Alison Leonard First Direct

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‘© COPYRIGHT. HSBC BANK PLC 2007. ALL RIGHTS RESERVED.

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Evolution of the Digital Channel

at first direct

Alison LeonardHead of eCommerce

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Agenda

• introduction

• evolution to online banking

• developing relationships online

• sales online

• the future

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first direct

• telephone and internet bank

• launched in 1989

• 1.2 million customers

• first direct - the UK’s most recommended bank*

• reputation based on outstanding service

*Source: Research International, November 2006 - December 2006. In an independent survey of 1,757 bank customers, between 24th November 2006 and 12th December 2006, a greater percentage of first direct customers have ever recommended their bank."

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first direct customers

• busy professionals

• technophiles

• 73% use internet banking

• 78% net e customers

• 28% use text message banking

• 83% of customer contact is online

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the e sales story…

Phase 1“Creating”

Phase 2“Evolving”

Phase 3“Developing”

Phase 4“Delivering”

Phase 5“Contributing”

2007 Projection194,138k

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challenge for first direct online

to develop new content and communications channels which are:

• Interactive - enhance our online customer interaction

• Integrated - integral to our comms strategy

• Informed - enable educated decision making

• Innovative - test new comms channels

• Revolutionary - in the way information is delivered

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marketing over the internet

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a little word in your ear...

• the information provider chooses what content to push in a feed and the receiver is free to subscribe and unsubscribe

• Subscribers have said that they want to

listen to what you have to tell them

• It is crucial not to exploit trust.

developing relationships through new media

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building personality online

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empowering our people

• rep-casts

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empowering our customers

• customer-casts

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• The launch of phones such as the iPhone and new Nokia N95 enables customers to have full web browsing capability through their mobile using WiFi connectivity.

bank in your pocket

first direct 06 DEC at 07:00 HOUSE £1590+, 5 DEC CASH HSBC £50.00-, 04 DEC SAINSBURYS £78.98-

• first UK bank to launch text message banking in 1999

• Monilink ‘information on your say so’

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the future...

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Margin to mainstream… the development of web 2.0

Second Life• web-based virtual world • 8.8m residents worldwide

MySpace• Personal webspace being harnessed by brands to create buzz and satisfy fanbases • Similar sites include Facebook and Bebo

• Other virtual worlds include Habbo Hotel and Runescape• Games console virtual worlds include: Xbox Live and PS Home

Blogs and User Generated Content• Gives power to everyone to create online content• Can talk about and disseminate anything they like

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Social Networks

• There are a multitude of areas in which brands can tap into the growing popularity of social networks.

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QR codes

• QR codes allow mobile users to access online information quickly and easily by scanning a 2 dimensional barcode

• this could provide fast access to mobile content from a poster ad

• a number of new phones are embedded with QR functionality

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Voice over internet protocol (VoIP)

• VoIP is the routing of voice conversations over the Internet or through any other IP-based network. Resulting in free or lower-cost calls

•One of most popular offerings is Skype

• Skype allows users to make telephone calls from their computer to other Skype users free of charge

• MySpace and Skype have recently signed a deal which will allow MySpace members to make free Skype calls to each other

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• NFC currently being led by Card companies, mass transit system and operators - not by banks

Contactless

• Contactless payments use NFC (Near Field Communications) chips to facilitate a payment

• According to the ABI Research projection c.20% of the global market for wireless telephone handsets = 292 million units will come equipped with NFC technology by 2012

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thank you…

…any questions?

Alison [email protected]

Head of eCommercefirst direct

Technology

Alison Leonard First Direct