October 18, 2016

Accenture Expands Capabilities in Branch and Digital Transformation with Acquisition of Allen International

LONDON; Oct. 18, 2016 – Accenture has acquired Allen International, a leading design consultancy focused on helping banks transform their branch networks and digital capabilities to reduce costs, increase revenues and better engage customers. Allen International has worked with more than 350 banks around the world including nine of the top 20 banks.

“Threats to profitability mean banks must be clear on what the role and value of the branch is, to ensure it plays the right part in consumer’s lives today. Our acquisition of Allen International will expand and complement our capabilities to help banks make the branch a physical manifestation of the digital experience. Equally crucial it will allow us to help banks reduce their distribution costs, typically by 30%, while still maintaining customer engagement.” commented Sushil Saluja, Accenture Senior Managing Director of Financial Services in Europe, Latin America and Africa.

This acquisition further strengthens Accenture’s Distribution Transformation offering, which takes a comprehensive view on how banks interact with its customers including branch re-invention and digitization. This will help banks transform physical structures at scale within a sustainable cost structure without losing customer engagement by delivering a seamless, cross-channel experience consumers increasingly expect. It will also allow banks to ensure they have the appropriate digital capabilities to absorb higher volumes as customers shift to using digital over branches. Combining Accenture’s deep financial services, distribution and marketing expertise and scalability with Allen International’s digital and physical banking experience will enable banks across Europe to strategically optimize branch networks.

While consumers increasingly prefer to engage with their bank via digital channels, there is still a need for branches, with nearly 70%* using them for important financial decision making. Branches also still play a key role in brand positioning for banks and are seen as vital in building customer trust despite lower usage. When switching banks customers give greatest consideration to a ‘phygital’ bank model that offers the right blend of branch and digital services.

The rise of digital adoption makes current branch formats and networks unsustainable in the long-term and in spite of customer migration, banks are yet to capitalise on potential efficiencies in their branch networks. Challenger banks with low run costs and pure digital players building physical presence are posing a threat to banks customer retention and future revenue plans.

“Our work with over 350 banks globally to re-invent branch strategies and structures has helped them to address these evolving challenges and significantly grow bank revenues, while increasing customer satisfaction by 20% and significantly reducing the cost to serve, cutting refurbishment costs significantly,” said Michael Allen, founder and group CEO of Allen International. “Joining Accenture offers us the scale and complementary skills and expertise to continue to help banks realise these significant benefits at a time when there is no choice but to bring branches into the digital age.”

Terms of the transaction were not disclosed.

* Accenture UKI Current Account Customer Survey 2015

About Accenture
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 384,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.

About Allen International
Allen International is a world leader for financial services for branding, retail environments and the digital customer experience. Working for nine out of the top twenty banks in the world AI specialises in the connected customer experience and optimising the omni-channels of a bank.
Allen International also focuses on the digital branch transformation of bank networks in order to reduce costs, introduce a digital branch platform and create an enjoyable customer experience. AI has now worked for over 350 banks around the world creating cost- efficient design solutions based on robust strategies which result in increased profitability for our clients.

Forward-Looking Statements
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as a result of the company’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; adverse changes to the company’s relationships with key alliance partners or in the business of its key alliance partners could adversely affect the company’s results of operations; the company’s services or solutions could infringe upon the intellectual property rights of others or the company might lose its ability to utilize the intellectual property of others; if the company is unable to protect its intellectual property rights from unauthorized use or infringement by third parties, its business could be adversely affected; the company’s ability to attract and retain business and employees may depend on its reputation in the marketplace; if the company is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; any changes to the estimates and assumptions that the company makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; many of the company’s contracts include payments that link some of its fees to the attainment of performance or business targets and/or require the company to meet specific service levels, which could increase the variability of the company’s revenues and impact its margins; if the company is unable to collect its receivables or unbilled services, the company’s results of operations, financial condition and cash flows could be adversely affected; the company’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; the company may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.

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Contacts:

Erfan Hussain
Accenture
+ 44 7557 866901
erfan.hussain@accenture.com

Petra Shuttlewood
Accenture
+ 44 (0)7788 305373
petra.shuttlewood@accenture.com

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