This program establishes for the first time an exclusive industry collection of Internet Banking traffic and transaction data accumulated from 92% of the Internet Banking facility providers in Australia. The 90-Day Program provides each contributor and financial institution member with:

A: Collective analysis of Internet Banking transaction activity and trends

B: Comparative analysis via 'exclusive member benchmarking reports' reveals for each member banking transactional profiles that are benchmarked with the industry

1. Scope of Data Pooling Participation

Few pooling systems ever attract 50% of all industry participants, however the MISC Internet Banking Pooling Facility achieves 92% coverage in its first year.

2. The Data Feedback Process

Three levels of data access ensure that pool members may access the level of dissagregation that best fits their strategic blue print. Different levels provide greater or lesser levels of data dissagregation and analysis without affecting the integration of the collection and maintaining client and customers privacy.

3. Strategic Application of Reports

Participating Banks receive three different key reports each quarter (customised to provide three expanding levels of data access. Each report has specific strategic application for each Bank that can be extended at greater levels of access.

3.1. MISC Internet Banking Registered Customers Report

Profile and Analysis of All Registered Internet Banking Customers in Australia.
Contains detailed market share(s), demographic profiles and benchmark analysis.
eg. Total Numbers of Registered Internet Banking Customers, Share of Registered Internet Banking Customers, Account Profiles, Average Account Balance, Demographic Characteristics of Registered Internet Banking Customers.
Strategic Application: Enables better targeting of customers by account type through increased knowledge of key customer types.

3.2. MISC Internet Banking Active Users Report

Profile and Analysis of Active Internet Banking Customers.
Contains detailed market share(s), demographic profiles and benchmark analysis.
eg. Total Numbers of Active Internet Banking Customers, Share of Active Customers, Account Profiles, Average Account Balance, Demographic Characteristics of Active Customers.
Strategic Application: Can determine the attractiveness of Internet Banking exposure for each Bank. Active Internet Banking Customers compared to Registered Customers determines effective Internet Banking up-take rates for Banks.

3.3. MISC Internet Banking Bill Payments & Transfers Report

Profile and Analysis of Bill Payments and Transfers Activity on Internet Banking Platforms in Australia. Contains detailed market share(s) and transaction activity eg. customer log-on activity, BPay activity, transfer activity.
Strategic Application: Capacity, frequency and length of log-on can be benchmarked to provide objective criteria for web-site efficiency analysis.

1. Scope of Data Pooling Participation

As you are aware MISC regularly augments (through additional research) the existing transaction pool collection of 92% of all Internet Banking transactions to reflect 100% of all Banks in Australia. However, as the universe of "Online Application activity" is unknown (being a formative initiative by most Banks) such extrapolation is both impractical and unworkable, given the likely share that contributing Pool members might represent. Accordingly, until such time that the universe is identifiable, no such augmentation process is practical. For this reason this "Online report" measures only contributing member results and does not impute an industry measure, which we believe would be misleading. Users will therefore be provided with a report that isolates their share of the collective Pool measurement.

2. Strategic Application of Reports
On Line Application & Purchase - Breakdown is by Product Type

This MISC facility provides breakdowns by different types of on-line lending products. These include:
Housing Loan Applications
Personal Loan Applications
Credit Card Applications

3. Pool Membership

Westpac Banking Corporation
Commonwealth Bank of Australia
National Australia Bank
Bank of Western Australia
Bendigo Bank

A model constructed to simulate the Foodservice channel environment in Australia is one of a two-phase pilot program developed by MISC and its sponsors to underpin the design of the first Foodservice Census-styled Audit to be conducted in Australia. Phase 1 of the model, 'The Pilot Survey', provides simulations of Foodservice sales by food type and by Foodservice channel using the US Foodservice market as a benchmark. Phase 2 delivers results of pilot research, establishing Australia's Foodservice channel profiles, with particular focus on describing operational procedures and decision-making structures for supply access.

