2

FinancialServices

3

SKOPOS In a nutshell …

Digital& Mobile

Insight & Illumination

Full serviceBespoke/custom/ad hocTracking & Syndication

UK & InternationalCustomer Insight & UX

It’s all about the best experience…

Fast foodm-commerce

4

Mobile, Finance & MFX

The Mobile Experience in a personal finance context

including extracts from…

Darren Mark Noyce MCIM MMRSDarren.Noyce@SKOPOS.info Founding Partner

Scott Dodgson MMRSScott.Dodgson@SKOPOS.info Head of Research, Insight, Consulting

SKOPOS market insight – City of LondonTel: 0207 953 8 359www.SKOPOS.info

UK Active Digital Society, 2012

Prologue, Taster, Trailer

Scott Dodgson MMRSScott.Dodgson@SKOPOS.info Head of Research, Insight, Consulting, SKOPOS

6

Prologue: Me, Myself and iPhone…

Average number

of apps on mobile

SKOPOS MTrackTM

SKOPOS MTrack - Base: 378 respondents (web enabled phone users) - wave 4 dataQ17. Approximately how many apps do you have on your mobile?

M-Financers More Apptive…

20Web enabled phone users

Average number

of apps on mobile

Average number

of apps on mobile

27Mobile

insurance users

29Mobile

banking users

7

8

TV news & information 32%

Social networks 43% 2

Music 39% 4 5

News (latest today) 40% 3

Weather 52%1 Financial news &

information 14%16

SKOPOS MTrackTM

The Mobile Content Countdown…

SKOPOS MTrack - Base: 521 respondents (mobile users) - wave 4 dataQ20. What types of information and content do you like to read or access via your mobile?

9

Do/Accept PotentialCurrently do, and are likely to do in the future

Are likely to do in the future, but don’t currently do

SKOPOS MTrack - Base: 521 respondents (mobile users) - wave 4 dataQ16. Thinking about your mobile phone(s) and/or mobile device(s) which of the following…

Finance Lagging Behind Comm’s & Content SKOPOS MTrackTM

Download new apps 49% 23%

Order products and Services 29% 29%

Read newspapers / magazines / articles 40% 21%

Send / receive emails on your mobile 59% 19%

Use an instant messaging service 39% 26%

Use social networks 50% 14%

Bank or control finances 28% 24%

Get an insurance quote 10% 27%

Make an insurance claim 4% 22%

Some up-claim due to voice unavoidable

The Rise of Mobile

Darren Mark Noyce MCIM MMRSDarren.Noyce@SKOPOS.info Founding Partner, SKOPOS

11

SKOPOS MTrack - Base: 521 (wave 4) (UK Active Digital Society)Q12. Where do you access the internet?

The Rise & Rise of Mobile…

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011*0

10

20

30

40

50

60

70

80

90

100Mobile-cellular subscriptions per 100 inhabitants,

2001-2011*Developed

World

Developing

Per 1

00 in

habi

tant

s

12

SKOPOS MTrack - Base: 521 (wave 4) (UK Active Digital Society)Q12. Where do you access the internet?

The Rise & Rise of Mobile…

13

SKOPOS MTrack - Base: 521 (wave 4) (UK Active Digital Society)Q12. Where do you access the internet?

The Rise & Rise of Mobile APPS…

14

SKOPOS MTrack - Base: 521 (wave 4) (UK Active Digital Society)Q12. Where do you access the internet?

The Rise & Rise of Mobile WEB…

15

SKOPOS MTrack - Base: 521 (wave 4) (UK Active Digital Society)Q12. Where do you access the internet?

SKOPOS MTrackTM

Access Internet via Mobile Phone…

48%

Half the UK Digital Society Use Mobile Web

Wave 1

Wave 2

2%Own an

iPad

Wave 3

4%Own an

iPad/iPad 2

4%Own an

iPad/iPad 2

9%Own an

iPad/iPad 2

Wave 4

16

SKOPOS TabTrack - Base: 500 (wave 1), 506 (wave 2), 507 (wave 3), 521 (wave 4) (UK Active Digital Society)Q25. Do you own a tablet?

