WIXLIB

Capital Market Day, Copenhagen, 29 June 2000On-line BankingJohn AndersenSenior Vice President e-Finance

Den Danske BankAgendaØCurrent statusØDiscussion of market challengesØDanske Bank Initiatives

Den Danske BankInternet penetration (kommentar fra TDK)100%90%80%70%60%50%40%30%20%10%0%Does not use PCUses PC but not theInternetInternet userInternet shopperSweden Finland Norway DenmarkSource: Salomon Smith Barney

Den Danske BankCustomer statusDanske PCDanske Netbank or bothPrivate customer agreements in DenmarkCustomers covered by powers of attorneyTotal private on-line customers in DenmarkAgreements in NorwayAgreements in SwedenTotal nordic private customers on-lineBusiness On-line agreementsCorporate customers covered by Business-Online agreementsDanske Netbank, corporateOnline corporate customers in SwedenOnline corporate customers in NorwayTotal corporate customers onlineOn-line customers 305.60011.70012.60025.0007.0005.00061.300366.900

Den Danske BankDaily expansion of on-line customer baseNew Danske bank on-line customers160014001200100080060040020001. maj 0015. maj 0029. maj 0012. jun 00

Den Danske BankDevelopment in distribution of agreements100%80%60%40%20%0%maj 99jul 99sep 99nov 99Danske NetBankjan 00mar 00Danske PCSale of pc-bank product discontinued in may 2000. PC-Bank expected to be closed in spring 2001maj 00

Den Danske BankDanske NetBank coverage in the privatecustomer segments30,00%High value customers25,62%25,00%Other core ,20%Age below 25Customers with lowtransaction volumeAvg. coverage DKAvg. coverage NO5,00%Avg. coverage SE1,09%0,00%Measured as number of agreements to households. If alternatively measured by number of online customers includingpowers of attorney to the number of private customers (1,917,000) the coverage amounts to 13.4%

Den Danske BankDistribution of 000High valuecustomersOther corecustomersAge below 25Customers withlow transactionvolume

Den Danske BankFunctions in on-line bankØ Transfers of money to own accounts, other DDBaccounts and accounts in other domestic banksØ Bill paymentØ Export of account data to others software productsØ Loan, mortgage and credit card applicationsØ On-line ordering of products (insurance, new accountetc.)Ø STP trading of stocks, bonds and mutual funds onCopenhagen and Stockholm ExchangesØ Currency trading for corporate clientsØ Order receival and confirmation for trading of shareson 12 other exchangesØ Participation in IPOsØ Calculation of loan costs, life assurance needetc.

Den Danske BankTransactions no accounts belonging tocorporate customers8%3%Standing orders/ PBSDanske Bank TeleService14%36%Telephone Banking, DanskeNetBank/ Danske PCManual4%Cheques4%Danske GiroPayment forms31%

Den Danske BankTransactions no accounts belonging toprivate customers1%14%2%Standing orders/ PBS2%Telephone Banking, DanskeNetBank/ Danske PC6%ManualCheques4%ATM's71%Danske GiroPayment forms

Den Danske BankShare of security trading on-line30,0%25,0%Retailbank total20,0%Customers withinvestmentadvisor15,0%Other customers10,0%5,0%0,0%JanuaryFebruaryMarchAprilMay

Den Danske BankStatus - Private customersØØØRetail online products are currently - apart frominvestments - focused on payments services. Manuelpayments including checks only account for 9% ofpayments in Denmark. The highly automated traditionalsystem has delayed penetration of Internet bankingOn-line credit card payments are in Denmark today handled through PBS. Danske Bank has acquired the rights toAmerican Express in Denmark in order to build expertisebefore a more competitive structure emerges on the creditcard marketThe Financial Supervisory Authority is still studying ourrequest regarding ownership of a B-t-C exchange(focused on DDB customers)

