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

2. 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

3. Strategic Backdrop

4. 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

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

6. Open Plan - a brief overview

7. Open Plan 100% 165% Open Plan Overview

8. 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

9. 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

10. 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

11. 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

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

13. 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

14. 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

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

16. Implementation of the e-channels

17. Implementation

18. Internet WAP iDTV Implementation 1998 19992000 2001 LaunchInceptPilot

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

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

21. IT Marketing Staff Training Phone Supply Customer Support Content Relationships Operational Fulfilment Communications Implementation

22. 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

23. The Results so Far...

24. 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…

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

26. The results so far… E-Channel Activity

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

28. The results so far… Frequency of use

29. 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…

30. 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…

31. Future Plans

32. 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

33. 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 Gerry.Allen@Barclays.co.uk Summary

34. Questions and Answers