure technological infrastructure, which will enable us to embark in the transformation and keep, I would say, an entrepreneurial mindset. And you will see this morning some example of initiatives.
With this key dimension, which is that you need to be able to experiment, you need to be able to fail And effectively accept failure. It's not easy in, I would say, traditional companies. I'd like to tell you also and share with you one and I'm a little bit simplistic, but Key elements in my mind in terms of to what extent these technologies will impact the B2C on one hand And the B2B or B2B to seek space on the other. Regarding the wholesale activities, It's very clear and you will see examples. We have Frank Drouet, Head of our Capital Market Alan Fisher, who is in charge of developing the digital world within our wholesale activities, which will show you in practice How we develop new tools, how we interact with our clients precisely with digital technology, which shows that these businesses will also change.
And at the same time, when I think about the relationship, the core relationship between the bank and the client, I believe that despite these changes, The relationship will remain also handled by a banker. I do not believe that given the Complexity of this relationship, the diversity, the complexity again of this relationship with a corporate or a large investor, You will easily just deal with digital technologies at least in the foreseeable future. Regarding retail science, On the other hand, we have here different models in mind. And you will have also a presentation by Philippe Emerick, Bruno Dolas on how we see the transformation of our French retail network. You will have also examples of what we do outside France We've Didier again and some demonstrations of initiatives.
Here, Depending on the clients, at least for the next 10 years, you will have certain models which will combine presence on the ground And digital channels, but also models where such as Boursorama the client is very happy to deal with the bank We've no presence on the ground. We've no identified banker as an interface. And I think personally the disruption in the B2C going forward will be more important fundamentally Because overall the relationship is
a little bit less complex.
But in essence when you talk about millions of clients it's typically the world of mobile which allow To market in a personalized way at a very cheap cost, when you talk about the world of corporates, you talk about 1,000, 2,000 Core strategic large corporates 100,000 maybe SMEs. The granularity of this client base is lower. Let me now just explain how we try to Think about transforming. And you will see that these elements are will be present in all our the presentations today. 1st, this idea of being open.
Open, what does that mean? 1st of all, We need to be open and modular in our IT architecture. It's absolutely crucial. We will enter into detail to explain to you how we think this new architecture, both on the retail banking side And the Wholesale Banking side and you will see we make a comparison with Lego. The idea is to have a kind of Lego architecture In IT, putting elementary pieces of Lego together with this world of API as you will see.
And I think it's important to have that in mind. 2nd, very importantly, open innovation. Open innovation, what does that mean? That means being, of course, able to interact with this world of startups, Open Innovation and Claire Calmejane, who has joined us 4 months ago to run our innovation Overall and transversal initiatives, we'll explain to you how we interact. But one thing which is also very important is this concept of open source.
Open source that means that instead of just dealing with external providers that you pay, you are able to access a world of people, developers, We think that actually their contribution to the world is to provide for free their skills, their expertise who are able to size, If I may take your apps, your APIs, enrich them, improve them and give it back to you. It's a world also where you can start to think and I will leave again the specialist about this to talk to you about this, able to compete with the traditional data base Providers and have also a capacity to work with people which provide infrastructure, this kind of elements for free. And of course, Perhaps even more importantly, open banking. The idea is to say, instead of having thinking in terms of a silo of banking services, The idea is to say how can I build an service platform offering, which is again as open as possible, as able as possible to partner with other companies? And that means in particular in order to do that beyond the capacity to be of course competitive in terms of price and quality of service Certain IT infrastructure.
And that's why I think it's so important to spend some time on that and understand where we want to go. The second element is agility. And agility, it can mean a lot. Can I start with IT Development? And here again, I will ask you in the room to raise your hands.
It's a 4th question. I'm sorry about this. But just
who has
among you spent Just time to understand what Agile Development means in the IT world. Can I ask who has done that? 1. Yes, my guys, of course, I hope you don't count. Can I just elaborate?
It's a fundamental revolution of IT development. Let me just I will take 2 or 3 minutes more than I was Supposed to, but I mean it's a fundamental thing. It's our factories, the IT systems. In the past or so far, the idea was to launch big projects, 3 year project, €50,000,000 budget, etcetera. I think fundamentally, the more I think about it, No one actually when you do that has a clue of how long it will last and how much it will cost.
And there are many failures and I guess you have experienced yourself some failures everywhere not just in banking. And it's a process of building manufacturing IT system which is very sequential with many people translating step by step from the business people who have sometimes actually Just a vague idea of what they wish. 2, the end of the chain, the developers Who are the ones who are able to code in the machine these expressions of needs of functionalities, but you have different people in the value chain. And actually, it's like the film Lost in Translation. The ability to do that effectively without actually Changing or not understanding what it means is detrimental.
So you have people who are developing Sequentially translating and then 6 months later you receive a first lot of functionalities and the business people and functional people. Oh my goodness, it's not at all what I wanted. The beauty of Agile Development is that you put together in the same room People from the business and people from the IT. And you develop with very short cycles On a daily basis or maybe on a 2 week basis, which means that if you are developing Something which does not correspond actually to the need of the business of the function, you can correct immediately. The risk of going in a bad direction is just limited to less than one day.
And you can amend immediately And you see immediately the result the people, the business and function see immediately the result. So I really believe That this new methodology of development is a revolution to be much more effective beyond the amount of money you want To spend on IT overall in what you are developing. And it's a revolution because effectively on top of that Instead of having 2 world where different world, the business and functions on one hand and the IT guys, There is a need and a benefit to put this to work together. Can I just say that Agile, Of course beyond what we do in IT goes beyond of course with the need to rethink the whole organization having much more transversal organization Then hierarchical organization and that goes to the work and the way to organize the work? And 3rd, the focus.
The focus is to say, I mean, when you think about this world of technology, etcetera, we could spend 1,000,000,000 of euros and maybe deliver nothing. We try in Societe Generale and I hope you will feel that when you will see the presentation during this morning. We try effectively to develop things with a business a clear business requirements. We try to ensure that when we launch something an experiment there is effectively Business people who are involved engaged and of course the IT resources which will correspond to the capacity to develop. I think it's important and my own conviction has always been that this world of innovation has to start from the client, I have to start from the client experience and potentially identifying where there are pain points, where there is a capacity to improve Very much the client experience.
So the bulk of these the resources, the bulk of the initiatives have to be close to the ground. A little bit in line with what I said, of course, you have also then to have an IT infrastructure, IT people who are close to the business. That does not mean that this series of initiatives should not be, of course, coordinated, organized, Mutualize as much as possible to avoid duplication and that's where you will see again people like Christophe Leblanc who is in charge of our Transversal Resources as well as Claire who will explain to you how we precisely organize This transversality and have effectively a common framework in particular regarding of course infrastructure and cloud, but not just that. Let me now just conclude this introduction by saying Really and that was what we said during our strategic the presentation of our strategic plan. In 10 years' time, I really would like to have a bank which is fundamentally fully digitalized where all the processes front to back Our digitalized, we've effectively a capacity to take into account revolution in the way of doing business in Check you now with data management.
Data management for me is a key transformation and of course, a very open banking platform and architecture. Can I just leave with you a few conviction? First of all, beyond A technology revolution. And it is an industrial revolution because I've just mentioned that again our factories, the way to produce, equip Implement our factories are fundamentally changing. It's 1st and foremost a cultural revolution Because you have to have your staff embarking in a journey, understanding that If they want to think about the services going forward, the relationship, they have to have this knowledge, this understanding and even more probably Some capacity to interact with the IT in a totally different way.
Myself, as you know, I'm spending some time to code because I want to understand. And it's fascinating
I would like to insist,
it's fascinating to see then just in a few hours, In a few days, you can develop new functionalities in an app. You can enrich an API, which means developing, Testing the product to ensure it works and enter into production in such a short cycle and that request the business people, The function people to have this knowledge and thinking totally different way on their added value going forward. I really believe fundamentally this transformation is not a risk. It's more an opportunity for banks. It's an opportunity to deliver a better service to the clients.
The traditional banking services at this stage do not I'm not the champions of the world in terms of Net Promoter Score client satisfaction. I have really the conviction that the banks which will succeed in their fundamental will make very significant progress in their client satisfaction. And of course, in terms of cost efficiency, it will be also in my mind a Key driver for cost efficiency, because as I've said, IT development will be more efficient and you will save a lot of cost in dealing with low added value still today sometimes manual processes which will be automated Thanks to this digitalization. Last thing, I just would like to say it will be a long journey. You cannot Transform a bank from where we stand like this to this just in a few quarters.
But you will see also that even if it's a long journey, there will be effectively progressive and regular Tangible benefits in the way we do our business. And again, you will see that the reality is already there. Last thing, as I've said, but it's up To you, each of us should feel committed to that. I can tell you, as a CEO, I do it myself. It's very important.
We I tend to think to a certain extent I have changed of jobs. At least I have changed the time allocation I have. And I spend, of course, much and more time on these technology issues, which are becoming more and more important for our own strategy. That's what I wanted to say. The program, If I can have it just on the slide.
So as I've said, we'll start with the French Retail Banking business. Philippe Eric, Deputy CEO in charge of these businesses Bruno Dolas in charge of our service unit called I Team, which is the dedicated IT Teams to the French Retail. Then Didier O'Gel will actually present briefly the panorama of what we are doing in our International you are bored with the first session, you will feel a little bit you will see concrete examples, 10 minutes, I think, per initiative. Then after probably a break, again, Frank Drouet, Head of our Capital Markets and Beneficiary in charge of the digital transformation in our wholesale world We'll present to you also very, very specifically how we deal with that. And then we will conclude with Christophe Leblanc and Clark Almejean, We will provide a wrap up on our, again, global strategy and traversal initiatives.
Thank you very much for your attention. And I now will leave the floor to you, Philippe.
The world only moves
Good morning to all of you. So with Bruno today, we are very pleased to be with you. To give you an overview of digital transformation within French Retail. And I have to tell you that as Deputy CEO in charge of French Retail that I have, of course, 2 major goals. The first one is client satisfaction.
And the second one is growing profitability. And to achieve these two goals, Digital transformation, of course, is one of the key levers. What we'll try to do is transfer 3 questions. The first one is why do we think we can be successful in digital transformation? The second one is How we are doing it, especially from an IT standpoint and Bruno will go into some details.
And the third question, it's what are the results already of this digital transformation. Very briefly, Before answering these questions, I would like to summarize what is at stake. And To make it short, to a certain extent, the answer could be digitalized or die, but we thought keeping in mind clients' reality in the transition period. Digitalize and dice because obviously, I mean, we know that the momentum is very strong. We are already in this digital new world.
And as Frederic said, there are 2 major impacts. The first one, it's the impact on the behaviors of our clients. You know that when there is a new best usage in some industry, It becomes very quickly the new reference in the market, whatever is the industry. The second impact is that we are facing new competitors, new entrants, GAFAs, Fintechs, neobanks, Retailers, telcos. So they have not moved yet the market shares, but definitely they have an impact.
The frontier between the industries are disappearing, but at the end of the day, we've the same goal for everybody, access to data. But we have also to keep in mind that the tempo, The level of digitalization of the economy is not the same in every country, is not the same in every geographies. In the case of France, for market, the digitalization of the economy is still uneven. I just want to give you some facts. 50% of the transactions are still made by cash in France.
I also want to mention that we still have more branches in France Versus the average of European countries, it's not only due because you know the predominant actors, the mutual banks, Are still promoting a broad physical approach. And regarding our individual clients, Of course, many of them are already very comfortable with the digital experience, but for others it's not obvious yet. And In the process we are doing, it's very important to make sure that we are not losing core client during this transition period. Before going into details, I would like also to remind you very briefly our setup in France. As you know, we have 3 banks: Societe Generale itself, Credit Unor and Boursorama.
We consider that it's a risk strength. It's a risk strength because it enables us to cover a large Spectrum of clients' expectations with 3 different value propositions. The first one is Societe Generale, A very powerful universal bank with strong franchise on corporates, private banking, mass affluent clients And the unique capacity to deliver both the digital experience and relationship banking. We have Credit Unord, which is a premium bank focused on SMEs, professional, also mass affluent clients With very strong regional roots and with a tradition of expertise and quality of service. And finally, we have, as mentioned by Frederic, Boursorama, pure online banking, So of course, fully dedicated to digital clients.
But what is also important to mention is that these 3 banks are not acting On a standalone basis, we are showing a lot. We are showing, of course, best marketing practices. We are sharing corporate functions. We are sharing real estate management. We are sharing IT infrastructure.
We are sharing IT security, which is so critical for business. But even more importantly, and Bruno will explain that to you, we are sharing many IT components. And for example, just one, you know that in our apps, we have a function, which is very important to the client. This is the aggregation of accounts And documents. This function has been developed by Borso Rabat with the acquisition of Fiducio and within the month after has been deployed In the apps of Societe Generale and in the apps of Credit Union.
