E-Statements - One Giant Leap for Your Financial Institution

One Small Step for Man

One Giant Leap for Your Financial InstitutionSmall Steps to Improve E-Statement Adoption

LKCS

Today’s Presentation

• E-Statement Adoption

– How do you get your current account holders to sign up for E-Statements? What tactics succeed at converting people to E-Statements?

• E-Statement Marketing

– E-Statements save you money, but is their a cost? How can you incorporate marketing campaigns into your e-statements?

Small Steps to Improve E-Statement Adoption

Pre-Flight Inspection

How Are You Doing?

What percentage of your account holders are currently enrolled for e-statements?

Scrutinize Your E-Statement Solution

• Deliver a premium user experience.

– People know what to expect when they open an envelope. What will they experience online?

– Deliver a BETTER e-statement than your paper statements.

– Provide a benefit to your account holders, not just a benefit to your institution.

Branding

Reformatting

E-Statement Color Doesn’t Cost More

Multiple Document Types

• Are you only delivering monthly/quarterly statements electronically?– Daily Notices (insufficient funds, certificate renewals, overdraft

protection, late payment/delinquency, etc.)

– Credit Card Statements

– Mortgage Statements

– Tax Forms (1099s, 1098s, 5498s, etc.)

• How much more could you save if all of these were provided electronically?

Retention

• Be the Filing Cabinet– 12 months retention should be the minimum– 18 – 24 months becoming much more common– Some customers asking for unlimited retention

• Instant Access– What’s available when an existing account holder

enrolls for e-statements?

We’d Like Your Opinion

We recently had a financial institution ask us about giving account holders the ability to upload their own documents to our e-statement portal.

Do you think your account holders would get value out of an Electronic Safe Deposit Box with your institution?


Clear the Flight Path

Remove Any Barriers to E-Statements

• Simple enrollment process– Online registration a MUST! No paper forms!

– LKCS – account number, last 4 digits of SSN, password, MFA questions (if applicable), disclosure

• Consider home banking single sign-on– LKCS – multiple home banking providers, click one link and accept

disclosure to register

• Easy Opt Out– LKCS – settings check box to revert to printed statement

• IDEA: One Click E-Mail Marketing Enrollment

Mobile Friendly E-Statements

• Over 31% of U.S. internet users ONLY use mobile devices.

Text Message Notifications

• Account holders specify notification preferences.


Messages from Mission Control


• Green/Eco-Friendly– If all U.S. households stopped receiving paper bills and statements,

687,000 TONS of paper would be saved every year.

– 34% of consumers switched to e-statements to reduce their impact on the environment.

– 43% of consumers said they are more likely to do business with companies they perceive to be green.

– 22% said green initiatives cement the bond they have with their bank

– Women are more likely to say that environmental impact is “extremely important” in banking decisions.

Source: Javelin Strategy + Research Green Banking Report


• Safer than Paper Statements– E-statement data is encrypted through a minimum 128-bit “Secure

Sockets Layer”, which is the standard for data encryption on the Internet.

– According to Symantec, “at current computing speeds, a hacker with the time, tools, and motivation to attack using brute force would require a trillion years to break into a session” protected by a 128-bit security certificate.

The user probably would have logged out of their e-statements by then.


• Safer than Paper Statements (continued)– Encourage people to look for the “lock” symbol in their browser.

– LKCS e-statements are further protected by an Extended Validation Certificate, so you can tell account holders to look for the Green Bar.

– Remind users to protect their account number and password -- that’s the key to e-statement (and home banking) security.


• Additional Benefits:– Faster Delivery than USPS Mail

• E-Statement e-mail notifications typically sent within one day for LKCS clients

– Available from Anywhere with Internet Access

– Instant Access to Account History

• At least 12 months and up to 24 months (or longer) for LKCS clients

– FREE


Launch Your Campaigns

Pick the Low Hanging Fruit

• Start with Home Banking users– Go after them again and again

– Place e-statement ads within home banking

– Contact them by e-mail with one-click opt-in

• Don’t have current e-mail addresses? ASK FOR THEM at all contact points.

– Some LKCS clients have converted large percentages of online banking users to e-statements.

Promote, Promote, Promote

• Consistently Raise Awareness– E-Statements are the last thing on your account holders’ minds

– Utilize ALL Media: direct mail, web banner ads, e-mail marketing, online banking banners/links, deposit slips, ATM receipts, lobby signage and so on

– Promote E-Statements within Printed Statements – envelope backer ads, statement inserts, statement ads/onserts, etc.

