Intelligent Payment Management for Today and Tomorrow Technology Advancement to Navigate the Converging Payments Landscape

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1 Intelligent Payment Management for Today and Tomorrow Technology Advancement to Navigate the Converging Payments Landscape

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3 Adapting to the Evolution of Payments The payments industry has evolved extensively over the years due to a disruptive mix of regulatory changes and new payment choices. Driven by instantaneous market purchasing behaviors, emerging technologies and increased competition, this landscape is shifting across all payment channels. Financial institutions are now challenged more than ever to meet customer expectations for right now, on my terms, payment options. And, the truth is, if you do not meet those expectations, your competition will. Addressing both the acceleration of payments and the growing need to process them more efficiently, Fiserv has developed a new modernized approach within our payments core competency. With more than 30 years as a leader in financial services technology, Fiserv is driving the technology and processes to help our clients thrive in this new payments marketplace. We are creating capabilities that blend integrated payment data into a single, configurable platform that spans all payment types and channels in order to meet today s challenges and tomorrow s possibilities. This robust approach promotes process integration across the enterprise, allowing banks the flexibility to leverage intelligence from different payment sources with common services, all in a real-time environment. The Market Drivers of This Payments Processing Shift Evolving payment instruments, different customer segments and new technologies are converging to rapidly shift the payments marketplace. As a result, customer information regarding and surrounding the transaction has become an extremely valuable commodity. Non-traditional players are entering the payments market with a concentrated focus on recording and understanding the information regarding the financial event. This data including location, environment, method of payment and frequency is enabling these new payment providers to create personalized, user-friendly payment experiences that match each customer based on their preferences, purchasing habits, purchasing instruments and product satisfaction. This data mining occurs for both consumer and business buying practices, putting financial institutions competing for customer attentions at a distinct disadvantage. At the same time, customer demand for both timeliness and transparency is only escalating. These expectations are forcing both traditional and new payment providers to adapt to the payment evolution. Institutions must find flexible, cost-effective ways to ensure operational quality for today and scalability for tomorrow. Often, an institution s current payment environment consists of legacy systems that are cobbled together over time. This scenario is expensive to support, does not offer actionable insight as new payment behaviors emerge, and is nearly impossible to upgrade in order to address and capitalize on those evolving behaviors. In the new payments world, this will not suffice. Today s payment structure must deliver near real-time payment vehicles that integrate innovative approaches and enhanced experiences as consumer and business market demand dictate change. And, institutions must learn to adapt and grow the payments franchise across their enterprise in order to thrive in the new payments reality. 3

4 The Challenges With Today s Payment Infrastructure Within the Bank Integration of data and processes do not necessarily exist within the current solution framework. Flexibility and market segmentation have also become cumbersome in traditional product development processes. And, speed to market of new product innovation is always a challenge and that challenge increases exponentially when trying to understand and anticipate new or evolving payment behaviors. While these concepts are not new to bankers, it bears acknowledging some of the formidable challenges that financial institutions must overcome to compete in oday s payments marketplace. New Market Capabilities Lead to Relationship Transformation Players such as PayPal, Amazon, Apple, Google Wallet and Venmo are redefining the digital payments landscape. Their ability to offer positive and repeatable customer-centric experiences with intuitive navigation, purchasing options and value-added information creates a stickiness for customers. In effect, these payment methods intercept bank customers and pull revenue away from financial institutions in the form of transaction volume, fees and interest earning assets all while using the institution s payment rails and providing the illusion of safety to consumers and businesses. Further, once the customer has engaged in these payment methods, the acquisition of valuable payment experience information provides customer intel that enables the company to immerse itself into the life of its customers. Armed with this deep understanding, these companies have mastered the art of creating a customer experience that perfectly suits today s digital consumer or business. For the most part, financial institutions are simply not equipped to focus that level of attention on data acquisition or analysis. Fast Is Not Fast Enough Today s payment landscape is evolving to keep up with the customer s expectation of instant gratification. And fast encompasses the entire experience: the movement of the payment, the interaction of new features, the robustness of the experience, and the deployment of the technology. Everything about the solution must be faster than it is today. This meteoric shift is happening faster than most banks can respond. A Payment Modernization Strategy: Integrated Payments Delivery At the deepest level, our modernization strategy is singularly focused on helping our clients rapidly embrace new payment capabilities that enrich relationships with their customers. In order to bring this to realization and to drive innovation that meets demands for today and tomorrow, new parameters for measuring success will need to be considered, including: feature depth and richness; capabilities addressing wide-range market segments; utilizing new and more efficient technologies, and delivering new innovations in a timely manner. At the same time, we recognize, embrace and will continue to leverage our legacy payment systems and supporting applications, including ACH, check, card, wire and cash as a part of our strategy. We also understand that the key to success in this new marketplace is in establishing the relationship between the payment instruction and the purpose the user data present and resulting from completing the transaction. Understanding today s digital consumer and business users is key to our agile strategy to payments. 4