Den Danske BankStatus website / redesignØØFirst phase of redesign concluded 1 May. Mainsystems redesigned by 1 September in accordancewith name changeDDB has despite the not yet concluded redesignachieved good rankings in last to Danish websitesurveys. 1st place among 300 top Danish corporates(Proffice) and 2nd place among Danish banks(Strand Consult)

Den Danske BankStatus - Investment servicesØØØØFor customers without an assigned investmentadvisor online trading today account for a significantshare (25%) of total tradingCustomers with investment advisors still prefer totrade through retail trading desks. This may of coursechange if the pricing structure is changedThe newly introduced corporate product - DanskeMarkets - including securities and forex trading havebeen met with very high interest from clientsDDB has not yet experienced any noticeable loss ofcustomers to discount brokers.

Den Danske BankBusiness to business / cash managementØØØDen Danske Bank s branches in Denmark, Sweden,Norway, Finland, Germany and the UK are fullyintegrated with the Banks central computer systemsfor real time processing.The product includes liquidity overview,(MultiCurrency) Interest Netting, Cash Pool andformat translator.Offer virtually all types of local payments. Localcash management is also available

Den Danske BankBranches in Den Danske USA1871198419951995198319851983Danske Bankestablished inthe countryBranchYesYes. AlsoÖstgöta EnskildaBank network,39 branchesYes, AlsoFokus BankNetwork,70 branchesYesYesYesYesDomesticpaymentsAll typesAll typesAll typesVirtuallyall typesAll typesAll typesFedwire andCHIPSInterest Netting Yesand Cash PoolYesYesYesYesYesYesOffice bankingsystemavailableDBTSDBTSDBTSDBTS, OPUSCAPITA andANALYSTEDBTSDBTSMulticash PlusDBTSOffice bankingsystemlanguageDanishSwedishDanishor EnglishFinnish(Multibank),Englishor SwedishEnglishGerman(Multibank) orEnglishEnglishHelp desklanguageDanishSwedishDanishor EnglishEnglishEnglishEnglishEnglishOn-site ITsupportYesYesYesYesYesYesNo

Den Danske BankBefore the name changeNordania.dkDanica.dk services.dkDanskeinvest.dköeb.seMerchantbank.dk Danskesecurities.dk

Den Danske BankOnline branding strategydanskebank.dkOnlineBusiness OnlineBusiness rities.comoeb.sefokus.nodanskebank.comdanskebo.dk

Den Danske BankOne Group – One System

Den Danske BankOne Group – One holesaleBranchesSecuritiesInternetLife &PensionGroupSystemTelephoneAsset Man.WAPLeasingCall CenterGroup DataNew areasNew channelsMarkets

Den Danske BankPlanned scenariouuuuAll users (customers, employees, partnersetc.) log in to an enterprise WEB/VML rolebased portal (my portal), from where theyflexible have access to all the services theyneed.Secure realtime access to all componentsinside Den Danske Bank from anywhere(B2B)Östgöta fully integrated 1/10-2000Fokus fully integrated 1/10 2001

Den Danske BankAgendaØCurrent statusØDiscussion of market challengesØDanske Bank Initiatives

Den Danske BankImpact of the webBuy sideInsideSell sideProcurementthroughexchangesUse of Intranet toimprove workflowand communicationOn-line banking,brokerage andinsuranceParticipationin specialisedexchanges forfinancial products (eg. currency options)Improve development processesthrough integrationof Intranet andInternetDistribution ofresearch etc.Extranet servicesFinancial servicesfor online exchangesetc.DDB main focus has so far been sell side. Organisational change aimed atstrengthening focus on internal processes

Den Danske BankCompetition parametersCustomer experience Functionality and contentUser friendlinessContact opportunities and qualityPrice / valueOperationsEconomies of scaleLevel of STP transactionsTime to marketStrong e-commerce position

