New Participants and BankingCompetitors:

The BancoEstado Case

About Chile

Total estimated population17,819,054 Inh.Source: INE Population Projection 2014

Gini Coefficient50,8Source: World Bank, 2011

At September 2014, mobile subscribers totalled 128.6 per every100 inhabitants. 76.9% of internet accesses are mobile, principallysmartphones.

Source: Ministry of Transport and Telecommunications: Telecommunication Subsecretaryship

December 2014

Chile is among the 5 Latin American countries that consume more internet hours per month.

Source: comScore Media Metrix, Junio 2014

Chilean Social Media audience totalled 6.16 MM users(The market leaders

are Facebook, Taringa and LinkedIn ).

8th in the world ranking of hours spent on the social networkssociales.

Internet accesses comScore report: Digital Future for Chile 2014

Per capita GDP23.165 US$ Source: IMF(Estimated ppp: purchasing power parity)

Banking services accessibility:58% of all adults has at leastone debit card.December 2012

BancoEstado Overview:

Building the BancoEstado ecosystemFinancial Inclusion: Business model based on the use of alternative channels

CuentaRUT: A simplified debit account with

an wide spectrum of serviceslike payments, deposits, cash transfers and withdrawal.

CajaVecina:A service channel for

BancoEstado clients and non-clients.

A focal point for reducing cash and increasing the use of accounts

106 966 4.66415.868

31.801

62.867

102.057

145.144

322 350 371 405 411 417 441 459

216 956 2.0003.327

4.564

7.130

10.28911.461

2006 2007 2008 2009 2010 2011 2012 2013

Trxs

en

miles

Puntos CV

Evolution of CajaVecina

Evolution of CuentaRUT

Source:BancoEstado

Mobile: The universal channel

1 out of every 4 clients that visitwww.bancoestado.cl do so from a mobiledevice.

The fastest growing transactional channel: 9 million transactions per month, with anannual growth of 122%.

BancoEstado campaigns viewed on mobilesurpass internet visits .

Internet: BancoEstado’s largest branch

4.6 million active clients on the Web. 37,6 million transactions per month . More than 31 thousand simultaneous

connections. 23 million visits per month to the public

website. The 4th most visited portal in Chile, 1st

among business and financialwebsites(ComScore) .

Evolution of the Internet

Evolution of Mobile Banking

Building the BancoEstado ecosystemFinancial inclusion: business model based on the use of alternative channels

Dec. 2013. more than 900 thousand clientsAlmost 10 million transactions48% more than in 2013

Source:BancoEstado

Financial inclusion: Significant growth in alternate channels transactionalityThe strong impact of BancoEstado

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11MM

ServiEstado

CajaVecina

CCL

Redbanc

CuentaRUT 2 MMCuentaRUT

4.500CajaVecina

3 MMCuentaRUT

Dec 2013

111.8 MM Txs / month

MM CC purchases15.3 MM Redcompra

42.3 MMInternet and Mobile

18.0 MM Selfservices

15.1 MM CajaVecina

11.5 MM Redbanc3.4 MM Telephony2.9 MM ServiEstado3.3 MM Branch

Mobile Portal

Evolution of Client Transactions(In Millions of N°)

Financial EcosystemTraditional competitors and other actors

“In the next few years, the financial sector should look out for the threat of the entry of large Internet companieslike Google, Apple or Amazon, and of credit card companies”

Deutsche Bank, Report “The future of (mobile) payments. / New (online) players competing with banks”, 2013

Ban

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Credit SavingsPayments

New

P

rod

ucts

CuentaRUT

MMFF Seguros

DebitWeb Mobile

CorrespondenceSubsidiariesNew

C

han

ne

ls

Compaies that support the business

Transbank / Redbank

Ne

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ors

Social Lending

Future Challenges:• Regulation that supports remote acceptance

• Adoption of new tehnologies to strengthen our mediums of payment: Mobile Payments and Prepaid cards or accounts

• Development of digital business models that identify new profit spaces and consider how to connect with other actors:

Partnerships / Competition / Absorb them

• Financial Education: Improve transparency and provide permnent advisory services for better informed clients.

Future spaces

Our strengths

• Brand positioning54% recall among consumers (top of mind). GFK Adimark.

• Our clients percieve us as close and reliableOne of the most valued brands Brands and Lifestyles of Chiileans 2014”,

GFK Adimark.

The 6th State institution to achieve an international standard, with 74.3

points in the “Corporate Transparency Ranking”

• Large client baseMore than 8 million active clients

• The largest service network.

Our challenges:

• To develop a digital strategy that gives more flexibility

to respond to the market and that favours innovation

• To Protect our client base from disintermediation.

• To safeguard the security of clients operating outside

our ecosystem

• To stregthen our medium of payment, so that it is

not the only feeder of digital accounts generated by other

actorss

What are we doing?

Transformation Program

2015-2016

Financial inclusion

CoverageDigital

Transactions

Selfservice & Automated

Sales processes

To be where people are: extendour coverage with multiple formatsthat enable us to offer betterservices to the community.

20 new branches. 92 small branches in

boroughs where we are notpresent today.

500 new ATMs. Reach a total of 150,000

CajaVecinas.

Modernity Reduce cash, improvepersonal safety, with lower travelcosts, bringing everyboy in to thedigital world.

Non-cash payments at CajaVecina for clients and non clients.

Mobile payments: payingthrough the cellular phoneand inter cellular payments.

Simplicity and Dignity: makinglife easier for people, offeringclients experiences that makethem feel happy about theirrelationship with BancoEstado

Redesign of sales and post sales processes throughBPM: For 2015 CuentaRUT and Consumer Credits.