Multi-Channel Banking The Open Plan Approach

1. Multi-Channel Banking The Open Plan Approach Gerry Allen E-Commerce Strategy

2. Agenda • Strategic Backdrop • Open Plan - a brief overview • Implementation of the e-channels • Internet • WAP • iDTV • The results so far • Future plans • Summary and Questions

3. Strategic Backdrop

4. Strategic Backdrop • Converted to a bank in 1997 • 4 million savers • 500,000 borrowers • Needed to address: • Pressure on margins • Competition based on price • New entrants

5. Strategic Backdrop The back book Old Business NewBusiness Revenue Per Customer PROFIT BREAKEVEN

6. Open Plan - a brief overview

7. Open Plan Overview 100% 165% Open Plan

8. Open Plan Overview • Replace wide margin single product relationships with narrower margin multi-product relationships • Provide Customised Banking: • Personal Planning and advice • An integrated set of products • Greater accessibility for customers • Help customers to see the whole financial picture • Customer relationship management • High quality service delivery

9. Open Plan Overview Traditional product view Savings Accounts Savings Accounts Savings Accounts Current Account Credit Card Overdraft Personal Loans Unit Trusts Insurance Life Assurance Mortgage Pension Vehicle Leasing

10. Open Plan Overview + + + Offset Mortgage Current Account Savings Accounts Mortgage Mortgage Reserve + + Flexible Mortgage Current Account Mortgage Mortgage Reserve + Money Management Savings Accounts Savings Accounts Other Savings Current Account Sweeping Current Account Savings Accounts Features: Aggregation Savings Accounts Savings Accounts Savings Accounts Savings Accounts Open Plan product view

11. Open Plan Overview Helping Customers To See The Whole Picture Summary Statement • Current Account • Savings ‘pots’ • Mortgage • Personal Loans • ‘reserve’ accounts • Credit Cards • General Insurance • Life Insurance • Unit Trusts • Other Woolwich accounts

12. Open Plan Overview E- Bank NewSystems Bricks or Clicks Bricks Clicks Branch Telephone Life Assur. Credit Card Personal Loans Mort- gage Unit Trusts Deposits Current Account

13. Open Plan Overview Bricks Clicks Branch E- Channels Telephone Life Assur. Credit Card Personal Loans Mort- gage Unit Trusts Deposits Current Account Bricks and Clicks

14. Open Plan Overview Bricks and/or Clicks • Strength of Woolwich brand - did not wish to create a competing brand • Wanted to retain single customer set and single customer view • Strength of retail branch network • Use of existing IT infrastructure • Use of existing staff expertise • Belief that customers require multi-channel access to banking services • Desire to create integrated customer benefits

15. Open Plan Overview Middleware iDTV ATMs Branch Internet WAP Call Centre Channel Integration Legacy Systems

16. Implementation of the e-channels

17. Implementation

18. Incept Pilot Launch Implementation 1998 1999 2000 2001 Internet WAP iDTV

19. Implementation Network operator solution WIRELESS NETWORK INTERNET WAP Gateway BANK WTLS SSL Break Point • Two solutions:

20. Implementation INTERNET WTLS WIRELESS NETWORK WTLS BANK WEB server WAP Gateway SSL Secure Domain Corporate solution

21. Implementation Marketing IT Staff Training Phone Supply Content Customer Support Relationships Communications Operational Fulfilment

22. Implementation VS • Viewed from 10ft (lean back) • Less is more on the TV(larger fonts, less data) • Keep it simple - (low user tolerance) • Not used to interaction • Viewed from 10 inches(lean forward) • As much detail as you need • Willing to learn (so far) • Expect interaction

23. The Results so Far...

24. The results so far… • All targets met in 2000& 2001 • Over 1m Open Plan customers • 3+ products per customer • 25% new to Woolwich • Remaining 75% are more profitable than ‘classic’ Woolwich customers • High (and increasing) usage of e-commerce channels

25. The results so far… Average daily logins and Calls Handled Calls handled E-channel logins

26. The results so far… E-Channel Activity

27. The results so far… Internet iDTV WAP Average daily logins

28. The results so far… Frequency of use

29. The results so far… Lessons learned on WAP • Those using the channel do so frequently • Not just internet customers • Seen as convenient and personal • When the service is right it is used often • Getting people started is a big issue • Lots of misconceptions (esp. cost and speed) • Usability • Standards

30. The results so far… Lessons learned on all e-channels • All the channels are different media with different characteristics and design points • Individual customers have different preferences • Most customers use multiple channels • Effective Channel Management is essential • Business processes must be adapted (end to end processes are key) • Manage the customer experience on each individual channel and as a whole • Release strategy is fundamental (Channel interdependency)

31. Future Plans

32. Future Plans • Continue learning about each e-channel and how best to exploit it • Continue making e-channels the ‘channels of choice’ • Increasing effectiveness of cross-channel management • Increasing breadth and depth of channels • Continue to exploit integrated channel strategy in line with new technology and customer demands • Call centre to contact centre

33. Summary Open Plan’s successful strategy has been built upon the concept of an integrated set of financial products and an integrated distribution network. It maximises the benefits of the existing bank infrastructure whilst fully exploiting new technology. Gerry Allen Gerry.Allen@Barclays.co.uk

34. Questions and Answers