Slides from a discussion session at the iMedia Financial Summit October, 2009

1. Using Telepresence to Attract and Retain Customers John Stone III Founder, President

2. Discussion Considering Channel Strategies Enhancing The Human Touch The Role of Telepresence Technology Key Issues to Consider

3. The Situation Over the last ~25 years banks have emphasized direct channels for delivery efficiency Direct channels drive profitable operations and customers appreciate the speed and convenience However, at key moments, customers seek more personal service and advice for important transactions

4. Lifecycle Key Moments Key moments span credit and investment plus deposit needs for individuals and small businesses

5. Retention/ Reduced Churn Key moments introduce cross-selling opportunity and drive retention and profitability Deposit Services 7 Million customers Card Services 3 Million customers 2.0m Cross-selling impacts (Illustrative) 0.56m 0.1m 0.5m Investment Services 0.8 Million customers Small Business Services 0.2 Million customers

6. Driving Retention/ Reducing Churn Retention is particularly important in Financial Services Profit Impact of 5% Increase in Retention -Bain & Co.

7. Telepresence as a Digital Strategy An immersive ‘visual presence’ Demographic-ready Enhance the branch experience Permission approach for the online channel Extend relationship management and product/ service expertise Leverage efficiencies and scale Benefit from brand enhancement

8. What’s involved? Unified Communications Distance Collaboration Purpose Built vs Standard Desktop Expert call routing

9. Case Study Issues Working with a top 10 retail bank client, we identified a range of issues to consider : Product-Channel Alignment Customer Experience Operational Alignment Technology

10. Product-Channel Alignment

11. Customer Experience Will at home customers be comfortable using a 2-way video channel? Is bandwidth at home sufficient or reliable enough? Systems easy to use? Will the customers perceive this as “personal” service or another way for the bank to cut cost? Are technologies ready for an immersive experience at a reasonable cost?

12. Operations Does telepresence fit existing operations? Location in branch to ensure privacy, use? Environmental issues– e.g. lighting, seating ATMs an appropriate channel Privacy? Availability? Hours of operation impact the service profile? What security issues must be considered?

13. Technical Are technologies ready? Network bandwidth - voice and picture sync/latency Microphone and camera quality Large screens and definition Multi-party networking Support materials and knowledge in live environment Delivering to mobile devices

14. Telepresence: a Solution for PNB Demographics support active adoption Technologies are ready (if configured well) Brand impact attracts new customers Leverage for expansive networks Position as ‘new value’, not a replacement or cost-avoidance Piloting solutions will validate fit and synchronize with existing processes and infrastructure

15. Thank You