Fremtidens Internet i Danske Bank Allan Vadskjær Severinsen Udviklingschef, Retail eBanking 11. Maj 2010 Fremtidens Internet

2 Agenda Facts about our use of Internet today Danske Bank’s vision for Online Channels Future trends Challenges in the future

3 Facts about our use of Internet today

4 eBanking 16 Million monthly visits 7,5 Million monthly payments worth 35 Bn. DKK and hours of customer face time! Telephone Banking Homepage Mobile banking Branch/Teller 13 Million monthly visits. 50% spend between 1 and 10 minutes on the website, giving hours of customer face time! 1,9 Million monthly visits 4 Million monthly transactions and hours of customer face time! 10K monthly visits 5Kmonthly payments 500K SMS sent to customer/monthly 700K monthly visits 62K monthly Payments Facts about our use of the Internet today Trustworthy Accessible Easy to use

5 Facts about our use of Internet today Typical eBanking Customer is Self directed or Validator. Typical online sales funnel, number of customers in funnel steps from initiation to order 53% of our customers use eBanking in DK

6 Danske Banks vision for Online Channels

7 The online channels are the customers' preferred channels for their daily economy. Channels are integrated and interchangeable delivering unique customer experiences across channels. Branch More complex advice and services Online Channels Online Channels Online Channels Contact Center Branch Simple transactions Complex advice We will use new technology to change the customer behavior. Right channel to right task. We want to move all simple transactions to the Internet. Danske Bank’s vision for Online Channels

8 Digital Banking (ultimo 2011) Retail Banking (2012 – 2015) Short and long term activities

9 Processes 7 7 Digital ID and signing of agreements 4 4 Mortgage and home finance process (end-to-end) 5 Digital output 6 6 Self-service mgmt of D2D, deposits & loans 3 3 Multi-channel sales incl. new channel capabilities 2 2 Online sales of D2D, deposits & loans 1 1 Main business initiatives in Digital Banking

10 Last year we established account mandates. This will now become self serivced. Two customers will be able to e-sign the same agreement, opening up for establishing loans and morgages online. Each year we open more than accounts for our customers. In 2010 this will be self-serviced. Each year we open more than accounts for our customers. In 2010 this will be self-serviced. Online channels to focus more on sale and self service From … Information about the bank and its products Balance and transaction overview Simple payments Online investment One size fits all To … Information about the bank and remote customer acquisition Order, change and close products Electronic signing of digital documents Online advisory tools Advisory meetings via eMeetings (voice or video) Personalization (look and feel + marketing)

11  Exceeding customer expectations  Proactive financial advice  Efficient banking Banking made easy  Strong multi-channel organization Planning Retail Banking ( )

12 Future trends

13 CustomersCompetitors TechnologySector/legal TRENDS  Increasing preference toward the use of online channels to discover information, building knowledge and sharing insight  Mobile is the preferred device  Increasing empowerment and demands for self-service  Customer centric  Customization and personalization  Real-time and rich media application demands  Precondition that agents know my history  Request for online advice, behavioral targeting, peer group comparison, prognoses  Social media is increasing in use  Search is dominating  More diverse – unique requirements Customer trends

14 CustomersCompetitors TechnologySector/legal TRENDS  Many devices and technologies  Widgets and applications  Online collaboration technologies  Unified communication  Multi-channel technologies  Advanced score modelling  Analytical CRM  Network every where  Third parties (including users) will develop their own applications that increase value. (Web 2.0 and Social media)  Host a variety of services offered by different providers  Intelligent search (Web 3.0)  The Internet is global Technology drivers

15 Challenges in the future

16 Challenges in the future Support multiple technologies Support multiple technologies  Some mobile devices (e.g. iPhone) are more popular in the US for certain applications than the traditional PC.  According to Gartner 85% of all mobile devices will have a browser in  Faster mobile networks every where. Services must be available every where. E.g. online loan application via your mobile when you're standing in a shop.  More and more products will be equipped with touch- screen. It puts demands on the applications being developed.  There will be several different devices and platforms to be supported in future – compared to W3C and browsers. The functionality must be adapted to each device. Requires device independence and standards to share content.  Widgets and applications are widely used in the future.  Architecture that supports multiple technologies and different user interfaces  Some mobile devices (e.g. iPhone) are more popular in the US for certain applications than the traditional PC.  According to Gartner 85% of all mobile devices will have a browser in  Faster mobile networks every where. Services must be available every where. E.g. online loan application via your mobile when you're standing in a shop.  More and more products will be equipped with touch- screen. It puts demands on the applications being developed.  There will be several different devices and platforms to be supported in future – compared to W3C and browsers. The functionality must be adapted to each device. Requires device independence and standards to share content.  Widgets and applications are widely used in the future.  Architecture that supports multiple technologies and different user interfaces

17 Challenges in the future Security  Identity as a service is a new business area.  There is an increasing need for security solutions that are not tied to a specific platform or device.  Use of digital ID sector solutions for identification in online, mobile and contact centers  Common identification and signing in all channels  Use of for communication of personal information.  Identity as a service is a new business area.  There is an increasing need for security solutions that are not tied to a specific platform or device.  Use of digital ID sector solutions for identification in online, mobile and contact centers  Common identification and signing in all channels  Use of for communication of personal information.

18 Challenges in the future Increase online penetration Increase online penetration  Increase online penetration in breadth and in depth, because it can simultaneously  improve customer experience,  strengthen customer retention,  reduce the group's costs and  target branches and contact centers far more on the complex, value-added advice.  How do we get non-online customers (the avoider’s and delegators) activated online?  What does it take to online channels are customer preferred channel?  Increase online penetration in breadth and in depth, because it can simultaneously  improve customer experience,  strengthen customer retention,  reduce the group's costs and  target branches and contact centers far more on the complex, value-added advice.  How do we get non-online customers (the avoider’s and delegators) activated online?  What does it take to online channels are customer preferred channel?

19 Challenges in the future Exceeding customer expectations  Increasing convenience and ease of use in online channels  New adaptive design and navigation in online channel – attractive user experince  Customer centric.  Segmented design and customization possibilities  Personalization and tailoring to the users needs and behavior.  Know the customer and offer the right services at the right time  Offer valuable advice  Use of rich media formats  Enhanced mobile services  Aggregation and integration (one-stop-shopping)  Increasing convenience and ease of use in online channels  New adaptive design and navigation in online channel – attractive user experince  Customer centric.  Segmented design and customization possibilities  Personalization and tailoring to the users needs and behavior.  Know the customer and offer the right services at the right time  Offer valuable advice  Use of rich media formats  Enhanced mobile services  Aggregation and integration (one-stop-shopping)

20 Challenges in the future Social media  A single day was Facebook the most visited website. Will Social Media be the most preferred web services?  Social networks and their support of current and future technologies.  How can we use social media to build customer confidence through a helpful and personal online presence.  Listen to customers and routing customer insights further into the organisation in order to continually improve customer services.  A single day was Facebook the most visited website. Will Social Media be the most preferred web services?  Social networks and their support of current and future technologies.  How can we use social media to build customer confidence through a helpful and personal online presence.  Listen to customers and routing customer insights further into the organisation in order to continually improve customer services.