5 Our modernization strategy will be a game changer for financial institutions, helping to create the payments experience their customers demand. It promotes ease of use, data integration and the elimination of redundancy of payment processes and delivery by compartmentalizing the environment into an integrated payments epicenter. This strategy creates natural integration connectivity between payment types and enables speed to market to meet present and future market demands. Our strategy utilizes four major pillars of excellence in driving function and innovation decisions regarding product development: Business Agility: The ability to generate new revenue streams or increase margins; consolidate configurable business rules; and to quickly introduce and connect new payment methods, channels and products Customer Service: By offering a single, enterprisewide view of customers, a consistent customer experience is delivered across all payment channels; there is payment transparency for all customers; and an automated integration with clients internal systems Operational Efficiency: We can reduce operational complexity by centralizing logic and providing rules driven processing; we can increase straight-through processing rates for all payment instruments; and reduce costs through the elimination of redundant tasks and systems Visibility and Compliance: By integrating all payment channels into a single set of risk control tools, we improve controls, resilience and recovery by sharing data enterprise-wide A Payment Modernization Strategy: Keys to Success Integrated Payments Delivery Intelligent Payment Management Business Agility Customer Service Operational Efficiency Visibility & Compliance Consumers and Businesses Integrated Digital Payment Experience Real-Time Payment & Information Introducing Intelligent Payment Management With an intelligent payment management approach, Fiserv brings together a collection of interoperable payment products offering immediate value to the financial institution. This collection enables our clients to drive deeper relationships with their customers while rapidly responding to evolving payment demands across all payment types and channels. Each product incrementally delivers on the goals of improved visibility and compliance, risk mitigation, revenue generation, customer service, operational efficiency and business agility. And, as the product roadmap evolves during the modernization process, we prioritize and deliver new payment products that provide immediate benefit and allow the entire payments platform to mature into an integrated, comprehensive solution set for payments management. ACH Payment Channels Check Debit Card Wire New Diverse Data Sources Digital Payment Community Credit Card 5

6 Intelligent payment management delivers the flexibility to leverage intelligence from different sources with common services, all in a real-time environment. The approach blends integrated payment data in a flexible, more efficient manner through process integration. New technology that renovates and complements existing mission critical systems in an operationally risk-managed approach drives payments efficiency. The payment solutions streamline current payment processing through a capabilities-oriented, holistic set of services. This is critical for institutions trying to balance the need to enhance the payments experience while maintaining operational budgets. Data integration from disparate sources, through sophisticated connectivity methods, provides for unique and focused applications. Intelligent payment management solutions reduce redundancy of core and peripheral support applications while protecting your existing investment as product migrations occur into a single converged payment environment. The Future of Payments Processing Our intelligent payments approach is designed to help institutions meet the evolving demands of today s payments marketplace, while preparing for tomorrow s challenges. Support for Multiple Payment Types Integrated payment solutions from Fiserv support the ability to process payments uniquely, with capabilities to apply common processes where appropriate, and to differentiate as needed. Canonical data formats are supported, with the ability to apply unique payment-type rules based on agreed-upon payment characteristics. This support also includes a transparent integration with your core banking applications. Business Validation to Drive Innovation Our solutions and payments approach drive consistency for business validations by offering the ability to integrate with both internal and external validation services. This provides uniformity in identifying exceptions across payment types. Business Rules and Workflow Creation are driven by configurable parameters within the system. Rules are organized around the major processes of import, regulatory compliance, data fulfillment, automated decisioning, exception identification and resolution through the distribution and collection of money movement activities. Reporting and Research support supplements the entire solution regardless of what portions of the system are installed and in what sequence you deploy. Payment Process Monitoring We enable centralized end-to-end monitoring of payments processing that is vastly more achievable, driving more efficient operational and exceptions management while virtually eliminating legacy manual or semi-manual monitoring. Generation of alerts and notifications, and the creation of trending data help to further promote efficiencies and a customer-centric operation. Our solutions provide for monitoring the entire payment infrastructure regardless of who built the payment component or where it resides in the process. Complete visibility and understanding of current status of all exceptions at any point in the process is just one example of total visibility to the financial institution. Fraud Risk Management We deliver an intelligent risk mitigation environment offering deeper intelligence with improved controls, resilience and recovery by aggregating various data sources into the integrated delivery platform. This enhances the user experience in efficiency, accuracy, and completeness of data. And, by integrating all 6