1. Two Phase Measurement

In the context of MISC's overall Foodservice program, the International Foodservice Analogous Model serves a number of purposes and has a number of applications. Firstly, the results generated from the model are intended to provide a realistic set of "ceilings" against which the results of MISC's primary channel fieldwork will ultimately be benchmarked. Secondly, the formation of an initial perspective about the relative size and food type breakdown within each channel will assist in determining the extent of census-style collections undertaken for each channel. Finally, the model is capable of being run under a number of different "what if?" market scenarios about relative channel size, food product category shares etc. It is envisaged that this will assist Subscribers in their strategy formulation about the likely impact on sales and profitability that would emanate from changes in channel volume, as well as providing a valuable forecasting tool against which internal forecasts may be benchmarked.

2. The Approach

The International Foodservice Analogous Model takes a groundbreaking approach to the forecasting of Foodservice industry in Australia. For the first time industry participants in Australia can view their respective channels and food types measured, (i) against the rigorous reference point of US market data; and (ii) with a comprehensive analysis and adjustment of channel sensitivities of the US and Australian markets.

3. US/Australian Model Structure

3.1 Modeling Process
MISC has surveyed the profile of each Foodservice channel in the US and Australian markets. The approach MISC has taken, outlined below, represents an exhaustive combination of primary data collection and secondary data collation, fused with highly developed market modelling techniques to allow for the modelling of Australian Foodservice channel performance underpinned by an analogous process drawing on US Foodservice experience.

In order to bring market relativities into alignment for each channel, there is a prior need for an adjustment process enabling a general deflation between Australian and US markets. Essentially, therefore, the adjustments employed by MISC are of two broad types - macro adjustments and micro adjustments.

3.2 Product Coverage

Monitoring Report Service

Macro Measurement of Mortgage Broker New Business

Increasingly, participants within the Housing Loans industry are confronted by irregularities and inconsistencies regarding the measurement of the market environment. Traditional sources used for measurement of new business shares e.g (APRA and RBA publications) are becoming almost redundant as an effective tool to assist market planners in development of the strategies required to secure market share in an increasingly diverse product and volatile market sector.

1. Monitoring Report Service

Following the development of the Housing Loans Research Programme by the former MINTEL (Aust) Pty Ltd and the subsequent acknowledgment of its ground breaking research findings and measurement approach MISC is supporting this unique programme with a quarterly Monitoring Report Service to extend the value of the market intelligence provided.

MISC's research methodology has identified and sought to provide an accurate alternate method of both data collection and analysis. In particular, MISC has successfully strived to deliver to the market 'real' comparative market positions across all lenders within the industry. The need to address the issue of measurement of all lenders has been validated by the revelation of the growing significance of other minor lenders e.g Solicitors and Accountants to the market overall. Furthermore, the research enables market planning to be conducted with a renewed degree of confidence via the robust forecast modelling that MISC produces on both a short and long- term basis.

The Monitor Report Series provides Subscribers with a quarterly reporting service for one year. A key feature of the service is the regular comparative lender share analysis for each quarter focusing upon a Subscribers competitive 'cluster' (its direct competitors as determined by both MISC and the Subscriber). Critically, this analysis includes a provision of new business forecasts for the 'cluster'.

Additional features of the Service include a quarterly discussion relating to institutional sector trends eg. New product introductions and an annual MISC market measurement reconciliation reflecting upon the overall performance of both the Subscriber and the market.

Housing Loan Monitor Report Table of Contents - This is available upon request. To make a request, click here and complete the following form.

2. Macro Measurement of Mortgage Broker New Business (see white paper)

There is strong evidence to suggest that the Mortgage Broking sector is exhibiting signs of following the traditional industry growth cycle pattern. While few would dispute that it is currently in the high growth phase, there is significant disagreement as to how much more growth the sector will display over the next few years. The general consensus of serious observers of the sector is that it currently accounts for between anywhere between 15% to 25% of all Housing Loans written in Australia.