SKOPOS TabTrackTM

Tablets & iPad rising too…

Jan 12

17

SKOPOS ChatTrack - Base: 521 respondents (UK Active Digital Society) - wave 4 dataQ30. Do you use social network sites?Q16. Do you use social network sites on your mobile?

Almost All Use Online Social Networks

Now half using Mobile to do so too

SKOPOS ChatTrackTM

88%

50%

18

Augmented Reality

Bar Code Scanning(to source products and best prices etc)

Personally used via mobile

Aware but not used

Quick Response (QR) Codes

2% 16%

12% 36%

21% 60%

SKOPOS MTrackTMUsage & Awareness of Advanced Mobile Functions low & limited, but…

SKOPOS MTrack - Base: 521 respondents (UK Active Digital Society) - wave 4 data (Jan 12)Q22. Which of the following have you (a) heard of but NOT used, (b) personally used via your mobile (c) not heard of?

Mobile Contactless Payment 4% 67%

Likely to use or accept a mobile to pay with instead

ofusing a credit/debit card

51%

NB: Low level, similar to Mobile Insurance Claim

Mobile Finance 2012Lots of Blue Ocean…

Scott Dodgson MMRSScott.Dodgson@SKOPOS.info

Head of Research, Insight, Consulting, SKOPOS

20

17%

15%

14%

13%

13%

12% NatWest10% Halifax9% HSBC7% Santander7% Direct Line7% MORE TH>N6% Aviva4% BOS3% Admiral3% AXA2% Zurich2% Allianz2% L&G

No Finance Brands51%

SKOPOS MTrackTMComparison Sites & High Street Brands best for mobile channel association, but…

SKOPOS MTrack - Base: 521 respondents (UK Active Digital Society) - wave 4 dataQ21c. Which, if any, of the following FINANCIAL companies/services do you most associate with the mobile and mobile devices/channels?

21

Male 48%, Female 51%

Gender

16-25: 14%, 26-40: 34%, 41-60: 45%, 61+7%

Under £10k: 10%, £10-£20K: 22%, £21-£40k: 31%, £41-£60k:17%, £61-£80k: 7%, £81-

£100k: 1%, Over £100K: 2%, Prefer not to say: 11%

Full time 35%, Part time 18%, unemployed 29%, Retired 18%

Age

Household Income

Employment Status

Mobile Banking User

16-2519%

26-40 47%

Full time43%

UK Active Digital Society

* Includes unemployed, self employed and student** includes household responsibility and retired

SKOPOS MTrack - Base (wave 4 data):- UK Active Digital Society: 521 respondents- Mobile Banking customers: 146 respondents (those that have used their mobile to bank/control their finances )- Mobile Insurance customers: 56 respondents (those that have used their mobile to gain a quote or make a claim)

M-Finance Users more likely to be younger & full-time employed (but equal on gender)

SKOPOS MTrackTM

=Mobile Insurance User

16-2520%

26-40 45%

£21-40K 39%

Full time52%

*** Caution low base for Mobile insurance ***

=

22

Why the shift in user behaviour?1. Mobile addiction

2. Smartphone & true mobile web

3. Easy, instant, on the go access4. Useful apps & functions

This is ingraining new sets of daily behaviours & tasks

Availability

Usability

23

EVIDENCE: Advantages of Transacting on Mobile Phones/Devices...

“Can do it whilst out and about.”

“Can do wherever...compare prices while in-store.”

“Its quick and I can do it in my own time.”

“No need to carry cash or (debit/credit) cards.”

I can do it in my own time 52%

On the go 65%Convenient 62%

No need for cash 34%

It’s easy to do 46%Quick 45%

SKOPOS MTrackTM

SKOPOS MTrack - Base: 327 respondents (those that had shopped/bought/paid via their mobile) - wave 4 dataQ18. What do you consider to be the advantages of using your mobile/mobile device for activities such as shopping & paying?

