It is often said in financial technology circles that customers don’t want a loan; they want to buy a house, or a car, or go on holiday. Incumbent banks that are prioritising strategies to act on that wisdom, however, are relatively few.
While Belgian banks have not been quite as aggressive in cutting branches as their Dutch peers, KBC Bank has already reached high levels of adoption of end-to-end digital tools in its customer onboarding, sales and customer-service processes. Its straight-through processing ratio – measuring the proportion of digital services completed without human intervention – rose to 62% in 2024. Recent steps to simplify the onboarding process and introducing mobile onboarding for children have helped.
But KBC is positioning itself just as much against other digital consumer platforms as against traditional banking and insurance companies, notably with the rollout of an ecosystem strategy, starting with housing and mobility. It sums up the approach under the tag line “STEM (Save Time and Earn Money), the Ecosphere”.
According to Sigrid de Wever, general manager for corporate strategy and innovation, the overall idea is to be an orchestrator of the customer’s journey through the economy.
More than just a loan
“As business models continue to evolve – influenced by the growing dominance of big tech and increasingly stringent EU data regulations – we face a significant risk of disintermediation,” says de Wever. “If our role is limited to offering loans or insurance products, we risk reduced engagement on our own platforms. In such a scenario, our offerings may become secondary add-ons to platforms that control the primary transaction, such as the purchase of a home or a vehicle.”
She continues: “This presents a strategic choice: either we actively compete for distribution and maintain direct relationships with our customers, or we accept a role as an embedded finance provider operating on third-party platforms.”
Clearly, the bank is opting for the former – out of a belief that relationships are its core strength.
Importantly, the group has been able to roll out Kate and other innovations to its international network
In housing, therefore, KBC has moved to integrate its app and credit engine more closely with Immoscoop, which has grown into one of the biggest property search portals in Belgium, 50% owned by KBC.
The partnership aims to differentiate its offering by allowing users to simulate financing, maintenance, and wider cost-of-living scenarios on the platform. It also offers tips on energy efficiency and gives instant quotes for things like solar panels, insulation and new windows, working alongside a network of contractors via its partner Impact Us Today. That’s in addition to helping with housing certificates on things like energy performance and electrical safety, and valuations on your property.
“Our objective is to engage with customers much earlier in their decision-making journey,” says de Wever.
KBC is already known for offering non-banking services on its mobile app, such as transport tickets, parking apps and ride sharing. It has recently added new tools to help customers in Belgium get a driving licence, buy concert tickets, and store documents. In Czech Republic, it introduced a new e-Exchange function for currency transfers, for example, alongside new features for investments, drag and drop payments, card security and subscriptions management.
Kate, the conductor
As the bank takes its ecosphere strategy to the next stage – including second-hand car searches – the group is working to reinforce the role of its AI-driven digital assistant Kate as a trusted orchestrator of the customer journey.
Opened in 2019, but updated and now even more relevant due to gen AI, the number of clients who have used Kate grew to 5.3 million in 2024. The assistant has begun to use large language models to help it understand customer questions and personalise answers. Kate was able to resolve around 70% of cases in Belgium and Czech Republic without any human interference at end-2024. Recent improvements include an expansion of the operating hours of human customer service agents in its Kate Live service.
Importantly, the group has been able to roll out Kate and other innovations to its international network, with initiatives often starting in its biggest markets of Belgium and Czech Republic before being rolled out to its banks in Bulgaria, Hungary and Slovakia.
Meanwhile, the bank is paying close attention to developments in agentic AI. Kate can help customers fill in insurance claims, contacting customers proactively after a storm, for example, based on their location. The assistant can now help with changing money transfer limits, providing tax forms, flagging possible payment errors, or making suggestions when it notices a jump in energy spending, for example.
Another integral part of the strategy is its blockchain-based Kate Coin – money pegged at a one-to-one rate with euros – which is accrued, for example, when buying from certain brands, or when accessing services including loans and insurance from the bank. In 2024, customers spent €1.1 million in Kate Coins using their Kate Coin wallet, whether in the bank for investments, prepaid cards and insurance or through commercial partners.
“The vision is for the bank to go beyond traditional financial advice and become a true partner – supporting customers as they access a broader range of products and services,” says Karin van Hoecke, general manager for digital transformation and data at KBC Belgium. As they do so, van Hoecke says, customers will be rewarded.
“Kate serves as the orchestrator of the ecosystem, while Kate Coins are the glue that link all processes together.”
