Madrid, October 17th 2008 Online Banking As seen from a Media Perspective (for SME and private clients)

Preliminary Note

Change is harder for banks than for other less regulated industries Clients’ expectations Competitors move on New entrants Technical developments Reluctant to perceived risks from solid image External norms Emphasis in security Existing processes Large “institutions”

Technology & Functions Internet 1.0, Browser discovered Access to accounts Generalized access Fixed menu Basic functions Focus on transactions Basic info on basic transactions 199X - 2006 Web 2.0 Clients Oriented Architecture (SOA) Straight Through Processing (STP) Process integration for users Analytical interaction Community, not only transactions Basic 2.0 Tools Integration of complementary services 2007/8 – 201X

Internet 1.0,

Browser discovered

Access to accounts

Generalized access

Fixed menu

Basic functions

Focus on transactions

Basic info on basic transactions

Web 2.0

Clients Oriented Architecture (SOA)

Straight Through Processing (STP)

Process integration for users

Analytical interaction

Community, not only transactions

Basic 2.0 Tools

Integration of complementary services

Corporate Web 2.0: Most Utilized Tools Additionally, in the financial world: Source: Forrester Research, Inc. Rich Internet Applications (RIA) Forums Video Conferencing

Rich Internet Applications (RIA)

Forums

Video Conferencing

Survey to Financialy Active Clients: If you were to choose a new bank, which ones would be your three main criteria? © 2008 Javelin Strategy & Research Rates and fees Online service capabilities Customer service Access to ATMs Access to branches Superior security against ID fraud Product selection Number of years in business Personal reference Other, please specify Active online bankers demand high-performance, easy-to-use online tools

Potencial of Online Banking Improving bank’s image : Clients are more satisfied with their online activity than with their bank in general (82% vs. 78%, ForeSee 2008). Thanks to which: Cost reduction More business Greater loyalty Next slide Closer relationships . In the last 3 months: 17% had used ATM 21% had visited an agency 58% had accessed online

Improving bank’s image : Clients are more satisfied with their online activity than with their bank in general (82% vs. 78%, ForeSee 2008).

Thanks to which:

Cost reduction

More business

Greater loyalty

Closer relationships . In the last 3 months:

17% had used ATM

21% had visited an agency

58% had accessed online

Importance of the Satisfaction of the Online Client Fuente: 2008 ForeSee Results/Forbes.com Online Financial Services Study Beyond contributing to reducing costs, good customer satisfaction resulting from their online experience will position the bank as a center on financial services versus other vertical possibilities SITE EXPERIENCE Pressure (Additional Pressure : with O.B. the comparative advantage of large office network is smaller Pressure Loyalty Share of Wallet Word of Mouth Cost Efficiencies Customer Satisfaction Likelihood to Continue to Use Company's Services Likelihood to Purchase More Services Likelihood to Recommend Company Likelihood to Recommend Website Likelihood to Use Web as Primary Channel 82 90 59 79 78 78

Beyond contributing to reducing costs, good customer satisfaction resulting from their online experience will position the bank as a center on financial services versus other vertical possibilities

Challenge of Leading Banks: Website in which the client can : Do what he already does (review accounts, perform some transactions…) Purchase financial products Hire financial help, utilize online broker Ask for loans, prices on insurance policies and similar products Ask, at his/her convenience for online help and advice as well as specific training (tutorials) Receive personalized info on products matching his/her financial growth (as opposed to existing pushed commercial behavior) Transforming Online Banking into a highly interactive personal website :

Website in which the client can :

Do what he already does (review accounts, perform some transactions…)

Purchase financial products

Hire financial help, utilize online broker

Ask for loans, prices on insurance policies and similar products

Ask, at his/her convenience for online help and advice as well as specific training (tutorials)

Receive personalized info on products matching his/her financial growth (as opposed to existing pushed commercial behavior)