And finally, just to finalize my point on that, we are also sharing Operating platforms, for example, Francfinance and consumer credit and transacting transacting for payments. So now we'll go more into details and I will start by Boursorama. Bostorama is, as I said, it's a pure online bank. So it's already at the digital target by definition. Bostorama is best in class.
It focuses on the best user experience At the best price in a very open architecture mindset. This being said, it is also a fully fledged bank With a complete offer to address all the client needs and it relies on a very efficient setup operating platform, Boursorama has less than 800 employees. Boursorama does deliver. We have reached 1,600,000 of clients. We will reach the 2,000,000 number of clients By the end of 2019, which means 1 year before what was planned during the Investor Day.
And also, Botswana is acquiring clients who are real clients. I mean, We are not only using the day to day banking functions of Borstoramas, but we are also buying product and services, namely savings account, insurance, life insurance, consumer credit, mortgages. And the last point I want to mention for Boursorama is that and we are very proud of that. The level of satisfaction of the client is very high. The net promoter score is above 40%.
So for Boursorama, the road map is very clear. Keep the momentum in terms of expanding and developing the client base and remain at the forefront Of innovation, I will do an example, maybe you have seen that. We have signed a partnership with Google Home, which means that Boursorama has been the first is the 1st bank in France to offer an Internet of Things application to its customers. So now digital transformation related To the 2 mature networks, Societe Generale and Credit Unaire. I would say 2 strategic goals, Two pillars regarding the operating model, 2 levers.
The 2 strategy goals, They were mentioned by Frederic and by myself at the very beginning, client satisfaction because it is key For today and for the future, it is key to develop our client base and also to increase the client's equipment rate. 2nd strategic goal, of course, is to improve our efficiency in order to execute Operations, but also to address all the risk and compliance issues at a lower cost. So 2 strategic goals. 2 pillars regarding our business model. The first one is to be an efficient producer for all standard operations.
And Bruno We'll show you real life example of these automations. And the second pillar is to offer High level of expertise for key projects of our clients, corporates, professional, individuals with tailor made solutions and advisory services. Finally, the 2 levers. The first one is IT. And the challenge here is to combine the strength, the robustness of our core banking system with flexibilities of new technologies.
And the second lever is our staff. With many ongoing initiatives to upscale our teams, Front office, back office, IT, because of course, there will be no digital transformation without them. So now I will leave the floor to Bruno, which is going to go more into details to explain to you what is going on from an IT standpoint and the choices We made, and I will come back to share with you the results of this transformation.
Thank you, Philippe.
Hello, everyone. So as Philippe just mentioned, The client expectation are evolving very quickly. The client need more and more trusted bank Available 20 fourseven and accessible through multiple channels. So to answer this client need, Philippe asked me a very simple question in 2015. And the question is, how can we digitalize Our information system maybe I need to switch.
Okay. How can we digitalize our information system To answer these new client needs. And he also add me, could we be agile enough to deliver value regularly and in the long term. So to answer this question, there is 2 main options. Option 1, build a new digital system from scratch like the New Age Bank and option 2, build around our strong Existing system.
Maybe this is a new question for Clarkson, but let me try to answer this question. For sure, the option 1 is very attractive, but it seems to us too risky. This is why we have chose option 2, Not only because this is the more economical, but also because our core banking system It's very robust and very rich. Definitely, we have chose this option too because this is the best To deliver the best in class customer experience and to deliver with a minimum of risk. I am sure that the question that you have is okay, but how does it work?
To answer this question, let me go more deeper within the core banking system and the information system of The French retail. At the starting point, there is nothing. At the starting point in there is something for sure. At the starting point in 2015, the core banking system in yellow was mainly Connected to the adviser in the branches and sometimes connected to the client Mostly to check their account. If I go deeper on the core banking system, you can see that we have a lot Of offering product, RAS 3400.
We have also a lot of multiple data belonging to our 10,000,000 clients. And you also need to know that this core banking system is capable of processing millions of transactions per day. That was the starting point. The digital strategy that we put in place is composed of 4th step. The first step is about the interaction between the client and the bank.
And during this transformation, we have created 2 things. We have enriched the mobile and the web application, Delivering new services coming from the core banking and accessible through APIs. And we also put in place A new digital exchange hub and thanks to this digital exchange hub, the client can upload some document, The advisor can push some contract and the client can sign this contract. The 2 channels are completely interoperable. The second type of transformation is about the data hub.
We have started by creating in blue A data lake, which fuel with all the data coming from the core banking system, all the data coming from the client journey And we also complete the data lake with some external data. After that, we put in place a set of machine learning tools. And thanks to the data and the tools, our data scientists are able to maximize the marketing analysis. They are able to improve the security protection and so on and so on. The 3rd type of transformation is about the data process hub.
To create this digital process hub, we started by putting in place a business process management tools And we complete this business process management tool by some digital brick, digital like e signing or uploading of documents, But we also use some artificial intelligence tools like facial recognition. And thanks to the DG Trabrix and the BPM, we can redesign all our processes in a front to back manner Using for the client a very good user experience because we switch with digital brick and the core banking through APIs. The last digital transformation is about the business platform hub. We connected New business platform up to the core banking. And for example, as Philippe mentioned, the first business platform that we connected Was Fiducio to aggregate all the data in a single place coming from other bank or other provider.
So it was our digital transformation in 4 steps. And we also try to be very agile to complete this digital transformation By creating a new open banking platform, we are launching this platform at the end of this year. So thanks to this transformation, we are now capable to address The 5 major client expectation, which are client knowledge, client experience, new digital services, new ways to pay And client autonomy. Let's start with the client knowledge. The client want to be Known and recognized by the bank and the adviser.
To answer this need, we are putting in place a lot of tools like Number recognition, like voice recognition. We also have put in place a tool to share the same screen Between the client and the adviser when they need some help. But the most important tool that we put in place It's a real time dashboard called 360 client view. And thanks to this dashboard, We are capable to put in a single place all the interaction between the client in the bank in real time. But I will let Philippe in a few minutes Tell a little bit more about these tools.
Client experience. The client want more and more seamless experience. This is why we have created a digital roadmap for all of our processes. And as you can see, we are doing this digital roadmap not only for the private, but also for the professional and the corporate And we are halfway there. New digital services.
You know that the client want to access and manage in one single place all their accounts, All day, Bill, all day well set. To answer this question, we have shared the Fiducio platform with Boursorama. And thanks to this platform, we are best in class for the personal finance management for the client. But we also benefit from all this data to put in place new digital services. And for example, We have launched recently a total new digital investment platform called Sinoway.
And thanks to Sinoway, You can push advice to your clients to improve your asset portfolio regarding the client risk. Here is a short demo of Sinoe.
I would like to introduce you to Sinoway, our new digital advisory service, service that you can access on Computer, tablet and mobile. Sinoway is a simple and practical service that we have designed right here in house and under certain eligibility terms, Whenever our economists and experts implement a new strategy or detect an investment opportunity, We'll create your own personalized advice that fits with your investor profile. You'll be automatically notified by text notification or e mail and you'll find our advice in your own secure online customer area. With it, you'll find additional detailed information, including regulatory documents explaining our advice. If you have any questions or would simply like more details about the advice you've received, our experts will be at your disposal to can access the latest information about your investment at any time, such as the investment amount, the distribution of assets or even how your At Societe Generale Private Banking France, we are focused on giving you the perfect balance between
I hope
You believe me when I said that we are better in IT than in translation. Next step, the new ways to pay. The client really want to test new way to pay, but they want to do that securely. And we know that we invest a lot In security and we continue to invest to stay at the forefront. And if I give you just some example, we have launched 2 secured cards.
The first one, I'm sorry, it's very small. This is a biometric no, this one is not the biometric. This one is a cryptodynamic card And the code is changing every hour and you can secure all your Internet payments. The second one is a biometric card and with this card, you can recognize your fingerprint and you have no code to tap. We also are in the starting block to launch the instant payment at the end of November.
And we can launch all this new way of payment because we have put in place an artificial solution That allow the bank to detect all the fraudulent transfer in real time. And this is this one on the left on the right. The last expectation, but not the least, is about client autonomy. You know that the client Need a lot of autonomy. So we have a famous app and we enrich this famous app With a lot of new function in different topic, but the better way than to explain it is to show you.
Let me connect to my app and show you some of this new function. So I hope that the technique will be okay. Normally, my hat We'll be on the screen. I've got a backup, normally, but something matter? Okay.
Maybe it's my thought. I do it again. Okay. So let me launch excuse me? It's all the accounts.
And this is my personal, so I will show the demo very quickly. So when you start, You have an indicator to know the amount on your own account. Of course, you can go down to see more about your account and we have put in place A touch ID to recognize and to be sure that you are allowed to do that. So I put my fingerprints. Okay.
You can see all your account within Societe Generale. And of course, you can now go To other bank, I click on other bank. Boursorama for sure, but yes, you see Caisse d'Epargne And you can see all the accounts that you want to consolidate in one single place. And you can also for sure add new bank And you can add every bank that you want. For example
In France
or all
over Europe?
For the moment only in France. For the moment only in France. Okay. So let's go back to the homepage. On the homepage, we can go on card.
I have one single card, but you can put many. And with this app, you can now do many things on your cards. You can change the amount, the monthly amount. You can change The capacity of withdrawal, but you can also explain that you are going in a foreign country and you want to be sure that your card available during your stay. And you can also cancel your card and all these functions are in real time.
If you want to buy something on the website, you cannot. You go on your app, you move up your account and you can buy immediately after. Maybe just a little last one. For sure, in Insurance, you can now simulate and create a contract for your car, for example. You go on the apps, you go further, and you can do very easily The simulation, you choose your car, you put in place the following.
You can also Ask if you are not able to go further, you can also ask to be called back By an advisor and he do that and it's very surprising that he can do that very quickly. Okay. So maybe the last one, I don't know, Because it was about well, and for the last one, for example, You can see all the account and all the operation coming from all the account that you have in different bank. And this is the personal finance management and you could also see all your operation by category And this is why this application is very famous and very useful. So maybe I will stop there.
Okay. So to sum up, we are sure that we have the right digital transformation strategy. And to prove it, I propose to let the floor to Philippe to give the reasons on the ground.
And the consequences, the impacts of all of that on our front office and back office setup. So regarding client usage, I will do it briefly because Bruno has already told you a lot. You see some numbers. The client using our app It's growing very quickly by 30% during the last 2 years. We have 94% Of domestic transfer, which are already executed by the client directly through the app of the website, We have a similar trend on international transfers.
You see that now it has increased from 30% to 67% of international transfer are performed directly by the clients. We have also a significant increase on all the self care related to credit card. And finally, there is A jump on the electronic signature because for many of the products now, We have up to 35% of eligible contracts, which are signed by electronic signature. So in a nutshell, the clients are taking advantage of the new digital functionalities presented by Bruno. Of course, we continue to develop to add new services today in the website, in the app, but we have also in mind All what is going on, on the Internet of Things world.
And of course, we want to continue to be up to client expectations. 2nd impact, and I will detail more on our Marketing approach, because that's true that digitalization allows to optimize and personalize our marketing approach We've, of course, a very responsible usage of data because we want to remain A trusted partner of our clients. So we are very careful about that. I want to give you 4 illustrations. The first one, which was mentioned by Bruno, it's our 360 vision of our interactions with clients.
So we have this tool, which has been implemented last year, which capture every single transaction interactions Between the client and the bank. It could be a part of his digital journey. It could be a call to a branch. It could be a call to a call center. It could be a visit to a branch.
And these informations are shared within the bank, which means that We are aware of the situation of a client, his project, his problems. And when we and we can give him A quick answer, we thought asking again to explain what this problem is. So this tool implemented last year Has radically changed the way we are more proactive with our clients. 2nd example is that, of course, the digital tools allow us to detect client Interest during his digital journey and to propose some support. I'm going to give you an example.
If a client is on the website doing simulation on consumer credit, for example, we can reach him. So we have been very cautious with that because, of course, we didn't want to be too intrusive. So we have done it very progressively. But what we have seen is that the clients actually are very comfortable most of the time with this call because It helped them to finalize the process to have additional advice and to have, yes, an interaction with a human being. And this task is most of the time done by our call centers.
Example number 3 It's that big data technologies allows us to promote the right offer at Right time and the right moment to the client. So it's not new for individual clients. We have done it for some years. But we are also doing that now with professionals. It could seem a little bit strange.