7 payment channels, the solution provides a single set of risk control tools for fraud prevention, anti-money laundering, compliance initiatives, and more. All risk types are addressed, including: operational, financial, regulatory and reputational. Behavioral predictive and prevention features are also integrated into the solution set. Further, the solution s infrastructure provides for integration of any fraud detection system, regardless of the provider or where the component resides. Agility and Time to Market Our solutions integration enables improved analytics to monitor and predict evolving market driversand client behavior. Further, one integrated system significantly improves time to market for new product and service offerings. The Reduction of Processing Delays Our integrated payments approach drives earlystage identification of processing exceptions, which in turn, provides consistent resolution of transaction exceptions across all payment types prior to reaching core applications. Payment processing is optimized via centralized profiles and policies, promoting a manage once, use many approach across payment types. A Self-Service Portal for Commercial Customers We deliver self-service capabilities to commercial customers, including the ability to import and reflect feeds from core applications, including e-banking platforms. This portal provides a single view, real-time status on critical transactions across multiple payment types, enabling your clients to resolve numerous data related issues in a timely manner. Centralized Customer Disputes/Adjustments Fiserv believes that a common platform to address exceptions, disputes and adjustments across multiple payment types is the most efficient way to deliver operational efficiencies and exemplary customer service. By centralizing the processes, alerts are recognized early in the process, allowing the application to auto-resolve in some situations. Further, clients can leverage payment data and integrate with independent sources, including existing core applications. This intelligent payment management approach also enables the ability to offer self-service customer capabilities to create dispute requests. Intelligent Routing of Payments Our integrated approach enables rules-driven routing to distribute and settle payments in the most optimized manner. Intelligent routing also enables the conversion of one payment type to another as the bank s or customer s business rules dictate. Customer Information Payments integration eliminates the duplication of customer information across payment types. This facilitates a better customer experience and the ability to share customer information across payment channels and applications. Online Storage Payments integration provides comprehensive online storage and access to valuable data, enabling powerful online research capabilities for customer or trend analysis. Workload Balancing With an integrated payments approach, redundant application services allow distribution of work and resilience. Common processes, multiple landing zones and unit of work definitions and policies drive efficient payment processing across payment types. 7

8 Fiserv Is Ready to Meet the Payment Challenges of Today and Tomorrow Fiserv empowers clients to capitalize on the future of the payments evolution. We equip you to embrace change by helping you navigate the emerging payment environments and regulations, understand how they impact you and your customers, and thrive in the new payments marketplace. Our intelligent payment management approach is positioned at the center of this evolution, where the real-time exchange of information and money movement is vital for innovation, speed, and responsiveness. Key Benefits Intelligent Payment Management offers enterprise-wide operational benefits to institutions, including: Business agility that allows you to quickly introduce and connect new payment methods, channels and products Generate new revenue streams or increase margins Customer service improvements through a single, enterprise-wide customer view Consistent customer experience across all payment channels Payments transparency for all customers Reduce operational complexity by centralizing logic and providing rules-driven processing Increase Straight-Through Processing (STP) rates for all payment instruments Cost reduction though the elimination of redundant tasks and systems Visibility and compliance through the integration of multiple channels into single risk control tools Improve controls, resilience and recovery by sharing data enterprise-wide Connect With Us For more information about Intelligent Payment Management, call , getsolutions@fiserv.com or visit 8

9 About Fiserv Fiserv is driving innovation in Payments, Processing Services, Risk & Compliance, Customer & Channel Management and Insights & Optimization, and leading the transformation of financial services technology to help our clients change the way financial services are delivered. Visit for a look at what s next now.

10 Fiserv, Inc. 255 Fiserv Drive Brookfield, WI Fiserv, Inc. or its affiliates. All rights reserved. Fiserv is a registered trademark of Fiserv, Inc. Other products referenced in this material may be trademarks or registered trademarks of their respective companies COL 08/15