Website in which the client can also: See/personalized charts on his/her assets in that bank Integrate assets from other financial institutions Interact with the bank and other users (phase II) (Some portals already offer the above. See www.unience.com) Website with an access: Beyond itself (widgets…) Through mobile and smart phones Open to non clients, with restricted areas – allows easy access to ‘influence zone’ and hiring of online services and products Transforming Online Banking into a highly interactive personal website (cont.): Challenge of Leading Banks (cont.):

Website in which the client can also:

See/personalized charts on his/her assets in that bank

Integrate assets from other financial institutions

Interact with the bank and other users (phase II)

(Some portals already offer the above. See www.unience.com)

Website with an access:

Beyond itself (widgets…)

Through mobile and smart phones

Open to non clients, with restricted areas – allows easy access to ‘influence zone’ and hiring of online services and products

Value adding website able to attract/retain: Consumer: by offering tools which connect to their data bases in order to manage their domestic economy (Personal Finance Management) SME: by offering tools to simplify their job. Examples: Automatic monthly report generation for accounting Basic generation of payroll Memory in bank servers to archive documents, safety copies… Basic accounting software (a concept taken from Private Banking) Transforming their online banking into a highly interactive personal portal : Financial portal of the future: one-stop portal to which the consumer and SME return frequently to manage and analyze all aspects of their economic lives Challenge of Leading Banks (cont.):

Value adding website able to attract/retain:

Consumer: by offering tools which connect to their data bases in order to manage their domestic economy (Personal Finance Management)

SME: by offering tools to simplify their job. Examples:

Automatic monthly report generation for accounting

Basic generation of payroll

Memory in bank servers to archive documents, safety copies…

Basic accounting software (a concept taken from Private Banking)

Analysis Before Design: (previously deep knowledge of the bank priorities) Consumer: How they rank current services and really interact with it How they manage their finances (and what are the tasks they perform manually) What else can be facilitated in an automated way so that all their economic activity goes through the bank What solutions do other industries implement for similar problems Why some clients with the right profile do not use O.B. SME: How they use present website (and services not used) Which tasks could easily be automated by the bank

(previously deep knowledge of the bank priorities)

Consumer:

How they rank current services and really interact with it

How they manage their finances (and what are the tasks they perform manually)

What else can be facilitated in an automated way so that all their economic activity goes through the bank

What solutions do other industries implement for similar problems

Why some clients with the right profile do not use O.B.

SME:

How they use present website (and services not used)

Which tasks could easily be automated by the bank

Approach to personal portal with Web 2.0 culture Non exhaustive example Has access to relevant info (ex. regarding fiscal alternatives) Interacts with bank. (ex. “Ok to have a deficit this month of $50”) Reviews, hires: accounts, stock, bonds, loans, insurance… Expresses opinion on services and knows if bank takes note Interacts with other clients Receives alerts (ex. upcoming payment, enough balance) Uses tools for his/her own SME Works with other financial institutions’ assets Uses Personal Finance Management tools (PFM) Receives products adapted to his/her needs (no hard push) Receives info/date according to real needs Can make micro payments (ex. Paypal) Provides a full analysis and planning tool. Very graphic. TRUSTWORTHY SIMPLE FOR USER HELP DURING TRANSACTIONS & PROCESSES

About International New Media Consulting Strategic Consulting at the service of media companies and traditional companies (not native to online) willing to strengthen their presence in the new media Online services and products to empower traditional industries Market and competitive analysis, development of innovative strategies Transition management www.fernandosamaniego.com [email_address]

Strategic Consulting at the service of media companies and traditional companies (not native to online) willing to strengthen their presence in the new media

Online services and products to empower traditional industries

Market and competitive analysis, development of innovative strategies

Transition management

About Fernando Samaniego: unique users ’ growth , Nov. 04 - Dec. 07 Fuente Nielsen / NetRatings Netview Enlargement of sampling 152% 461% 342% MERCADO PRISA EL MUNDO 749% VOCENTO

Fernando Samaniego: Revenues and EBITDA 2003 vs. 2007 REVENUES (MM €) EBITDA (MM €) Source: Deloitte