The original measurement of broker new business first conducted in 1999 by the former MINTEL (Aust) Pty Ltd and then repeated in 2000 ; as it now stands, represents the first attempt at estimating the market size of this dynamic and little understood sector of financial services. A special Mortgage Broker White Paper outlining key market data and a strategic assessment of Broker new business has been prepared as part of the MISC monitor of the Housing Loans market. Please contact the MISC marketing department for further details.

Exclusive Subscriber Supplementary White Paper - Mortgage Broking Table of Contents - This is available upon request. To make a request, click here and complete the following form.

Overview
Pool Participation
Eligibility To Participate
Report Coverage And Deliverables
The Scope And Complexity Of Undertaking A Mortgage Broking Statistical Collection

1. Overview

Following on from MISC's success in developing an internet banking data pooling facility for major Australian Banks, together with the ongoing research programmes on housing loans, there has been strong demand to develop a data pooling facility for mortgage broking. As the former MINTEL (Aust) Pty Ltd had already developed a macro market measurement of broker business (ie mortgage broker business) against which the existing broker pool results can be benchmarked for reliability testing, MISC is uniquely placed to deliver this Facility.

This Facility is designed to provide participants in the Mortgage Broking Sector with ongoing access to accurate home loan market share data, together with Broker activity levels nationally, by state and territory within each state.

The nagging question of whether growth in Broker new business is substantially different from other distribution channels is now being answered fully via detailed customer analysis and loan product sales breakdowns. The MISC Mortgage Broker Data Pooling Facility also resolves a significant number of controversies about the size of the market and its growth trends.

Quarterly statistical data pooling collections beginning for the December quarter 2000 now provide for the first time an accurate measure of Broker generated quarterly home loan new business. These statistical collections culminate in:

A collective analysis of all Broker generated new loan business and trends by designated customer territories, and
A confidential market share and benchmarking perspective for participating Banks and Brokers.
The service is designed to recognise the individual requirements of the main parties involved. It accordingly delivers customised reporting formats for National Brokers, Regional Brokers and Banks.

2. Pool Participation

• = Number of Brokers - Teams

Broker Market Coverage of Statistical Pool
Bank Pool participants committed to the program represent more than 52%1 of aggregate Broker generated new business across all financial institutions.

Primary Broker Panel members, who are committed to proceed in aggregate represent 37%2 of Broker business across all financial institutions.

If either set of participants is relied upon individually, the level of market coverage is not statistically acceptable.

1 Based on MISC market modelling and MINTEL (Aust) Pty Ltd 1999 Mortgage Broker Survey.
2 Based on MISC market modelling and MINTEL (Aust) Pty Ltd 2000 Mortgage Broker Survey.

HOWEVER

In combination, contributions from the two data sets extend the effective market coverage to 71%.

A correlation process with relevant Brokers and their corresponding panel members (see following table) alongside matched sub sets for Bank contributors shows that the combined impact of the two data sets already produces market coverage of 71%. This is likely to increase significantly as more invited participants become 'committed' members.

As the measure of total market coverage is, prior to the completion of the first pool results dependant on the earlier work of the former MINTEL (Aust) Pty Ltd and its broker new business trace, the veracity of that measure is tested by substituting actual new business by selected banks and brokers (from pool results) with prior MINTEL (Aust) Pty Ltd estimates and error rate adjusted accordingly.

3. Eligibility To Participate

In order to participate in this Facility, the following criteria must be satisfied:

In any quarter, pool member applications can only be accepted for Brokers with a qualifying lender panel list, and
Because the Facility is based on the premise that all information pertaining to the Facility is confidential, in any one quarter, more than one new applicant is required.
Current participation of qualifying members now delivers 71% coverage of the market. Inaugural MISC Mortgage Broking Data Pooling Membership. This is likely to increase as participation reaches MISC's Optimum Selected Pool Membership.
4. Report Coverage And Deliverables

A. National Broker Reporting Structure

For multi-state Broker/Aggregator groups, a State by State comparative reporting structure is provided which permits:

Efficiency benchmarking at a referral and customer level, and
Competitive benchmarking across the full spectrum of Broker groups (eg. Aggregator Franchisers).
B. Regional Broker Reporting Structure
For regional Brokers who function in a single state, a Regional Comparative Reporting Structure is provided, which enables targeting of field staff inputs to prospective growth areas.

