A bank that fits in your pocket – that was the objective when transforming the business model of this time-honored banking institution. It also represented a major development step for the bank, which pursued this project with the intention of being a pioneer within its market. Developing an app which would enable the bank to access new target groups was a key component of the overall approach from the very beginning. Above all, this app had to be user friendly. To achieve that, simply transferring classic e-banking interfaces to a smartphone would not do; instead the solution needed to consistently focus on the banking functions people use on an everyday basis. The aim was to harness the latest technologies and create a user experience that appeals primarily to younger customers who have grown up with social media and messaging apps. The bank’s strategy was to use unique digital solutions to draw attention to its offering. As a comparatively small institution, it wanted to demonstrate boldness by breaking out of traditional retail banking business models and standing apart with innovative product offerings.

The bank brought in experts from Horváth in order to achieve these ambitious goals. This team supported the development of a new digital business model from idea to implementation – and in a timeframe of just eight months. The intention was to transfer the bank to a new digital ecosystem, using agile and pragmatic solutions to ensure the future-readiness of the bank.

The Horváth team started by examining the customer structure of the financial institution. Their analysis showed that only a small proportion of the bank’s customers were under the age of 40; this meant the customer base was steadily shrinking, which jeopardized the future of the historic institution. With this in mind, the Horváth team placed the needs of younger people at the heart of the innovative project, and even incorporated them into the development of the new app.

Horváth focused on a strict mobile-first principle right from the start. The app was developed for smartphones from the ground up and offers state-of-the-art technical features. The user interface is easy to use and focuses on the essentials. Users can check their balance simply with a quick glance at their smartphones, while viewing transaction overviews and making transfers requires just a few taps. Thanks to intelligent “savings pots”, users can also save money for different purposes at any time – free of charge, of course. The app additionally includes a chatbot, which offers customers round-the-clock support with the app itself, but also answers to general questions about finance and pensions.

One innovative feature incorporated during the development of the app was the integration of new partners who can offer added value, by means of a digital ecosystem that goes beyond banking itself. In the integrated store – a digital marketplace – customers can find tailored, supplementary offers from other companies such as insurance companies and online retailers. The fact that the app, including the associated debit and credit cards, can be used free of charge is another appealing feature.

The bank has successfully made the business model transformation and its strategic repositioning a flagship project in cooperation with Horváth. The consulting team supported the company in driving change through its own efforts, and in firmly establishing the necessary foundation of a continuous improvement mentality within the organization. Even before the project was completed, it set new records in the profitability reports. Following the successful reorganization, the heritage-rich company is now looking to the future with great optimism.