1. BG Trends and Analysis Banking Trends and Opportunities Gabe Ingalls Presenter Title

2. BG Contents

3. BG Internet banking forecast % who do at least part of their banking via the internet nVision forecast, Summer 2010-based projection Source: nVision Research Base: 1,000 face-to-face respondents aged 16+, GB

4. BG Consumer Confidence 1.Nationwide Nationwide Nationwide has released the following concerning UK consumer confidence: ‘Consumer confidence picked up in December after three consecutive months of falls December's uplift reversed the fall seen the previous month but, at 53 points, still leaves the Index well below its long-run average of 81 All key measures remain at relatively low levels and below their long-run averages At 90 points, the Spending Index does display some sign of resilience in what continues to be a downbeat time for overall confidence’ 1.

5. Bank of England Base Rate 1.Bank of England ‘Inflation has become a major concern for savers in 2011. Official inflation – as measured by the consumer prices index (CPI), which doesn't include mortgage costs – rose to 3.7% this December from 3.3% in November. Economists now fear it will hit 4%, when the VAT hike (from 17.5% to 20% this January) and soaring commodity prices take their toll… But if there's a sunny side, it's that high inflation boosts the chances of the Bank of England hiking its base rate from 0.5% in the first half of 2011, with knock-on effects for savings accounts.’ 1.This is MoneyThis is Money

6. Advertising Market

7. 7 Finance Media Spend For the most part, Banking advertisers tend to spend the most on advertising in the Direct Mail, on TV or through the Press On average the industry currently spends around 6% on Internet advertising (not including search) Source: NNR adDynanix : Jan 2010 – November 2010

8. BG Display Advertisement Publisher Location: Reach and Frequency Microsoft sites have the highest exposure of UK Unique Visitors. Microsoft Sites have almost the same amount of impressions as the top publisher This allows branding campaigns to reach the largest set of consumers with MSA Source: ComScore adMetrix : December 2010

9. Top Advertiser by Impression and UU by ComScore AdMetrix The average frequency of the top 20 accounts is 5.9 Source: ComScore AdMetrix – December 2010

10. BG Bing Finance KW Searchers are… Source: NNR MAY-OCT ‘10

11. BG Bing Search Traffic Traffic Overall, banking saw a 39% increase in traffic during H2 2010 year on year; this increases to 59% when looking at just January 2011 vs 2010 Insights: ‘Official inflation… rose to 3.7% this December from 3.3% in November. Economists now fear it will hit 4%, when the VAT hike (from 17.5% to 20% this January) and soaring commodity prices take their toll. Why does it concern savers? Simply, basic rate taxpayers need to earn an annual return of 4.63% before tax to stop the value of their money eroding.’ ( This is Money ) This is Money 1.Microsoft Advertising Intelligence Tool 2.Microsoft AdCenter

12. Product Traffic Growth Banking Year on Year Growth Trends for H2 2010: Bank Accounts down 3% Savings Accounts up 59% ISAs up 19% Moreover, all three are up in January year on year With low interest rates for most accounts, there has not been too much interest in the bank account market other than looking for a better place for your savings With the end of the tax year approaching, ISAs will become a hot product in the coming months 1.Microsoft Advertising Intelligence Tool

13. BG Finance Demographics and Daily Trends: 1.Microsoft Advertising Intelligence Tool

14. Network and O&O Trends

15. BG Network Demographics 50% of impressions occur between the 18 and 34 year old age groups, this shifts to the 24 to 44s for clicks Conversions, like impressions, peak in the 25-34 group (35%) and are more prominent with female for most age groups 58% of conversion occur between the 25-34 age bracket Conversions for Finance clients usually entail an application or a quote Source: Microsoft Media Network : JULY – DEC10

16. BG Network: Day of the Week The majority of the impressions and clicks occur during the beginning of the week with a low point on Saturdays however clicks peak on Tuesday and again on Sunday When looking at the conversion information, Tuesday, Thursday and Friday are key activity days. This may be because consumers want to complete their purchase before the weekend Source: Microsoft Media Network : JULY – DEC10

17. BG Network: Time of Day While Banking impressions/actions are fairly steady in the morning and peak in the hours post lunch Actions however have the largest peak post lunch Impressions and actions fall off rapidly after work in the evening hours Source: Microsoft Media Network : JULY – DEC10

18. Consumer Climate

19. BG Consumer Trends ‘New research suggests Brits are forgetful when it comes to their savings accounts and many could do more to save as some admit to stashing cash in kitchen draws. Many have stumbled upon these old accounts with an average of £600 in them. Twenty-one percent have discovered cash in old ISAs, children’s savings accounts, bonds and dusty money boxes worth £6.1 billion in total.’ 1.Money ExpertMoney Expert 1.Banking TimesBanking Times

20. BG Banks and trustworthiness Mean score on a scale of 1-10 (1 being very distrusting, 10 being very trusting) “Thinking about your bank, how much do you trust each of the following?” Source: Monitise/The Future Foundation/nVision Base: 1,000 respondents aged 18+, UK, 2009

21. BG Consumers that banks have lost touch with customers Inertia is still the most powerful factor in the retail banking market – hardly any are planning to switch their current account. Mintel's research shows massive cynicism about the banking sector as a whole, though. Even though most are more or less happy with their current bank, they still think that the banks have lost touch. Local branches are still key in the consumers choice of retail banks Research also shows that there is still potential for cross-selling products to existing customers, particularly insurance © 2010 Mintel International Group. All rights reserved. Confidential to Mintel.

22. BG Preferred method for contacting banks “Thinking about the last time you contacted your bank, what method did you use to contact them?” Source: Monitise/The Future Foundation/nVision Research Base: 1,000 respondents aged 18+, UK

23. Finance Opportunities Savings and ISA Products With the end of the tax year approaching ISA campaigns should start to think about becoming active. Moreover, interest rates will also need to be watched for future savings account activity Self-Service Banking Online banking, on both the mobile and PC, through applications and browsers have shown strong growth over the years. Both should continue to grow as preferred forms of contact with banks Search and Display Use both offerings to help boost your ROI moreover, use our display offering to help boost your brand campaign to the largest audience