Case 1 – WingspanBank.com Summary: Bricks & Mortar banks moving to the web Internet-only banks are springing up BancOne needs to develop a strategy Launches WingspanBank.com – internet only bank Issues: How to compete on the internet What is the Internet Strategy? Offer BancOne services on the Internet or start a new venture? Will the new venture take business away from BancOne? How loyal are customers going to be?

Case 1 – WingspanBank.com How does Wingspan use the Internet for Electronic Commerce? Integrate financial services of various companies… 7,000 mutual funds / mortgages / insurance trade stocks online – internet discount broker Search capability – find the lowest mortgage / email to customer Apply for loans online and approval in less than a minute What management, organization, and technology challenges did BancOne have to address in creating an Internet-only bank? Management challenge… How to react to competing Internet-only banks Decide what products the company was going to offer How to generate profit with tighter margins… Higher interest paid on accounts and lower received on loans

Case 1 – WingspanBank.com What management, organization, and technology challenges did BancOne have to address in creating an Internet-only bank? Organization: How to provide a competitive advantage Relationship between Wingspan and BancOne Technology: Provide fast internet access Access to wide range of other financial services How to (if) establish more ATM’s for Wingspan customers Infrastructure to support direct deposit, funds transfers, & other electronic services

Case 1 – WingspanBank.com What are the advantages and disadvantages of using an Internet-only bank? Advantages: Quick access to funds and balances Better rates than brick-and-mortar banks Disadvantages: No physical bank available ATM issue – cannot easily deliver cash to customers Must mail in money for deposit

NO!! Case 1 – WingspanBank.com Do you think Wingspan will succeed? Extensive competition Small margins Potential conflict with core business Measurements Goals Not their area of expertise Lack of brand name Should have utilized the BancOne brand NO!!

Case 1 – WingspanBank.com PRESS RELEASE Conclusion: CHICAGO, June 28, 2001 -- Bank One Corporation (NYSE: ONE) today announced that it will integrate WingspanBank.com's resources and knowledge base into its other Internet initiatives to provide all of its customers a broader online banking experience. "Michael Cleary, who leads the Consumer Internet Group, and his WingspanBank.com team have done a terrific job of understanding the Internet's capabilities, of learning how customers want to be served and of championing the vision that the Internet plays an increasingly important role for our customers," Dimon said. "Now, they will help us bring that into the daily business of providing the best possible Internet service to all of Bank One's customers.“ Bank One will transition WingspanBank.com customers to bankone.com this fall. "We will provide our customers with information about the transition in the coming weeks and will continue to work hard to keep them in the Bank One family," Cleary said. Online banking is great! People concerned about security & continuation of service More success early if used the BancOne brand name