Digital digest 20 q3 2020

DIGITAL INNOVATION DIGEST –
GAFA’S NEW FORAYS INTO FS
#20 – September 2020
22/09/2020

22/09/2020 2
01 THE EVERYTHING STORE NOW ALSO
OFFERS INSURANCE
02 WHATSAPPING YOUR INSURANCE
COMPANY
Initio’s Digital Innovation Digest - #20
GAFA’s new Forays into Financial Services
3
8
GOOGLE TO DEFY APPLE ON BANKING
INTERFACE03 14
PRESENTATION OF INITIO & THE
SQUARE GROUP04 18
Initio's Digital Innovation Digest is published by members of our Areas of Excellence "Innovation" and "Digital" as part of
our continuous Market Intelligence.
Previous editions of the Digital Digest can be found here: https://fr.slideshare.net/Initio_consulting/presentations

01THE EVERYTHING STORE NOW
ALSO OFFERS INSURANCE

22/09/2020 4
THE EVERYTHING STORE NOW ALSO OFFERS
INSURANCE
▪ Amazon pursues its strategy of penetrating the
financial services industry.
▪ The e-commerce giant is offering Indian users of
its payment solution, Amazon Pay, insurance
coverage for their cars and motorcycles and is already
promising a future expansion into health, travel and
taxis.
▪ Amazon has chosen to work in partnership with Acko,
a Mumbaï based insurtech, founded in 2016.
▪ Acko recently raised 60 million US dollars in order to
foster its development.
EXECUTIVE SUMMARY
Source : cestpasmonidée.blogspot.com, 24th July 2020
Only 3% of the population owns insurance products
Amazon Pay has
seen a growth of
200% in its
monthly
transaction
volume (60
million) in May
compared to
March, ending
with a market
share of around
5% for the first
time.
Huge market in
perspective: the
motor insurance
business reported
a growth rate of
8.91% to take a
share of 38.08%
of the total
general insurance
business in India
in 2018-19.

22/09/2020 5
3%: only a tiny minority of
the population owns
insurance products.
Mobile has grown to
dominate the market in
the last few years.
Virtually untapped
potential market through
economical online offers
that are easy to subscribe
and activate
Amazon opts for a
distribution strategy of
Acko’s insurance products.
The process, is as easy as:
0 paperwork;
1 hour to intervene;
2 minutes to subscribe;
3 days to complete repairs.
Directly integrated into
the Amazon Pay mobile
wallet.
Amazon pay India is more
than just payment and
includes modules for
cinema tickets, airline
tickets, etc
Smooth and seamless
end-to-end customer
experience, from
subscription to claims and
compensation procedures
WHY ? HOW DOES IT WORK ? ADDED VALUE
Amazon to unlock a new
market & enrich its catalog
Instant payment option for
low-value claims
Mobile-first, seamless
customer journey
INSURANCE
BUSINESS CASE

22/09/2020 6
The German insurtech, Deutsche
Familienversicherung has been offering its
customers to take out health insurance
products for trips abroad through Alexa,
Amazon’s voice assistant.
In France, Amazon has also signed a partnership
agreement with the insurer Aviva to allow
customers to pay for their insurance
contracts with Amazon Pay.
In the UK, Amazon Protect was launched in
partnership with The London General Insurance
Company. Amazon Protect offers Extended
warranties, Accidental damages & Theft
insurance.
The attempts are incessant from all quarters to conquer the digital playing field of Western countries.
Here are few initiatives by Amazon to penetrate the insurance market in Europe.
INSURANCE
WHAT ABOUT EUROPE?

22/09/2020 7
Data leverage
potential
Huge investment in
technology &
innovation
Track record with
consumers
Amazon has transformed the retail landscape
■ It enjoys a positive reputation for putting customers’ needs at the center of its propositions.
Amazon offers clear, transparent services such as the ability to track a package, next-day delivery, a clear
returns policy and customer reviews on products, providing clear communication to customers throughout
the journey. Such level of trust and transparency is still a big struggle for the insurance industry.
■ The likelihood that consumers would buy a motor or home insurance from Amazon is very high.
This the potential for Amazon to cross-sell into insurance and takes market share from established
insurance players.
Amazon leads the way when it comes to smart and connected homes
■ This will also give Amazon a competitive position for solving related insurance needs, as tech in the home
will soon define the insurance requirements of an individual household.
■ This close and interactive relationship is a long way from the limited annual renewal or claim
process touch points insurers work to.
Amazon capacity to understand large amount of data is a critical asset.
■ Amazon has a better understanding of the end customer, the risks associated with insuring them, and
what upselling opportunities exist.
■ It could be similar to the impact that Facebook and Google have had on the advertising industry.
INSURANCE
WHY TRADITIONAL INSURERS NEED TO PAY ATTENTION