24

But a Fuzzy Mobile User Experience for Finance – MFX- persists…

Scott Dodgson MMRSScott.Dodgson@SKOPOS.info

Head of Research, Insight, Consulting, SKOPOS

25

Mobile: currently the worst channel for customer experience

Purchase channelquality of the customer experience

Planned investment in customerchannels this year

• As m-commerce grows, so does the importance of the user experience

• Only 9% stated that the m-shopping customer experience was good

• 83% of m-shoppers encountered some kind of problem

• Retailers need to make mobile checkout as easy as possible

Reducing Customer Struggle Report- June 2011

26

Mobile Web: Only 20% of FTSE 100 Websites Support Mobile !

Source: http://

www.fourthsource.com/mobile/why-your-website-needs-a-tailored-mobile-presence-now-7045

27

Lack/loss connectivity 46%Small screen 63%

“It’s not always easy to navigate around sites if not set-up for mobile

use.”

“It makes everything very impersonal..no need for

shops/shopworkers.”

“You can’t really see what you’re buying and what size it is.”

Time, it takes longer 28%Security 44%

Difficult to navigate sites/apps 33%

SKOPOS MTrack - Base: 327 respondents (those that had shopped/bought/paid via their mobile) - wave 4 dataQ19. What do you consider to be the disadvantages of using your mobile/mobile device for activities such as shopping & paying?

EVIDENCE: Disadvantages of Transactingon Mobile Phones/Devices...

SKOPOS MTrackTM

Simply Security (perceptions) & Usability

28

Tablet 10%

Desktop Computer 63%

Connected TV 3% Games device 2%

Laptop 60%

SKOPOS MTrack - Base: 521 respondents (UK Active Digital Society) - wave 4 dataQ45. Thinking about online payments/shopping, which of the following devices do you believe to be the most secure?

SKOPOS MTrackTM

Mobile devices seen as less secure…

11%Mobile / Smartphone

Mobile Banking Customer

29

Last mobile banking experience

“It was easy and simple but most of all convenient” Lloyds TSB

“Easy to transfer money between account and safer with self generating code device”

HSBC

“I use it often as I like to check for charges or anything coming off, etc. I use an app and its perfect for checking

balances or transferring funds. It works well however the connection when I'm out and about is sometimes very

slow. However the transfer is immediate.”Bank of Scotland

“The same as using a laptop or desk top although when using a mobile you can get randomly logged out.”

Nationwide

SKOPOS MTrackTM

SKOPOS MTrack - Base (wave 4 data):- UK Active Digital Society: 521 respondents- Mobile Banking customers: 146 respondents (those that have used their mobile to bank/control their finances )- Mobile Insurance customers: 56 respondents (those that have used their mobile to gain a quote or make a claim)

The M-Finance customer experience has considerable scope for optimisation

47%Not

good

53%Good

Last experience of gaining a mobile insurance quote

“Used web browser. My browser is quite good and the specific website's platform compatible.”

Bell

“Simple”Aviva

“Get slow results”Compare the Market

“Was very slow”Go Compare

“Took too long to fill out the online form. To small on my mobile so ended up using my iPad.”

Dial Direct

Mobile Insurance Customer***

*** Caution low base for Mobile insurance ***

71%Not

good

29%Good

Mobile Banking Customer

30

SKOPOS MTrackTM

Last mobile banking experience

SKOPOS MTrack - Base (wave 4 data):- UK Active Digital Society: 521 respondents- Mobile Banking customers: 146 respondents (those that have used their mobile to bank/control their finances )- Mobile Insurance customers: 56 respondents (those that have used their mobile to gain a quote or make a claim)

The M-Finance customer experience - Banking more Mature than Insurance?

