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Slide 1: Online Banking As seen from a Media Perspective (for SME and private clients) Madrid, October 17th 2008
Slide 2: Preliminary Note
Slide 3: Change is harder for banks than for other less regulated industries External norms Clients’ expectations Emphasis in security Competitors move on Existing processes New entrants Large “institutions” Technical developments Reluctant to perceived risks from solid image
Slide 4: Technology & Functions 199X - 2006         Internet 1.0, Browser discovered Access to accounts Generalized access Fixed menu Basic functions Focus on transactions Basic info on basic transactions         2007/8 – 201X Web 2.0 Clients Oriented Architecture (SOA) Straight Through Processing (STP) Process integration for users Analytical interaction Community, not only transactions Basic 2.0 Tools Integration of complementary services
Slide 5: Corporate Web 2.0: Most Utilized Tools Additionally, in the financial world:  Rich Internet Applications (RIA)  Forums  Video Conferencing Source: Forrester Research, Inc.
Slide 6: Survey to Financialy Active Clients: If you were to choose a new bank, which ones would be your three main criteria? Rates and fees 67% 54% 44% 43% 36% 33% 13% 11% 8% 2% Online service capabilities Customer service Access to ATMs Access to branches Superior security against ID fraud Product selection Number of years in business Personal reference Other, please specify Active online bankers demand highperformance, easy-to-use online tools © 2008 Javelin Strategy & Research
Slide 7: Potencial of Online Banking  Improving bank’s image: Clients are more satisfied with their 2008). online activity than with their bank in general (82% vs. 78%, ForeSee  Closer relationships. In the last 3 months:  17% had used ATM  21% had visited an agency  58% had accessed online Thanks to which:  Cost reduction  More business  Greater loyalty Next slide
Slide 8: Importance of the Satisfaction of the Online Client Loyalty Customer Satisfaction 82 Likelihood to Continue to Use Company's Services 90 Share of Wallet Likelihood to Purchase More Services 59 Word of Mouth Cost Efficiencies Likelihood to Likelihood to Likelihood to Recommend Recommend Use Web Company Website as Primary Channel 79 78 78 Fuente: 2008 ForeSee Results/Forbes.com Online Financial Services Study  Beyond contributing to reducing costs, good customer satisfaction resulting from their online experience will position the bank as a center on financial services versus other vertical possibilities Pressure SITE EXPERIENCE Pressure (Additional Pressure: with O.B. the comparative advantage of large office network is smaller
Slide 9: Challenge of Leading Banks: Transforming Online Banking into a highly interactive personal website: 1. Website in which the client can:  Do what he already does (review accounts, perform some      transactions…) Purchase financial products Hire financial help, utilize online broker Ask for loans, prices on insurance policies and similar products Ask, at his/her convenience for online help and advice as well as specific training (tutorials) Receive personalized info on products matching his/her financial growth (as opposed to existing pushed commercial behavior)
Slide 10: Challenge of Leading Banks (cont.): Transforming Online Banking into a highly interactive personal website (cont.): 1. Website in which the client can also:  See/personalized charts on his/her assets in that bank  Integrate assets from other financial institutions  Interact with the bank and other users (phase II) (Some portals already offer the above. See www.unience.com) 1. Website with an access:  Beyond itself (widgets…)  Through mobile and smart phones  Open to non clients, with restricted areas – allows easy access to ‘influence zone’ and hiring of online services and products
Slide 11: Challenge of Leading Banks (cont.): Transforming their online banking into a highly interactive personal portal: 1. Value adding website able to attract/retain:  Consumer: by offering tools which connect to their data bases in order to manage their domestic economy (Personal Finance Management)  SME: by offering tools to simplify their job. Examples:     Automatic monthly report generation for accounting Basic generation of payroll Memory in bank servers to archive documents, safety copies… Basic accounting software (a concept taken from Private Banking) Financial portal of the future: one-stop portal to which the consumer and SME return frequently to manage and analyze all aspects of their economic lives
Slide 12: Analysis Before Design: (previously deep knowledge of the bank priorities) Consumer:  How they rank current services and really interact with it  How they manage their finances (and what are the tasks they perform manually)  What else can be facilitated in an automated way so that all their economic activity goes through the bank  What solutions do other industries implement for similar problems  Why some clients with the right profile do not use O.B. SME:  How they use present website (and services not used)  Which tasks could easily be automated by the bank
Slide 13: Approach to personal portal with Web 2.0 culture Has access to relevant info (ex. regarding fiscal alternatives) Expresses opinion on Interacts with bank. (ex. “Ok to have a deficit this month of $50”) SIMPLE FOR USER services and knows if bank takes note Works with other financial institutions’ assets Interacts with other clients Uses Personal Finance Management tools (PFM) TRUSTWORTHY Receives alerts (ex. upcoming payment, enough balance) Uses tools for his/her own SME Can make micro payments (ex. Paypal) Receives products adapted to his/ her needs (no hard push) Receives info/ date according to real needs Provides a full analysis and planning tool. Very graphic. Non exhaustive example HELP DURING TRANSACTIONS & PROCESSES Reviews, hires: accounts, stock, bonds, loans, insurance…
Slide 14: About International New Media Consulting Strategic Consulting at the service of media companies and traditional companies (not native to online) willing to strengthen their presence in the new media Online services and products to empower traditional industries Market and competitive analysis, development of innovative strategies Transition management www.fernandosamaniego.com fs@fernandosamaniego.com
Slide 15: About Fernando Samaniego: unique users’ growth, Nov. 04 - Dec. 07 749% VOCENTO EL MUNDO PRISA MERCADO 461% 342% 152% sep- Nov- Jan- Mar- May04 04 05 05 05 Jul05 sep- nov- ene- mar- may- jul-06 sep- nov- ene- mar- may- jul-07 sep- nov05 05 06 06 06 06 06 07 07 07 07 07 Enlargement of sampling Fuente Nielsen / NetRatings Netview
Slide 16: Fernando Samaniego: Revenues and EBITDA 2003 vs. 2007 REVENUES 60 8 7 6 5 EBITDA (MM €) 60 50 40 30 20 10 0 (MM €) 8,0 42 5,2 3,9 2,3 0,9 25 16 20 4 3 2 1 2003 2004 2005 2006 2007 0 2003 2004 2005 2006 2007 Source: Deloitte