Real-Time Payments for P2P

Transcription

1 Real-Time Payments for P2P. Eric Foust Director of Market Solutions, Early Warning Mike Wolf VP, Retail Payments Product Development, Fifth Third Bank When Money Moves, Life HappensSM All trademarks Warning Services, LLC. All Rights Reserved. referenced in this material are the property 2017 of theirearly respective owners. 1

2 Real-Time P2P Landscape Explaining the why Zelle Agenda Process flow Customer feedback EarlyReserved. Warning Services, LLC. All Rights Reserved Early Warning Services, LLC All Rights Presented at 2

3 Real-Time demand is here for the growing P2P landscape Smartphone adoption rates at 77% allow for continuing growth in P2P accessibility. Up from 35% in In a single year, between , the digital P2P payments market grew 47%2 Aite Group report estimates that by the year Digital P2P payments market will be valued at $316B.44% of American consumers with a bank account will be using mobile banking.35% of American consumers with a smartphone will use it to make a P2P payment 1 Source: Mobile Fact Sheet 2017, Pew Research Center, Internet & Technology Source: Digital Person-to-Person Payments inllc. the U.S.: A Strong Growth Game, Aite Group, March 2017 Early Warning Services, All Rights Reserved. 3

4 Why Now? Why are Real Time Payments so important? 9 out of every 10 P2P transactions sent by our customers not on 53 platform Intermediaries were serving our customers Fifth Third s focus with Fin-Techs as an opportunity not a challenge Utilize cutting edge technology to deliver services our customers demand Finalta also reported that Fifth Third lagged far behind the P2P average usage of national and peer Banks1 Millennial focus as the generations transition Millennials use money differently they like cash, P2P and debit Still trust Banks, capitalize by delivering a industry leading platform in an area of high usage for this generation Generation s strong demand of real-time transactions, why does it take 3 days to post? They want it now.. Future of Payments Challenge the norms, old products may not fit anymore, times have changed Banks, must change to remain relevant Zelle P2P is a foundational strategy, and we look forward to the experiences we can bring our customers 1 Source: Finalta Mobile Study, June

5 Zelle : Brought to you by Early Warning 5

6 Zelle Technology, Network, Brand Technology Network Common Brand Real-time messaging, centralized alias-based directory, and network fraud risk management Operating Rules define agreements and interactions for real-time payments, disputes, settlement and the use of network branding and infrastructure One recognizable, consistent consumer brand to give people confidence that their money will move easier, faster and safer 6

7 Zelle Network Faster Funds P2P Example In-Network to In-Network Experience USER EXPERIENCE REAL-TIME MESSAGING BANK-TO-BANK SETTLEMENT Cindy SENDS Paul $34.00 Debit Cindy s acct. $34.00 Message Zelle Network Funds moved to settlement account Message Cindy Completion Paul RECEIVES $ IN MINUTES Using Zelle $34.00 Messages Messages Bank A Zelle Participant Bank B Zelle Participant Bank A Settlement Account Bank B Settlement Account Credit Paul s acct. $34.00 Message Paul Funds Rec d Message Zelle Network ACH $34.00 to Bank B ACH 7

8 Customer Experience So Far: I I use this app daily. I pay bills, check my accounts, transfer money, etc. - IllusiveRaven, August 17 Paid by Chris July 8th I was really excited to have Zelle in the app, because nobody likes waiting days to get paid New! by Richard June 27th I never thought banking could be this good. "Like it because I'm able to move my money around. In case my daughter needs money in a hurry I can get it to her." - Maria, August 17 "Love love love this app. Real time money transfers at any time. Easy to use." - Sam, August 17 Love By Ally July 5th Love that you added Zelle payment!! Made it easier to send and receive money from my mother. 8

9 Customer Experience So Far. Money Moving Fast! Fifth Third customers sent or received over $38.5 million dollars since inception in June All with little marketing support and the Zelle marketing push still to come Operationally Speaking Working to mature our support and interact with other FIs as the network grows and advances Millennials It s still early,venmo still has great relevancy to this generation While fast to adopt, we are seeing some resistance to change. Marketing will help shape generation s view of platform Then watch out! Growth will be exponential.. 9

10 PA RT I C I PA N T S 10

11 PA RT N E R S PROCESSORS TECHNOLOGY PARTNERS 11

12 Eric Foust Director of Market Solutions Early Warning Contact Us Mike Wolf VP, Retail Payments Product Development Fifth Third Bank 12