Bradesco Celular 2014 2015 2016
Number of transactions – in billions 1.9 3.7 5.4

Telebanking 2014 2015 2016
Number of transactions – in millions 409.9 278.3 231.2
Number of calls – in millions 346.3 312.5 276.3

Internet 2014 2015 2016
Number of transactions – in billions 4.5 4.6 4.8
Number of websites – total 56 57 55
Number of websites – transactional 15 15 15

Self-service 2014 2015 2016
Number of transactions – in billions 2.1 2.0 2.0
Number of cardless transactions, with biometrics – in millions* 35.9 39.1 72.3
* Until April 2016, only withdrawals and balances.
InfoCelular/InfoEmail 2014 2015 2016
InfoCelular sent – in millions 352.2 480.4 618.2
InfoEmail sent – in millions 308.9 328.9 299.0

SELF-SERVICE – ATM PARK 2014 2015 2016
Branches, PABs, PAAs and PAEs 29,163 30,535 35,832
External points 1,926 992 287
Total – Bradesco-owned network 31,089 31,527 36,119
Total – complementary networks 17,593 18,940 19,991

Self-service 2014 2015 2016
% ATMs with biometrics 85 100 100

94%
of total banking transactions
41%
Bradesco Celular
36%
Internet
15%
Self-service
2%
Telebanking (Telebanco)

DIGITAL CHANNELS/INNOVATION

Improving constantly, with simpler and more friendly interfaces, the digital channels are an essential feature in client relations in order to fully meet their needs, providing them with mobility and independence to boost their business with us.

In the current convergent environment, the challenge is to ensure a faster, safer and more convenient banking experience to enable different client profiles to choose where to access the bank’s services and to attract new clients to our solutions.

In addition to the traditional and consolidated service channels, self-service, telephone service and internet banking, clients and users have at their disposal a broad range of products and services via the mobile telephone channel Bradesco Celular, available for all cell phones, from the most simple to the most sophisticated.

In 2016, 94% of our transactions took place via digital channels, totaling 12.5 billion operations – of which 41% via Bradesco Celular (more than 5.4 billion transactions). The segmentation model also provides company clients with mobile telephone services by means of Bradesco Net Empresa.

Overall, Bradesco Celular accounted for 41% of all transactions in 2016, the Internet, 36%, Self-Service, 15% and Telebanking (Telebanco), 2%.

Bradesco also maintains an active presence on the main social platforms, seeking to establish and reinforce connections on a daily basis, with relevant content for the public, co-creation with digital content developers and seamless relations with clients and the general public.

We launched the 3rd edition of the inovaBra startup program.

IN A CONVERGENT ENVIRONMENT, WE EMPLOY A NUMBER OF CHANNELS TO WIN CLIENTS OVER, ENABLING THEM TO CHOOSE THE MOST CONVENIENT MEANS OF ACCESS

DIGITAL ECO-SYSTEM

Infográfico de Canais Digitais. Ecossistema digital: Humano, Físico, Digital. Integração física e digital: Internet, Agência digital, Autoatendimento, Agências + inteligentes*, Mobile, Redes sociais, Contact center.

Physical and Digital Integration

* Wi-fi, BYOD, Watson and CRM.

INNOVATIONS IN ONLINE CHANNELS IN 2016

Bradesco Celular

Application for individual account holders

  • Modern navigation and improved usability experience with fewer steps to complete the transaction
  • New services: smart payment (it differentiates tax bills), PDF reader – payment of bills received via email directed to the application with the bar code filled out automatically, consultation of balances, investments and capitalization bonds, consultation of credit card limits
  • Biometrics technology (Touch ID/Fingerprint): implantation of new resources, such as 3D Touch (iOS system)
  • Programmed self-service withdrawal via Near Field Communication (NFC –Android system)

Net Empresa business application for mobile telephones

  • Biometrics technology (Touch ID/Fingerprint) for access to account and to security key and the use of QR Codes to approve transactions
  • New services: credit card (to consult balance, statement and limit, rotating credit and unblocking), Automatic Direct Debit (DDA – for consulting and paying payment orders), requesting and unblocking check books and investments (Funds and Certificates of Deposit -CDB)

