1. 1 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 BANKING IN THE FUTURE Dr. Juan Juan Distinguished Technologist Iberia sub region CT HP Enterprise Services E-Banking Summit 2012 March 6 th, Budapest

2. 2 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 BANKING CATHEGORIES NOT CHANGING BUT… – Retail – Private – Corporate Big corporations Small & Medium companies

3. 3 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 CUSTOMER PROFILES AND RELATION REQUIREMENTS ARE CHANGING – Consumer as a customer – Private banking customer, but still a consumer – Professional as a customer, but still a consumer (Prosumer) Latest user device technology (UI) and user advantages required/expected in all profile interactivity. Mobility and 24x7 access to full service is/will be a must Bank of one will be a must Is the IT/IS of our banks ready?

4. 4 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 QUOTE FROM THE MCKINSEY QUARTERLY – The emerging affluent segmentyoung, educated, and consumption-oriented urban professionalscould account for up to a third of all retail-banking revenues in the coming three to five years: They are tech savvy, preferring online-banking and smartphone applications; reluctant users of branches; and price conscious and service oriented. (February 2012, Miklós Dietz, Ádám Homonnay, and Irene Shvakman)

5. 5 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 TRENDS IN RETAIL BANKING –Regulation / Compliance IFRS9, Basel III –Demographic change Millenials, Social Media –Change in consumer behavior Customers take over control, ROPO & ROPO + Pay Mobile –New entrants into Banking market Telcos (Vodafone), Google, PayPal and Retailer (Tesco etc) –New technologies iPads, Social Media, e-Money, NFC

6. 6 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 IS THE BANKING FUNCTION READY FOR THE INTERACTION? ATM Permanent banking function: Shopping Business Leisure Day to day live Secure payments Trust in relation Móvil Web Consumer Corporate Smartphone Prosumer Other Channels

7. 7 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 MOBILITY

8. 8 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 CAIXAMOBIL STORE & PUNTS ESTRELLA MOBILITY & CLIENT RETENTION IN THE 21ST CENTURY

9. 9 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 READY TO ACCESS CUSTOMER SERVICE WITH AND BY TWITTER

10. 10 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 BARCLAYS PICCADILLY

11. 11 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 BANKING 2.0: WILL EBAY, GOOGLE AND VODAFONE BE THE NEXT LEADERS IN RETAIL BANKING ?

12. 12 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 NEW ENTRANTS – TELCO & RETAIL Insurance Credit cards Loans Savings Credit card Payment through phone bill

13. 13 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 WHAT ARE BANKS DOING / NEED TO DO NEXT? – Track behaviour – Correlate with transaction – Understand – Predict and influence – Adjust risk exposure Continuously Listen and Analyze "Our top business challenges are optimizing customer relationships, optimizing financial functions, Reducing business risk and ensuring regulatory compliance. Our prioritization is around our customer and then revenue / profits." C Level Executive

14. 14 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 THE ESSENCE OF SOCIAL INTELLIGENCE Engage Under- stand Listen How can Banks improve the dialogue with their customers?

15. 15 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 CAN THE BANKS USE SOCIAL AVAILABLE DATA? – How do we engage in social networks as trusted friend? – How do we acquire social unstructured content? – How do understand social media content? – How do we correlate social media content with banks operational data?

16. 16 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 A day in the life of Mary CUSTOMERS WILL SHARE DATA FOR BENEFIT 100 BP 50 BP 250 eBP 50 BP 100 BP 500 BP 300 eBP 100 BP

17. 17 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 SHOPPING COMMUNITY

18. 18 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 BENEFITS FOR THE BANK – Understand customers buying pattern – Sole source for integrated banking services – High customer retention – Actively engage to sell new services – Marketing and upselling through consumers communities – Strong brand recognition

19. 19 © 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice 06/03/2012 BIG DATA (Sandbox metaphor) (Unstructured data) & (Structured data) BIG DATA (Sandbox metaphor) (Unstructured data) & (Structured data) ADDITIONAL NEEDS ON TOP OF CORE BANKING DATA Operational Systems (Product & customer Applications) (Structured Information) Operational Systems (Product & customer Applications) (Structured Information) External Web Content External Social Media (Unstructured Information) External Web Content External Social Media (Unstructured Information) Internal Digital Content Internal Social Media (Unstructured Information) Internal Digital Content Internal Social Media (Unstructured Information) BUSINESS SERVICES EXTERNAL INTERFACES ENTERPRISE SYSTEMS INFORMATION MANAGEMENT & DATA SERVICES CORE BANKING OPERATIONS CORPORATE RETAIL RISK MANAGEMENT & COMPLIANCE WEALTH MANAGEMENT TRADING TREASURY & CASH MANAGEMENT Business Analysis by the business executives. Driving Analysis Sentiment Analysis collected from employee feedback in the Internal Social Media. Employee Knowledge Business Intelligence pattern analysis for event detection on customer behavior. Business opportunity identification. Business Intelligence pattern analysis for event detection on customer behavior. Business opportunity identification. Business enhancement One-to-One Marketing management. Automation on creation of customer business proposals. One-to-One Marketing management. Automation on creation of customer business proposals. Personalization Client profile enrichment for loyalty purposes. Brand perception and event predictive analysis from Social Media Client profile enrichment for loyalty purposes. Brand perception and event predictive analysis from Social Media Client knowledge