Fremtidens Internet i Danske BankAllan Vadskjær Severinsen

Udviklingschef, Retail eBanking

11. Maj 2010

Fremtidens Internet

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Agenda

• Facts about our use of Internet today• Danske Bank’s vision for Online Channels• Future trends• Challenges in the future

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Facts about our use of Internet today

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eBanking 16 Million monthly visits7,5 Million monthly payments worth 35 Bn. DKK and 1.252.519 hours of customer face time!

Telephone Banking

HomepageMobile banking

Branch/Teller

13 Million monthly visits. 50% spend between 1 and 10 minutes on the website, giving889.862 hours of customer face time!

1,9 Million monthly visits4 Million monthly transactions and 530.000 hours of customer face time!

10K monthly visits5Kmonthly payments 500K SMS sent to customer/monthly

700K monthly visits62K monthly Payments

Facts about our use of the Internet today

TrustworthyAccessibleEasy to use

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Facts about our use of Internet today

0%5%

10%15%20%25%30%35%40%45% In eBanking

In population

Typical eBanking Customer is Self directed or Validator.

Typical online sales funnel, number

of customers in funnel steps from initiation to order

53% of our customers use eBanking in DK

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Danske Banks vision for Online Channels

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The online channels are the customers' preferred channels for their daily economy.

Channels are integrated and interchangeable delivering unique customer experiences across channels.

BranchMore complex advice and

services

Online Channels

Online Channels

Contact CenterContact Center

Branch Branch

Simple transactions

Complex advice

We will use new technology to change the customer behavior.

Right channel to right task.We want to move all simple transactions to the

Internet.

Danske Bank’s vision for Online Channels

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Short and long term activities

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Processes7

Digital ID and signing of agreements4

Mortgage and home finance process (end-to-end)

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Digital output6

Self-service mgmt of D2D, deposits & loans3

Multi-channel sales incl. new channel capabilities

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Online sales of D2D, deposits & loans1

Main business initiatives in Digital Banking

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Last year we established 960.000 account mandates.

This will now become self serivced.

Last year we established 960.000 account mandates.

This will now become self serivced.

Two customers will be able to e-sign the same agreement, opening

up for establishing loans and morgages online.

Two customers will be able to e-sign the same agreement, opening

up for establishing loans and morgages online.

Each year we open more than 500.000 accounts for our

customers . In 2010 this will be self-

serviced.

Each year we open more than 500.000 accounts for our

customers . In 2010 this will be self-

serviced.

Online channels to focus more on sale and self service

From …• Information about the bank

and its products

• Balance and transaction overview

• Simple payments

• Online investment

• One size fits all

To …• Information about the bank and remote

customer acquisition

• Order, change and close products

• Electronic signing of digital documents

• Online advisory tools

• Advisory meetings via eMeetings (voice or video)

• Personalization (look and feel + marketing)

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Exceeding customer expectations

Proactive financial advice

Efficient banking

Banking made easy

Strong multi-channel organization

Planning Retail Banking (2012-2015)

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Future trends

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Increasing preference toward the use of online channels to discover information, building knowledge and sharing insight

Mobile is the preferred device Increasing empowerment and

demands for self-service Customer centric Customization and personalization Real-time and rich media application demands Precondition that agents know my history Request for online advice, behavioral

targeting, peer group comparison, prognoses

Social media is increasing in use Search is dominating More diverse – unique requirements

Customer trends

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Many devices and technologies Widgets and applications Online collaboration technologies Unified communication Multi-channel technologies Advanced score modelling Analytical CRM Network every where Third parties (including users) will

develop their own applications that increase value. (Web 2.0 and Social media)

Host a variety of services offered by different providers

Intelligent search (Web 3.0) The Internet is global

Technology drivers

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Challenges in the future

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Challenges in the future

Support multiple technologies

Some mobile devices (e.g. iPhone) are more popular in the US for certain applications than the traditional PC.

According to Gartner 85% of all mobile devices will have a browser in 2011.

Faster mobile networks every where. Services must be available every where. E.g. online loan application via your mobile when you're standing in a shop.

More and more products will be equipped with touch-screen. It puts demands on the applications being developed.

There will be several different devices and platforms to be supported in future – compared to W3C and browsers. The functionality must be adapted to each device. Requires device independence and standards to share content.

Widgets and applications are widely used in the future.

Architecture that supports multiple technologies and different user interfaces

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Challenges in the future

Security

Identity as a service is a new business area.

There is an increasing need for security solutions that are not tied to a specific platform or device.

Use of digital ID sector solutions for identification in online, mobile and contact centers

Common identification and signing in all channels

Use of email for communication of personal information.

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Challenges in the future

Increase online penetration

Increase online penetration in breadth and in depth, because it can simultaneously

improve customer experience, strengthen customer retention, reduce the group's costs and target branches and contact centers far

more on the complex, value-added advice.

How do we get non-online customers (the avoider’s and delegators) activated online?

What does it take to online channels are customer preferred channel?

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Challenges in the future

Exceeding customer expectations

Increasing convenience and ease of use in online channels

New adaptive design and navigation in onlinechannel – attractive user experince

Customer centric. Segmented design and customization

possibilities Personalization and tailoring to the users needs

and behavior. Know the customer and offer the right services at

the right time Offer valuable advice Use of rich media formats Enhanced mobile services Aggregation and integration (one-stop-

shopping)

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Challenges in the future

Social media

A single day was Facebook the most visited website. Will Social Media be the most preferred web services?

Social networks and their support of current and future technologies.

How can we use social media to build customer confidence through a helpful and personal online presence.

Listen to customers and routing customer insights further into the organisation in order to continually improve customer services.

2119-04-23