Re-imagining Personal Banking Driving Behavioral Change via Mobile. Mohamed Khalil Director of Product, Data & Partnerships

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1 Re-imagining Personal Banking Driving Behavioral Change via Mobile Mohamed Khalil Director of Product, Data & Partnerships

2 Technology Impacts Behaviors DATA Storage Retrieval Transmission COMPUTATION Processing Analysis Insight DECISIONING Context Choices Action

3 New Ways to Stay Fit

4 New Ways to Get Around

5 New Ways to Find Love

6 There s Almost Always an App for That When was the last time you couldn t find your way? name a song? check on a flight? get the best price? choose a restaurant? etc.

7 But What about Banking?

8 What is the behavior change we re trying to drive?

9 Eliminating Coupons?

10 Eliminating Wallets? Just paid our taxi with Paypass and didn t have to pull out my wallet. Loved Caldwell

11 Eliminating POS?

12 ELIMINATING FRICTION?

13 What kind of change? In a perfect world you would buy everything at a discount without a physical wallet/purse and without having to check out

14 No one. Ever. I really wish it were easier for me to spend my money.

15 Millennials Aren t Impressed

16 And They Don t Expect to Be

17 So What is the real Need? Tough financial times for Millennials in the US Average debt $45,000 Avg. credit cards 3 Unemployment 12.4% Live with their parents 24% Don t pay bills on time 42% No cash savings 70%

18 Can it work the other way?

19 Moven is Re-Imagining Personal Banking What we will do Transform the retail bank account into a primary financial app customers engage with 3-5x daily What customers will say Moven makes managing my money as easy as spending it. It helps me make smarter spending decisions and motivates me to save. There are currently no other bank, payment, or personal financial management experiences out there that are positioned in this way.

20 Moven is Re-Thinking the Bank Business Model Traditional Banking Model Revenue driven by punitive fees High fixed costs (branches, checks, legacy systems) makes customers unprofitable Our Business Model The Moven Difference Revenue driven by added value service Mobile-centric platform (just an app) dramatically reduces cost to serve, highly scalable Changing the Business Model of Basic Banking Convenience and Rate Insight and Control $250 or more cost per acquisition $25 or less cost per acquisition Technological laggards with mobile and social technologies Saddled with legacy customer base Mobile-first design, direct social integration, gamification and payments focus Targeting next gen customers

21 The Phone as Your Account The Bank Account Switch banks because we re better! Rate, Rate, Rate More Branches Lower Fees The Mobile Account Download the app and spend smarter! Spend Smarter Save More Live Better

22 The Phone as Your Account Download the app, use debit card or contactless sticker Get instant feedback with every purchase Send money easily with social integration Track spending across all accounts

23 How Moven Works Today Customer Customer Experience and Money Management Platform Bank Partner and BIN Sponsorship Payment Processor Network Partner Technology Partners Bill pay Future: Biometrics, etc

24 Go Behind the Curtain Play Games to Build Confidence still behind the curtain for now

25 Mobile Drives New Behavioral Patterns Control (choices) Context (insights) Advice (wisdom) Action (fulfillment)

26 The Old Way of Getting Around

27 The New Way of Getting Around Control: What Can I Do Context: Where Am I Advice: What Should I Do Action How do I do It

28 Understanding the Driver

29 We are all just monkeys with money Tom Waits A crucial fact is that the human brain is basically a mammalian brain with a larger cortex. This means human behavior will generally be a compromise between animal emotions and instincts, and human deliberation and foresight. C. Camerer (Cal Tech), G. Loewenstein (Carnegie-Mellon), D. Prelic (MIT), 2004, Neuroeconomics: Why economics needs brains. Scandinavian Journal of Economics, 106(3),

30 The Biological Basis of the Human Behavior Rational Thought Immediate Rewards The limbic system is dopaminergic, meaning it responds to reward-motivated behavior and stimuli.

31 Dual Self Model of Decision Making Short Run Self A series of sequential selves all focused on the immediate Long Run Self Plans, prepares and optimizes for long term utility and happiness Our theory proposes that many sorts of decision problems should be viewed as a game between a sequence of short-run impulsive selves and a long-run patient self. Drew Fudenburg (Harvard U.) and David K. Levine (Washington U.), 2006, A dual-self model of impulse control. American Economic Review, 96(5),

32 Riding the Elephant The image that I came up with was that I was a rider on the back of an elephant. I m holding the reins in my hands, and by pulling one way or the other I can tell the elephant to turn, to stop, or to go. I can direct things, but only when the elephant doesn t have desires of his own. When the elephant really wants to do something, I m no match for him. Dr. Jonathan Haidt, (University of Virginia), The Happiness Hypothesis, 2006, p. 4, Basic Books: New York.

33 So How Do You Design for Success? Control: What Can I Do Context: Where Am I Advice: What Should I Do Action: How do I do It

34 CONTEXT: Where Am I? EFFORTLESS MEANINGFUL Data Collection Transaction Categorization Right Level of Insight Individual, Peer & Benchmark

35 CONTEXT: Where Am I? AND ABOVE ALL SIMPLE

36 CONTROL: What Can I Do? PERSPECTIVE EMOTIVE Short Term vs. Long Term Alter Perceptions of Time Social Commitments & Life Events Make Marginal Decisions Emotional NOTE: The rider may be compelled by logic or emotion, the elephant, however, is purely emotional. To engage the elephant, the imagery of future goals must evoke emotion.

37 CONTROL: What Can I Do? AND MUST BE PREDICTIVE!

38 ADVICE: What Should I Do? TRANSPARENT ALIGNED Clarify True Cost of Action Highlight Tradeoffs Required Offers, Discounts & Rewards Product & Merchant Recommendations

39 ADVICE: What Should I Do? AND ALWAYS TRUSTWORTHY

40 ACTION: How Do I Do It? FRICTIONLESS SOCIAL Moment of Pause Or Instantly Actionable Status & Achievements Goals & Milestones Engagement should accommodate different states of social transparency.

41 ACTION: How Do I Do It? Bad Behaviors Good Behaviors Pre-Commit to Fewer Temptations AND CAREFULLY ARCHITECTED! Increase cost Reduce rewards Make harder Reduce costs Increase rewards Make easier

42 Mobile is the Opportunity to Differentiate Mobile enables differentiated experiences that Directly address a segment s financial concerns Create an eco-system of lifestyle solutions Establish an ongoing dialogue with the user Mobile measures success based on users Feeling empowered to behave effectively Actually improving their finances or lifestyle Trusting the provider by accepting the advice

43 The Journey s Just Begun

44 Thank You! Mohamed Khalil Director of Product, Data