Launch of new applications

  • Bradesco Cartões (Cards) – access to key information about Bradesco and Bradescard credit cards, as well as services to make life easier for the credit card holder, all in one place
  • Bradesco Financiamentos (Finance) – access to information about contracts, as well as services such as copies of bills, early settlement, among others
  • Private segment

SOCIAL NETWORKS
  • Contents published on all Bradesco proprietary platforms (Facebook, Instagram, Twitter, YouTube, Google+, Snapchat)
  • Newsroom in Rio de Janeiro in operation every day of the Olympic and Paralympic Games, when we gained the highest share of voice in the social networks and an average positive rating of 80%
  • Launch of our profile on Snapchat
  • Use of live format on Facebook
  • Co-creation of contents with youtubers and digital content creators
  • 24-hour service on the social networks with more than 1.8 million mentions of the brand, 310,000 interactions and 2,000 acclaims
SELF-SERVICE
  • Immediate deposit: more than 100 machines installed in branches permitting real time deposits without envelope
  • 100% cardless transactions – in which the client operates the account just with biometrics and a password
  • Withdrawals in Brazilian sign language Libras in ATMs
  • Programmed withdrawal via mobile telephone: the amount is configured on the application and when the client approaches the NFC enabled ATM, he/she makes the withdrawal more rapidly without using a card
  • Activation of MToken via ATM, with greater convenience, speed and flexibility for the client

Internet banking

Individual

  • Remittance of supporting documents in batches via email
  • Consortium room (Automobiles/Real Estate/HGV) – proposals, simulations and contracting
  • New home broker
  • Launch of access via CPF (individual tax number) to special area for credit card clients who are not account holders
  • Online commercialization of Bradesco travel and residential insurance
  • Online commercialization of tailor-made Bradesco Seguros PGBL and VGBL private pension plans

Companies
Net Empresa

  • Transaction authorization service using QR Code technology for alteration of limits, registration of accounts and tax payments
  • Implantation of economic group in Net Empresa, enabling management of more than one company simultaneously
  • Check deposit via scanner – capture and remittance of image of check for cash deposit
  • Version of Exclusivo Bradesco navigator for users of Macintosh computers
  • Multipag Bradesco (service for paying suppliers, salaries and taxes): options include consultation, payment authorization/de-authorization and printouts of supporting documentation for payments
  • Improvement in usability experience: up to 45 days notice of expiry of power of attorney of legal representatives, enabling user to take advantage of transactions that have expired or been refused; increase from 30 to 100 transactions per batch in the inclusion of operations; alerts about transactions requiring approval upon entering or leaving the channel and the possibility of the user altering the type of access
  • Bradesco Collection: possibility of using negative credit rating as an alternative to notorial protest

TELEBANKING
  • Bradesco Artificial Intelligence (BIA) – Global launch of partnership with IBM for development of cognitive technology platform with intelligent solutions, Watson, available for all the branches
  • New electronic services via voice commands, such as payment orders/electronic transfers, authorization to use internet banking and Bradesco Celular, cancellation of cards and checks
  • Private client service cell via Telebanking Bradesco
  • Tourist Support Center – support for tourists during the Rio de Janeiro Olympic Games
  • Client and employee support – incorporation of HSBC Brasil
  • Welcome Center for Branches
  • Welcome Center for Clients
  • Portability Support Center

InovaBra

In 2016, inovaBra was transformed into our innovation platform. In addition to producing results by means of the startup partnership program (inovaBra Startups) and our innovation centers (inovaBra Polos), an additional three innovation instruments were created: inovaBra Ventures, inovaBra Hub and inovaBra Algoritimos. For the year 2016, InovaBRA aimed at 400 enrollments per issue in the Inovabra Startups Program. As a result, it reached 1,609 enrollments in total (considering the three issues), 553 in the 1st issue, 549 in the 2nd and 507 in the 3rd. For 2017, the goal of 400 enrollments will be maintained.

