KBC: Pioneering Sustainable Innovation in the Belgian Banking Sector

KBC Bank, a leading financial institution known for its unwavering commitment to digital innovation an sustainability, stands at the forefront of the European banking sector.

Recognizing the growing importance of energy-efficient housing and the increasing demand for home renovations, KBC sought an innovative solution to help their customers make informed decisions about sustainable home improvements. Additionally, they aimed to enhance their ability to assess and manage the risks associated with renovation loans.

In pursuit of these goals, KBC forged a strategic partnership with Setle, as innovative leader in renovation cost estimation. Setle’s cutting-edge platform seamlessly aligns with KBC's objectives, offering precise, localized renovation cost estimates with a strong focus on energy efficiency. By integrating Setle’s technology into their digital infrastructure, KBC empowers customers with the tools and knowledge necessary to navigate the complexities of home renovations, while simultaneously bolstering their own risk assessment capabilities.

This collaboration between KBC and Setle marks a significant milestone in promoting sustainable home renovations. By combining KBC's extensive industry experience with Setle's advanced technology, the partnership is driving substantial positive change within the housing market.

Homeowners are now better equipped to make informed decisions about energy-efficient upgrades, and KBC can more effectively manage the evolving landscape of renovation financing, contributing to a greener and more sustainable future for homes in Belgium.

The Challenge

Navigating the Complexities of Sustainable Renovation Financing

KBC Bank recognized the increasing demand for energy-efficient home renovations driven by stringent European energy performance regulations. This demand presented a dual challenge.

• Homeowners were keen to improve their properties but often lacked the expertise to undertake complex renovation projects, leading to uncertainty, budget overruns, and delays. These issues hindered the widespread adoption of energy-saving measures, despite their benefits.
  
  
• From KBC’s perspective, the absence of reliable cost estimation tools created significant hurdles in accurately assessing the financial risks associated with renovation loans. The bank needed to determine project feasibility and appropriate loan amounts to protect its financial interests and effectively support customers in their renovation endeavors.

This gap underscored the necessity for a solution that could bridge the homeowners' aspirations for sustainable renovations and the bank’s requirement for robust risk assessment tools.

KBC’s strategic focus on innovation and customer satisfaction laid the groundwork for a transformative partnership with Setle, a leader in renovation cost estimation technology.

The Solution

Integrating Setle’s Platform for Enhanced Renovation Insights

To address these challenges, KBC partnered with Setle to integrate their state-of-the-art SaaS platform directly into KBC's acclaimed Mobile Banking app.

Setle's platform offered a range of features specifically tailored to the market, including:

• Accurate, Localized Cost Estimates: Leveraging real-time data from local contractors, suppliers, and market trends, Setle’s pricing engine delivers precise cost estimates that account for regional variations in labor and material costs. This localization extends from the country, to provincial and city levels, ensuring estimates are reflective of specific economic conditions in each area.
  
  
• Energy Efficiency Guidance: The platform guides homeowners in prioritizing energy-efficient renovations by (providing insights into potential energy savings and) highlighting the most impactful upgrades. This aligns with KBC's commitment to sustainability and aids customers in making environmentally conscious choices.
  
  
• Comprehensive Renovation Reports: Setle generates a detailed report that consolidates all information regarding cost calculation, energy improvements, and a technical specification. This report serves as the ideal foundation for investment proof in the financing process.

• Seamless Integration: The platform’s integration into KBC's Mobile Banking app ensures a user-friendly experience, allowing customers to easily access Setle’s features and tools within their familiar banking environment. This streamlines the renovation planning and financing process.

Results and Impact

Demonstrating Tangible Success with Setle’s Platform

The partnership between Setle and KBC has yielded remarkable results, showcasing the platform's tangible impact on customer engagement and the bank's financial performance.

Within the first year of launch, Setle's platform achieved significant adoption rates, with over 40.000 customers onboarded and more than 2.000 active users in the last 30 days. This high level of engagement underscores the platform's user-friendly design and its ability to meet the needs of homeowners embarking on renovation projects.

Key metrics highlighting the success of the Setle-KBC partnership include:

• Renovation Projects Initiated: Over 25.000 estates have been defined on the platform.
  
  
• Detailed Reports Downloaded: More than 6.000 renovation reports have been downloaded.
  
  
• Total Estimated Renovation Costs: The platform has processed €750 million in total estimated renovation costs, with an average renovation price of €46.000 (and a median of €26.000).

Crucially, the platform has proven effective in converting Setle-generated renovation plans into actual financing requests. This success is evidenced by a significant number of homeowners securing renovation loans through KBC, translating to increased loan sales for the bank. This conversion rate not only highlights the platform’s practical value in empowering homeowners to take actionable steps towards their renovation goals but also underscores the financial benefits for KBC in integrating Setle’s technology.

Expansion and Innovation

Scaling Success and Pioneering New Advancements

The success of Setle's integration into KBC's Mobile Banking app has paved the way for further expansion and innovation. Recognizing the value of Setle’s platform in empowering both customers and financial advisors, KBC has decided to strategically extend the solution to its branch offices. This expansion will allow KBC’s financial experts to utilize Setle's capabilities during in-person consultations, providing personalized guidance and support throughout the renovation journey.

KBC has deployed Setle’s platform in 150 branch offices across Belgium, significantly increasing the platform’s reach and accessibility. This deployment has enabled KBC to serve an additional 30.000 customers who prefer in-person consultations.

Beyond physical expansion, Setle is committed to continuously enhancing its platform through technological advancements. The company is developing sophisticated AI algorithms to further refine the accuracy and personalization of cost estimates. These AI-driven enhancements leverage the vast amount of renovation data collected, enabling more precise predictions and recommendations tailored to individual customer needs.

Setle is also focusing on integrating Machine Learning models to identify patterns and trends in renovation projects, proactively suggesting energy-efficient upgrades and cost-saving measures.

Investment and Future

Accelerating Growth and Sustainable Renovations Across Europe

KBC's confidence in Setle's platform and its transformative potential in the renovation market is underscored by their significant investment in the company. This financial backing not only demonstrates KBC's commitment to fostering innovation within the financial sector but also highlights their belief in Setle's capacity to drive sustainable growth and enhance customer experiences.

This investment is earmarked to fuel Setle’s expansion across Europe, allowing the company to scale its operations and reach a broader audience of homeowners and financial institutions.

The strategic collaboration between KBC and Setle aims to extend the platform’s presence to additional European countries. This ambitious expansion plan will enable Setle to tap into new markets, fostering the adoption of sustainable renovations on a larger scale.