1. Copyright 2009 C Welcome Real-time 1 Innovation of loyalty and rewards for retail banks Welcome Real-time Mavis Liew, Vice President, Marketing Hong Kong, April 7 th 2011 Engaging with customers to build loyalty

2. Copyright 2009 C Welcome Real-time 2 Card Payment Trends

3. Copyright 2009 C Welcome Real-time 3 Change Happens

4. Copyright 2009 C Welcome Real-time 4

5. 5 Customer retention is unquestionably KEY

6. Copyright 2009 C Welcome Real-time 6 Do you know your customer?

7. Copyright 2009 C Welcome Real-time 7 We need technology

8. Copyright 2009 C Welcome Real-time 8 The Customer Experience

9. Copyright 2009 C Welcome Real-time 9 Managing loyalty across all scenerios

10. Copyright 2009 C Welcome Real-time 10 Customer Case Studies

11. Copyright 2009 C Welcome Real-time 11 “A reward program like no other” Live in March 2010 with 8 million cards & 25 000 retailers Available from high street stores to local shops as well as internet retailers Barclaycard Freedom in a nutshell No need to subscribe Rewards Money Easy to earn. Easy to redeem Communicated in real-time on receipt “Offers just for you”

12. Copyright 2009 C Welcome Real-time 12 Initial Results Since launch, the Freedom scheme has: Become the broadest UK card loyalty scheme with 9.8 million customers and 25,000 retail partners Achieved 7% increase in sales volume in participating retailers Cardholders spend average of 14% more that other cards in participating retailers Over £200M worth of transactions have qualified for a reward Won several industry awards for innovation Looking to extend the programme to other products/service

13. Copyright 2009 C Welcome Real-time 13 “Extending your program” Yermek Shamuratov, Managing Director, March 2 nd 2010 “Providing innovative, new services is a priority for KKB in helping us deepen our relationships with existing customers as well as attracting new ones. Through our bank-wide loyalty program with Welcome Real-time, we will not only be able to enrich our customers’ experience with personalized offers and rewards, but will also be able to cross-sell other services that meet customers’ needs – a crucial way to increase our profitability.” 37,3% 2005 54,3% 2009 Acquiring Market Share And now? => Move to multi-channel => Focus on online clients

14. Copyright 2009 C Welcome Real-time 14 Promotions across products/services Sign-up for Savings Account  Win $30 Voucher for sign-up of Savings Account (regardless of inbound channel used for sign-up) Sign-up for Internet Banking  Go to ATM or Contact Centre and sign-up for Internet Banking to earn $20 Cash back Internet Banking 1st Connection  Reward customers with $10 for their 1 st time login via Internet Banking Reward usage of Internet Banking  Reward 5 th valid Internet Connection during calendar month with $5

15. Copyright 2009 C Welcome Real-time 15 Encourage customer stickiness  Reward funds transfer from/to current account & deposit account when done through Internet Banking (% of Funds Transfer Amount) Boost specific services and banking operations on Internet  Reward New Card Ordering when done through Internet Banking with $ 5 Voucher Promotions across products/services  Earn $100 if Current Account balance of at least $ 10 000 during six months

16. Copyright 2009 C Welcome Real-time 16 Conclusion

17. Copyright 2009 C Welcome Real-time 17 What you can do Uniquely identify each customer in the way he/she interacts with your bank in: –Type of products/ service –Channels –Frequency/ Amount of usage –Communication preference –Behavioural patterns of response Based on their behavioural data, you can then personalise: –Communication –Rewards –Incentives –Promotions

18. Copyright 2009 C Welcome Real-time 18 Your customers are receiving offers/promotions that are relevant for them via channels that they use Customers will get the impression that you understand them and you know them Your customers will become loyal to you as no one offers them a better service that matches with their day-to-day needs based on their behaviour/interaction/usage with you There is no need to fund any rewards if you choose not to The effect on the customer

19. Copyright 2009 C Welcome Real-time 19 Ideas for differentiation: How to market your program Know and understand your customers (Use data) Personalized offers and rewards Communication on the right channel in real-time/ right time Be innovative and the first on the market Bring your customer experience and expectation to another level Drive customer behavior in/out the bank Focusing on customers that matter for you (increase value for them) Reward total relationship Right reward to the right customer at the right moment

20. Copyright 2009 C Welcome Real-time 20 Who are we?

21. Copyright 2009 C Welcome Real-time 21 About Welcome Real-time Innovative Close to 100 patents in 37 countries 13+ years of existence & experience in the loyalty & marketing space Infrastructure Agnostic Any card, Any payment means, Any Product/Service, Any channels Scalable Solution CMMI Maturity Level 3 appraisal Enterprise Software Company with global presence, Offices in France, Singapore, Brazil Customers/Partners in the 5 continents Proven Solution Industry Recognition Dedicated to Retail Banks Bringing Best Practices

22. Copyright 2009 C Welcome Real-time 22 References Service Providers or Processors/AcquirersRetail BanksRetailers

23. Copyright 2009 C Welcome Real-time 23 www.welcome-rt.com © 2009 Welcome Real-time. All rights reserved. Content in this presentation is provided for general information purpose only and is owned by Welcome Real-time. It does not constitute a contractual document and may be amended or updated by Welcome Real-time from time to time. This content shall not be copied or reproduced or otherwise used for any reason, except for your own business purposes and/or personal use.