inovaBra Hub – his is a digital platform aimed at connecting participants in the Brazilian entrepreneurial and innovation ecosystem to promote the exchange of knowledge, experience and business opportunities. The large scale launch of the platform is scheduled for the first quarter of 2017.

inovaBra Ventures – The corporate venture capital fund for partnerships and strategic acquisitions of startups is aimed at generating innovative experiences for clients. With a starting capital of R$100 million and a focus on startups, Fintech is investing in three areas: a) Algorithms and intelligent machines: systems for adding intelligence, reducing back office and promoting mass customization; b) Digital platforms: service and process digitalization aimed at zero marginal cost and improved customer service; and c) agile, modern infrastructure to support the velocity of technological changes, such as blockchain, Investor Profile Analysis, cloud computing and infra big data.

inovaBra Algorithms – has the mission of pioneering research in advanced models and algorithms for big data and communicating its findings to the organization. In conjunction with the business units, the area develops proofs of concept in the use of predictive and prescriptive algorithms in the technological research environment. It produces predictive and descriptive algorithms and advanced data analyses in the production environment of our analytical platform to provide data solutions that add value for the business units. Additionally it ensures the predictive and prescriptive algorithm knowledge base in our big data environment is maintained up-to-date.

We have expanded our research area, which is now called inovaBra Pesquisa, whose mission is to investigate and identify trends in new business models, technologies and consumer behavior to assist in strategic decision making for the creation of products, services and business models. We have been actively researching and testing the technologies Blockchain and Distributed Ledger. In 2016: 1) we created a cross functional working group involving the technical, operational, business, research and innovation areas to develop an understanding of the technologies, the ecosystem, the opportunities, the risks, the applications and the business models possible; 2) since June 2016, we have been members of the R3 global consortium, together with the largest financial institutions in the world. Within the scope of this venture, we held an international event together with other partners in October 2016; 3) we assess bitcoin cases and solutions together with brokers and startups by means of the InovaBra program; 4) we are studying the main platforms available on the market, such as R3 Corda, IBM Hyperledger Fabric and Ethereum, among others, and have already undertaken a number of proofs of concept. We have attended the main Brazilian Blockchain and Distributed Ledger events, and we are members of the banking association FEBRABAN’s Blockchain working group.

By means of face-to-face and remote road shows nationwide, in 2016 the inovaBra startups open innovation program organized the third selection process for companies with solutions focused on means of payment, digital channels, insurance, Bank of the Future, and processes and technologies that streamline and facilitate contracting financial services.

It is the innovation program that enables the startups to test their solutions on real clients. The goal is to establish partnerships with startups to accelerate the delivery of innovative experiences for clients. In return, the startups have the possibility of scaling their businesses up rapidly, given that the solutions may be distributed to our more than 69.4 million clients via over 61,000 service points. The program was created with a view to establishing strategic partnerships with startups rather than treating them as competitors. In this respect, the startups act as a technology arm that delivers innovations for us. These partnerships are governed by contracts which set forth the duties and rights of both parties. For the startups selected one of the major benefits is the opportunity to work on innovations focused on real demands, gaining practical knowledge of the financial market as well as access to the structure needed to access large markets. In the program it is also possible to share future visions of businesses and experience in making innovations happen in the financial market. Most importantly, the startups have the opportunity of partnering with us.

First edition:

Portfolio focused on open APIs, digital platforms, gamification and wearables.

  • Screencorp: managing interactive content on TVs.
  • Nue: interactive shop window solution.
  • QueroQuitar: online self-service platform for negotiating debts.
  • Atar: wearable device permitting digital payments (NFC).
  • Rede Frete Fácil: road freight supply and demand management solution.
  • Qranio: mobile training platform (gamification).
  • ShopMobi: queue management solution for the branches.
  • Sensedia: API management solution.

Second edition:

Portfolio focused on mass customization, blockchain, investment robots, client engagement, digital platforms and algorithms.

