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MOBILE BANKING IS 'ESSENTIAL TO COMBAT CUSTOMER CHURN', UK BANKS WARNED

Compaq and Microsoft Showcase Mobile Platform Enabling
Financial Institutions to Serve Customers via Mobile Devices

UK financial services organisations face a future of 'ever increasing,
destabilising customer churn' unless they make mobile banking available to
selected customer segments, according to Compaq and Microsoft. Speaking at
the first demonstration of the Finance Mobility Platform (FMP) technology,
co-hosted by Compaq and Microsoft today, Mike Smith, Practice Principal for
Mobile Finance with Compaq, explained that mobile banking is the key to
retaining customers, but warned financial services companies that
implementing a mobile offering poses business as well as technological
issues.

Commenting on the FMP, Mike Smith said; "Financial services companies are
facing an increasingly competitive future, and many are waking up to the
fact that offering mobile banking to key customer segments - which includes
high net worth individuals, small business customers and fashion-conscious
younger customers - will be key to reducing their customer churn."

The FMP showcase is the latest demonstration of a Compaq and Microsoft joint
initiative - announced in June - to develop a mobile solutions framework
for the financial services industry. The FMP provides state-of-the-art
functionality to organisations wanting to take a lead in the mobile banking
market, and addresses the challenges of the mobile internet. It will create
a comprehensive roadmap and development methodology to minimise the risk for
financial services organisations wanting to build and pilot their own mobile
solutions.

The FMP includes applications for accessing financial services from wireless
devices such as Personal Digital Assistants (PDAs), laptops and mobile
phones.

Mike Smith continued: "The FMP has been created to make designing and
providing a mobile offering as easy as possible for financial services
providers. It takes account of issues such as how to differentiate an
offering from those of competitors, how to reduce and manage the risks
around mobile platforms and - crucially - how to ensure that the ongoing
support and managerial issues are dealt with effectively."

David Slight, Industry Manager for Financial Services, Microsoft, said:
"What is so compelling about the mobile Internet is that it enables users to
access their data and communicate when the opportunity presents itself,
re-capturing the dead time that fills our days. Customers now expect access
to their financial information at any time, from anywhere, and the challenge
to financial services organisations is to provide the right services, at the
right time, to the right devices.

"Through the FMP Compaq and Microsoft are helping financial institutions to
address these issues by bringing together broad industry expertise and
experience in this area. We understand the importance of a solid business
case when implementing a mobile financial solution and are working with
industry leading partners AIT, DAT Group, 724 Solutions, Fincentric and
weComm, to develop solutions for the finance industry that help financial
institutions to fully realise the potential of this technology now."

It is envisaged that financial services companies will deploy the FMP to:
*Improve customers' overall banking experience with a secure banking
channel that is convenient, flexible and continuously available
*Target high-net-worth individuals and offer a single view of their
financial information
*Offer customers entertainment channels with tailored portals and
location-based information
*Target small office/home office customers with affordable mobile
solutions
*Offer younger customers and students mobile devices as a leisure
accessory
*Increase financial services companies' ability to cross sell
products such as personal loans, mortgages, reducing the likelihood of
customers switching to competitors

Compaq and Microsoft offer a broad range of end-to-end wireless solutions to
the mobile banking industry. Compaq's offering includes access devices
provision, infrastructure and support, and integration through Compaq Global
Services. Mobile banking builds on the experience Compaq and Microsoft have
with the finance sector and their expertise ranges from insight into the
devices needed for accessing mobile banking services, to the provision of
the mobile internet technology and infrastructure that enables secure access
to information and applications from anywhere, on any device.