Grow Deposits with FIS Digital Account Creation. Lynn Jordan April 11, 2017

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1 Grow Deposits with FIS Digital Account Creation Lynn Jordan April 11, 2017

2 Expectations are rising The Competitive Landscape Is Changing Institutions are challenged with: Protecting customers from the emerging threat landscape Providing tailored, personalized experiences Delivering on expectations for real-time Creating data-driven connections and value across converged channels Driving new revenue streams Increasing engagement and loyalty 2

3 Our Vision Provide industry-leading digital solutions that keep our clients competitive and relevant with the top financial institutions Drive Innovation and Expand Digital Capabilities Grow Sales and Increase Engagement Enhance Security and Reduce Fraud Expand Real-time Offerings Enable Data-driven Marketing and Analytics Create Operational Efficiencies 3

4 FIS Digital Drives Growth Annual Grow th 102% CARDLESS CASH 80M+ DIGITAL USERS * 136% PEOPLE PAY (P2P) 28% CHECK DEPOSIT *Includes Mobile, Online and epayments Clients (Q3 2016) 4

5 Grow Deposits with Digital Account Creation Account Creation: a deposit acquisition platform for the digital channels FIS client perspective: client panelists Vilmarie Gaud, Vice President, Product Development Director Popular Community Bank, Popular Direct Curt Trizzino, Retail Product Management The Private Bank Discussion 5

6 Over 50% of Consumers Use Digital Channels to Open Deposit Accounts Consumers who shop in digital channels, expect financial institutions to provide all the information they need to choose products and apply for new accounts in digital channels. 6

7 Digital Account Creation Full-featured solution for deposit acquisition in self-service channels Allows customers to easily apply, open and fund new deposit accounts through your public website Supports checking, CDs, savings, money markets and health savings accounts Applicant information is screened and verified for CIP information. Applicant can be screened through debit bureau and credit bureau based on your requirements. Customers can fund the new account through card transactions, electronic ACH transfer, check or direct deposit. Includes a Fast Path for your current customers Significant level of integration with the FIS core IBS New responsive design user interface expands your reach into all digital channels 7

8 Success in Digital Account Acquisition Includes Sales and Marketing Strategies Account creation is the third step in the process. 8

9 Digital Marketing Is a Critical Stage of the Process Successful FIs are investing more every year Your deposit acquisition strategy needs to include a digital marketing strategy. We recommend visiting a variety of FI websites to see how others are presenting their product offers. Prospects should be directed to your website from a digital search. Google checking account for a state in your footprint to see your competition. If you are expanding into Digital Account Opening with Responsive Design, your sales pages on your public website will need to be in Responsive Design for those shoppers that come in on their phones. 9

10 The Digital Account Opening Process User experience is different from the branch account opening process The process needs to be different from branch account opening. Why? The customer s attention is easily lost. Using a laptop, or a tablet or a phone is different than sitting in a branch bank. Your prospective customer can easily slip away if: The process is too long or hard to navigate Questions seem intrusive or irrelevant The product offer seems overly complex They feel uncomfortable or confused by the process Regulations allow for a paperless process. Non-documentary verification of CIP information esign acceptance of disclosures Signature cards not required when other processes are in place The most successful clients do not confine themselves to traditional assumptions and processes but focus on building the best possible user experience. 10

11 FIS Can Help You Design an Experience that Will Meet the Expectations of Your Prospects When you are implementing your Digital Account Creation experience, it is important to make branding and configuration choices that will provide a streamlined customer experience. Your public web site is critical to the sales process. You may need to refresh your public website to move the customer easily into the digital account opening experience. Forrester recommends, when designing the account opening process Reframe the discussion around the customer rather than internal operations. Use Journey maps help employees adopt an outside-in perspective and understand how their individual actions can collectively result in poor customer experiences 11

12 Why Is It Important to Keep It Simple? 12

13 The Account Creation Process Starts after the customer has selected a product Information Gathering Applicant Screening Funding the Account Account Opening Applicant enters information for application phase. Selects product options ATM cards, checks, overdraft protection, etc. Reviews and accepts disclosures electronically Immediate identity verification (IDV) with OFAC screening Out-of-wallet questions (IDA) QualiFile screening ACH funding with immediate account validation or test transaction validation Check funding Card funding credit and debit cards Customer record is created and account is opened in deposits. New account information is given to the customer. 13

14 Be Prepared for Some Customers to Switch Channels UX Digital User Interface Complete application and accept disclosures Full evaluation of the applicant from identity verification to product qualification Funding the account - multiple options and safeguards New account opened and delivered online. Activation of online and mobile servicing Banker Action Options Account Creation Admin Tool with Login from Insight Banker can pick up failed applications, override the failure, and return them to Digital Channels to complete Abandoned Failed Pushed Deposit Origination Work Queue Integration to IBS Deposit Origination * All OAC data is sent into the BIC OAC Universe each night 14

15 Digital Account Creation It s here! The new Responsive Design User Experience expands your market reach to tablet and phone users. 15

16 Deposit Account Opening on Account Creation Platform User experience options to support your sales strategies Online Account Creation PCs and Tablet Browser Digital Account Creation All Device Sizes Browser AND Mobile Account Opening Phone App Pilot 2017 Complete application and accept disclosures Full evaluation of the applicant from identity verification to product qualification Funding the account: multiple options and safeguards New account opened and delivered online. Activation of online and mobile servicing SINGLE ACCOUNT CREATION ADMIN TOOL FOR ANY UX INTEGRATION TO Your FIS Core Deposit System FOR ONGOING SUPPORT 16