  • Bit.One: platform for sending remittances using blockchain technology, enabling the exploration of potential models for using the technology.
  • Cinnecta: monitors the client’s experience in mobile channels aimed at promoting improvements.
  • Cuponeria: digital coupon platform enabling client engagement in strategic campaigns.
  • EasyCrédito: platform for the offer of credit focused on classes C and D that will permit the concession of credit to people without bank accounts and enable greater understanding of the risk profiles of non-clients.
  • Ewally: financial services wallet application using blockchain technology to distribute financial products and services to non-clients, with custody of amounts involved.
  • Itera: big data/analytics solutions that enables improved knowledge of clients’ financial services usage profile, for targeting strategic campaigns.
  • Konduto: anti-fraud solution that could improve the current prevention model for remote transactions with Bradesco cards.
  • Nama: permits automated digital service (robots), improving customer service operating efficiency.
  • Percycle: this monitors the client in different digital channels, permitting the offer of personalized experiences based on the client’s behavior in the use of financial services.
  • Tá.Na.Hora Digital: natural language algorithms to change behavior and boost engagement of Bradesco Seguros Group clients in preventive measures..
  • Allgoo: dedicated to personalizing the offer of investment portfolios for clients.

HOW TO INNOVATE TODAY

inovaBra. Rede: startups, hub, ventures, polos, lab, pesquisa, habitat, algoritmos, internacional.

SOCIAL RESPONSIBILITY MANAGEMENT SYSTEM

Our Corporate Social Responsibility Management System drives commitment to the advocacy and defense of human rights and basic labor rights. This system is audited by an independent certifying body and establishes procedures to raise the awareness of employees and third-parties with respect to human rights, risk identification, control and monitoring and corrective measures. G4-58 | G4-HR3

Our channels are prepared to receive reports of breaches or deviations, with the guarantee of confidentiality and non-retaliation. All reports are investigated and corrective or mitigation measures taken when necessary. In 2016, 10 cases of discrimination were recorded. These were analyzed and action plans were taken. This support is available at all of our sites.

In relation to clients and suppliers, the organization employs mechanisms (specific restrictions and news monitoring) that enable the identification of those involved in forced or slave labor, thus representing an elevated risk from the legal standpoint, as well as in terms of image and reputation. All clients identified as presenting risks of this nature are subject to social and environmental risk analysis, regardless of the nature or amount involved in the operation.

Additionally, when the operation involves finance or assistance for projects, social and environmental factors are assessed to ensure the incorporation of safe human rights practices.

In the case of project finance, when necessary, conditions that must be met by the borrower are imposed before the signature of the contracts. The contracts also include obligations and terms of rescission in the event of non-compliance related to environmental, labor and occupational health and safety legislation, as well as the directives of the Equator Principles, when applicable.

G4-DMA Non-discrimination

After the contract has been brought into effect, the social and environmental monitoring of the projects is initiated. This consists of visits, analysis of reports from independent consultants and the environmental studies of the ventures, which will result in internal reports on compliance with the specific social and environmental clauses established in contract, checks run with public authorities and the company and monitoring of news disclosed in the media. If this monitoring indicates that the client has not fully complied with the social and environmental clauses, the bank may suspend future disbursements of funds or even decide to rescind the contract.

G4-DMA Procurement Practices | G4-DMA Child labor | G4-DMA Forced or compulsory labor | G4-DMA Assessment

For suppliers, we apply the solution Request for Information (RFI), which addresses human rights. The Certifica System is also used to assess clients in terms of respect for human rights, social, environmental and labor issues, including child and slave labor, occupational health and safety, among others. The system requires the supplier to adhere formally to the Procurement Professional Code of Ethical Conduct, to our Code of Ethical Conduct, to Corporate Anti-Corruption Policy and to comply with Corporate Social Responsibility Certification. Further information in the GRI Attachment

The Certifica system also checks supplier data in the national business tax registry (CNPJ), the national classification of economic activities (CNAE), in addition to other registration and commercial information, in order to identify illegal practices. The Bradesco Supplier Code of Conduct will be implanted by the second quarter of 2017.

G4-DMA Investment | G4-DMA Product portfolio