But we have seen that it works also quite well with professional. For example, the last campaign of Credit Union Proposing overdraft facilities to clients with a scoring tool, of course, has worked very well because you can see that it was 3 times more effective than the previous one. So it's not only on the individual segment, but also with professionals. And the last example, it's from a marketing standpoint. I can take the example again of CreditNet, which has developed a tool called the Blue Box, which is able To aggregate many data, many information about the clients, not only the current value of the client, but also its potential, His behavior is digital journey in our tools on the Internet.
And so with that, we are Able to have a much more precise effective segmentation. And with this new segmentation, We are not only able to have more precise marketing actions, but also that's part of the tools helping us To reconfigure, to refocus, to specialize our front offices. So that's a transition to the 3rd impact, which is the impact of all these evolutions. So more client autonomy, new marketing tools and automatic processes front to back, The impact on our front office and back office setup. I will start with front office.
So we have seen that the clients are more digital and they are doing much more things themselves. Simultaneously, we have continued to develop our ATM matching. Our ATM, which are no longer only delivering cash, They still do deliver cash, but the client can also do more things with the ATM machine, printing an IBAN, doing a transfer. So all this combination has 2 impacts on the front office. The first one, and we are well aware of that, is that it reduces The workload on our branches.
So with this reduction of workload, we have done 2 things. The first thing, And you can see the numbers here is that, yes, we have reduced the number of our branches and we will continue to do that by approximately 100 per year, first impact. The second impact and probably on the long term more important Is that we are increasing the added value provided by the relationship managers and the branches. So we have done 2 things. We are specializing our relationship managers because the one size fits all doesn't work anymore.
I mean, the clients, they want specific advice. And so a relationship manager is not able to provide the same level of advice for many different clients. So we have specialized relationship managers. And the second thing is that we have also worked a lot on the format of our branches Because the branch with a unique format covering all segments, it's no longer the target. So we are doing a lot For the professionals, for example, in Societe Generale, the goal is to have approximately 150 dedicated spaces, Corner or branches for the professionals and we have also we are also creating 30 business centers dedicated to corporate clients.
And this is also one of the big impact of the digitalization because we thought the tools we have mentioned, we will not have Able, we not have been able to do that at this space. Impact on our back offices. Here, the most important impact, of course, is the automation front to back automation of client journeys. So as you know, we have communicated on that on the Investor Day. And our target is to close 6 For 20 back offices, the target was by 2020, it's done More or less, so which means that we have done that with 18 months in advance.
Simultaneously, We have also specialized these back offices, again, with the same idea to provide added value To the client and also to increase our internal efficiencies, so our back offices are specialized whether on individuals or Some of them on very complex products, specific mortgages or successions. And the last impact is the impact on our call centers. 2 years ago, most of the task was taking care of the incoming calls. Now they are also more proactive, thanks to the digital tools we have mentioned. And for the most standard Products, we are contributing up to 10% of the global sales.
So To conclude and before answering your questions in a few words, so we are totally focused on our execution plan To change the bank, we are on track. We are monitoring this very closely with many KPIs. 2020 is a key step for us. As Frederic mentioned, we'll deliver Bank more flexible, more agile, but we know that is not the end of a journey. And this new platform we are creating It's going to be also key for the future at least on 2 topics.
The first one is that We will be able to easily integrate upcoming challenges such as Internet of Things world or virtual agents. The second thing we will also be able to integrate is the new open banking world Because with this platform much more flexible, we are able to integrate new product and services provided by third parties And to sell them to our clients and so to increase our revenues and notably our fee days revenues. And conversely, with this new platform, we are also able to provide some assets Two partners, which will integrate them in their own platforms. I have mentioned Francinox, I have mentioned Transactis and Claire will also explain what we intend to do with Trezor, which is our last Acquisition, which is very specialized on the Banking as a Service platform and more especially on the Core Banking at Ascents. So this is one of our next frontier to develop the B2B2C business.
So that's why we wanted to share with you this morning with Bruno. And now we will be very happy to Answer your questions. There are already some questions.
Thank you. Jean Pierre Lambert from KBW. I had a question about the trend towards intelligent banking. We're going to have more and more data growing exponentially. The analytics are getting more and more sophisticated, developing very rapidly.
You spoke about Blue Box. How do you see the spread Over AI in your analytics and is it centralized? Is it decentralized by business units? And how do you see The development in that frontier?
For us, it's very important to have use cases. So to start from a business need. So yes, we have centralized capacity and Christophe will mention that later. But the development of all these new technologies, we want to have them very grounded in the business Reality. So it's a kind of mixed approach for the time being.
Maybe it's going to change in the future. For example, for example, now We have many use cases regarding compliance issues. So it's not directly generating revenues, but it's very important because that's part of the Cost of doing business. And we see that for many topics, including KYC, including anti money laundering, artificial intelligence It's helping us to act at a different scale and very, very more on Quikr. So yes, it's a kind of joint approach, but it's very important, yes, to have a global approach because we want to share, as I mentioned, resources, we want to share Capacity, but simultaneously, we should continue to start with a business need and a business or super function.
Hi, it's Guillaume Tiburghiempre, Exane. The question relates to the presentation you made earlier. Obviously, very interesting, but I don't know yet whether it seems necessary to change like this to survive Whether you're ahead of the curve versus competition is not very clear to me. And I guess my question would be, Do you think your transformation will help cut your costs or accelerate your revenue growth?
So I strongly believe that it's mandatory. We thought doing that we will be and we would be already In trouble, just taking the example of front offices, we thought this new approach of front to back processes, we thought this new approach Client Journeys, we will not have been able to do this consolidation and to prepare for the next step, which are part of our ID trajectory. Regarding the impact of all of that, yes, there is definitely an impact on the cost, I've just mentioned it, but also an impact On revenues, my last example when I was saying that we will be able to integrate more products and services from outside partners in our platforms, It's definitely going to increase the intensity of the relationship with the clients and yes, To provide additional services, maybe in some cases for free, but we hope most of the time to generate additional We think that in many topics we have mentioned here, we are, At least in France, ahead of the curve. For example, for the app, it's definitely the best in France and even better than the app of the neo bank.
Jean Francois Neuez from Goldman Sachs. I just wanted to ask, so in the demonstration that We saw, for example, there was the car insurance application. Just wanted to know, since that was introduced, Have you seen have you what have you seen in terms of market share? Has it been efficient? Is it something which is bearing fruit?
To take the examples that you yourself showed. And my second question would be, can you reproduce this abroad, for example, say, in commercially at marginal cost? Every country is really a silo when it comes to your IT platform. I understand it's not really France, but I guess I'm sure you must have a view on that. And thirdly, how can we explain that a bank like Boursorama with close to 2,000,000 clients, at least from the last data
that we see, It's not
very profitable, whereas you see things which are quite similar in a sense like say, Fineco Bank in Italy making Very, very different returns. What's the catalyst for this to change?
The structure
of the market.
So I'll start with the first question. In the case of insurance, it's too early to have real quantitative evidence. What we have seen and that the numbers I have mentioned that, yes, clients Do like the new functionalities added on the app. So for some of them, they are using them very quickly. For others, it takes more time, but at the end of the day and because we are doing a lot of tests before, I mean, they do like them.
So Yes, it has some impact. It's step by step. Regarding the second question, I mean, yes, There have been different roadmaps in France, abroad, but we are more and more Coordinating them, Didier will tell you what is going on in international banking. Again, from an Architecture standpoint, we have a centralized unit, which is monitored by Christophe. So we are sharing all these kind of tools, the best experiences.
So we do not have yet A global centralized monitoring of all of that, but definitely the best example probably It's Africa because in Africa, for example, there is definitely one single view. So we are basically with the same roadmaps Everywhere, which is leveraging core banking systems because they are strong, they are robust, they are efficient and adding bricks. And the last comment regarding Boursorama. For us, the priority as of today is to acquire clients. And the second priority is to make sure that the clients are buying products of Boursorama and generating revenues.
This is the case. And you know that for the time being, the commercial spending in Boursama is important. If we adjust Even slightly this commercial spending, which is taken upfront, Boursorama is profitable. So we have absolutely no doubt of the key component in our business model of Boursorama for future. It's key for us.
We do consider that the fact to be the market leader in France with 30% of market share, 30% of market share in acquisition is absolutely key for future. And again, Boursorama, With a slight adjustment of the marketing expenses is profitable.
I think one of your added value as a bank is trust. So hopefully, your customers trust you more with data than they trust Facebook, for example. So here, how do you develop your Open Banking with the guarantee that The data of the customers are kept safe by the bank. And The second aspect is, do you think at this stage, there are a lot of regulatory barriers to the development of Open Banking for the same reasons?
Well, I will start by the second part of the question. I think we have enough room of maneuver to continue to deploy Regarding data secrecy or managing the data, step 1 is, of course, we are fully compliant with the regulation. It's a no brainer. 2nd step, we have internal security and compliance team, which are very careful about all of that. And third, we ask the consent of the clients.
And what is very important is when you ask the consent of the client, you have To explain IMO what is the added value. And once you explain the added value, the client sits free And he says yes or no. And what we can see is that most of the time when we explain clearly that with this usage of data, we will be More precise, we will be more efficient. But at the end of the day, it's good for him. It's fine.
And if it's not fine, we are fine.
Good morning. Jacques Marie Goldark, Kepler Cheuvreux. I wanted to come back on the demo because it's great. In the good old days, you could ask your adviser for an overdraft. Now you can ask your phone.
And on the risk basis, how I was wondering how the risk function was actually working in terms of authorization, at which point you get to a risk committee. And just a little bit for you to get us into the kitchen, secret of that. Thank you.
So on the kitchen, of course, risk is involved from the beginning in this kind Project is fully embedded. We have governance with risk committees. We have governance with new products Committees because it's not only risk, it's compliance, it's legal, it's IT security, there are many components. In the case of I've mentioned for Credit Union, which is very interesting is that the credit scoring It's embedded in the process and it's asked through an API process. So in the process at some point you have an API requesting the credit score and according to the credit score, we will activate the proposal to the client or not.
So there is full consistency in this example between the credit process as usual and this new marketing approach.
Could you give a quantification of your IT costs Within your total cost and also the IT development cost as opposed to the IT maintenance cost Because at present, we don't really have any detailed split on this topic.
If you could be patient, Christophe is going to provide you within an hour all this data. And if you want more, we can interact after, but that's we think Christophe's presentation. So it's coming soon.
Good
morning. Stefan Stahlmann from Autonomous. I would like to come back to the Boursorama Economics. It seems to me as if Boursorama so far has signed up a lot of clients, but in a way the wrong clients In that they're not very productive yet. They don't have a lot of loans on average.
They don't have a lot of deposits on average compared to normal average French clients. Maybe they're selling buying less insurance products, etcetera. How do you think that is going to evolve over time? Do you think you can lift these clients to average Productivity metrics, or is there a point when you start actually attracting fully productive clients from other networks, So the mature clients with big loan books and big portfolios of securities to manage, etcetera. And when do you think that will happen?
When do you think you will take market share from these fully productive clients, let's say, from the mutual networks based on your technology advantage, if there is 1.
So first, it's important to mention that Boursorama has been profitable From the beginning, from its creation to 2015, we are in an investment phase. This is year number 3. And so let's be clear with that. Actually, the clients of Boursorama are profitable, And we are managing very precisely according to According to the year of acquisition, all the clients behave if they are subscribing new products. And we see very similar numbers compared to the mature networks.
So the numbers of products, it's More limited, Bruno was mentioning that in Societe Generale, we have 400 products. On Boursorama, we have only 40, But Forti, we have a very efficient operating platform behind. And again, as I said, the clients of Bostorama I'm not only doing payments or day to day banking, they are buying, as I said, insurance, savings account, all these kind of things. And the last thing I wanted to mention and come back, I forget. What was the last part of your question?
No, I mean, what is key in the acquisition is that by definition, Boursorama is acquiring clients, which are who are autonomous. So if the clients are not If they are not comfortable with the digital experience, I mean, they cannot be clients of BOSSARRE. So by definition, these clients should be autonomous and comfortable with that. If you need An interaction with a human being, I mean, BOSORAMA is not the solution. And regarding the market share, I told you, acquisition of core clients for Botswana is one of our core priority and we are 1 year ahead of schedule.
Again, we communicated on the Investor Day 2,000,000 clients by 2020 and this number will be achieved by the end of next year.
Laurie Maris from Moody's. In terms of your Strategy, can you just comment on the extent to which you're particularly for Societe Generale and Credit D'Nort Focused on client retention versus client acquisition. And despite everything you're doing that you've taken us through, In what areas in particular you're more concerned about disruption from either big tech or other new entrants in the retail space?
Okay. First reminder
Actually, this will be the last question because we have to go to We will have a final
Okay. The first thing, and maybe I have not mentioned it clearly enough, it's that keep in mind that For Stejernan and Boursorama, I mean, as in Creon, it's even more. 50% The revenues generated by corporates and professionals. So we speak a lot about individuals, but the foundation The revenues are also very important on the corporates and on professionals. We are not focusing more on retention than in acquisition.
