Data Linkage Challenges in Retail Banking. Don t Build Walls Build Bridges

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1 Data Linkage Challenges in Retail Banking Don t Build Walls Build Bridges Sean Charlton 1 Barclaycard CIO Strategy February 2016 Internal

2 What happens if you hold multiple products? Consumer cards Barclaycard branded Consumer loans Partner branded Mobile & wearable payment devices POS & Corporate Point of sale solutions Corporate cards Other Propositions Deposits Acquiring In-store Gateway & Tokenization Online & phone Purchase financing Partner Diverse acquisition channels Open market 28m Customer Payment $448bn turnover c.70% of revenue from lending Net $60bn loans & advances #10 Global ranking Barclaycard s Geographie s United Kingdom United States Nordics Germany 30% of 2015 Barclays Profit before Tax (PBT) was from Barclaycard

3 Where are these customers? What do they want do do? How can we predict what they what to do? UK Credit Cards Barclaycar d US Ranking #1 27% Share Ranking #9 2.3% 11m Customers Net L&A $25bn $42bn Payment turnover Net L&A $25bn $70bn 13m What was the payment experience? Acquiring Share Ranking #2 32% Payment turnover Payment volume 4.7bn $324bn Customers 94k Share Payment turnover Clients

4 Today the consumer payments sector is changing faster than ever before Source = McKinsey

5 Data Linkage is crucial to Barclaycards growth 1 New Business Models 3 Proliferation of Data 5 Invisible Payments Investments in our Accelerator Working on tokenisation Work with partners as an ingredient 2 Omnichannel 4 Cyber threats and ID&V Payment acceptance transformation Enabling 3 rd party secure access

6 Biometric Technologies & Human Data Biometric Technologies are primarily divided into two segments - DNA based (Physical characteristics) and Non-DNA based (Behavioral characteristics) User User Input Authentication Hardware Central Database Pattern Matching Accept / Reject Physical Biometrics Behavioral Biometrics 1 2 Fingerprint: Analyzing fingertip patterns Facial recognition/face location: Measuring facial characteristics Speaker/voice recognition: Analyzing vocal behavior Hand geometry: Measuring the shape of the hand Iris scan: Analyzing features of colored ring of the eye Retinal scan: Analyzing blood vessels in the eye Biometrics Signature/handwriting: Analyzing signature dynamics Keystroke/patterning: Measuring the time spacing of typed words Vascular patterns: Analyzing vein patterns Biometric data watermarking is used to store/hide biometric information Gait: The use of an individuals walking style or gait to determine identity 4 6 Biometric Authentication

7 Biometric Technologies Benchmarking Characteristic Features of Biometric Technologies Characteristics Method used Fingerprints Optical, Ultrasound Hand Geometry Retina Iris Face Signature Voice Optical Optical Optical Optical Digital Digital Easy of Use High High Low Medium Medium High High Error Incidence Dryness, Dirt, age Hand injury, age Glasses Lighting Lighting, age, glasses, hair Changing signature Noise, colds Accuracy High High Very high Very high Medium Medium Medium User Acceptance Medium Medium Medium Medium Medium High High Long Term Stability High Medium High High Medium Medium Medium Comparison between Biometric Techniques Biometrics Universality Uniqueness Performance Collectability Performance Acceptability Circumvention Retina High High Medium Low High Low High Face High Low Medium High Low High Low Fingerprint Medium High High Medium High Medium High Hand geometry Medium Medium Medium High Medium Medium Medium DNA High High High Low High Low Low 7 Biometric Authentication

8 Fax E Mail Voice ecommerce Community Forums White Mail Social Media Knowledge Smart Devices Don t Build Walls Build Bridges Webchat & Callback Back Office Work Items Mobile «Alerts Chat Voice SMS MMS Retail Outlets

9 Q& A