C. Banks' Reporting Structure

Australia's key Banks involved in home lending through Mortgage Brokers have been involved in the design and development of the Facility. The Bank Reporting Structure that has evolved from this process has been designed so that the outputs facilitate on a state basis:

A detailed home loan product breakdown of the sector
A detailed customer profile state market measurement
A full financial institutional segmentation
5. The Scope And Complexity Of Undertaking A Mortgage Broking Statistical Collection
Measurement of the Mortgage Broking industry in Australia is difficult. In terms of a centralised measurement, the market regulator has no reporting requirements in place, and the feasibility of market measurement by traditional survey techniques is questionable as the market is highly fragmented and dispersed. Given that Broker distribution is handled by more than 2000 Brokers for which there is no accurate register, and considering further complications arising from the diversity of their Lending Panels (many Brokers have in excess of 20 lenders from Banks to Originators to Credit Unions), traditional research methods that rely on sampling become ineffective and cannot be utilised in a cost efficient manner.

The MISC Solution
If The Statistical Collection Is Both Bank And Broker Derived, It Provides The Perfect Combination - The Whole Is Greater Than The Sum Of The Parts

By themselves, Bank and Broker data sets are essentially incomplete for the following reasons:

Bank Broker data excludes loan business from other financial institutions
Broker generated data (excluding that from the larger more sophisticated Broker and Aggregators) in a practical sense excludes territorial analysis. Furthermore inconsistency of data fields between Broker organisations makes collation impractical and error prone.
This issue can be satisfactorily resolved with a jointly funded and contributed Data Pooling Facility which is the collective sum of data inputs from both the Broking sector and the key Banks who write loans through Mortgage Brokers.
Unique Inclusions From One Source:

The best mix of Bank-derived data includes full territorial dissaggregation
The best mix of Broker-generated data includes the full mix of financial institutional
The Union of Bank and Broker Supplied Data to the Facility Represents
a Powerful Data Set for Marketing Reporting
How the Fused Data Completes the Market Picture The Whole of Broker and Bank Supplied Data to the Pool

Bank Supplied Data
assists in the grossing up of Broker supplied data
fills in gaps in market data for Mortgage Brokers to the facility
includes data for non-participating brokers (inclusive of the Broker direct channel and smaller Aggregators)
validates Broker returns to the facility
Broker Supplied Data

gives banks Non-Bank Financial institutional new business Activity eg Originator, Credit Unions etc
validates Bank Broker new business flows
Broker generated new business compared to aggregate broker business flows

MISC has developed its Electronic Banking research programme as a means of critically assessing the growth of the market and providing concrete measurement of comparative product segments and forecasting their development. MISC provides ongoing monitoring of the more dynamic parts of this research whilst forming closer consulting relationships with each client.

Monitor 1: ELECTRONIC BILL PAYMENT & PRESENTMENT
Market Expansion, Channel Cannibalisation And Further New Product Development by Non-Bank Entrants Generates The Need For An Ongoing Monitor

MINTEL's existing Australian Bill Payment Market Model measures electronic and non-electronic bill payment, with yearly forecasts. Primary data is obtained from more than 100 vendors, representing $189.3 billion in revenue and $60.2 billion in cashflow by all vendors with some form of electronic bill payment and presentment method. This sample represents 10% of the Australia vendor universe but is greater than 60% of the cash flow they generate

Monitor 2: THE COMPETITIVE E-COMMERCE/BANKING ENVIRONMENT
This module is essentially a global quarterly measure of new products and corporate related developments that continuously are the subject of restructure and change. Their impact collectively rewrites the competitive landscape of all electronic channels on a 90-day basis. A trace of all new product development that have occurred across all channels both domestically and internationally is undertaken each 90 days and the corporate section of the monitor examines changes that are competitively inspired.