What we are doing is for both banks, making sure that we are Acquiring target core clients. And for example, we have been, yes, more selective than other competitors for mortgages Because as you know, the interest rates for mortgages are very low. So it's an important amount of money dedicated to this kind of Acquisition. So we want to make sure that we are spending this effort I mean, we are doing this effort for Core clients. Level of disruptions, I mean, yes, it's I would say it's already done for the individuals That it's coming very fast on the 2 of our markets.
As long as retail banking is concerned, as Frederic said, This is different on the pure Investment Banking. And we are not considering that nothing will happen on I mean, unprofessional is already there also. So we are very careful and we want to make sure that we are ahead of the pack. Okay. So now I leave the floor to Gugde, which is going To tell you the road map for International Retail Banking and Financial Services and to introduce The 4 workshops we are going to have in some minutes.
Maybe we can show the movie again.
Thank you, Philippe. Thanks, everyone. I'm very happy to be With you this morning, I'm going to be here on the behalf of all my colleagues from the International Banking and Financial Services businesses To talk about our digital transformation, and I rather say our digital transformations, as you know, we are very diverse. And we are very diverse not only in terms of business models and location, So in terms of maturity of digitalization. Nevertheless, we have embraced the digital transition, and we've done it with 3 credos.
1st is convergence. Whatever the starting point, whatever the level of Initial digitalization. All businesses in banking are met To converge to the same model around digital, not necessary at the same pace, not necessary along the same way, but all towards the same direction. 2nd, Credo, Growth. Digital, it's a huge opportunity to develop our customer base.
3rd credo, Decentralization. Yes, of course, the investment has to be monitored. Yes, of course, we have to share expertise. Yes, of course, we have to replicate solution. But in the same time, above all, it has to be decentralized, implemented in a very decentralized fashion to make sure That solutions are relevant to our local business models.
So and you said this morning, this approach obviously tackles the customer interface. But what matters is to change the customer interface is what's going on in the kitchen, as you said earlier. And because customer interface is only the tip of the iceberg. In fact, it proceeds from An in-depth revolution of our entire value chain. Let's take them briefly step by step.
Process digitalization. It's about streamlining end to end the processes. That's what we're doing, for instance, In Russia, to build our SG Russia digital store. And this streamlining combines Automatization, better controls and a substantial reduction of the time to So you will have an illustration, a demo of Russia housing ecosystem. 2nd step, APIization of our information system.
We've launched across the board In all our location, an extensive reorganization of the systems and that's a prerequisite To operate in an open architecture. And you will have an example of that with Moon Shot. Moon Shot is an internal startup And Moon Shot has been developed by SG Insurance to be able relying on the architecture that is 100% APIs To be able to develop with partners some pocket insurance products. 3rd Step, big data. It's about combining internal An external data to get a 360 view of the client and then to process it through Artificial intelligence mechanism.
So yes, it's a way to get more business. But more surprisingly, it's something that our most advanced retail debt collection platform In Germany, in Russia, use and it changed it has a huge impact on the cost of risk because of more efficiency on collection and because of improved recovery rates. 4th, new products. Digital is not only about making some existing product digital. It's about inventing Product that would not have existed without digital.
And I think that you will have an illustration from that with what's going on Within ALD and there's numerous outputs from corporate car sharing 2 online second leases for individuals. The next step is even new business models. And new business model is when you tackle a new segment of clients and do that with a brand new infrastructure. And that's what we're doing in Africa. And in Africa with Europe, we are providing Basic banking services out of partner shops, groceries, gas stations And you will have a demo about what Europe is about.
Next element, The new ways of working and Frederic mentioned that earlier about agile. I think that It's about breaking the silos. It's about allocating our staff in the light tribes, I. E, Multidisciplinary teams that are going to be focused on one very Precise short term projects and we're going to get feedback from the clients. And it's a great way to increase Customer relevance and to obtain fast delivery of projects.
And the best example of that that we have is in Czech Republic Well, we have engaged agile at scale kind of transformation and already 25% of the staff of the headquarters of Commerzbankar are organized and working in 2 tribes and it's bearing quickly some fruits. So I would like to have you go back with 2 takeaways from this Introduction. 1st, the digital transformation, it has play within IBFS In a massive effort, it's not necessary at the same pace. It's not necessary The same mix of solution because IBFs is diverse, but it's taking place everywhere. And just As a summary of that, the share of exchange of bank within our IT cost in the last 4 years Change from 35% to 43%.
2nd, The names of the game are growth and efficiency. And this Investment to change the bank focused on client satisfaction and our initiative to transform ourselves, they are paying off. And in the last 4 years also, it allowed IBFS to steadily increase its customer base plus 6% And to sharply decrease its branch network minus 11%. So now let's go to Concrete example with demos downstairs. There will be 4 standing demos upstairs.
As I said, housing ecosystem in Russia, moonshot for insurance, ALD and YUP. Thank you very much.
Good morning, everyone. In our division, we all think about digitalization Every single day. We all talk about digitalization every single day. But when faced with reality, how do we deliver? How do we deliver an incredible user experience, reduce our costs, become agile and innovative?
How do we translate our promises into reality? Today, I'm going to share a journey that started in 2014 With a unique objective, make our clients, staff, partners' life easier and more Efficient at work. We are in 2014. We deliver a quality service, But it is not scalable. Most of our interactions between clients and bankers Arcelor and Manuel.
Our juniors, seniors prepare pieces of advice, reports, Analytics. Answers to RFPs, RFQs, RFS through a lot of manual tasks. Outlook, Excel, PowerPoint, Bloomberg chat, phone are our daily main tools. Information flows From one person to another with the risk of being deformed and outdated. And when this is done, we have another set of manual tasks Through our controls, but also the ones from regulators.
But This is not what we have at home. We've got a mobile with a lot of apps, very efficient. We are autonomous, And we love it. So in 2014, we imagined the future of our interactions Between clients and bankers into an ecosystem represented by this virtual circle. Everything It's interconnected.
The same intelligence is used between us and our clients. Ideas are fast to emerge and implement. So we set and communicated a clear ambition. We want to be a single marketplace for all our B2B Services within our division. For all client segments, large corporate and all FI And also for all our services, market services, financing services, security services and also cash management services.
In 2014, we already had all our research analytics developed with an API first strategy. We were well prepared technically and thought that building a platform would be a rather technical challenge, But we quickly realized that the real complexity was not technology itself, but how we apply it. So we established 3 key principles that has been key to our success. The first one is Stay focused. We are business driven, not technology driven.
We have a lot of fantastic tools Around us, but they will not bring a digital transformation by their own. They have to be connected to the entire setup within the bank. And this setup, We have to fix it. We have to transform it. We have to make it
agile.
The second principle is the use case. We test and stress any idea before we write a line of code. And the 3rd principle is be patient. We know where we are going. We have the vision.
We do it step by step. If we do everything at the same time, At the end of the day, we will do nothing. How did we do? We want to be in the race against GAFAs and startups in Financial Services. So We have to act like them, but also capitalize on 2 fantastic assets they do not have.
The first one is our network of people with their specific expertise. The second one Is our data, our processes, our intelligence? Let's call it our legacy. Unfortunately, this fantastic asset is trapped under thousands of monolithic applications. The legacy or gold, we have to transform it.
Traditional strategy We'd attempt to create new systems and replace the old one by new system. It's multiyear project. The cost is huge. And at the end of the day, you have another legacy system. Another traditional strategy It's to converge system.
You take piece 1 of system 1, piece 2 of system 2, extra and you try to merge them. Multi year project, Huge cost. And at the end of the day, you have more of Frankenstein system than a digital system. So how did we do? We chose, in fact, to capitalize on our existing analytics Platform and make it grow step by step.
This was the first part of the strategy. And the second part It's to break down our legacy into much more smaller tasks and transform it, deconstruct it Step
by
step. In a race, The overall winner is not always the fastest one. Often, it's a competitor who is able to take the turns the best And continuously adapt to the condition of the course of the race. And as you know, In a turn, there is first a slowdown and after a strong acceleration. So our challenges or turns are to make the best For monolithic applications, by moving but also improving them into our SG markets platform.
For each move into the platform, we take the time needed to align Our legacy system with our core principles. Now everyone need to understand what I'm going to say, Even if it's a little bit technical, all our business people included. We first start to They correlate the user interface. It has to be an excellent user interface totally independent from all the business logic behind. The user interface is what the user see.
It's the tip of the iceberg. As you all know, For all iceberg, there is a strong invisible part. This invisible part is the business services. All business services will be done through APIs. This little piece of code that interact with one another, Frederic compare them to LEGO, That interact with one another and build a business service.
And when you build these APIs, You have to sync them all together. The LEGO, they all have same properties, same for our APIs within our HD Markets platform. This part is totally de correlated from the user interface. No intelligence in the user interface. And the 3rd part This is the data with all our legacy database that we will change progressively when we will have correlated everything in all our legacy Between our user interface that we change every 3 to 5 years then our APIs that we change continuously, let's say, in average every 10 years And the data that we change every 20 years.
So all these small pieces interact With one another, thanks to the 4th element, the core services, the AG market's core services. This element is very important. It's the spin dorsal of our strategy. I'm going to zoom in it. The first part It's the security part.
It's going to be more and more important in our approach, very important for our businesses. I'm not going to describe all the capacities behind this pillar. I'm just going to say that everything is done by design. It means When you enter the platform, you are fully secured by the platform itself. No tons of extract after Through Excel, Extra to see what is not done in the right way on the platform.
The second pillar It's user and developer experience. I would like to focus on 3 blocks that we are very proud of: The SG API catalog on SG Markets, you can see everything that has been developed. It's Open, anyone in the bank can use it, even clients can use it. You will see it after. Our design system, which has been rewarded by the Envision and our AI capacity, I will comment to it afterwards.
The 3rd pillar is the data with the data lake. And the 4th pillar is the infrastructure, an important one. We want a lot of scalability into our platform. The more red the color is, the more mature the capacity is. We still have some work to do on all these capacities.
They are core. The governance behind all these capabilities is very simple. And even if they are all totally correlated from One another, they are seen as a family. There is a strategic correlation between all of them at the end on this core layer. So now I'm going to switch to some demos.
So I was supposed to do it online, but it's quite difficult. So I've done some screen capture yesterday. So we start by you. If you go on sgmarkets.com, you will see, in fact, the whole offer, What we have today are market activity, financing, global transaction banking securities. You can see it on your mobile, iPad Our PC or Mac, our design system allow us to have everything available on all platform coding only one time.
Now I'm going to tell you the story of Florence. Florence, she's a treasurer within a corporate. So she connects. She knows that the system is very secured, thanks to the 2 factor authentication and she arrives on the platform. Florence, what she likes on the platform is that previously, she had 9 different websites with 9 different account passwords with 9 different User Experience.
Here, she has a Board of Services where she can go anywhere from the platform. So this morning, she wants to see a position cash position, so she knows Global Cash. On Global Cash, she has a highlight at the top and she can see all her accounts in one way. So here, She sees that she has some cash on U. S.
Dollar. So she go back through the interface on her wall of services and then She goes in the foreign exchange product offer and then she executes a transfer from dollars to euros. This is the journey of Laurence on SG Markets and she knows that it's going to improve Quarter after quarter through the services we are going to deliver onto the platform, again with the same user experience Everywhere and the reuse of components. So now you saw what is our strategy previously. You saw the offer on the execution Forex execution part.
This, in fact, Thanks to the reuse, thanks to the approach we've just shown, we have reduced massively our cost compared to the monolithic version we had Creating and ForEx between 2,009 2012. And what is important to have in mind is this is the first version we did was for our staff, For the communication between salespeople and traders, we did it for ourselves and then we opened it To corporate. But the story is not finished here because we have decorated everywhere, everything. Because we have a very powerful business architecture, We created a version for John, who is a treasurer within an SME. And this version, you can see here the interface, same design system and we just built a fountain On top of all the existing components developed through the previous version, the cost was really Small and it took 6 months to deliver and we are putting it in production just now.
The story is not finished here because as you know, We've got a correspondent banking business and TIM works in a bank. And TIM use, in fact, Pefix, so it's pefix.agmarket.com. And again, it's all the same elements that are used behind the interface. We all see the interface, but what is important is the fact that we decorate everything behind the interface And again, everything is linked into the platform. Now I'm going to take the example of Vladimir.
Vladimir is an asset manager. When he connects on the platform, he has 10 different services, same story as Florence. He likes To have everything through the same user experience, the same thing as you have through your iPhone or through Microsoft Or through Google with the same user experience everywhere. So Vladimir, he likes the notification part because everything is notified On the top line of the screen, everywhere in the platform, it was the same for Florence and ForEx and Global Cash. And Vladimir, he goes into analytics.
