Madrid, October 17th 2008

Online BankingAs seen from a Media Perspective(for SME and private clients)

Preliminary Note

Change is harder for banks than for other less regulated industries

External norms

Emphasis in security

Existing processes

Large “institutions”

Clients’ expectations

Competitors move on

New entrants

Technical developments

Reluctant to perceived risks from solid image

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

Corporate Web 2.0: Most Utilized Tools

Additionally, in the financial world:

Source: Forrester Research, Inc.

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?

67%

54%

44%

43%

36%

33%

13%

11%

8%

2%

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

© 2008 Javelin Strategy & Research

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

Importance of the Satisfaction of the Online Client

Fuente: 2008 ForeSee Results/Forbes.comOnline 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 EXPERIENCEPressure

(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 UseCompany's

Services

Likelihood to Purchase

MoreServices

Likelihood to Recommend

Company

Likelihood to Recommend

Website

Likelihood to Use Web

as PrimaryChannel

82 90 59 79 78 78

Challenge of Leading Banks:

1. 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:

2. 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)

3. 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.):

4. 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.):

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

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.

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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 fs@fernandosamaniego.com

About Fernando Samaniego: unique users’ growth, Nov. 04 - Dec. 07

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152%

461%

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342%MERCADO

PRISA

EL MUNDO

749%

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VOCENTO

Enlargement of sampling

Fernando Samaniego: Revenues and EBITDA 2003 vs. 2007

1620

25

42

60

0

10

20

30

40

50

60

2003 2004 2005 2006 2007

REVENUES

(MM €)

0,9

2,3

3,9

5,2

8,0

0

1

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5

6

7

8

2003 2004 2005 2006 2007

EBITDA

(MM €)

Source: Deloitte