Internet Banking Roll-Out

WOOLWICH PLC
7 October 1999



WOOLWICH PLC TO ROLL OUT PRIVATE BANKING FOR THE MASS MARKET

'This is Internet banking and a whole lot more,' says group chief executive,
John Stewart

The Woolwich today announced a full national roll-out of its Open Plan service
which uses ground-breaking technology to deliver a fully-integrated personal
banking service to the mass market at low cost.   By the end of 2002 The
Woolwich anticipates some two million Open Plan customers using the Internet,
telephone, digital television and branches interchangeably to manage all of
their Woolwich accounts. 

The Open Plan service has already been operating in pilot for a year and now
has 25,000 customers, each typically holding more than three products - twice
the industry average.  The bank now intends to invest £125 million over the
next three years in extending Open Plan's proven technology and infrastructure
throughout the U.K.   

The service is already delivering fully functional Internet banking and
customers also benefit from free financial planning, regular financial health
checks, automatic sweeping facilities between accounts  and a monthly
statement covering all their product holdings.  The Woolwich is also set to
introduce interactive financial planning, using clear on-screen visuals to
show how customers' personal wealth would be affected by different financial
decisions.

Commenting on this expansion John Stewart, Woolwich group chief executive
said:

'This is Internet banking and a whole lot more.  There is no one else in the
market offering customers this level of integration, where they can manage
their current account, savings, mortgage and even their unit trusts, using a
variety of channels and moving seamlessly from one to another.

'Most importantly, we know it works.  Customers understand and appreciate that
integrating their financial arrangements gives them greater control and can
save them money, typically around £150 a month for a borrower. The technology
has been tested and proven and the increased share of wallet that we are
achieving means increased income.'

During its first year the benefits of the Open Plan service, for customers and
shareholders alike,  have been clearly demonstrated.  They include:

* Greater control for customers  - No matter which channel is used, customers
can carry out transactions across all of their Woolwich accounts. The service
also encompasses free financial planning, regular financial health checks,
automatic sweeping facilities between accounts  and a monthly statement
covering all Woolwich product holdings.

* Customer memory -  Open Plan service's technology 'remembers' every contact
that the customer has with the bank and ensures that the quality of service is
consistent no matter which channel the customer chooses to use on any
particular occasion.

* New customers - although the service has not been marketed during the pilot
phase, some 20 per cent of customers in the pilot are new to the company.

* Increased product penetration - Open Plan service customers typically take
out more than three Woolwich products, twice the industry average.

* Increased income - when offered to existing customers who take extra
products, the value generated by each has risen by some 65 per cent.

The key to offering customers full integration is the Open Plan service's
'middleware' technology, which The Woolwich has developed over the past 18
months, in partnership with Microsoft, Intel and Unisys. This enables the new
channels of distribution to link with The Woolwich's existing systems and has
been built to enable new service channels, such as digital television, to be
added rapidly. 

John Stewart added:

'The start-up phase has already demonstrated that Open Plan delivers increased
customer loyalty, higher satisfaction ratings and business gains from
competitors, and signals the potential of the service.  As a result we are
confident of its ability to attract two million customers and that significant
financial benefits will accrue to The Woolwich from 2001.'


For further information please contact:

Raghnall Craighead
Group Investor Relations Manager
Tel: [phone] (today only)
0181 298 5037 (thereafter)

David Blake
Head of Corporate Communications
Tel: [phone] (today only)
0181 298 5500 (thereafter)