The document provides an overview of the consumer credit market in Europe. It discusses key trends including the rise of large European consumer credit companies, the growth of debt consolidation loans, and increasing convergence in the consumer credit market driven by new technologies and actors. The top 5 European countries for consumer credit are the UK, Germany, France, Italy, and Spain, together representing 76% of the total European market.

1. Consumer Credit in Europe - Topics, trends and drivers -

4. 1. Market Overview of the Consumer Credit Industry Sources : Central Banks, National Statistics Offices, Jasmin Consumer Credit Industry amounts 4 Trillion € outstandings in the World at the end of 2005. It represents around 11% of World GDP. 2004 2005 2006 (f) 3 440 B€ 4 233 B€ 5 100 B€

10. Outstandings  05/04 Outstandings/GDP 10% 20% -5% 5% 10% 15% 30% 40% 50% 60% 8% 20% 0% 70% 80% 90% 100% Three main patterns in Europe : 1/ Very dynamic markets but starting from a small base 2/ Matured markets with a consumer contribution to GDP above 9% 3/ Other countries where consumer credit growth and consumer credit contribution are balanced 1. Market Overview of the Consumer Credit Industry Sources : Central Banks, National Statistics Offices, Jasmin Outstandings/GDP Outstanding’s  05/04

12. 2. Perspectives on European Consumer Credit Market a. The upsurge of european champions

13. Mulliez Family 15 CC implantations in Europe 8 12 22 11 20 19 8 16 3 11 CC International contribution Poor High High High Poor High High Average High Poor Poor Preferred Market Entry Strategy M&A M&A M&A M&A GField GField M&A M&A M&A GField GField Unique Brand Policy YES YES YES NO YES YES YES YES YES YES YES CC Outstandings Scale >45 B€ >35 B€ >20 B€ >50 B€ >35 B€ >25 B€ >20 B€ >45 B€ >50 B€ >25 B€ > 5 B€ Sources : Operators, Jasmin, 2005&2006 situation datas a. The upsurge of european champions 2. Perspectives on European Consumer Credit Market

16. c. Time of convergence World Pay is an Internet Payment System provider, now part of RBS Group. The company has developed the first payment system interlinked to advanced voice biometric technologies. It allows all financial transactions to be signed and guaranteed by voice recognition. The Voice Pay account is linked to a Visa or Mastercard Debit/Credit card. 2. Perspectives on European Consumer Credit Market Helps the consumer for shopping and informs him about promotions linked to the product. Helps him to find items in the alleys. Can also inform the customer on the points to be earned from the loyalty program and the extra rebate the consumer can gain using his credit card. Source : 2007 Jasmin International Innovation Financial Services Monitor

17. c. Time of convergence 2. Perspectives on European Consumer Credit Market First Meta is a start up company based in Singapour. It projects to launch the first credit card in the « Second Life » virtual world before the end of 2007. Second life avatars would be able to ask for a credit line and a credit card. Source : 2007 Jasmin Innovation Monitor Mizuho Bank will launch next year a personal loan for the bank’s customers. That’s not the first time banks having test with this, but that’s the first time a bank decided to go through and has clearly announced ambitious objectives, maybe in order to rentabilize the ATM network.

19. c. Time of convergence One month ago, SCF launched « Prestamo Formula Zero », a new kind of personal loan. The bank has linked the product to 5 blue chips (France Telecom, Total Fina ELF, Nestle, Iberdrola and BBVA) and offers to reimburse 6 months of interest to customers if the wallet goes up 10% on a 4 year period. The fondo pensione famiglia has launched an original product to allow italian mothers to redeem the points of their loyalty card with retirement points. Consumer Credit Housing Credit Debt Consolidation Consumer Credit Real Estate BNP Paribas decided two weeks ago to regroup its different specialist business lines in one dedicated to Personal Finance. BNP Paribas is intending to work on synergies between those different business lines directed towards the same customers. 2. Perspectives on European Consumer Credit Market

20. Next future... IT Systems Integration at European level A global market which has to be run like an industry Understanding cultural aspects is particularly important in local markets in Europe Growing importance of loyalty programs to animate customer relationship Next battle for private/domestic networks with Visa and Mastercard networks Sustainable development products will gain coverage Enhance rising risk steering control Target non prime customers acquisition programs Become a Brand with Intelligent Marketing Drive European standardisation Business convergences Technological convergences Business Processes Marketing & Distribution