PART III VISION 2015

I. Internet Market Trends

Major trends of Internet This section is dedicated to the 10 major and most significant trends of Internet .The objective is to analyze how those trends can have some influence on a bank strategy and give competitive advantage in the scope of ebanking

Mobility Interface Community/Contribution Instantaneity Crowd funding Video Increased reality Payment Serious Gaming
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I. Internet Market Trends

1. Mobility At the beginning

People used Internet at home or at the office on a sedentary way

I. Internet Market Trends

Innovation With technological innovation

Wireless technology, GPS, 3G, WIFI, Bluetooth made Internet mobile

I. Internet Market Trends

Growth

Mobile

Smartphone

PDA

IPhone

IPad

Tablet

E-Book

Netbook

Video game

Video game

TV Fridge

- 2012

: Number of Smartphones > Number of PCs

- 10 billion mobiles Internet tools in 2020 - 55 million cars connected in 2016 - Sedentary Internet will declined

But also
Cars

I. Internet Market Trends

Attention points
At the beginning Internet Sites were developed considering that only Internet connections via PC were possible. The connection is possible via other devices but ergonomics is not adapted Considering types of browsers and type of screens, Internet sites have to be adapted New Internet sites (public or transactional ) will have to be portable and adapted to the different devices But considering the fragmented market, banks will have to define priorities by choosing the most popular ones Mobile Banking can not be ignored .

I. Internet Market Trends

Why do we have to invest in Mobile Banking right now? Smartphones and tablets sales will jump in 2011-2012 Many sectors invest in that business More mobiles than PCs in the future More Internet connections on mobile than on PCs in 2012 Some banks develop mobile Banking and stop with traditional internet

I. Internet Market Trends

Why do we have to invest in Mobile Banking right now? Years to reach mass adoption (50m)

I. Internet Market Trends

Example of applications

Mobile Banking : func1onali1es

With the ING Mobile applica1on, you can carry out your opera1ons any 1me and anywhere through an intui1ve and ergonomic interface SIMPLE : connec1on via contract number and password INTUITIVE: Fast and easy to use CONVIVIAL: visual interface adapted to the device MULTILANGUAL: French and English version SECURED : 100% secured environment

Secured Environment

Public environment

Public environment

Globalisa1on of assets Account balance Last transac1ons Informa1on about accounts Transfer between my accounts Transfers to My ING beneciaries Consulta1on of securi1es porHolio Consulta1on of ING Life products

Details in order to make an objec1on Send emails to the Bank Address for postal mail Details of branches Localisa1on of branches

Recommend the applica1on Rate the applica1on Make sugges1ons Legal no1ces Credits of the applica1on

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Mobile Banking : account informa1on

Display of the global amount of the bank assets Display of the balance D-1 Display of the accounts by client number (scroll) The alias of the account replaces the client number Management and display of the currency accounts Last transac1ons and your product in short

Your product in short

Scroll from the right to the leR (several screens) Display of 100 opera1ons or history of 6 months Detail of an opera1on upon selec1on Sor1ng by amount or by date
The opera1ons wai1ng to be booked (opera1ons of the day, specic opera1ons,) are displayed in italics. The amounts of these opera1ons are not reected on the account balance.

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Mobile Banking : PorIolio and insurance

The valorisations are indicated according to the last known valorisation date. They do not necessarily concern valorisations on D-1

12 Retail Standard Board 12/01/2012

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Mobile Banking : transfer to a beneciary

-1 - Select Transfer To beneciaries

- 2 - Select the account to debit in your list of accounts

Transfer limit : 50 000 per transfer and week

- 3 - Select the beneciary to credit in your list of beneciaries

of the transfer and a denomina1on (op1onal)

- 4 - Input the amount

password in order to conrm the transfer (aRer having veried the displayed data in the recapitula1on screen)

- 5 - Input your

The crea1on of a new beneciary or the modica1on of an exis1ng beneciary has to be done via the secured website My ING (access via an Internet browser on www.ing.lu) Default op1ons of the transfer : currency of the account to debit, date, shared costs (SHA)

- 6 - Valida1on screen Apart from complex transfers (currency account,), the transac1on will be visible in the last opera1ons and the available amount will be updated

13 Retail Standard Board 12/01/2012

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I. Internet Market Trends

2. Interface

Text Interface (keyboard)

Graphic Interface (mouse)

