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

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

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 Strategic Backdrop

Revenue Per Customer New Business OldBusiness PROFIT BREAKEVEN Strategic Backdrop The back book

Open Plan - a brief overview

Open Plan 100% 165% 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 Open Plan Overview

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

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

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

Bricks or Clicks Branch Telephone Credit Card Mort- gage Unit Trusts Deposits Life Assur. Current Account Personal Loans E- Bank New Systems Bricks Clicks

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

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

Implementation of the e-channels

Implementation

Internet WAP iDTV Implementation LaunchInceptPilot

Two solutions: WIRELESS NETWORK INTERNET BANK WTLSSSL Break Point WAP Gateway Network operator solution Implementation

WIRELESS NETWORK INTERNET BANKWTLS SSL WAP Gateway WEB server WTLS Secure Domain Corporate solution Implementation

IT Marketing Staff Training Phone Supply Customer Support Content Relationships Operational Fulfilment Communications 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 Implementation Viewed from 10 inches (lean forward) As much detail as you need Willing to learn (so far) Expect interaction

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 The results so far…

Average daily logins and Calls Handled Calls handled E-channel logins

The results so far… E-Channel Activity

The results so far… Average daily logins Internet WAP iDT V

The results so far… Frequency of use

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 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) The results so far…

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 Future Plans

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 Summary

Questions and Answers