Mobile Insurance Customer***

*** Caution low base for Mobile insurance ***

Last experience of gaining a mobile insurance quote

31

Frustrations with passwords and log-in details when using mobile finance

SKOPOS MTrackTM

“It is time consuming and cumbersome, but necessary to prevent against fraud etc if my

mobile is lost or stolen”

“If they require pass codes, cannot take your card reader with you”

“Remembering them! its ok saying that they all need to be different but when you log into so many different accounts on a daily or weekly

basis its a nightmare remembering them. Most people end up having them written down which

defeats the object. Getting stuff reset is then normally a real pain ”

“Sometimes they insist on letters numbers and capital letters which can be complicated to

remember ”

“small screen and keyboard causes wrong key entry”

SKOPOS MTrack - Base: 146 Mobile Banking respondents (UK Active Digital Society) - wave 4 dataQ37d. What, if any, frustrations do you have with providing passwords and log-in details when using mobile banking

32

And App Visibility/Access can be a problem…Insurance iPhone apps’

Who are

Sponge?

33

Android seems even harder…Insurance Android apps

UK Insurers, where are you?

34

Even QR Codes often disappoint…

Obtained QR codes from...

Magazines: 41%Newspaper: 26%

Other: 43% TV: 11%

Experience using QR Codes

24% Poor Good 28%48%

Reasons for not using QR or 2D Bar-Codes… • Phone has no capability 39%• Don’t know how to 30%• No interest 15%• Have not seen any before 8%

SKOPOS MTrackTM

SKOPOS MTrack - Base: 46 respondents (All that had used a QR code) - wave 3 data / 259 respondents (non QR code users)Q21e. How would you rate your experience of using QR/2D barcodes on your mobile?Q21c. Why have you not used a QR/2D barcode on your mobile?

35

Our Main Mobile Messages…

Darren Mark Noyce MCIM MMRSDarren.Noyce@SKOPOS.info Founding Partner, SKOPOS

36

Increased mobile security

Reassurance from bank

65%

45%

Incentives 21%

Advertising / promotions

2%

Personal demonstration 5%

Paying for phone security 6%

None (rejectors) 24%

SKOPOS MTrackTM

Key M-Finance Usage Drivers

SKOPOS MTrack - Base: 375 respondents (all that don’t current use mobile banking) - wave 4 dataQ37. What, if anything, would encourage you to start using your mobile phone for banking/controlling your finances?

1/. Confidence

Simple to use app/website 27%

Larger screen on mobile 27%

2/. Usability

Non Users Only

37

SKOPOS Guidance for Optimised MFX SKOPOS MTrackTM

“Are there Insurance apps?”

“Being able to point device at an advert which then turned into a

real time movie app.”

“Make an app that you could type your shopping list & they could tell you if the products were in stock

instead of browsing for what you want.”

Improve AwarenessAccess/Visibility/Education

Mobile has momentum and cannot be ignored as part of a multi-channel customer journey

“Make payment secure, and convince me that it is.”

“Send barcodes so that cash doesn’t need to be used or have an app for

their stores that can be scanned and money automatically deducted.”

Improve security, reassurance, confidence

“I want quicker loading times and fewer links.”

“Was very slow”Go Compare

“Took too long to fill out the online form. To small on my mobile”

Improve usability

Epilogue

Darren Mark Noyce MCIM MMRSDarren.Noyce@SKOPOS.info Founding Partner, SKOPOS

39

SKOPOS MTrack - Base: 521 (wave 4) (UK Active Digital Society)Q. O/S and Device code auto-captured.

SKOPOS MTrackTM

7% completed this survey via a mobile device

Mobile (5%)/Tablet (2%)

PC/Mac

40

Fast foodm-commerce

41

Mobile, Finance & MFX

The Mobile Experience in a personal finance context

including extracts from…

Darren Mark Noyce MCIM MMRSDarren.Noyce@SKOPOS.info Founding Partner

Scott Dodgson MMRSScott.Dodgson@SKOPOS.info Head of Research, Insight, Consulting

SKOPOS market insight – City of LondonTel: 0207 953 8 359www.SKOPOS.info

UK Active Digital Society, 2012