Icon Interface (tactile)

-Icon concept on PCs

User-friendly

-Extend to all devices -Next development to surf on Internet sites

Iphone Blackberry Windows phone

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I. Internet Market Trends

Attention points
The management of transactions and operations via Icon is now usual thanks to development of Apple mobiles and smart phones. It is not just fashion but a real long term trend with more simplicity and user friendliness Progressively texts will be replaced by new graphics items Most of the web sites still run on textual mode : menus and transactions are expressed by words too static and heavy. Icon working is perfectly adapted to tactile functionalities Challenge will be to move from static texts to icons
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I. Internet Market Trends

3. Community /Contribution

Social network with thousands or millions of members chatting on specific topics or on the day to day live and leisure. Those communities will have specific negative or positive influence on companies, products, services.

http://www.youtube.com/watch?v=3SuNx0UrnEo
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I. Internet Market Trends

Information collected on a site can be forwarded to a lot of other sites in 1 click

Creation of financial and stocks community sites

Possibility to sponsor a site or article via Facebook

Less influence of the mass medias. Everyone can express and share his opinion

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I. Internet Market Trends

Attention points
Acting on social network has to be analyzed carefully ( possible negative effects) It could be interesting to ask clients or prospects to actively participate at our day to day internet activities It can start with the opportunity for clients and prospects to give comments on products and news On the clients space, people could comment specific products and use the I like icon from Facebook Link to other sites to share public information and blogging platform can also be used Use of social network is a reality. Banks have to decide positioning on existing social network or creating their own social network within existing website
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I. Internet Market Trends

4. Instantaneity
Information and contribution real time.

It takes only some hours to make news known via internet. Everyone on Internet is a potential journalist Pictures and video functionalities on mobile Publication on social network or on specific video/pictures sites

This way of communicate can be used by banks

Create a buzz marketing Give a real time feedback on events Basic information communication to clients (kind of news)

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I. Internet Market Trends

Attention points
Internet users are used to receive a lot of non coordinated information all day long. It is necessary to find the right concept that will be selected and memorized. Providing internet users with regular information on a website will generate links. Well managed, those information can have similar impact than a communication campaign. But it can also and very quickly generate negative consequences (e.g. on reputation ). For banks, using instantaneous information as a way of 20 communicate or sell, requires dedicated and well trained people.

I. Internet Market Trends

5. Crowd funding
Collective cooperation, attention and trust by people who network and pool their money or other resources together, usually via the Internet, top support efforts initiated by other people or organisation Music Industry
e.g : Grgoire : participation in investment from 10 to 1000. 900 000 CDs sold ROI X6 for each investor

FiIm industry

Startup companies

Crow funding occurs for any variety of purpose. It allows good ideas which do not fit the pattern required by conventional financiers to break through and attract cash through the wisdom of the crowd.

21 However this exposes the promoter of the idea to the risk of the idea being copied and developed ahead of them by better financed competitors

I. Internet Market Trends

Attention points
No interest for banks to develop this kind of services It has to be considered as a kind of competition for some specific credit activities Banks have to pay attention to those new actors Return on investment can also be analyzed in the scope of risk capital Be attentive to this new kind of threat.
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I. Internet Market Trends

6. Video
Increase of videos on Internet
October 2009 : 1 billion videos every day May 2010 : 2 billion videos every day

Also videos on Banks Internet Sites Why?

Dynamism Replace tedious files Interactivity Kind of recurrent meeting with Internet users

Dmo HSBC website

Less text on Internet more visual approach, more videos Change in the way of using Internet Used like a TV Media

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I. Internet Market Trends

Attention points
Internal videos can be adapted and put on Internet Some regular events (sponsoring, annual reports, launch of a new product,) could be presented to Internet users by video Video can be used for website or mobile demo Must be done by professionals Video on Internet cannot be ignored
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I. Internet Market Trends

7. Augmented reality
Live direct of indirect view of a physical, real-world environment whose elements are augmented by computer-generated sensory input, such as sound or graphics

Using mobile devices with photo or video functionalities or tools like Google Map / Google Earth

Selling point location All types of useful information Specific advertising message linked to the location Advertising board

http://www.youtube.com/watch?v=GrfXtAHYoVA

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I. Internet Market Trends

Attention points

Branches location Specific commercial campaigns New technologies with today only few applications for banks

Can be developed in the future if added value analyzed

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