02WHATSAPPING YOUR INSURANCE
COMPANY

22/09/2020 9
• One of the primary reasons for the lack of
retention in the insurance sector is that a majority
of general insurance providers have too few
touchpoints with clients to develop brand loyalty.
• In just a few years, instant messaging has become the
main mean of communication for consumers and
WhatsApp is the most popular of them in Spain.
• Building on this popularity, Banco Sabadell is
preparing to deploy a multi-faceted service for
its home insurance customers.
Whatsapping your insurance company
EXECUTIVE SUMMARY

22/09/2020 10
4 ELEMENTS OF ADDED-VALUE IN THE INTEGRATION OF WHATSAPP
CONTINUOUS
DIALOGUE
INFORMATION
DIFFUSION
OPERATIONAL
EXCELLENCE
CHANGING
HABITS
The initiative serves as
a reminder to all
financial institutions
that they should be
aware of the
changing habits of
the population and
adjust their
operations
accordingly.
In addition to the
communication
advantage, the
platform offers other
possibilities. For
example, Banco
Sabadell says that its
implementation will
include the ability to
carry out certain
operations directly.
The company therefore
uses it to share
important news
about insurance and
its products, but also
to provide advice on
prevention and
protection
The specific
challenge that is
addressed here to
make up for the lack
of continuous
dialogue inherent in
the insurance
sector. Additional
positive
touchpoint.
ATTENTION
POINT
It is to be hoped that this
approach will not only be
content to mass
communication and that it
will also take care to
introduce a dimension of
personalization, combined
with incentives to take
concrete action based on
the established contact.

22/09/2020 11
QUICK VIEW IN BELGIUM
Mobly (Baloise)
KBC
AXA Belgium
AXA Belgium launched a test phase in November 2019
■ Customers were able to use WhatsApp when they needed help to apply online for new car or home
insurance.
■ For several months now, AXA Partners, AXA's assistance provider, has also been offering its
customers the opportunity to communicate via WhatsApp when they are victims of a car
accident or breakdown, whether they are in Belgium or abroad.
KBC has been using WhatsApp since 2018.
■ The bank already made it possible to chat with an employee via the popular messaging service.
■ KBC has noticed that the number of "chats" and conversations with KBC Live employees is constantly
increasing. Offering an additional channel to KBC customers further increases accessibility.
The Antwerp startup was one of the pioneers in the use of messaging.
■ Mobly was bought at the beginning of 2018 by Baloise Insurance
■ Because of its agility, Mobly was one of the pioneers in using WhatsApp messaging for
customer interactions on the Belgian insurance market.

22/09/2020 12
▪ The customer creates a new contact in WhatsApp
with the telephone number 09 331 78 16.
▪ The service works both on your computer or
smartphone.
▪ The customer interacts directly with KBC live
employees.
▪ The service is available everyday between from 8am
to 10pm and 9am to 5pm during the weekends
KBC ILLUSTRATION

22/09/2020 13
KBC ILLUSTRATION: WHATSAPP CUSTOMER INTERACTION
▪ THE CONVERSATION WITH KBC APPEARS AMONG THE REST OF THE CLIENT’S PERSONAL CONVERSATIONS.
▪ BASED ON OUR TEST: THE WAITING TIME FOR A RESPONSE ON IS FAST (2 TO 3 MINUTES).

03GOOGLE TO DEFY APPLE ON
BANKING INTERFACE

22/09/2020 15
▪ In the wake of the success of the Apple card, Google has started
working on a new financial solution service, since 2019.
▪ Google's idea was to offer a bank account, backed by Citi bank.
▪ Like Apple, Google wants to offer physical cards. This insofar as
the acceptance of virtual instruments (especially via mobile) is not
widespread.
▪ The difference lies in the service offered by the two tech giants:
▫ Where Apple Pay is designed with the sole aim of simplifying
transactions and making its iPhone or smart watch indispensable in the
pocket of its customers.
▫ Google Bank is more like a personal finance management platform,
closely integrated with a real banking base for greater efficiency and
responsiveness.
▪ Google has managed to get 8 US banks (Citi Bank, BankMobile,
Coastal Community Bank, First Independence Bank, BBVA, BMO,
SEFCU and SFCU) on board oftheir new financial platform.
Source : cestpasmonidée.blogspot.com, 4th August 2020
Google to defy Apple on banking interface
EXECUTIVE SUMMARY

22/09/2020 16
BUSINESS CASE
A common conviction could
be that the traditional
banks' model of
interaction is not
suitable for all
audiences.
There is a segment of the
population that will prefer
the money management
approach concocted by
Google.
The Google card and
associated checking
account will allow users to
make payments with a
card, a mobile phone or
via an online browser.
It connects to a Google
app with new features
that let users easily
monitor purchases,
check their balance or
lock their account.
Google will be able to
draw on data to offer
financial insights and
other budgeting tools to
its customers.
For the partners, the
service gives them a
way to market their
brand to consumers in
an increasingly mobile-
first, digital-only
market.
WHY ? HOW DOES IT WORK ? ADDED VALUE
Customer journey is key
The accounts are expected
to launch in 2021
Win-Win-Win situation