Raffles

– Raffle drawings DRAMATICALLY improve e-statement registration – triple your sign-up rates by offering a monthly or quarterly prize drawing (draw from all e-statement users to maintain loyalty)

Giveaways

– Everybody wants something for their effort….LKCS’ clients have found that $5 appears to be a magic figure when it comes to enticing e-statement enrollment

– Cash vs. Logoed Product doesn’t seem to matter

Employee/Branch Contests and Incentives

• Your front line staff can do the work!

– Arm them with banners, posters, buttons and opt-in forms. Set up incentives or have branches compete with each other.

– Set up a home banking/e-statement demo kiosk. Have an employee greet people, demonstrate e-statements, and sign them up right on site.

– ASK! Keep asking people to sign up for e-statements. Explain the benefits.

New Accounts

• They Don’t Need Paper – EVER!

– Sign account holders up for e-statements when they first open their account! Have them tell you if they don’t want e-statements.

– Design some products to minimize/eliminate fees with e-statements and other e-services.

Reverse Opt-In / Charging for Paper

• Turn Off Printed Statements for Online Users

• Introduce a Monthly Fee for Printed Statements

• These are NOT small steps– Remember the old saying…you catch more flies with honey

than with vinegar.

– You won’t make too many friends, but it can work

– More work than you think – policies, core system changes, fee reversals, etc.


Get Into Orbit

Track the Results

– Monitor new e-statement enrollments during marketing campaigns

• LKCS includes opt-in dates for easy tracking

– Look for anyone who reverts to printed statements and find out why they switched back

• Remember you have their e-mail address, so you can ask them

– Match back account numbers for any targeted campaigns or special offers

• LKCS can automatically post a daily list of e-statement users to a secure FTP site

Don’t have the marketing budget?

• TIP: Remind management that each person who signs up saves your institution at least $0.50 (and probably more) per month.

• Savings Example: – 2,500 new e-statement users at $.50 per month– Monthly Savings: $1,250.00– Annual Savings: $15,000.00

How much would your CEO give you to spend on a marketing campaign that generates an ongoing $15,000 annual savings?

And that’s only for 2,500 additional people – some LKCS clients have over 60% of account holders on e-statements.


Extend Your Mission

E-Statement Marketing

• Just because you are saving money with e-statements doesn’t mean you should sacrifice all marketing opportunities.

• How are your best account holders going to know about your latest specials and newest products?

E-Statement Marketing

Which of these e-statement marketing options are you currently using?

On the E-Statement

• Banner Ads– Link to web pages or PDFs

– Appear for all account holders or selectively

– NEW FEATURE

• Each banner ad is flagged until the user clicks on it

On the E-Statement

• Statement Ads/Onserts

E-Mail Notification

• Custom E-Statement E-Mail Notification

Customize the Landing Page

Even Add Video

Pop Overs

• Also Great for Compliance Notifications


Reach for the Stars

Selective E-Statement Marketing

• Take statement marketing one step further.– Target which members receive certain banner ads or onserts.

Selectively display cross-sell campaigns by criteria you select such as:

• Account relationships• Account balances• Account activity• Geography• Demographics• Credit Score and other parmeters• ANY other conditions identifiable in your statement data• ANY other conditions identifiable in a separate control file.

Cross-Sell & Other Marketing Ideas

• CD Renewals

• Loan Payoffs

• Auto Loan Recapture

• HELOC Advance Requests

• Direct Deposit for Checking Accounts without these transactions

• MMA or CDs for high balance checking accounts

• Checking Account Switch Kit Forms

• Investment Services

• Home Equity/HELOC based on demographics

• Birthday Messages

• Prescreen Loan Campaigns (more on this later)

• AND MANY MORE!

Onboarding and Matrix Campaigns

• On-board new account holders beginning with their first statements

– Matrix-Based Onserts: Onboarding Campaign

– Series of statement onserts sent out over a period of months/quarters to cross-sell additional products and services to specific groups of account holders.

• Same concept as Matrix Mailings.

• Terrific solution for new account holders, mergers, new branch locations, etc.

• Ability to run multiple matrices at same time.

Matrix Ad Examples

Pre-Screen Loan Campaigns

• Available for any pre-screen marketing campaigns:– Auto Loans– Mortgages– HELOCs– Auto and Mortgage Refinancing– Credit Cards

Pre-Screen Cover Letters


Splashdown!Sid HaasVice President of Business DevelopmentDirect [email protected]

THANK YOU!