A recent presentation I gave at an industry conference, based on the UBank experience www.ubank.com.au www.facebook.com/ubank www.youtube.com/ubankmoneybox

1. 3rd Annual Technology & Innovation – the Future of Banking & Financial Services Conference
__________________________________________________
“Capturing Relationships When Money - and Customers -
are on the Move”
June 2009
Gerd Schenkel, UBank
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2. Opening remarks
• Perspective of an industry practitioner, not an “expert” or a consultant
• Some limitations due to confidentiality
• Happy to take questions during the presentation or at the end
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3. Contents
Introducing UBank
Maximising customer value
New opportunities for customer relationships in “Web 2.0” world
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4. Introducing UBank
• A direct bank
• Operates exclusively over internet and telephone
• A division of National Australia Bank (NAB)
• Launched 1 October 2008
• Standalone offer from NAB / no “inter-operability” of products or channels
with NAB
• Operates its own website, call centre, operations and support functions
• Leverages NAB’s banking licence and capabilities
• Currently offers Term Deposits for Personal and SMSF customers
• Additional products in development
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5. Contents
Introducing UBank
Maximising customer value
New opportunities for customer relationships in “Web 2.0” world
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6. The four drivers of customer value
Ability to Effort
replicate required
H L
1.) Acquisition
M M
2.) Retention/ loyalty
Customer
value
M H
3.) Greater share of wallet
L H
4.) Advocacy
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7. How to maximise customer value
- Integrity across entire customer journey
Integrity/ consistency
Product &
Organisation Organisation
Brand CVP channel
design values
design
• Degree of • Recruiting • Sum-total of • Establishes • Features
dedication to (not training) customer clarity of • Pricing
a purpose experience value
• Leadership (not a logo) organisation • Language
• Degree of brings to the • Functionality
control over • Defines table • Utility
customer promise to
experience customers/
establishes
• Determines expectations
mandate 7

8. UBank culture
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Source: UBank staff survey

9. UBank website – designed for customer utility
Easy online
application
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10. UBank pricing – transparent, consistent, competitive
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11. Contents
Introducing UBank
Maximising customer value
New opportunities for customer relationships in “Web 2.0” world
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12. The meteoric rise of “social media”
- Australia
Relative search volume Daily unique visitors
Facebook has 5.1m adult users
Twitter users:
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Source: Various

13. Relationships of trust build over time and are fragile
- New opportunities for “crowd endorsement”
Impact of new “online world”:
Opportunity for “crowd
endorsement”
Threat of service failures
being amplified
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14. Friends and family recommendations have always
played an important role in financial services
purchasing
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15. In the new world, however, we happily trust the
collective opinion of many anonymous reviewers
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16. Two ways of engaging “crowd endorsement”
Demonstrate your values in public
• Respond to customer queries
• Fix customer issues
Engage in new ways
• Off your own website
• Appropriate to medium / framework
• As part of the customers’ activities in the medium – not
interrupting them for “advertising”
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17. Ability to demonstrate values publicly
- Case study: UBank on ozbargain.com.au
“UBank – they know how to
NAB you …”
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18. Ability to demonstrate values publicly
- Case study: UBank on ozbargain.com.au
“Wow… GM of UBank @
Ozbargain..”
“UBank actually treat clients as
persons, not just like numbers
like the big 4 banks. I am very
impressed.”
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19. Ability to demonstrate values publicly
- Case study: UBank on ozbargain.com.au
“… it has been handled VERY
satisfactorily”
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20. Ability to demonstrate values publicly
- Case study: UBank on ozbargain.com.au
“…then again they have shown
the child can grow up to be
better than the parent”
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21. New ways of engaging
- Case study: UBank on Facebook
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22. New ways of engaging
- Case study: UBank on Twitter
Industry statistics
(Source: Visible Banking Blog)
• 375 institutions with Twitter
presence
• 92,000 followers
• 247 followers / institution on
average
• 17 Institutions have > 1,000
followers
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23. New ways of engaging
- Case study: UBank on Twitter
@ubank follower Twitter posts:
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24. New ways of engaging
- Case study: UBank on Youtube
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25. UBank MoneyBox Episode 7
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26. The end.
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