22/09/2020 17
ARE WE HEADING TOWARDS A WORLD WITH A GENERALIZATION OF THE INVISIBLE BANK?
• The trend is emerging around the world, through startups
that are developing virtual assistants and other
personal finance management tools with interfaces to
a more or less wide range of services.
• The challenge is to offer the simplest and most
transparent user experience possible in all
circumstances.
• They all define a new distribution model that effectively
tends to relegate product providers to the background.
• For now, Google’s strategy is to let partnered banks and
credit unions provide the underlying financial infrastructure
and navigate regulation while it builds smarter interfaces
and user experiences.
• It has been questioning one of the foundations of
banks’ business since its origins.
• For traditional institutions, this prospect of being
assigned the role of a "banking factory" in the
service of third party companies which, for their
part, control the contact with the customer from
start to finish could represent a risk.
• Traditional banks should take advantage of experiences
like Google's to learn how to find their place in
tomorrow's value chain.
• This obersvation also applies to the insurance sector
where startups such as TROV provides a platform with
end-to-end digital, white-labeled insurance
products designed to be rapidly deployed by
financial organizations and insurers.
EMERGING TREND RISK OF DISINTERMEDIATION

04PRESENTATION OF INITIO THE
SQUARE GROUP

22/09/2020 19
Square ?
Being convinced that talent is the real driver of change in the world, Square’s mission is to shape change in
organizations by leveraging the talent within them.
Founded in 2008, Square is a strategy and business consulting group that brings together the expertise of
7 medium-sized firms: Circle, Tallis, Viatys, Vertuo, Adway, Initio and Flow&Co.
Square is majority-owned by its founders and is today the leading independent consultancy firm in France,
Belgium and Luxembourg.
With its 700 consultants and complete operational and financial autonomy, Square is one of the few market
players, to offer a complete range of services to its clients at the European level.

22/09/2020 20
• 700 consultants, 95% employees
• 52 % men / 48% women
• Turnover 2019: 120m €
• 2.5% of turnover invested in training
• 1% of turnover invested in R&D
• Large teams in Innovation, Digital, Data & Marketing
• Analysts, Product/Project/Program Managers & Coaches
KEY INFORMATION
SPECIALIZED IN HIGH ADDED-VALUE PROJECTS
Initio in a nutshell
Initio is the international brand of the Square group, a business consulting firm in strategy, organizational and
management consulting.

22/09/2020 21
Areas of excellence
Businesses need to think ahead, to make decisions that will take them to the top.
Square guides its clients by making its expertise available to them in 8 key areas.
INNOVATION
Square supports its clients in the transformation of their innovation dynamics. Our
consultants, with their tailor-made approach, help to design, industrialize and
govern innovation to ensure the sustainable growth of companies and their
transformation into socially and environmentally responsible entities.
PEOPLE & CHANGE
Square helps its clients to acquire, integrate and develop their organisation’s
human capital. In order to create greater commitment within teams, our
interventions focus primarily on adapting work methods to operational and cultural
changes, the effectiveness of human resources departments and skills
development.
MARKETING
Square supports its clients across the entire marketing spectrum: strategic
marketing, relationship marketing, product marketing, communication, pricing,
customer satisfaction. Our expertise, initially focused on the banking and insurance
sectors, is now aimed at all B2C industries or services.
SUPPLY-CHAIN
Square ensures the operational excellence of logistics, from procurement to the last
mile, with differentiating customer journeys. Our experts design omnichannel
solutions that implement best practices in information systems, mechanization and
robotization.
DATA
Square develops Data strategies and ensures their operational implementation by
taking the lead in Data Management, Data Analysis and Data Science projects. Our
expert and pragmatic approach aims to enhance and secure companies’ data
assets.
REGULATORY & COMPLIANCE
Square advises its clients in the rollout of new regulations, as well as in the
optimization and enhancement of control systems. This area of excellence is
supported by a community of experts of 130 consultants who, in addition to client
assignments, conduct major research and publication work.
RISK & FINANCE
Square leads the management of financial and non-financial risk control programs,
as well as the transformation of the Risk and Finance functions in response to
changes in prudential regulations and issues related to data control.
DIGITAL
Square assists its clients in the development of their digital strategy, the design
and implementation of new digital journeys for their clients or their employees, as
well as in all internal transformation projects and support for new design methods.

Initio
@initio_eu
17, Boulevard General Wahis
1030 Schaarbeek
Belgium
+32 (0)2 669 77 44
Initio.eu
blog.square-management.com

Digital digest 20 q3 2020

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