CIB Digital Banking’s drive is to pursue digital simplicity. In essence, it is developing digital and data capabilities that radically simplify our businesses and processes while dramatically improving the customer experience through greater efficiency, quality and speed.
Over the past three years, we’ve invested in building diversified, resilient, secure digital capabilities. In 2016, we transformed all legacy systems to drive agility and time to market and to develop competitive differentiation. Our aim to improve digital simplicity has driven all the division’s efforts during the year and will continue to be at the core of our initiatives in 2017 and years to come.
2017 onward will see us building a robust digital frontier to deliver even more efficient, effective digital products and services for customers across diversified lines of businesses. We plan to expand our digital capabilities to provide enhanced services, deeper analytical capability and personalise the treatment of every client segment.
Most importantly, we aim to put the customer at the heart of our digital strategy. Over the next three years, our Digital Banking team will focus on delivering the best customer experience by strengthening our multi-channel business model and targeting untapped segments, be they businesses or individuals.
CIB currently has the largest ATM network among private banks in Egypt, with a fleet of over 748 machines providing various types of functions including cash withdrawal, cash deposits, credit card settlement, bill payment, mobile top-up, money transfer, Mobile Wallet cash-in/out and cheque deposits. Our full-fledged ATMs located at convenient sites (56% of the network installed outside CIB branches) cover a wide geographical area and provide expedient alternative to banking at a branch.
- Further enhanced our ATM services to assist companies, adding cheque and cash deposits via the Companies Deposit Card service.
- The ATM network continues to serve branch migration efforts, with 84% of individual cash deposits into accounts and 92% of cash deposits into credit cards migrating to the ATM network in 2016.
Going forward, we will continue our efforts to drive customer migration from branches and enhance the customer experience through adding new functionalities at competitive prices to our ATM network.
Phone Banking & Call Centre
The CIB Call Centre handles an average of 3.5 million calls annually, serving both CIB and non-CIB customers. The centre allows consumer banking clients to manage money transfers, inquire about cards and accounts and activate cards and manage PIN selection easily anytime, anywhere.
- Introducing IVR Self Service helped to offload 53% of the incoming inquiry calls received by the call centre in 2016 and doubling the number of enrolments to an average of 6,000 per month compared to 3,000 per month in 2015.
- CIB became the first bank to introduce a Bill Payment & Recharge service to our IVR, leveraging on One-Time Password (OTP) token capabilities. IVR Bill Payment & Recharge gave CIB customers a new touch point and created a new revenue stream with growth potential.
We plan to continue to offload call centre requests by migrating even more eligible calls to IVR Self Service, aiming to reach a 70% migration ratio, to optimise the call centre’s operational cost and boost agents’ productivity. By the end of 2017, we plan to introduce IVR Self Service for Corporate Banking clients as well.
As tablets and smart phones become the preferred channel for consumer banking, CIB Online Banking has started to capitalise on the shift by offering a range of services to all CIB clients, strongly presenting itself as the go-to channel to perform day-to-day banking activities.
- Enhanced internet banking services for CBE Compliance transactions through OTP tokens (both software and hardware tokens).
- Added two new functionalities to enhance credit card users’ customer experience by enabling credit cards for registrations and allowing credit card payments to other CIB credit cards.
- 4Q2016 marked the soft launch of our Mobile Banking Application for CIB staff, representing a value-adding extension to the online banking portal. The application is expected to increase the number of subscribers significantly as it matures.
2017 will see the CIB Online Banking focus on digital service penetration and automation rates.
CIB Smart Wallet
CIB Smart Wallet is one of the newer offerings under CIB Digital Banking. Launched in January 2016 CIB, this innovative payment experience gives both the banked and unbanked community a convenient, secure and cost effective way to make purchases through mobile devices. With just a few taps, customers can pay bills, recharge their mobile credit, send money to any other CIB Smart Wallet holder, cash-in/cash-out from CIB’s ATM network and deposit/withdraw money from their CIB Smart Wallet from any Fawry retailer.
- Launched microfinance loan instalments (presentment and collection) via CIB Smart Wallet, making us the first institution in Egypt to launch a service of this nature to this untapped segment. The move allowed us to grow our customer base and improve our reach all while catering to the needs of the microfinance market in a cost-efficient way.
- Continued to rank number one in terms of activity in the local market.
- Facilitated the offsite acquisition for CIB Smart Wallet through piloting with 100 agent outlets.
Going forward, CIB Smart Wallet will customise value propositions for each segment to widen its customer base and continue to develop new features and services for untapped segments.
CIB Cash Management provides standardised and tailored cash-management products and solutions that improve the management of incoming and outgoing payments, streamline reconciliation and information management and enhance working capital efficiency. The product offering includes several innovative payment and payable products, collection and receivable products and standard and tailored information reporting delivered through a variety of channels.
