Aggregation Can Increase Profits More Than $175 Per Customer.

Business Editors/High-Tech Writers

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Oct. 28, 2002

In-Market Studies by Top Financial Institutions and Oliver,

Wyman & Company Quantify Aggregation's ROI in the

Important Areas of Retention and Cross-Selling

Yodlee, Inc., the world's leading provider of aggregation solutions, today announced the results of the first independent ROI studies conducted by several of its top clients and Oliver, Wyman & Company, the leading strategy consulting firm dedicated to the financial services industry. Derived from a sample of more than 20 controlled tests, this study orchestrated by Oliver, Wyman & Company is based on data gathered from several of the world's leading financial institutions that currently offer aggregation services. The tests, which measured aggregation's impact on customer retention and cross-sell marketing, showed that aggregation can significantly increase an institution's per customer profitability. According to Oliver, Wyman & Company, per customer profitability can increase by $148 for retail banks and $178 for brokerages.

"This is great news for our clients and the aggregation industry as a whole," said Anil Arora, Yodlee president and CEO. "The top priorities for most financial institutions are retaining and growing their customer relationships. These studies show unequivocally that financial institutions who offer aggregation services will be the most successful in these areas."

Customer Retention: On average, financial institutions have

experienced retention rates six percentage points higher for

aggregation customers versus non-aggregation online customers

The studies showed that retention increased substantially in the customer segment that uses aggregation. Aggregation not only increases customer retention, it retains a financial institution's most valuable online customers:

-- Aggregation can increase retention to 94 percent. This compares to an average retention rate of 88 percent for all other online customers including those who pay bills online and 80 to 85 percent for traditional customers who do not use the Internet channel.

-- 57 percent of aggregation users have an annual household income greater than $75,000 -- only 33 percent of online banking households have an annual income greater than $75,000.

Cross-Selling: Aggregation more than doubles cross-sell

effectiveness

The other key area of study focused on aggregation's cross selling advantages -- the ability for financial institutions to grow existing customer relationships by marketing additional products to them.

The majority of current aggregation users fit the Mass Affluent (MA) profile -- defined as those individuals having between $100,000 and $1 million in assets to invest. This segment represents a $5.5 trillion market. MA consumers typically have more financial accounts, which are dispersed across multiple providers. According to studies, the MA hold roughly 50 percent of their assets away from their primary financial institution. Aggregation, which consolidates these accounts, can provide tremendous customer insight into product usage and holdings "away from" their home institution. Financial institutions can use this insight to fully understand and best serve their customers' financial needs, while simultaneously growing customer relationships to increase share of wallet and profitability. A few simple examples include:

-- Offering better performing or lower cost mutual funds to

replace current portfolio holdings;

-- Identifying customers with large cash positions and offering

higher returning, low-risk investments such as Money Market or

Fixed Income funds;

-- Identifying and targeting customers with 401(k) and other

qualified retirement plans for rollovers; and

-- Targeting customers with high credit balances with a lower APR

HELOC

Yodlee's clients conducted multiple cross-sell tests based on controlled direct email campaigns across a wide variety of products including credit cards, debit cards, HELOC, brokerage and mutual funds.

-- On average, the tests generated a 65 percent increase in

response rates versus control

-- Approval rates for aggregation customers were two to three

times greater than that of traditional customers

"Aggregation is a unique source of customer information. There is no 'credit bureau equivalent' for the asset side of consumers' balance sheets," said Michael Poulos, a Director with Oliver, Wyman & Company. "Several institutions already recognize the retention value in aggregation. Additionally, there is a significant opportunity to use aggregated data to grow customer relationships through offers tailored to meet particular customer needs."

About Yodlee

Yodlee Inc., founded in 1999, is the world's leading provider of aggregation data and solutions. Aggregation powers a variety of dynamic and practical web-based solutions, which increase the profitability of financial service providers by empowering them to best serve, retain, understand, and grow their customer relationships. Yodlee's clients include: AOL, Bank of America, Citibank, CUNA, Digital Insight, Fidelity, Financial Engines, First Union, J.P. Morgan Chase, Merrill Lynch, MSN, S1, Sungard and Yahoo. Yodlee is headquartered in Redwood City, California and can be reached at www.yodlee.com.

About Oliver, Wyman & Company

Oliver, Wyman & Company is the leading strategy consulting firm dedicated exclusively to the financial services industry. The firm was founded in 1984 and now employs close to 350 professionals, working out of offices in New York, London, Frankfurt, Madrid, Milan, Paris, Toronto and Singapore.