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TransferNow: The Next Generation of
A2A Transfers
Presented by
Jeff McCrory and Michael Smith
Digital Banking Group, Fiserv
March 15, 2017
© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
About the Presentation − READ THIS FIRST CONFIDENTIAL−LIMITED This document contains confidential information of Fiserv. It is designed for select clients of Fiserv. Under no circumstances may the content of this presentation be shared in any manner with any
third party that may be considered a competitor of Fiserv.
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© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Agenda
• Market Landscape
• Intro to TransferNow
• Risk Management
• Demo
• Q&A
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© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
The world is pushing toward
a new kind of financial
services experience – the
kind that serves real people
in an increasingly digital and
connected world…
© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
The only thing advancing faster than
technology is consumer expectations.
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© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
3 Key Takeaways about TransferNow
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Consumers expect to be able to move money with a click.
Risk management is at the heart of the solution.
It’s a game-changer.
1.
2.
3.
© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Strategic Context
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To remain relevant, financial institutions must continue to own the
primary banking relationship.
© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Money Movement is the Most Adopted Fintech Functionality
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Source: EY FinTech Adoption Index, 2016
© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Banking on Value, Relevance
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11% of consumers left their bank in the past
year—and consumer switching to
virtual banks is at double-digit levels.
Switching Financial Institutions is not an Obstacle
© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Integrated Payment Strategy (IPS) - a Game-Changer
Exposure, ease and mobilization drive
FASTER ADOPTION of P2P
Profound Money Movement Experience
Profound Money Movement Experience
Pay
People
Pay
Bills
Transfer
Funds
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© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Cohesive User Experience
Integrated Payment Service
A single, cohesive platform that makes moving money
easier and faster than ever before
TransferNow® Popmoney® CheckFree® RXP ®
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© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
The new integrated experience
drove a
67%
64%
CheckFree RXP and Popmoney Integration - Outstanding Results
Roy Whitehead Chairman, President & CEO of Washington Federal
Pay
People Pay
Bills
a profoundly, simple integrated payment experience
P2P Transaction and Transacted user growth information is from financial institutions that have the IPS / Popmoney Integrative design P2P solution enabled; uplift is calculated by looking at the average transaction / user volumes from 11-months prior to launch vs. 11-months after launch
increase in
Popmoney users
increase in
transactions
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© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Payments and Transfers Made Simple
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who
a profoundly simple
payment experience
how
much
when
© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Digital Money Movement
Offers new challenges for financial institutions
• Digital identity management
• Mitigating risk and fraud
• Expediting transfers
Today’s increasingly digital financial environment …
And demands a solution that provides
these outcomes
• Airtight risk management
• Reduced losses
• Increased revenue
• Improved customer experience
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© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
75%
53%
28%
19%
35%
35%
14%
5%
Paid bills
Transferred money between my accounts atthe same financial organization
Made loan payments online
Transferred money between my accounts atdifferent financial organizations
Received bills electronically
Received alerts regarding activity on myaccounts
Received loan statements
Other
Nearly 1/5 of Consumers Made an A2A Transfer
Base: Has used online banking in the past 30 days n=2299 Q825: Which of the following features of your online banking service (through your laptop or desktop) did you use in the past 30 days? Please select all that apply.
Features of Online Banking Used in the Past 30 Days (among those who have used online banking in the past 30 days)
57% Viewing/Receiving
91% Active Use
Transferred
Money NET
60%
Late Millennials (71%)
The more revenue producing
services consumers have, the more
likely they are to use for active uses
Those who have changed their primary
financial organization (71%)
Groups with notably higher passive
usage:
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© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Approximately
13.9 interbank transfers per year
Source: Javelin, 2015
Many Are Heavy Users
© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Growth in Digital Transfers by Channel
• In 2016, A2A transfers grew to more than $957 billion, nearly 2% higher than the 2015 volume of almost $939 billion
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Source: Javelin, 2017
© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
TransferNow Overview
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TransferNow® is a convenient online account-to-account transfer platform that provides consumers
an easy and secure way to transfer funds between accounts and financial institutions.
Recognized as creating the category of online interbank transfers
(A2A) and enjoys an established, referenceable client network with
100% client retention.
There is risk in moving money online.
Reducing exposure to losses is key
and foundational to TransferNow.
© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
TransferNow (Launched 2001)
Source: Data as of December 31. 2016
$82B in funds moved in 2016
12% year-over-year growth in users
Nearly 500 financial institutions
17 of the Top 30 banks
deploy
TransferNow
7 of the
Top 10 U.S. banks
TransferNow
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© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
TransferNow: Risk-Managed A2A Transfer Solution
Inbound transfers to loan accounts
Convenient transfer delivery options:
one-time, recurring or future-dated
Proven risk monitoring platform with multiple verification
methods to reduce fraud
Multiple settlement options offer revenue opportunities:
next-day and 3-day models
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© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
7 of the top 10 TransferNow
banks offer next-day transfers
Significant Demand for Next-Day Transfers
Source: 1. at banks that enabled Next-Day; 2. Javelin, 2013
of all external transfers
are expedited1 33%
Next-day transfers generate
new fee revenue
Interbank transfers typically
used for high dollar amounts2
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© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Mobile payment plugin brings an array of benefits
Deliver TransferNow, CheckFree RXP and Popmoney via your mobile app
Drive Adoption
Increase Usage
Mobiliti ASP
• Meet customer expectations for full-
featured mobile offerings
• Deliver an integrated payment
experience
• Monetize the increase in
transactions
• Improve stickiness
Breakthrough Opportunities on Mobile
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© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Integration with Retail Online, COASP and DNA Web
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Online Banking
Integration
• Provides faster-time-to-market
• Shorter, simpler implementation
• Lower cost of implementation
• Optimum placement within online banking drives adoption
• Integrated single sign-on
• Passes eligible accounts, available balances and nicknames to TransferNow
• Default limits established, can be adjusted by financial institution
© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Back Office Support
Online Back Office
Transaction Management Platform
COMPASS
Compliance Customer/Member
Support Global Risk
Administration
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© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016 25
Are Digital Transfers a Boon to Cyber Criminals?
© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Industry Leading Risk-Managed A2A Transfers
• Fraud Prevention / Risk Monitoring – At the heart of the solution to protect the financial institution and end-user
• Network Effect –
Unmatched network to proactively uncover fraud across all clients
• Mature Risk Platform –
In production for 12+ years with hundreds of financial institutions
Systemic Controls
Post-Initiation Controls
Post-Settlement Controls
Risk
Management
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© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Market Leading Fraud and Risk Management
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Feature Fiserv Advantage
Credit Risk
Management
• Available balance check for outbound immediate one-time transfers.
• Real-time evaluation of next-day transfer eligibility, leveraging user history through qualification
rules.
Account
Ownership
Validation
• Enhanced authentication of external account ownership through three methods: instant, real-
time and trial deposit verification.
Transaction
Risk
Monitoring
• Ability to leverage known discrepant, transactional and user data across all ePayments services
and clients allows Fiserv to pinpoint fraud effectively.
© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Market Leading Fraud and Risk Management Continued …
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Feature Fiserv Advantage
Fraud
Investigation
• Fiserv Risk Operations investigates all fraudulent returns as soon as they occur.
• Type of fraud loss is categorized (account take-over, family fraud, etc.) and attempts to recover
the lost funds are initiated.
Link Analysis • Post-return link analyses to preemptively identify and stop compromises across Fiserv clients.
Recovery • Expedited recovery of funds in the event of reported fraud because of relations with partner
banks.
© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
In-Session Controls: External Account Ownership Verification
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Real-Time Verification
• Accesses banking sites with user
credentials, verifying account and user
name
• Verification rates up to 50%
• Minimal user interaction required – enter
login credentials
• Login credentials are never stored,
discarded after use
Trial-Deposit Verification
• Two micro-deposits sent via ACH to
account
• User must verify correct micro-
deposit amounts
• Lower reliability than real-time
verification, as user’s name is not
matched against account
• Most popular method in industry
© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Fraud Prevention Effectiveness
Value of Funds Transferred in
2016:
$82 Billion
It starts BEFORE the transfer process begins
Step One: Prevention
Step Two: Powerful Protocols
Step 3: Effective Mitigation
40 BPS
$161
Million
< 1¢ per
$100
Fraud Losses Prevented
40¢ per $100 transferred
Dollars Saved ($)
Across all Financial Institutions
Fraud Losses Across Clients
Across all Financial Institutions
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© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Demo
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© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
CONSUMER MARKETING TOOL KIT
TRANSFERNOW
A full suite of multi-channel marketing tactics to make it easy to talk to consumers about the features and
benefits of TransferNow. The messaging highlights key use cases that resonate with consumers and help
them understand why they would use TransferNow.
Social Media
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Print Digital Mobile Branch Associate Training
Facebook and
Twitter Posts
Direct
Counter
Card
FAQ
Statement
Insert
Landing
Page
Emails (2)
FAQ PDF
Banner Ads
Log In/Log Out
Interstitial
Banner Ad
Mobile Optimized
Emails (2) Mobile
Optimized Landing
Page
ATM
Screen
Buckslip
ATM
Receipt
Backs
Talk
Tracks
Incentive
Ideas
© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Next Steps: Let’s Get Started
TransferNow Implementation Special
Offer Good through April 30, 2017
• Implementation Fee discounted by 50%
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Watch for an Email.
Complete Service Add Form and return to BillPay@Fiserv.com
by April 30, 2017
© 2017 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED FORTUNE® World's Most Admired Companies® 2014 | 2015 | 2016
Thank You!
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