- CIB customers performed 632,090 payable transactions and 1,482,683 receivable transactions in 2016 via our intelligent, secure Cash Management portal.
- Cash Management’s total registered clients reached 5, 000 during the year due to our 24⁄7 accessibility at convenient sites.
- CIB ranked first in terms of volume in EG-ACH Direct Credit Sending and Receiving, with a 33% and 20% market share, respectively.
- CIB ranks first in terms of Direct Debit Sending with a 99% market share and second in terms of Direct Debit Receiving with a 17% market share.
- Added Business and Enterprise Banking to our roster of Cash Management, which has greatly improved customer experience.
- The transfer migration rate reached 80% as of December 2016. After beginning to migrate internal transfers in only 2Q2016, we already hit a rate of 18% as of December 2016.
- CIB received the Best Cash Management Award from EMEA and was named the World’s Best Treasury and Cash Management Providers 2016 by Egypt Global Finance.
In 2017 and beyond, we plan to continue our focus on customer migration from branches to Cash Management portals to allow customers to transact more conveniently 24⁄7. We also plan to continually enhance our existing roster of services to boost our customers’ experience and achieve major cost savings.
CIB Trade Services offer both the tools and expertise that allow our diverse base of clients to realise their business goals. CIB’s trade solutions (CIB Trade Online and Bolero system) are designed to enable clients to effectively manage risk and optimise cash flows.
- In 2016, CIB achieved a 10.3% y-o-y increase in the number of transactions performed via trade online and increased the number of subscribers to 951 clients.
- The percentage of transactions performed via the 61 Trade Hubs and the online channel reached 100% of bank-wide transactions.
- Our Corporate Payment Service, which enabled CIB clients to pay their taxes and custom fees online, hit 225 customers by the end of 2016 and captured a 47.5% market share, allowing CIB to achieve a number-one market ranking.
In 2017, the division plans to launch Supply Chain Finance, a new suite of products automating financial supply chain management. The service brings buyers and sellers together on a single platform to enhance collaboration and invoice submission and facilitate the release of early payments. Supply Chain Finance not only taps into a new business, and therefore revenue stream, but bolsters customer loyalty.
The service will let the Bank approve invoices from suppliers at a discount before receiving full payment from the buyer at maturity. Buyers benefit from working capital efficiencies while suppliers can request invoice financing directly through the platform based on the credit quality of their buyers to better manage working capital and reduce sales outstanding.
Global Securities Services
Despite the volatility of the market in 2016, our Global Securities Services (GSS) successfully maintained our leadership position in terms of market share and value of assets under custody, with market share during the year growing to 28% compared to 21% at the end of 2015 and total assets under management reading EGP 250 billion compared to EGP 210 billion last year.
- Enhanced GSS platform technologies by developing the current working system. This enabled us to process 357,000 transaction as of the end of December 2016 while continuing to provide high levels of service to our 24,400 active client base.
- CIB joined the Africa & Middle East Depositories Association as an associate member, being the first Egyptian bank to hold a membership in 2016.
- Awarded the best sub-custodian bank in Egypt from Global Finance Magazine for the eighth consecutive year.
- Assigned by the depository bank Bank of New York Mellon as a sole sub-custodian for Domty’s new Egyptian GDR program with a total market value of EGP 247 million.
- Acquired three new transactions with a total value of EGP 1.3 billion, maintaining our position as the leading trustee agent in the market with 13 out of 14 securitisation SPVs for a total value of EGP 8.5 billion.
- Maintained our leading position as the local sub-custodian for all Egyptian GDR programs, handling 14 current programs with a portfolio of EGP 62 billion.
In 2017 we plan to activate the sub-account services for international securities through opening segregated sub-accounts for brokerage companies under CIB’s main account held at international clearing depositories, which will ensure that we utilise all available revenue streams.
Due to the dynamic nature of digital solutions, CIB put together a Digital Governance Division under the umbrella of our Digital Banking Department. Officially launched in February 2016, the Digital Governance Division supports a growing number of required approvals (internal and external) while managing the relationship with government and public sector entities to identify potential business leads.
Digital Channels Governance serves the following key objectives subject and not limited to:
- Obtain all required logistics, official and legislative requirements and approvals from internal stakeholders (Legal, Compliance, AML, Operational Risk, IT Security, and Taxation) to support the smooth and effective finalisation of any new or amended product/service.
- Maintain solid relationships with internal bank stakeholders and external regulators.
- Study the gap analysis between previous CBE approvals / regulations and the current situation, then prepare the required action plans to fulfill any missing requirements in corporation with business owners.
- Maintain CIB’s sound legal position and mitigate any potential risks arising from digital solutions/activities.