17 Mobile App Account Opening Roadmap: Mobile integration options (pilot 2017 Q2) Phase 1 (early 2017) Leverage mobile responsive UI from OAC platform, integrated to mobile banking app Phase 2 (proposed TBD) SSO for existing customers to fast path OAC user experience Phase 3 (2018 target) Add functionality that allows for data capture from a photo of the ID 17

18 FAQ: How Many New Accounts Can We Get? From Javelin Research A large regional bank reports tremendous year-over-year growth in online account opening for checking after upgrading its digital account opening capabilities, but we re not quite at the one-third mark. An FI s size is a horrible predictor of digital account opening success. The most successful FIs are the ones that emphasize digital account opening. Banks that succeed in online opening are the people who put a focus on it; one FI might be successful, while others struggle because marketing support is weak. You still have to drive awareness and interest before you get clicks. FIS observations Success in account acquisition in the digital channels is driven by the FIs ability to bring qualified, motivated people to the start of the process. The most successful clients are those that work at it all the time, adjusting the process to maximize their results. Success metrics will be driven by the strategy and don t look the same for every FI. 18

19 Our Client Panel

20 Popular Direct Savings Made Simple. Vilmarie Gaud Product Development Director Popular Community Bank 20

21 POPULAR DIRECT Popular Direct Background Savings Made Simple. About Popular Direct Popular Direct is the direct online channel of Banco Popular North America (Popular). Processing services for all Popular Direct deposit products are provided by Popular. Banco Popular North America is the U.S. banking subsidiary of Popular, Inc. [NASDAQ:BPOP], a publicly traded, full-service financial services provider in the United States, Puerto Rico, and the Caribbean. Founded in 1893, Popular, Inc. is the leading banking institution by both assets and deposits in Puerto Rico and ranks among the top 50 U.S. banks by assets. Popular Direct Launch Launched in July 2016 Nationwide High Yield Savings and CDs No access to Popular branches New IBS instance OAC, CeB, Mobile Banking FIS VRU FIS Call Center and Virtual Back Office Mix of processes managed by FIS and Popular Marketing Website designed based on User Needs and Personas assessments Marketing efforts Advertising campaign at launch SEM Bankrate 21

22 POPULAR DIRECT Goals vs. Results Savings Made Simple. Application Volume Since launch we ve received over 10,000 applications Over 4,700 accounts have been opened 281% of goal 47% were completed, 35% of account opening applications were abandoned, and 15% failed. Other Trends APPLICATION VOLUME 17% of accounts from CA 12% of accounts from NY 10% of accounts from FL CD products preferred by older customers High yield savings products preferred by younger customers 6,000 5,000 4,000 3,000 2,000 1,000 0 Qtr3 Qtr4 Qtr1 Ineligible In progress Failed Complete Abandoned ,500 3,000 2,500 2,000 1,500 1, PRODUCT DISTRIBUTION Qtr3 Qtr4 Qtr C S VA PA NY MD IL FL Other States ACCOUNTS BY STATE

23 POPULAR DIRECT Next Steps Savings Made Simple. Customer Centered + Business Viable + Operationally Feasible Lessons Learned Direct bank ecosystem is crowded and highly competitive Do not underestimate the effort of launching and maintaining a new bank Relentless focus on customer centered processes Next Steps Continue using a funding lever Continuous process optimization Pricing discipline Testing playground 23

24 CURT TRIZZINO RETAIL PRODUCT MANAGER

25 Who is The PrivateBank? Middle Market Commercial Bank headquartered in Chicago, IL 36 Offices Concentrated in the Midwest 24 Retail Branches 20 Billion in Assets 1300 Employees

26 How We Use OAC Initially Launched in 07 Palladian PrivateBank Fund Commercial Loan Growth Launched 2nd Instance of OAC in Q3 16 myprivatebank & Advantage Banking Cater to employees of new and existing businesses Build on strong existing partnerships How did we manage two different OAC platforms? Partner Banks High Level of Customization Marketing Pages OAC Platform Products 26

27 Palladian PrivateBank We had a unique need to fund commercial loan growth Created in 2007 Separately Branded Offers High Interest Savings and CD s Online Only Nationwide 6 Mo Rate Promotion 900 Clients 135MM in Deposits 155k Avg. Bal 27

28 myprivatebank A vision to provide retail banking services to employees of new and existing businesses Rolled out in Q4 16 Pilot Program Onsite Concierge Invitation Only ipad Account Opening 60 Clients 100k Bal 28

29 Advantage Banking A vision to expand in our retail markets to employees of new and existing businesses Revamped in Q3 16 Onsite Assistance Invitation Only Open Online or In Branch 150 Clients 550k Bal 29

30 Lessons Learned Customer Service Rate Wins Automation High Touch Follow Up Dedicated Team Reporting Differentiation 30

31 Transformation Palladian Analytical Marketing New Exciting Offers Full Service Digital Bank myprivatebank Tech First Customized Offers Relationship Based General Account Opening 31

32 Discussion

33 What s Next Join us at the following session Session 1103 Wednesday 10:30 AM Digital Transformation: Strategies & Solutions for a New Banking Paradigm Speakers: Susan Hawkins and Doug Peacock Visit us in the Solutions Expo Digital Account Creation kiosk 33