Multi-Brand Service Platform is a ‘First’ for UK Financial Services

The first phase of a £25 million business transformation programme for HBOS,
involving new customer service processes and new IT, has been completed on schedule.

Key to the programme has been the development of a single IT platform using best-in-class
technology to support customer service for HBOS group pensions products. Its successful
completion, by a joint HBOS Financial Services and Cap Gemini Ernst & Young
UK team, means that customer service can now, for the first time, be based on
standardised processes and uniform IT support, to the benefit of service standards
and cost efficiency.

The development is seen as an important ‘first’ for the UK financial services
industry, since it will be the first example of multiple products and brands being
supported by a single customer service system. HBOS was formed by the merger of
Halifax and Bank of Scotland and its products are sold under a variety of brand
names such as Clerical Medical and Halifax Financial Services. Until now, different
products have been supported by different customer service teams using different
processes and a variety of incompatible legacy IT systems.

Nick Waugh, IT Director of HBOS Financial Services comments “CGE&Y have given
us the necessary drive and programme expertise to complete this critical phase
on schedule, with a strong focus on cost and benefit management. I look forward
to working together on other areas of our transformation programme and driving
out further benefits”.

The completed solution will also support the marketing of the full range of HBOS
products through a variety of channels, including direct marketing and independent
financial advisors.

One immediate result of HBOS and Cap Gemini Ernst & Young UK’s successful
completion of this key programme phase will be the growth of HBOS within the important
group pensions market, with the launch of new products under the Clerical Medical
brand which could not have taken place without the first-class customer service
that the new platform enables and supports.

-Ends-

Notes to Editors

Cap Gemini Ernst & Young is one of the world’s largest providers of Consulting,
Technology and Outsourcing services. The company helps businesses implement growth
strategies and leverage technology. The organisation employs approximately 48,000
people worldwide and reported 2003 global revenues of 5.754 billion euros.

More information about individual service lines, offices and research is available
at www.capgemini.com