Vladimir is a fund manager on the fixed income side. And Vladimir, he wants to do some relative value things Through our analytics. So Igoe and the charting tool. And on the charting tool, he is going to launch The France versus Germany to see the correlation between French and German bonds. You can see here that There are some color codes.
Salespeople, engineers can prepare workbooks that they are going to share directly in the platform. Remember my first slide, no more e mail. Intelligence is directly done through the platform. And you can send links of workbooks to anyone within the bank or to other clients. So Vladimir launched France versus Germany.
He has a very nice interface. He likes it. He see a lot of things between the correlation of bonds. Now at the end of the day, He says, it's a little bit painful to go every day on the same website to see the collection of the bonds. And Vladimir, One of his colleagues, Morgan, she's an asset manager also, which she code in Python And she's a very good coder in Python.
She's an asset she's a fund manager. Vladimir is not a very good developer. He knows Excel. He knows VBA, but he doesn't know how to code. So Morgan told Vladimir, you should go into the API part of SG market Because in fact, it's very simple and you can even use them through Excel.
So Vladimir, he goes on the APE part. And then again, he's not an expert, so he's trying it. He exploits. And then he So try it out, this API that get all the information and the product we use. And then this is raw data.
The API gives raw data no more duplication. So you say, wow, it would be cool if I could have this raw data directly in my Excel. It would avoid me to go every day onto the website. So he goes into the documentation and he look in API doc. And on the API doc, we've got a VBA example.
So under Excel, we've got also the code in R or in Python. It's Some example to give to our clients. So this is done through all our analytics. We have decorated the front end from all the business logic And this is available for our clients. Now I'm going to Show you the user experience from myself or anyone within Societe Generale.
Remember, our strategy is everything we do for our clients or for our Graph is exactly the same. So I connect onto the platform. And what I like is that I can Continue directly either under SG internal navigation or under client navigation. It's important to have this client navigation to See what is the offer given to clients today because it improved week after So you can see this little red triangle. It means it's internal only.
It's only for SG and A staff At the moment, so I continue into internal navigation and I see that on the market's offer, I've got the equity derivative flow with this trade triangle. We are in fact doing some work Flows, automatic workflows between sales and traders and for sure in the future one day we'll be able to open this to clients immediately. So I continue. I click on the Board of Services. This is my Board of Services.
I have more than 120 service Into this, this is the one I use the most and I'm going to launch the one called Artigence Intifacial. You see that it's a red triangle. Here, the system Gives me the services that I use the most. I'm going to show you a quick demo on the market chat partner through machine learning techniques. So one of our data scientists has created an API that will be used in all our market activities that able to pass any chat request that we receive on any asset class.
You can see here, This is a client request and the in fact machine learning technique is going to pass this text And to transform it into structured information that will be passed to an API that will be used on all our execution tools. So what I like also is a developer portal where I can see, in fact, all the developments that are done Within AG, we'll open some of it to our clients in the future. And our innovation. Agmarket.comservice That allow me to follow all the use case that we push within GBVS. So where do we stand?
On the analytics part, it's one service. It's just an example of one service. We have multiplied by 2 external users, 4,000 users Now out of these 4,000 users, 377 use the APIs directly. So they do not use the Interface directly, they use the APIs. They connect their intelligence to our intelligence with 30,000,000 calls this year And with 60 gigabytes of data downloaded per week.
After this is our indicators globally, the one that I follow. The time to market has been divided by 2 when we developed an Asian market. For some developments, it has been divided by 3, 4 and even 5. The reuse of our design system has been multiplied by 100. In 2014, we have 2 different service.
Now we've got More than €200,000,000 The scalability, the number of service available in the platform, it has multiplied by 15 In the past 4 years and the synergies, the services that our clients and us are using. Again, everything we do Between clients and staff is exactly the same. So in the next 2 years, we will Develop we will transform and improve a lot of legacy system into this platform. I'm going to focus on 3 specific ones we are going To do, a more integrated client journey for large corporates, there are still some services that are Into the platform and that will be very valuable for our corporate clients. 2nd one is the opening Of our deal processing capabilities, so we will have a deal processing.
Agmarket.com offer. And third one, our Kawesi, Last year, we have started all the remediation on carosi. Agmarket.com. We tested internally. It's in production internally.
All our remediation this year were done through this tool and we will open it to clients at the end of next year. Now I leave the floor to Frank.
Lucaute? Okay. Thank you, Alain. Good morning, everyone. So I'm pleased to be with you today.
I mean to give you a Few examples of what we are achieving in terms of digital initiative in global markets activity. First, I would say that Technology is part of our DNA. If we have been able to build our derivatives franchise over the last 30 years is thanks to extensive usage of the computer. And the exponential growth The CPU has enabled us in the last 3 decades to provide to our client more and more sophisticated product, while at the same time managing more and more complex risk. But it's true as well that For the last decade, we have faced like any other banks the great challenge of incorporating Into our information system, new functionalities due to the changes of regulation and also because We realize that some parameters were neglected before the crisis like the parameter link for example to the liquidity risk.
So all those functionalities we have been forced to Include them, incorporate them into our information system very quickly in order to comply with the regulation or to adapt our models. And that's Basically, Transform of Information Systems is very complex. And as Alain has mentioned earlier, The first task and the first challenge that we are facing is to simplify this information system by Separating the 3 parts. The first one, the screen or the interface user, the client experience. 2nd is where again the value of our system is it's all the pricing functions, all the risk management capabilities that we have, Transforming them into APIs and also reducing the number of database in order to have the cleanest data possible for re usage.
So all this we will put on the SG market platform, the single platform for the wholesale banking activities. And this require the strong cooperation between 3 actors. The first one is a business owner, the front officer, Because he knows what the clients want. He has the vision of what kind of service we want to deliver to the client. The second one He is the digital designer.
He knows what kind of APIs are available. Make sure that all the development are rational and that we are reusing all the APIs which has been developed. And the 3rd A participant of this Trio is the IT developer of course that has to develop the service in the due I think it's very important that these three people these three actors are working very strongly together. And it requires as well a same common understanding of the technologies that are available to them. And I think at Societe Generale, we have on the front office a population which is able to understand The new technologies and therefore we're also making a strong effort in terms of recruitment of young talent having some technology experience.
So a few examples of a few indicators of our HD Market platform. So you can see that the number of visitors has increased significantly over the last 4 years more than double. But maybe more importantly is a number of pricing requests that is occurring on our platform AG market. And you see on the structured product side, it's more than it has increased by 10 times over the last 4 years. Now it's 600,000 The pricing requests, which are done on the daily basis and we will see that it's saving a lot of time for us.
So now I would like to give you 2 examples. The first one is on structured product. Obviously, it's one of our franchise And it's on the pricing of 1 product which is becoming the most Famous product in the distribution of short term product, which is the Autocall. I think we talked about it in February. And here you have the screen of a standard protocol that the client can directly Input the underlying, what kind of maturities looking at, in fact all the different parameters that is requested.
And at the end, you get the price of $2.95 We have Also the function or the advisory function to provide him as well So my guys on the if we can potentially change the underlying extend the maturity of the product in order to get a better yield. But that I would say is relatively common for all the banks having a franchise in structured product especially on the distribution side. What is more unique is our capacity to provide under the system, under the platform Ad hoc pricing matching the request of the client. So there is a first discussion which takes place Between the financial engineers and the client, describing what kind of payoff he wants To add, the financial engineers is able to write a script In our internal financial programming language that we have developed 10 years ago, we are reducing The most valuable part of our system is able to write the script. He adds up Just a few lines in Python where the financial engineer will describe what kind of parameters the clients need to input In order to get the pricing and when this script in LDP in our language programming plus the one in Python already, The client can right away start to price on the platform.
Obviously, this is an innovation that we have developed 12 months ago, which is very appreciated more than the 500 new product, new version and you see Athena for us is the protocol. So you see That the people have tried to find new to change little bit the payoff and they had the new ideas, the indirect client. And More than the for 500 new payoffs has been created on the platform In order to service our client. And I think it's more than 150,000 request, Pricing request, which has been made using this functionality. The second example I want to mention to you Is on the commodities side, this time on the trading.
So here you have A discussion, a chat that is very common between a client and an investment bank. The difference is that the client here is discussing with a robot, a trading robot. This robot we have been able to build it thanks to the usage of all the APIs that has been developed On our platform. And one of them as Alain has mentioned was the parsing recognition of the language of the request of the client. So as the robot is still a junior trader, he will make sure that he has well understood What the client has request?
So it's did you mean buying 1 lot of copper? And after you have a regular discussion between the client and the sales or trader And at one stage, the client is giving an order to the robot and the robot When the price match the request of the client is executing the transaction and right away the client We'll receive a confirmation from the robot with all the disclosure that MiFID II is requesting. And as well the robot will send the instruction to an information system For the settlement, I think what is important is that we are using Symphony for this robot. So, Symphony, it's a platform which is commonly used by Investment Bank and the buy side. We were able to develop it because Symphony is an open architecture.
And I think it's very important that for innovation, We have either open architecture or open source. The advantage for the client 1st, he's using the same platform to chat with the sales because the sales can be part of the communication obviously of the It can execute also on this platform and receive the confirmation. And it's not only for listed product, But the robot understand as well if it's a noTC request. And as Symphony is available on tablet On smartphone, the client, if it's out of its office, can continue to chat and thread with the application and in direct with the robot. So this robot has We recognize as an innovation and we received a few articles in the press recently For this, obviously, it started with commodities.
We want to deploy it Across the different asset classes and we will do that. But again, it's required to have all the necessary APIs. Therefore, we have to continue to simplify and to transform all the functionalities that we have on other application or asset classes in APIs. So I think this is two example, It's relatively short, but you can see that at the same time we're able to improve the user experience and also we are refocusing Our front officer would it be the sales the financial engineer, the trader toward more value added functions, Which is for us improving the algos, giving more content to the client, focusing on the content or Finding new innovation in terms of end product. And I've been spending less time In the pure the basic execution or like for the first example Spending a lot of time to give a lot of pricing tables to the client because the client is able to do it himself.
So overall and as a conclusion, I would say that the journey has started. We see more and more requests From our people at the front office having plenty of ideas on the services that we can provide to the client, But we should never underestimate the time that it will take again to simplify our system And to make sure that we have the good usage of the APIs. But I'm very confident that we have The people, we have the talent, the experience, the willingness, I mean, to embrace these new technologies. And I'm pretty sure that we'll have more service to show you the next time. Okay.
Thank you. Now I think with Alain, we will take a few questions and after we'll leave the floor to Christophe.
Thank you, gentlemen. The structured product demo you showed was really interesting. It seems to lend itself Very well, the platform to that. So how much do you think of the pricing or even the transaction of that could be done This way going forward? And how much is it now?
And by when? Because it seems like a natural development for you.
I would say on the very standard auto call, there is 20%, 25% Our transactions are made through the platform. We are using and it's I think it's Important to mention that, obviously, we are building our own platform as a market, but client And the client is also the retail banks, the private banks are developing their own platform. So therefore, I think in the future what will be very important is to connect the different platform between them. And for this I think because we have a team which has been which was in format New Age, we have been really involved in the connectivity between the client and exchanges, etcetera. We have this experience and we have But I think it's roughly 20%, 25% right now.
We have still some clients who are Still expecting to have a better price if they take their phone and to have just a small improvement That will continue to happen until maybe they realize that it's the same price and what can be given by the robot.
Yes. Pierre Chedudil, CAC. I have one question regarding, I guess, that you use some shared platforms, for instance, on FX or things like that, Like 360 for instance, I have. And what is interesting in this platform, which makes the prices Much lower actually in terms of margin. You don't earn a lot of money with cash FX today Due to the development of this share platform, but on the other hand, you get a lot of information From all the markets.
For instance, before this type Platform, you only knew the transaction you made with the clients now. You know all the transaction made by all the participants of the market, Thanks to this Shell platform. So my question is very simple. How do you use this enormous Amount of data regarding activities of these clients given to you by this platform I guess, if they make you pay a fee to get access with all this amount of data, for instance, you can see that one company is exporting a lot to Mexico Recently, so you can say, ah, there is maybe something to offer, etcetera, etcetera. Have you structured Some things regarding the usage of this big data regarding shared platforms.
Thank you.
Thank you. It's true that I mean we have more and more information about the transaction, which will be On the multi dealer platform or with the regulation with MiFID II, we are obliged I mean To post on the all the information, all the transaction of the OTC that we have done. There is one caveat on this is that the biggest transaction, You have more time to declare then. So the one we're moving and I think as well on the submarkets, Which are highly electrified that like 70% to 80% of the transaction I'm going through a multi dealer platform, but the biggest transaction, the one who are moving the market, they are not on the platform. It's still on the voice.