Den Danske BankBusiness to businessØØØWe believe a strong cash management productis a necessary basis for a strong business-tobusiness online offeringOnline exchanges will take over a substantialpart of transactions between businesscounterparties. A substantial part of financialtransaction will be initiated through exchangesA key success factor for commercial banks willbe to identify value added services which canimprove customers possibility of achieving costefficiencies in an ebusiness world

Den Danske BankRetail bankingØØØThe product best able to create loyalty is a fullydeveloped budget account with bill paymentand presentment, accoutn transfer, budgetreconsiliation, attached credit card and loanopportunityCustomer loyalty can further be developed byinteresting content including various offersfocused on the various customer groups.High quality requires a full integration acrosssales channels including branches and callcenter

Den Danske BankInvestment ServicesØØØInvestors are met with so massive amounts ofcontent that the primary concern is relevanceIt requires substantial effort to target theresearch and information produced by the bankat specific customer groupsThe cost of international share trading act as alimitating factor on trading volume. STP in thisarea is a key success factor in order to be ableto lower commissions without reducing profit

Den Danske BankOperationsØØØThe rationalisation associated with further use ofwebbased service by clients cannot be separated fromthe general rationalisation efforts included inCentralisation Project 2000The rationalisation target for 2001 (hvad er det?) ispartially founded on rationalisations through furtheruse of flexible Intranet services and through reducedmanual transaction volumes through generally higheruse of webbased services among customersThe new Process Development organisational unitwill have as a key part of its charter to reduce time-tomarket and improve STP quality of all new systems

Den Danske BankAgendaØCurrent statusØDiscussion of market challengesØDanske Bank Initiatives

Den Danske BankNew organisational structure for operationsGroup Service CentreJørgen KlejnstrupHans E. MørkStrategy & Financial InfrastructureCarsten HøeghTarget for new organisation:ã to strengthen focus on ProcessDevelopment includingimprovements of speed andSTPã to support ongoingrationalisation processã to integrate web platforms forcustomers and employeesã Quality focus throughintegration of e-Finance andcustomer service centree-Finance & Product DevelopmentJohn Andersens. Klaus FrandsenProcess DevelopmentPeter Trier Schleidts. Einar Rud PedersenBusiness SystemsArne Løckes. Erik AndreasenCore Systems & Technological InfrastructurePoul Ellerød Andersens. Jørgen LundgaardOperationsBjarne Helvig NielsenLogisticsUdo Christiansens. Troels Heide

Den Danske BankWap Banking- demo of the next stepThe first mobil Stock trading solution iDenmarkLaunch next month

Den Danske BankWAP phase 2 - securities trading

Den Danske BankWAP phase 2 - securities trading

Den Danske BankPrivate customersØØØØØImproved payment functions when privatecustomers buy onlineOn-line STP consumer loans. Medium termshould yield substantial cost savingsFull scale budget function - high loyalty valueIntegration of Swedish retail operationStand alone introduction of personalisationtools in Fokus Bank

Den Danske BankInvestment servicesØØØØØØRetail directed researchSelected newsPortfolio analysis / benchmark etc.STP of trades in non-nordic sharesFokus Bank will introduce trading on OsloStock exchangeExpansion of Danske Markets corporateproduct to Norway and Sweden

Den Danske BankBusiness to business Payment functions for corporate customers onlineactivities on own website or through exchanges Working on two specific business to businessexchanges Expanded version of corporate cash managementproduct Studying how we can support customers effort toincrease share of STP transactions

Den Danske BankCustomer contactIntelligent routing of e-mail. Project will improve servicequality and support integration between online andtraditional channels(suppleres)

Den Danske BankDatamining / CRMØØØProject to build long-term structure for datamining andCRM in the groupTest project in Norway with market leading CRMsystems supplierSelection of news and research presented to the customeron the basis of portfolio and interests

Den Danske BankAlliancesØØØØSelection of partners for customer micrositeWAPDiscussions with potential B-t-B exchange partnersOther strategic initiatives