CLOSING < <
PAYMENTS INDUSTRY BY THE NUMBERS These statistics are indicative of a definitive shift that s taking place in the payments market: 1/3 of retail banking revenues will go to new non-bank players by 2020 1 13 real-time systems have been built over the past decade, with six developed in the past three years alone 2 780 trillion dollars is the 2023 estimated value of noncash transactions 3 1 Retail Banking 2020 Evolution or Revolution? - PwC 2 Immediate Payments Seizing the Customer Opportunity - Accenture 3 Global Payments 2014 Capturing the Next Level of Value - The Boston Consulting Group CLOSING 02
THE RISK OF Taking advantage of these trends means continually driving forward with innovative projects and technology. However, if financial institutions and processors fail to move away from the status quo, competitors will have easy access to customers, widening the Competitive Opportunity Gap. CLOSING 03
For decades, you could adapt your existing technology to meet customer and market demands. Payments Market Predictable & Steady Managed Continuum 1980 2000 You Are Here 2015 2020 CLOSING 04
But today, volatility has taken hold. New channels, regulations and other changes are making the payments market unpredictable. Rate of Change Payments Market Predictable & Steady Managed Continuum 1980 2000 Mobile Regulations Any-to-Any Payments Non-bank Competitors Real-time Payments Customer Experience You Are Here 2015 2020 CLOSING 05
If you continue to rely on your existing payments systems environment, you ll fall farther and farther behind your more innovative rivals, increasing the Competitive Opportunty Gap. Rate of Change Payments Market Predictable & Steady Managed Continuum You Should Be Here You Are Here Mobile Regulations Any-to-Any Payments Non-bank Competitors Real-time Payments Customer Experience You Could Be Here 1980 2000 2015 2020 Competitive Opportunity Gap CLOSING 06
BUT WHAT IF YOU COULD...... quickly close this gap and level the playing field without disrupting your current payments environment?... bring new products and services to market faster and more efficiently?... find a solution that solves strategic, operational and financial goals to lower TCO and improve top line revenue? With more than $1 trillion in payments-related revenue growth, as well as the increasingly rapid development of digital technologies anticipated over the next ten years, banks have an enormous opportunity to increase revenues. 1 1 Global Payments 2014 Capturing the Next Level of Value - The Boston Consulting Group CLOSING 07
Retail Payments, featuring BASE24-eps 2.1 is an enterprise class payments solution now available on Linux/x86, enabling innovative payment solutions at a much lower total cost of ownership, while maintaining high levels of performance, scalability and reliability. THIS SOLUTION WILL HELP YOU: adapt to meet constantly changing customer, regulatory and technology demands. compete against technologically sophisticated startups by bridging your current payments system with next generation technology. establish an enterprise-wide view of customers for cross-selling and upselling. provide a consistent experience across all channels, devices and payment types. reduce operating cost by moving to lower cost hardware and reducing customizations. LET S LOOK AT THREE WAYS THAT ACI CAN HELP. CLOSING 08
THE BARRIER: COMPLEXITY THROUGH CUSTOMIZATION Your payments environment has served you well over the years. However, adding new channels, devices, regulations and other customizations have resulted in layers of complexity and business and system silos that could mean: a slower time-to-market the need for more staff an inconsistent experience for your customers CLOSING 09
THE BEST PATH FORWARD: Disrupting your day-to-day operations is not an option. The Retail Payments solution protects your existing technology investment with a coexistence payments strategy. It lowers your conversion risk on highly regulated systems while enabling you to develop innovative products and services to increase customer satisfaction and win market share. System consolidation Closing the Competitive Opportunity Gap to make up for lost time and better address market change requires an architecture consisting of enterprise class services. Consolidating your systems helps eliminate payments system silos, giving you one integrated payments environment to maintain and saving valuable time when making changes across all channels. Faster time to market As non-bank competitors enter the payments market, being proactive versus reactive is a must. With ACI solutions you can add new channels, products, and services in a more efficient way, through scripting versus coding, for faster time to market. Streamline your payments processing Normalize the payments experience for all channels, creating consistency across your payments environment. Simplifying your environment will streamline your payments processing and position your business for future growth with enterprise class services. You can also add new channels, products and services in a more efficient way for faster time to market and rapidly innovate to meet and exceed customer expectations. CLOSING 10
THE BARRIER: A REACTIVE APPROACH TO THE MARKET Reacting to market changes as they happen only serves to widen the gap between you and your fast-moving competitors. This approach results in line-of-business and payments systems silos lack of innovative products and services fraud vulnerability CLOSING 11
THE BEST PATH FORWARD: A PROACTIVE TO CLOSE The Retail Payments solution is not only relevant, but critical in today s world. ACI s vision of retail payments is that you must have solutions that are conditioned to operate without concern for geographic borders, easily adaptable to new payment types, can withstand the influences of regulators, non-financial players, and constant threats to risk and security. Consolidate your payments environment Create a single integrated payments platform that offers you continuous availability and high levels of resiliency. Provide a holistic view of customers, accounts and transactions for cross-sell and upsell opportunities, enhancing your customers experience across all channels. First to market Offer innovative products and services with a personalized touch. Whether you want to be first to market or a fast follower, our scripting capability gives you the speed needed to introduce new services, delivering on your brand promise with a customer-first approach. Reduce fraud risk Consolidating and connecting to multiple systems provides an enterprise-wide view of your customers accounts and transactions, enabling you to quickly recognize and stop fraudulent patterns regardless of channel, device or payment type. CLOSING 12
THE BARRIER: RISING IT COSTS Complex legacy systems cannot keep pace with changes in today s market. Continuing to support these platforms means declining margins increasing maintenance and specialized skillsets cost time consuming and continuous system customizations CLOSING 13
THE BEST PATH FORWARD: PAYMENTS SYSTEM ACI s Retail Payment solution provides a migration path and proven approach from a strong technology provider with a 40-year successful track record. Improve top line revenue The solution provides a competitive edge with unmatched scalability on low cost platforms (Linux/x86) supporting higher transaction volume to improve top line revenue. Reduce operational costs With next generation technology you have the option to move to low cost platforms like x86/linux while providing the same scalability, high availability, reliability and security of your current systems, but at a much lower cost. Refocus your resources You can refocus your resources on hiring less expensive and more readily available programmers who know current coding languages like C++ and Java, as well as object-oriented/service-based architectures, lowering your costs. CLOSING 14
ACI POWERS ELECTRONIC PAYMENTS FOR FINANCIAL INSTITUTIONS, RETAILERS AND PROCESSORS AROUND THE WORLD. More than 5,000 financial institutions, retailers, billers, and processors in over 80 countries rely on ACI solutions. ACI software processes $14 trillion payments and security transactions each day. ACI partners with 21 of the top 25 global banks for payments processing. More than 300 global retailers use ACI software. CLOSING 15
TO LEARN MORE ABOUT CLOSING OPPORTUNITY GAP, WITH THE JHUHYGHUHUJIJI9JIJUHUHU9L,LKL 7 RETAIL PAYMENTS SOLUTION, VISIT US AT WWW.ACIWORLDWIDE.COM/ RETAILPAYMENTSSOLUTION Copyright ACI Worldwide, Inc. 2016. ACI, ACI Payment Systems, the ACI logo, ACI Universal Payments, UP, the UP logo and all ACI product names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties trademarks referenced are the property of their respective owners. 04-2016