Yes. Because I think for confidentiality, because you think that if a big order is For example, your client doing, I don't know, a big transaction in Mexico. Most likely, if you see that the big orders are traded on the screen, that will move the market and maybe The bank has not didn't have time to hedge itself. So again, the biggest Transaction and we have some time up to 1 month to declare the transactions even with MiFID II. So but yes, I mean, we are using the more and more The data, the transaction, we are analyzing them.
And it's again, We will give more content to the client with this analysis. But for the moment, there is still some part Which are
still undiscovered.
Yes. Just one question about security services and transaction banking, Which we haven't really talked about too much. But from point of view of developing APIs yourself and user interfaces and things, how much of this is about collaborating with other banks As compared to doing things on your own?
Today, if you look at the bank, we've got plenty of services That we can mix up very easily when they are in the platform. So it's what it's our strategy to put everything in the platform. But our platform is also open, which means that if we want to link it, you've seen it with Symphony, But if we want to link it with other services tomorrow coming from cash management in some countries On Security Services, it will be easy to do it. Today, it's not the top priority. Today, the top priority to Transform everything we have, all our goal into something very agile and where we'd be able to mix Different things within the bank very quickly.
Thank you. Hello, everyone. I hope that you enjoy the presentation and the booth this morning. Well, okay, it's time now to wrap up and to step back a little bit because I'm going to speak about the overall digital strategy of Societe Generale. Digital strategy is about technology and innovation.
So I will start first to speak about technology And then, Claire Canmejean, our new Chief Innovation Officer will obviously speak about innovation. So, but let me introduce myself before. So I'm Christophe LeBlanc. I'm the Head of the Resource and the Digital Transformation Department in Societe Generale. I speak on behalf of the IT Societe Generale community here.
So what is the objective of my presentation today? Is to evidence that the digital strategy that we have is helping Societe Generale to transform to grow, which is our key motto for 2020 as mentioned by Frederic Oudia during the Investor Day last year. Yes, indeed. The digital transformation is first grounded. This morning, you saw all the businesses.
All their strategy are completely dependent on digital. So it's grounded. The second thing is, it is responsive. Last year in front of you, we committed on certain, I will set targets in terms of technology and I am going to demonstrate that we are well on track to achieve those targets. Third thing, if you want to succeed in digital, you need to be obsessed with quality.
What I mean there is that safety, IT security are key in our transformation. Also the production stability is key. So we need to be obsessed with quality. And lastly, as I consider and we consider technology and asset as an asset as a key asset of the group, We need also to be watchful, which means that we need to take care of it, be it on technology like servers, application, but also people. So you will ask me now, where do we stand in terms of digital transformation?
Last year, okay, we committed yes, okay, one thing that I want to say before I go there Is that when I say grounded, it's not only for the business. Actually, the full firm of Societe Generale It's following a digital transformation. Risk, compliance, Audit, finance have their own digital strategy. Recently, I attended a demonstration of a tool which is called unstackoac And it enables thanks to image recognition on IDs to complete the file of the retail customer. It's an important milestone for our regulators and we have the resources to the capacity by months to remedy 75,005 per month, it's huge.
It's huge productivity gain as well. In audit, the audit techniques have completely changed, thanks to technology. So you see it's grounded in the full company. Now in terms of where do we stand in terms of targets on the digital transformation. Recently, you saw maybe that we won the ICAC 40 award.
This is great. I'm very proud of this for the team. But also what is important for me is the consistency of our ranking, which shows that our digital transformation is on the long run as well. It's It's really a long effort. It is based on 3 key enablers: data And artificial intelligence, open platform and cloud.
Why do we choose these enablers? Data is key, is a key asset of the group and it enables you to create new services. It enables you as well to improve the customer journey. Open platform is about APIs, is about also creation of new services and also about efficiency for our developers. Lastly, cloud is a foundation.
Cloud is about scalability, is about resiliency And also it's developer friendly and it's cheaper as well. So where do we stand exactly? On data, we have 2 main data lakes. And on this data lakes, we are building, I would say, our use cases. Last Here we are roughly at 50 use cases in production.
Today we are, I would say, more than 80 production use cases, Use cases in production and we have a target okay. We have roughly on pipe in the pipe 246 potential Use cases to be put in production. So we're well on our target to get reach of these 200 numbers by 2020. So we are able to multiply I will say the use cases. And on the top of that what is key and important focus for me is to make sure that we have the right data quality in our data lakes.
And at the same time that we extend the perimeter of this data lake. This is what we are currently doing. One hot topic for the banks is obviously artificial intelligence. There is 3 type of things that There is 3 type of things that we are doing, predictive analysis And you heard this morning Philippe speaking about Credit Unions' Rubbox Tool which enables, okay, which is based on machine learning on data which is Either internal or external data, which helps the commercial effort of Credit Union. We can do also things around operational efficiency.
Recently, I had the demonstration of a tool in compliance, which enabled to screen all the article in the press on one client. Thanks to that, we're able obviously to see if there is any negative news. And therefore, okay, achieve one important regulatory constraints that We are working as well on virtualization. You remember that Philippe mentioned the partnership that we have with Google Home, but we are going to implement soon as well In the French retail, the Sobo tool, which is a sort of chat box for younger clients in order to interact and do simple transactions. So you see we are well on track on data and artificial intelligence.
Now if I move to open platform. Alain and Bruno this morning mentioned the importance of the APIs. The fact that the APIs are enabling you to modularize Your legacy system. This is key. What is my goal here is to make sure that we are sharing all the APIs.
This is why we are implementing and we are implementing and we are deploying a catalog of API within Societe Generale. The catalog of API is not an Excel spreadsheet with a list of API. It has to it is about norms, standardization. The APIs which are exposed in this catalog have to fulfill certain norms in terms of security and monitoring. Today, we are roughly exposing 1500 APIs in this catalog.
Lastly, on cloud. Cloud
again is a foundation. We have an hybrid cloud strategy. We want to move 80% of our infrastructure to cloud by 2020. We are well on track. We are at 60%.
And we have The partnership with big cloud providers in order to do also public cloud and the share of the public cloud by 2020 should be around 20%. With all these efforts that we are putting on infrastructure, we are able to save and we will save by 2020 €100,000,000 per year. So we are well on track. And I must say you will ask me certainly how do we compare to other. We did a study with Gartner.
They say they tell us that on the cloud, suffice that you have this strategy, this hybrid cloud strategy is certainly A differentiating factor compared to your competitor. I believe as well that the fact that we have this catalog of KPIs, which is a Common, okay, I would say asset for all the developer of the group is certainly as well a differentiating factor. So digital transformation is well on track in Societe Generale.
Now, okay, It's no use
to do digital transformation if you are not working in a safe environment. Safety is key. And what does it mean exactly safe? First for me, it means that okay the production is stable, the IT production is stable. 2nd, That we fight obviously against cybercrime.
And lastly, that we embrace a holistic view of the IT risk. On the production side, in Societe Generale in 1 month, We processed roughly 60,000,000 of connectivity in the French retail network on our e banking. One day in January in 2018, we had to cope with 128,000,000 of order. So you can imagine with the size of volumes that incident may occur. So we have to follow them.
We have to solve them obviously. But what is key for me is to recover and the time to We take to recover from this incident. I can tell you that now We are able to recover 50% of our incident in less than 2 halves. This is a huge achievement. And there we can be also innovative.
We have implemented recently a predictive maintenance tool, which enables to predict thanks to the analysis of the logs of the engines and incidents. And in October, we were able to detect Six potential incidents on the Swiss platform and the French retail e banking platforms. Now okay, last year we said we are going to invest a lot in cybersecurity €650,000,000 of over 3 years. We are well on track on this investment on these efforts. This is a long term effort.
But there again The capacity to recover is key. This is why the teams are trading themselves In terms of simulation, if part of the system were down, if our PC were down, if our active directories were down, how do we react? This is So this is really what we are pushing in our IT teams to make sure that we have this capacity of reaction if We were attacked by an attacker. Lastly, I must say that IT risk is not only about only cybercrime. IT risk is also can be also project risk.
If there is a bug in some things that we are implementing, your production can fall. It's also about obsolescence. This is why You have to really have a holistic view of your IT risk. This is what we are pushing with all the CIOs of Societe Generale And we have a sort of dashboard of IT risk management that we follow closely. So now so you see we are all obsessed with quality.
Now I must say That my conviction is that technology is an asset. And there we have to be watchful. We invest In the technology each year roughly €4,000,000,000 of euro. It's roughly 23% of our operating expense. Out of this €4,000,000,000 of euros I must say that €1,800,000,000 is on what we call change the bank investment, new investment, new projects.
What is important is that with the other CIOs that we follow Obviously, the efficiency of this expense that these EUR 4,000,000,000 are well spent. Let me illustrate this point. Recently, we implemented some key efficiency indicators. And I can tell you that in the IT world of the retail banking, We have been able to increase by 40% the number of release compared to last year. In the wholesale side, we More than 50% of our application have really are able to release in less than 4 weeks.
So speed also matters. Obviously, we are also making sure that the Renza Bank of the IT is well under control. Lastly, I must say that Technology is not only about obviously investment, it's about people. Today in the IT filier of Societe Generale there are roughly 25,000 people. Because we are putting a lot of efforts In terms of contacts with the schools, the universities, organization of events, we are able to attract Developers each year in France we are recruiting 500 developers per year.
And in India, just to give, we have a setup which is huge now. We have roughly 4,000 IT People in India. And this is obviously a key area of sourcing some talent for us. Attractivity for the people means as well that we are able to retain the people. This is why okay we are pushing for agility.
Remember last year okay we said to you we are going to have this target of Key percent of our teams in the IT world should work around agile mode. Today, we are 27%. We are experimenting as well agile scale type of techniques, where the organization of the IT is really in sync with the organization of the business. Att activity for the developers goes also with open source. It was mentioned by Frederic.
So our motto is open source first. And we are doing open source in database, In middleware as well as in application. The cloud is also developer friendly. And we are investing a lot in training as well. So you know and we know that a large part of the jobs in the IT are going to change.
We are going to have new type of jobs like Scrum Master, UX Designer and we need to prepare this population to these new jobs. So we are spending a lot of time, okay, in terms of organizing academies and also automated self-service type of Training journeys. So you see we are transforming the IT world today. But one key takeaway that I would like to remind of my introduction is my presentation is That the digital transformation is well on track obviously in Societe Generale. That is key.
It is embedded in the business strategy. So we have differentiating factors and I think the key differentiating factors that we push are around Agility, cloud and open platform APIs. Lastly, so you understand that really digital transformation is enabler of the Transform to Grow strategy, but the 2nd key enabler is obviously innovation. But for that subject, I will let the floor to Claire. Claire?
Thank you, Christophe. Thanks, everyone. I would like to build a bit on what Christophe just mentioned about legacy And the newbie in the team here, obviously. And there is a tradition when you join a rugby team and you know that Societe Generale is quite big on rugby. You're given a jersey.
And basically your job is to build the value on the jersey, to make this team stronger, It's to create some synergy. And that's the way I see my job as a business enabler of this transformation. So Christophe, I've just covered how we the growth part of the plan. I'm going to cover how Societe Generale is becoming more open And connected by putting customers and colleagues at the center of our transformation. We are 1 year into our Transform to Grow plan and a lot of that happened already.
And my job is to structure and accelerate it even further. And innovation and business transformation is something I've specialized on for the last 15 years. So I'm going to cover in the next 15 minutes how we are bringing outside in perspective To change the way we work and to create some organizational agility, how we are preparing for the future Because even if there is a lot happening already and we have seen that this morning, there is more to come. And we need to understand these new capabilities And build them within Societe Generale to keep the cost of the transformation low. I'm going to talk to you about How we are partnering and preparing for our open banking open platform strategy and how do we tackle The partnership with the Fintechs and the technology giants.
And last, I will cover how do we create new businesses. You've seen some of the kiosks this morning with JEAN, with Moonshot. So I'm going to talk to you about our plan about that. I was mentioning about how we want to create some organizational agility. This morning Frederic talked about our cultural transformation.
We're reimagining the way we work. And to do that, We are doing it in twofold. On one hand, we are leveraging the data and we are building on our entrepreneurial culture, which are 2 of our key assets, historic assets we have in Societe Generale. And in the other one, we are getting inspiration from the start up and the technology giants To change and evolve our new ways of working. It's important for us in this journey to be inclusive and to focus on the impact.
So let me give you a few examples about what we are doing. First, we are working on our culture and skills. And Christophe gave some example about IT, but we are doing that at the size of our organization, at the size of our 140,000 colleagues across 61 countries. We are running digital training programs and we have more than 10 curriculums that exist in the group. I'll give you some figures About numbers of our training, which are very specific to 2 of them.