(A) New Technology Development Monitor

As distinctions between channels become more blurred by technology, which embraces multi functionality, restructuring of the existing channel framework follows on the heals of much technology change.

MISC provides an ongoing monitor and assessment of key technology developments drawn from global and domestic traces of all new technology initiatives across the electronic banking space

(B) Strategic Alliances, Consortia Development Monitor

A detailed 90-day update and analysis of key corporate events/alliances/mergers etc. in the Electronic Banking/IT/Internet and Mobile space with statistical projections of competitive 'value' to each subscriber.

Monitor 3: E-BANKING SITE RATIONALISATION/ EXPANSION MONITOR ie Australian Electronic Park

Monitor of ATM, EFTPOS & Kiosk Distribution

A detailed analysis of 90 day changes in the ATM, EFTPOS and Kiosk Banking competitive retail environment by company/institution, bank etc
On a state basis, 90 day assessments of the optimal correlative relationship between ATM, EFTPOS and Kiosk locations and transaction volumes
90 day ATM/EFTPOS/Kiosk transaction volume efficiency ratios by company/institution by Bank

Monitor 4: INTERNET UPTAKE & ATTITUDE MONITOR
No one factor can in fact be used to measure Internet Banking activity. Previously Internet site 'hit' measurements have proven unreliable and customer registrations often fail to reflect true usage or uptake. Hence MISC provides each quarter

§ A detailed 90-day update and analysis of Internet penetration in Australia.
§ A detailed 90-day update and analysis of Internet usage in Australia.
§ An analysis of movements in the Internet across 12 statistical popularity series - culminating in the MISC Internet Uptake Index
§ An ongoing comparison of Internet penetration and uptake between key overseas markets and Australia.

Internet banking Usage and Attitude survey results.
MISC has conducted 30,000 interviews, which not only traces both usage and profiles but also attitudes of Internet customers and establishes direct links between them.

Internet feature audit results reported on a quarterly basis for each of Australia's Internet banking sites review changing functionality for each site.

A Consumer survey of perceived feature values currently available on most websites as well as regular Internet functionality are regularly assessed.

MODULE 5: MOBILE PHONE BANKING PENETRATION FORECASTS AND MONITOR
The Mobile Phone Banking Penetration Simulation Monitor

MISC measures the potential market size of Mobile Phone Banking and projects these results by Bank and/or network. Two models with differing methodologies have been developed:

Forecast Model 1 - A Basic Approach:
A forecast of the registrations curve, based on previous empirical measures of trends in Internet Banking registration uptake to Internet Users. This penetration uptake is lagged by 17 quarters and applied to Mobile Phone users. This provides a view of registration penetration speed at critical milestones in development.

Forecast Model 2 - A Sophisticated Approach:
This forecast model uses the Internet Banking penetration history of total banking customer numbers by Bank, and applies this ratio to the number of technology capable mobile customers for each bank by mobile carrier. Accordingly, adjustments are made to allow for WAP handset penetration and Phase Two handset capabilities in instances where the service uses either of these technologies. All alliances are then identified, therefore isolating any potential customer segments that are inaccessible.
Accounting for potential anomalies, this model produces a more conservative outlook of Mobile Phone Banking than compared with Forecast Model 1. As the model is built on Bank and carrier data rather than the industry collective, projected market shares are capable for either. Furthermore, additional 'what if' scenarios can be undertaken to determine the effect of differing alliance and/or technology structures.
The model is refined and updated each quarter with the addition of newly identified alliances, further Internet Banking, technology penetration and Mobile Phone carrier data. Finally, MISC predicts likely transaction activity by Bank by applying historic transactions per customer ratios. Accordingly, forecasted market shares of transaction throughput are also presented.