CENTRAL EUROPE

WESTERN EUROPE

77.5 80.1

72.4

74.0 68.3

ASIA-PACIFIC

71.8 66.4 77.2

70.8

NORTH AMERICA

MIDDLE EAST & AFRICA

70.8 67.3

LATIN AMERICA

72.2

Gen-Y Others

According to a 2015 survey by CapGemini, Gen-Y customers registered lower customer experience levels than customers of other ages, reflecting the high

expectations Gen Ys have of banks’ digital capabilities.

ACROSS ALL REGIONS, GEN-Y CUSTOMERS REGISTERED LOWER CUSTOMER EXPERIENCE LEVELS

THAN CUSTOMERS OF OTHER AGES

Source: CapGemini - World Retail Banking Report 2015

Entirely dependent

Important role

Limited role

Not Important

37%4%2%

58%

94% of retail banks say omni-channel customer engagement is important, with one third saying success is entirely dependent on this.

IMPORTANCE OF DIGITISED OMNI-CHANNEL ENGAGEMENT IN BANKING SUCCESS

Source: Oracle - Banking is Changing 2014

2009 2010 2011 2012 2013

18% 18%28% 26%

45% 46%

2014

PERCENTAGE OF CUSTOMERS ACCESSING MOBILE BANKING

New banks

Alternative payment method providers

Traditional banks

Credit card providers

Social media networks

Telecoms companies

Retailers

57%

56%

40%

36%

29%

29%

22%

A recent survey by Oracle confirmed that 57% of retail banks questioned believed new banks would be the greatest threat by 2020. Those questioned also predicted

that social media networks (29%), telecoms companies (29%) and retailers (22%) would become direct competitors.

Source: Oracle - Banking is Changing 2014

Source: Javelin Strategy & Research - Top Trends for Digital Financial Services in 2015

DIRECT COMPETITORS BY 2020

CHARACTERISTICS OF THE MODERN BANK

OMNI CHANNEL - 94% of retail banks say this is important and one third say success is entirely

dependent on this

MOBILE FIRST - but seamless integration across all channels

TARGETED OFFERS - Relevant offers based on customer data

OPTI CHANNEL - (optimised multi-channel)

REALTIME DATA - Realtime information and notifications

PREDICTIVE ANALYTICS - warn you before something goes wrong

API ACCESS - Data access for applications

MOBILE PAYMENTS -Fast, easy mobile payments

UNSILOED SERVICES - credit card linked to current account

USER FIRST - Frictionless user experience

GAME CHANGERS IN MODERN BANKING

· World's first internet bank

· No branches

· Cut its lending rate by 0.1% for every 2,000 likes on Facebook

· No phone contact

FIDOR

· Realtime updates

· Complete control from the smartphone

· Notification before problems arise rather than charging after

· No branches

· Call centre for tech queries only

· No need to rely on memorised login details

ATOM

· Walk in, sign up, walk out with everything you need to start using your account

· Pet friendly - refunds for rehoming and dog treats in branch

· Works with local schools to give children a basic understanding of finance

METROSTARLING

1,500.3063% 49%

39% say the progression

toward digital has left them feeling less

connected1

European bank customers frequent

physical bank branches much less frequently (0.26 Visits per Month in '12 vs 2.21 in '95)3

82%

of people access financial services digitally1

67%

of these say a relationship with their institution is

important1

Needs are changing: in 2006 the

most likely reason to visit a branch was to deposit money, in 2014 the most

likely reason was to resolve an issue4

Wants to access their data and ability to

perform transactions and maintenance

everywhere, anywhere, anytime

Prefers digital transactions

to human interaction

It's about me, not the

product

73% of Millennials would

be more excited about a new financial offer from

a tech company than from their bank5

46% of customers touch the bank through a

mobile device2

THE MODERN CUSTOMER

FRICTIONLESS - DIGITAL - MOBILE FIRST

BANKING TECHNOLOGY

Due to the proliferation of smartphone technology and the app becoming the first

point of contact for many consumer to business relationships, it should come as no surprise that customer expectations

are changing in all aspects of everyday life.

For several years many banks have offered online services and customers have become used to this, but until recently innovation in

this sector has been fairly stagnant. Now there is a new breed of bank putting the needs and

desires of the modern app using customer first and leading with new innovations in frictionless, mobile first digital banking.

Sources:

1. EffectiveUI - Financial Digital Experience Survey

2. Javelin Strategy & Research - Top Trends for Digital Financial Services in 2015

3. European bank customers frequent physical bank branches much less frequently (0.26 Visits per Month in '12 vs 2.21 in '95) - cited by Brett King, CEO of Moven and author of Banking 2.0

4. Novantis, December 2014 - The Financial Brand

5. Millenial Disruption Index

6. Oracle - Banking is Changing 2014

7. CapGemini - World Retail Banking Report 2015

8. "73% of Millennials would be more excited about a new financial offer from a tech company than from their bank" - the Millennial Disruption Index (MDI), a 3-year tracking study by Scratch, a Viacom company

9. InMoment - 2015 Customer Experience Trends Report

10. SDL Research - Global CX Wakeup Call 2015