And we are running Innovation and Technology weeks in more than 10 of our countries and they are not just for IT staff, But they are for all colleagues of the organization. And there was actually 1 10 days ago in the U. K. Where there was not only colleagues From all areas of our businesses, but also clients and start ups coming together and sharing how our industry is evolving. We're also transforming our workplace to stay efficient.
We have a cloud based environment and more than 50% of our colleagues Already using it. And this environment is not just your laptop and how you can connect, but it's also user usage for example of virtual assistance That enable us to be scheduling meeting much more efficiently. We've had 19,000 people that are bringing their own device at work. And again, this results in cost efficiency for the organization, but also a better workplace environment. We all know that.
And 15,000 people are enrolled in our home office program, which is not only a sign of agility In our organization, but also of innovation. I was mentioning we are getting inspiration about how the startups And technology giants are working. We've launched 1 year ago at the beginning of the year one of the largest entrepreneurship program in the world. We engaged about 15,000 of our colleagues to push some ideas that became 60 startups. These startups, we have put them in our network of accelerators across the world to test and learn from new techniques Coming from the startup roles such as human centered design, lean startups, business model Canvas.
They are currently running through the acceleration. Some of them are coming at months plus 6. And we are already getting some learnings that we are integrating in our organization. But more importantly that what I will talk about in a minute, which is a creation Of internal ventures of new services and new products, what we have learned is to not fear to overcome our fear of failure. To say that it's okay that we are working on this investment and about 30% to 40% will become projects, New projects, new ventures, new products and maybe about 10% of them will be capitalized and will be the yet and the moonshot of tomorrow.
But actually what we learned through this program as well is what is the burden of our organization? What are currently the Processes, the capabilities we need to change and to evolve in order to gain agility to reach speed and to be even more efficient And faster than we are today. And last, we are looking at the outside. We created a network of ecosystem builders that are leveraging 6 outposts, so 6 different lab innovation lab Across the world in Europe, in Asia, in the U. S.
And in Africa and they are continuously not only building partnership Watching the ecosystem, which is very relevant for our business synergies, but also bringing us some insight about The pace of change and what we can observe, so we can be reactive as an organization. So we are becoming faster and more efficient. Like rugby teams, as competition progresses, we have to progress under the way we see it. I was mentioning that we are also preparing for the world of tomorrow. I've talked to you about what we are doing in our entrepreneurship program And we've tested and learning some of the human centered design techniques.
These are frameworks that rather than Using your processes and analyzing them in bits, basically you start from a human perspective about everything you do. And using them enable us to put Colleagues and customers at the center of everything we do. So what are we talking about? The skills and the capabilities you may have heard of them. Service Design, System Thinking, Customer Research Labs, did it ring a bell?
But what is it enabling us to do concretely for the organization? It's enabling us to look at how our processes are Working and where are the friction and the pain points of our customers and Frederic was talking about that this morning and to allocate investments Where they are, which is one of the key successes of the startups and technology giants as we have seen them. It enables us to connect better with our customers. And last point, it enables us to blueprint new value chain. We've talked a little bit about that with DDS this morning, but what do I mean?
Yesterday when you were buying your house, you were probably going to a branch Talking to a person and eventually we finish with a mortgage adviser and he will provide you the way to buy your house. Today you're probably going online maybe taking a picture or going in Zoopla in the U. K. And eventually at one point you enter in contact With somebody in the financial services chain that provides you your mortgage. At the same time, we are doing that today.
There is Google technology that can almost predict with AI which house you are going to buy even before you know it. And this understanding is very important. How do we do the how do we buy tomorrow financial services as human? What are the points of context? Because this will enable us to really understand what are the future value chain and how we remain present in them.
And let me build on that. It's completely integrated in our open innovation strategy, open banking and open platform 1. We want to be where our clients spend their digital lives. And we appreciate they don't only use our digital platform, But they also spend their time in Google, in WhatsApp and maybe in a lot of other digital tools that are provided by different companies. And we want to be present where they are and it's very important for us.
We've talked a little bit this morning about Open Banking and the API economy is still very nascent. And what we observe is that in the B2C segment, it's probably a journey to go. In the B2B, we can see some revenues that are already coming in the B2B2C. I will talk about that in a second with Treasor, But we can see that there is some revenues as well on this side. The way to think about it maybe is like the mobile that was introduced in 2007, Not so far ago, but looks at the journey we've been on.
So that's why for us it's very important To develop an ecosystem and strategic partnership across the group. Obviously, it's declined locally by each of our businesses because they will better understand what is relevant for them. But we want to leverage the effort of the group to be present in this ecosystem, so they can understand the power of our distribution network. And the way do we do that is with a very specific and differentiated strategy in 5 pillars. The first one is around incubators and accelerators We're going to detect early where is the talent and the product.
And let me give you an example. I don't know if you followed, but We've recently announced a partnership with a company called Duco, which is a London based data management firm, which is an obligation to do reconciliation Much more faster than what we had before with Spreadsheet and legacy systems. This company was dedicated through one of the early Connection in one of our accelerators. We also have strong commercial partnership at large scale. You've visited ALD a bit earlier, the stand with John and the team.
We've recently signed a partnership with an American startup called VINLY. Vindly used to provide consumer directly the ability to connect their vehicle in the cloud And to access different mobile apps with it, Wingly is now providing kind of the app store for ALD to push mobility apps and mobility services For all the different business of ALD. So that's one of the strong commercial partnership about how do we go even further Then when we are, how do we accelerate? And as you can see, we have several of them. We're also making some strategic partnership with the technology giants.
So we've been talking this morning about Google Home our Boursorama brand, we've been talking about our cloud providers and we obviously use Apple Pay as well. And last, the part of how do we create new business, how do we accelerate the disruptive scenarios under high growth strategy. And for that we've made some investments and you've been all in the cluster of YUP this morning, which was with the TacPay. So we made an investment in this technology at the beginning At the same time that they were developing YEP, so there was a synergy between the business ambition To create something new and the capability of our group to invest in this technology and to better understand how it was evolving. And we're also making some full acquisition.
Philippe has talked about FGCO, which provide and Bruno as well, which provides aggregation capabilities across our brands In the French retail banks, we also made LUMO this year. LUMO is And one of the pioneer in France about crowdfunding in renewable energy And it's directly hosted by the business at Fluke as that's in Societe Generale. And last but not least, we've been referring to it couple of times. I'm going to talk to you about Trezor. Trezor is a very interesting acquisition and it's Still under approval by the French regulator.
Trezor is the leader in France to provide The core banking system for the FinTechs. So it provides API payment services KYC And person rose cards, like you can see with the neobanks that send you a card in a couple of days to your home. The reason we made this acquisition was for us twofold. First, it's an opportunity to accelerate our open banking strategy in the retail sector And we've talked about that this morning. 2nd, it's an opportunity to distribute some Societe Generale products in the ecosystem of this fintechs.
For Trezo, it was an opportunity to have a main partner That is able to add them to in a very competitive market to upskill their technology products, but also to develop internationally Some things that we have because we have a presence and a network across several countries where they want to expand. The reason why TRISO was interested To work with Societe Generale is because of our entrepreneurial future and because of our direct access to senior management. Just going to play a short video so you can see what it looks like.
Payment is at At the heart of digital transformation in business, Treasor delivers a solution to the challenges of payment digitalization as uses diversify and multiply. Our open banking platform
So what I want to stress is When we work our open innovation strategy, it's totally grounded into our open banking 1 and our open platform 1. So far, it's a real ambition at the group level to go towards that direction. And it's very important to find the right partners to build this future. Last, how do we create new businesses? That's something that we have been working a lot over the last 18 months.
You've seen Yap in the kiosk. You've seen Moonshot as well. We have 2 other internal ventures That are currently that have set themselves up. So one is peers, which is basically an investment network where you can get some tips About how to best make your investment. And there was always his peers, Elixir, sorry, Elixir, which is A digital finance adviser, which is basically introducing a new relationship between clients and their savings.
So that's something that you could have seen in the market, but the specificity there is that we build it internally As a startup. And so what we are looking is, should it be an external venture? Should it stay an internal venture under the way we make our decisions? We've been talking about Lumo and Trezor as well, which are our recent acquisition. So based on the work we've done over the last 18 months, We're now ready to accelerate and that's why we are creating Societe Generale Ventures.
Societe Generale Ventures It's not only a corporate venture fund. We've been learning from what our peers have been doing and it's there to support The Transform to Grow plan and the strategies of the different businesses. So it's a combination of the ability to do strategic investments With the business venture now. And we're very structured and we remain selective in the way we want to do this investment. So we've identified about Nine areas where we are prioritizing the investments in our core business and what we'll be looking for.
And you can see in bold The ones that we will be more scouting and more looking, which are payments and e commerce, bank as a platform and SME. But we've also defined some prospective axis, which are more looking in the future, more looking into what's next. And let me comment on them. So the first one is mobility. We've been talking about ALD and their partnership with Vindly, for example, How the mobility business is evolving?
And we can see some synergies between the ALD business and insurance, for example, that has the same needs. So it's important to look transversely at the group level to create these synergies. Southern Axis is about identity and immersive experience. And we can see some technology giants like Facebook that are making massive investments into this space, into camera, Into augmented reality, but also for example the spin off in Google called Magic Clip that have just launched their product in the market. It's very early days.
So the question is, how is it going to relate to the customer experience in the business of Financial Services? The third one is around data monetization. And with these use cases are sometimes less developed in Europe, they are clearly Developing in areas like Asia. So we're looking at what's going on there. For example, with KingHands that have been on several products that are data monetization based.
Future of Work, we've been talking about it. Our organization are evolving and we are interesting to always put and learn more about it. And last HealthTech with everything that go across our health and private banking and how this sphere and customers could evolve. So that was, I hope, a good view about how we are becoming more open And as an organization and more connected to our clients and also putting customers Colleagues at the center of everything we do. So we've been talking about open and grow, Christophe and I, Explaining our digital strategy.
We'll part as the Rigby team of Societe Generale and I would like to thank you all for your time today.
Good morning. Guillaume Tiverghard, Exane. I've got 4 questions. The first sorry, 3. The first one is about your €4,000,000,000 of IT budget.
I'd like to try and understand Where you see that number maybe in 5 years? The second question is the €4,000,000,000 accounts for 16% of the revenues at So, Cite General. And I'd like to understand if IT can help gain efficiency and maybe fall to 13% or maybe have your thoughts on In that respect. And the third question relates to SG Ventures. What sort of envelope or budget Have you allocated and what would be the impact on your capital?
I will answer to the first two questions, okay. Yes. Okay. The question is difficult to project ourselves in 5 years for technology because if you come back to the slide where okay, I was showing because it's the amount that we invest in Changer Bank, you will see that it has been growing, Especially, I will say, in the last 5 years, okay, because of the mainly because of the exchange of bank and the new investment. And where we invest a lot in the past last year is in the obviously, in the Retail Banking transformation as well as The regulatory portfolio, because it's the regulatory portfolio weights about 27% of our portfolio In terms of investment and if you go back 10 years ago, it was certainly too low, but it was less than 10% at the time.
So now if you project yourself and you say, okay, what's going on in the future? I must say that there will be reallocation. I do feel and I think that Regulatory burden will certainly be less. But when you think about the transformation and the fact that it's a Long run, it was mentioned by all of us, okay, it's certainly to be reallocated to other type of subject because technology is evolving very fast. I mentioned artificial intelligence.
I think that the size of the investments that we'll have to do in artificial intelligence is going certainly to grow. So for me, my guess will be it's going certainly to be stable for a while before we can imagine a sort of decrease. Now, okay, about the question about efficiency. I mentioned it, okay, I think that my focus, my day to day focus and the CIO's Okay. Within the Societe Generale is really to make sure that we get the most value of this IT expense.
And But we don't want necessary to say is that we have to cap it because the transformation of the business and it was mentioned a lot of time as the business people themselves In terms of digitally, it's really key, it's mandatory, okay? So our goal is to make sure that the productivity of the IT staff It's really there. This is why, okay, I mentioned this indicators of proficiency, the number of release per million of Change Your Bank. This is why I mentioned our setup in India, because I think that we are obsessed with this, I will say, efficiency. But in terms of amount, okay, it's really for me something in terms of percentage.
Maybe it's good to have maybe over 16%. So you see I don't have necessary an objective on this percentage. So maybe I'll let you comment on the AGVenture, Claire.
So we already announced the envelope of EUR 450,000,000 last year. So SG Venture is built on that. So there is no impact in the capital that was announced in the Transform to Grow plan. What we have observed and learned over the first investment is that We see high level of synergies with our business and we are capable not to just hold them centrally at in the group or Somewhere that's really have an impact and you've seen Europe and Moonshot that are already on track to generate some Breakeven, so that's something where we feel we've been learning and we feel we are ready for acceleration.
I just wanted to ask on the It's difficult for us to benchmark a bank versus another. But for example, In your opinion, when you monitor all the projects that you've been showing, all these metrics, etcetera, in France, for example, where do you think you stand Versus the what, 5, 6 banks that are competing broadly speaking there? And importantly also, Do you think that the change in customer access to their banking services, in particular in France, Is something which will enable your regional rivals to get more into the city and into your client base Or the reverse, the banks which have a smaller network such as yourself compared to the big mutuals to enter their network and win share.
We're going to extend a question for you, Philippe, if you want me to rephrase it or
There is a first part of the question. Yes.
Why do we think
about the competition about it's difficult. I agree with you. It's really difficult to This is why okay I mentioned some what I think are differentiated factors compared to competitor in the digital strategy. I think that we are pushing more on the cloud. I think that we have recognized to have pushed a lot on agility.
I think that our strategy on this APIs is certainly a differentiator factor as well compared to certain French competitor. And our Sourcing on the IT talent, this is why I mentioned India, is certainly a differentiator factor for the French bank. So now okay, I must say then, okay, it's about at the end of the day, all the what we show you in terms of illustration of what are the Food for the customer, where we are making the difference. So this is where, okay, we'll see the last difference. But I give you Some area where I feel there is a differentiation.
So on the French litte maybe you want to No, no, no, no,
no. I would tend to say I don't know if he's going to answer Your question, Peter. I think we are becoming less and less dependent of our branches. We are building a platform with digital capacities with Including our back offices or call centers interacting with clients. We have our relationship managers.
We have We are themselves more and more mobile. I mean, they visit corporates, they visit professionals, they visit also Including individuals. So the branches, which were The only asset in the past and which have performed very well is becoming now a component We've seen an holistic approach of our customers. And I think on this concept, this view, we are Ahead of the pack. I'm not even sure.
We are already thinking about maybe Our part of our sales forces will not be on the AG staff At some point. So that just to mention that I think we have it's already clear for us. We have already important bricks of this new approach.
Could you give us some examples of Areas of businesses or services where you have understood that with the development of technology and the behavior of clients, They would not be profitable. So they are clearly traps That you need to stop doing or other competitors that are not banks will clearly become The winners?
I mean, we are in order to answer your question, I would tend to say that we are really reducing our cost to serve on some businesses. So probably a very important area for that is payments. We discussed during the break with some of you. I mean payments is definitely The way of entry for many competitors and to try to disintermediate relationship between us and the clients, It remains key for us. So we are continuing to invest.
I think that in France, we have Already very strong assets, including the credit card, which is still a very good project. We have been able To change the way people are using the credit card, I do believe a lot in the instant payment, Which is an interesting output of SEPA. Instant payment, that's something that we have also invested a lot. We will be ready at the end of the Q1, next year. Sorry, at the end of November.
So as of today and again, we see really the global relationship with all of our clients. And again, don't forget the professional and corporate. And at this stage, on retail banking, I don't see any subcomponent Which don't make sense in this global approach. And as it was mentioned by Claire, what we are doing It's that we are really discovering new territories. And I think that these new territories will generate It's difficult to quantify yet, but significant income and significant income based on fees.
So we have no impact On the capital.
Actually, the strategy It's not dissimilar to what archaea has been trying to do. Archaea is being distracted right now, but they've been a really strong they've built a strong ecosystem in about 7 to 8 years. How do you feel your how do you perceive your own ecosystem now? And when do you think you can get to the same level of aura, if you want, Whereby you can really have an impact on all the different things you've identified.
So I think Air Care has a strong branding and presence in France And but not necessarily worldwide or internationally, which is our presence. I think we've Been getting very good feedback in France of Societe Generale interaction on the EPO innovation. And obviously it was with Christophe before, so he can Also complement what I'm saying. But for example, we were the first one to open a space in Lejune in Paris We were welcoming some of the startups early and we've done that for 4 years before Stationwave was there, before Huiwark was there. So before everything became cool, like we were in the game and we are also the only bank that provide that is present in Station F And provide services to the start up.
So generally in Paris, the feedback we have about financial services provided to the ecosystem is quite good. Think where archaea is probably a bit more leading than us is in their investment presence. And that's why we are Societe Generale Venture because our approach has moved into test and learn unless a traditional corporate venture fund. And we can see in the industry some of the limitation of this approach about if you want to make strategic investment and you run a corporate venture fund, At one point, it's limiting because you have to make profit and you have to see how your ventures are building where what we've done is we are combining strategic investment capability With a business venturing arm, which we have proven because I've showed you so there's a venture we have been able to create internally and we've been running this entrepreneurship program Well, clearly, we know now we've built a muscle inside the organization. So that's what I will say for France.
I think internationally, clearly, there is labs that exist You know already outpost in different location in Africa, so in Dakar where Europe is strongly in relation with them. In Europe, we have different species in the U. S, in Asia. So I think all the bricks are there. We see me coming will put more weight because my reporting line have changed from Christophe to Frederic directly, We just want to sponsor these activities.
And obviously, my reporting line will probably impact also our ability across our businesses to work and More synergies and bring this knowledge and accelerate some of it.
Yes. And we can mention as well that we have some The capacity to have the start up flows, okay, the surveillance of what is going on the start up because we have some investment, even if it's No more strategy, but we have some investment in venture capital and we are sharing the startup economy or what's going on in the startup Ecosystem, if I may say. Yes, you asked the question for a while.
Do you see any risk related to dependence on cloud providers? And how do you tackle also the Security issues, I mean, we know the cloud providers have not been very wide all the time.
Obviously, it's a point of attention for us, okay? So when we have put together the legal sit up So 2 main providers are Amazon and Microsoft. And the legal setup is already in itself very strong, okay, because we have It is a reversibility. It has been a long negotiation, by the way, with the legal departments of those providers as well. So I would say we are Cover there.
Now, okay, we have obviously as well to monitor the security and control what is going on in the cloud. So the infrastructure people, okay, have put certain norms and conditions in order to go to the cloud. And so I would say just to tell you that it's not a free lunch. Now we can everyone's going to the cloud without Respecting certain conditions in terms of securities. And we are very it's obviously, I can tell you some debates, internal debates, but Very, very, very careful to respect this type of condition in terms of IT security.
Lastly, okay, you know that are expecting, obviously, GDPR and GDPR itself, okay, is imposing certain conditions in terms of usage of data or personal data. So we are really on the top of this problematic and making sure with compliance and legal that we respect everything. That being said, okay, the will to go to external cloud and to benefit from this context, Okay. For external cloud, it's there, okay? And I think that our goal is at least to move a significant part of our infrastructure to external cloud and 20% By 2020, out of the 80% that I show.
So really, we know that we cannot avoid or Not look at it, okay? This is an important component of our future innovation there. Let's be fair as well. Yes, there are questions over the place.
Thank you very much for the presentations. I was wondering if you could talk a little bit more about your budgeting around the SEK 4,000,000,000 ish Number that you spend every year on technology and also you're controlling around that. And what kind of criteria do you use to determine What goes into the SEK 4,000,000,000 and what doesn't? You probably have SEK 6,000,000,000 of opportunities to spend every year, but you only spend SEK 4,000,000,000 And what happens if you only have SEK 3,000,000,000 of projects in a given year where you think it's attractive to invest? And maybe related to this, how much of the SEK 4,000,000,000 is actually In a way fixed cost represented by your employees working in technology and how much is really, let's say, discretionary on a shorter bases outsourced to others or components that you buy.
If you could talk a bit about that, that would be great.
Maybe one thing which is important to have in mind is that out of the €4,000,000,000 I mentioned it, €1,800,000,000 is Xynga Bank. This is really new investment, new projects. It's largely dependent on the businesses, because if a business wants to cut its cost to do investment in technology, This is choice. And by the way, large part of them are starting to do that and they're right to do that. I must say, it's not because I'm a little bit conflicted to say that, but It's defer, okay.
If you want to as we mentioned, digital transformation is mandatory for a lot of them. So 1.8% is certainly a change of bank. So there is a capacity of maneuver. We can say we don't invest anymore, Okay. But I don't think it will happen.
This is what I said before. And €1,000,000,000 is also infrastructure. Part of the €1,000,000,000 is a little bit also a Xinyabank because you have Xinyabank project in our infrastructure, but largely smaller part compared to the rest. So you see and this is why okay out of this €2,000,000,000 of plus For Randse Bank, you have €1,000,000,000 around infrastructure. And there, okay, we are doing, obviously, efficiency stream.
I mentioned the cloud. I said we are going to save €100,000,000 of euros out of €1,000,000,000 okay by 2020. So and really when we speak also about agility, it's about also efficiency. I'm making sure with the CIOs Of Societe Generale that once okay we have invested in changing the methodology, the agile mode, we are Able to grasp, I would say, to extract 3% per year over 5 years, okay, out of our, I would say, investment in this new that we implement. So you see efficiency is a key focus.
But the bulk The $1,800,000 is dependent obviously of the businesses. Now in terms of nature of expense, What is also important to have in mind is that We have obviously a large part is staff out of this €4,000,000,000 I must say. At least, I don't know, I don't have to remind the figures, but it's at least more than 50%. That's right, okay. That's the obvious.
But we have a piece which is a little bit obviously a variable Cost, which is that we are using, obviously, external contractors, okay, to do certain So there we have a sort of variability, are we to adjust our cost base one way or is the other by the way, okay? But our strategy is to maintain a percentage of external costs in our overall cost. But to try while okay decreasing a little bit the percentage because we feel that obviously it's more efficient to have internal staff. It's less cheaper and also to sources especially for instance, on India or Romania than to have external contractors. So we have a balance to find there.
Maybe Just to add on the business standpoint, and there is no big secret. Of course, we have a mandatory project. That's a given. After for business lines, that's very important to understand with its IT department, What are going to be the key components for future? And I'm speaking about technical component.
For example, electronic Signature, it was very important to develop it quickly because we know that we knew and we know that we are going to use it everywhere. Once you have identified these key elementary bricks, after you have to choose what we are calling now the client's journey, Which we should improve first. And there are 4 criteria. First one, it's client Satisfaction and for this one, we are taking mostly into account what is going on, on the market and not on the banking market, Hubert, Facebook, all these kind of things. So we client experience, okay?
2nd criteria, of course, cost efficiency and how is it going to impact front office and back offices. The 3rd component and it's very important for the people, it's the benefits for the employees, the working Environment. And the 4th one is, of course, the impact on the compliance and risk. And so for example, that's why we have started it Seems obvious that it was very important to start by the acquisition process because it's important for the client. It generates significant efficiency gains both on front office and back offices.
Really, our staff was expecting for it. And finally, it helped us to address the famous KYC issue. So that's the way. And the good thing is that we have a road map, which is quite clear. So we are not Taking decision quarter after quarter, we have a view, this famous Transform to Grow view, which is helping us a lot to define The priorities year after year.
There were 2 questions, I think, left. I don't know if you still want to ask your question.
I have 2 questions here.
Maybe you can take them at the same time and just answer them after.
It's a similar question to the earlier questions on the €4,000,000,000 but I see that the IT force component will Nearly double from 2018 to 2020. So does that mean the €4,000,000,000 component that's going to The IT workforce salaries is also double?
Why do you say that it will double again? Sorry.
You got on Page 79 that percentage of IT workforce is going to increase from 27% to 50%.
No, I'm sorry, I'm confused.
No, no,
no, no. It's
Which number are you referring to?
The Agility No, it's different. Sorry, I was confused because agility is about the percentage of the IT teams, which are working under a specific methodology, which is the agile methodology, which was described by Frederic in the morning. The fact that we are able to really work in sync with the product with the business And we are delivering in a fast cycle mode. This is a specific methodology. You need to train your people to do so.
You need to train the business as well. So this is an investment, okay, but it's not at all with the size of the workforce. So workforce, no, It's notable. We are not planning to double it or to make it in 20%. No, no, not at all.
Not at all. I say this is why I said, okay, I see More stability rather than a usual increase as you mentioned.
Yes. I just have a question on international retail and those markets where you've exited branch based banking through disposals, so Poland, Bulgaria. Would you consider going back into those markets with a mobile only strategy given that these are markets you're kind of relatively familiar with? So maybe Also a question for Didier as
well. There is no
such thing that's in our plan. I think that Basically, and I think the Europe example shows it, it's a very strong asset to have brick Infrastructure and to have the click on the top of it. To build the click where we would have exited the bricks, I think, would not put us in a very good position.
Thank you. It was very important for us to explain our vision, our vision For today, for tomorrow and after tomorrow, even for after tomorrow, it's coming very quickly. So it was a pleasure for you, and we hope it was helpful for you. Okay. And now we can continue the interaction we have at lunch.
Thank you very much.