2008 survey conducted by Fiserv/Checkfree

Results from a Mobile Finance Survey

2

2

Second survey sponsored by CheckFree with fieldwork in April 2008; First survey completed in March 2006

1,007 U.S. consumers at least 18 years old each using a cell phone at least once a week completed the survey

• 30% of respondents aged 21-34 years: Gen Y respondents

• 70% of respondents aged 35+ years: Older respondents

The results represent the US online population of consumers using a cell phone and a PC using each at least once a week

Presentation consists of two chapters:

• Findings for all respondents

• Findings specific to Gen Y

The Survey

Mobile Finance among Cell Phone Users

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4

Mobile Finance Conducted by about One Quarter of Cell Phone Users

Yes23%

No77%

Do you currently do any of these activities now

using your cell phone or other mobile device?

5%

18%

21%

24%

38%

55%

72%

0% 20% 40% 60% 80% 100%

Send/receive money individuals

Receive/pay household bills

Transfer money betweenaccounts

Locate ATM or branch

Check credit card balance/available credit

Contact customer care at FI

Check bank account balance

% of Mobile Finance Users

Which of the following activities did you do using your cell phone or other mobile device in the past month?

5

5

Interest Levels in Mobile Finance Have Increased Considerably Since 2006

35%

18%

51%

25%

31%

40%

0%

20%

40%

60%

80%

100%

2008 2006YesMaybeNo

Survey Definition of Mobile Finance

Consider that a service was offered that allowed you to do the following activities via your cell phone:

Check your bank account balancesCheck your credit card balances and/or credit available for purchaseReceive and pay your billsSend money to or receive money from friends and family Transfer money between bank accountsLocate a nearby ATM or bank branchContact customer care of your financial institution

If these financial services were available to you through your cell phone or other mobile device, do

you think you would use one of more of them in a typical month?

6

6

Checking Bank and Credit Card Account Balances Features Most Likely to be Used

9%

34%

38%

39%

39%

55%

84%

0% 20% 40% 60% 80% 100%




Transfer money betweenaccounts




% of Respondents Who Would Consider Mobile Finance

During a typical month, please indicate which of the following mobile financial services features you think you would use through your cell phone or other mobile device. Select all that apply.

7

7

Significant Benefits: 24/7 Access to Account Balance; Access Services Anytime without Computer/Branch

4%

17%

33%

44%

48%

66%

71%

76%

0% 20% 40% 60% 80% 100%

Don't see any benefi ts

Spend less time managing fi nances

Less paperwork to manage

Will help manage and control my fi nances

Check for fraudulent account activity

Access fi nancial services without a

computer or branch

Access fi nancial services anytime I want

24/ 7 access to account balance

Among respondents who would consider using Mobile Finance during a typical month: What benefits do you see from accessing financial services through your cell phone or other mobile device?

8

8

Significant Barrier: Concern about the Security of Accessing Finances Using a Cell Phone

16%

16%

17%

27%

44%

47%

48%

72%

0% 20% 40% 60% 80% 100%

Afraid network would go down, losing access

to fi nances

Would lose paper trail

Worried about access outside cell phone

coverage area

Don't know enough about how it works

Size of the screen is too small

Worried about losing phone and impact that

could have on my fi nances

Afraid of cost

Concern about the security of accessing

fi nancial information using a cell phone

Among all respondents: What are your concerns about accessing financial services through your cell phone or other mobile device?

9

9

High Acceptance of Alerts May Mitigate Concerns

57%

65%

79%

82%

0% 20% 40% 60% 80% 100%

Scheduled alerts (e.g., Regularly

scheduled updates on balances for your

accounts)

Bill pay alerts (e.g., You have a bill that is

due)

Account alerts (e.g., Your balance has

fallen below your defi ned amount)

Security alerts (e.g., Your online banking

password has been changed or revoked)

Would you sign up for the following text alerts if they were offered to you by your financial institution? These messages would be sent directly to your mobile device by your financial institution.

Having bank or credit union sponsor Mobile Finance is preferred provider by 3/4s of those who would consider using it. Would alleviate concerns as well.

10

10

Bank Overwhelming Favorite to be the Provider of a Mobile Finance Service

Bank, 79%

Cell phone service

provider, 7%

No preference,

14%

Whom would you prefer to offer the financial services listed above on your cell phone or other mobile device?

11

11

What Groups to Target for Mobile Finance: Gen Y Aged 18-34 Who Already Pay for a Monthly Text Messaging or Mobile Data Plan

52%

48%

32%

43%

35%

0% 10% 20% 30% 40% 50% 60%

Pay for a mobile

data plan

Pay for monthly

text messaging plan

Age 35+

Age 18-34

Overall

If these services were available through your cell phone or mobile device, do you think you would use one or more of them during a typical month? (% of each group saying yes shown below)

Focus of rest of presentation due to greater interest

Why the Focus on Gen Y

If these financial services were available to you through your cell phone or other mobile device, do you think you would use one of more of them in a typical month?

40%

40%

17%28%

32%43%

0%

20%

40%

60%

80%

100%

Gen Y Older Households

Yes

May beNo

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13

Gen Y Much More Likely to Use Non-Voice Features of their Cell Phones

45%

5%

7%

11%

14%

15%

48%

11%

12%

15%

20%

22%

34%

86%

0% 20% 40% 60% 80% 100%

None of the above

Downloaded games

Sent mobile emails using email svc

provider

Sent instant messages

Downloaded ring tones

Accessed the internet

Sent text messages

Gen Y

Older households

Which of the following features of your cell phone service did you use last month?

14

14

Gen Y Much Heavier Cell Phone Messagers regardless of Method

3.4

2.4

14.3

14.9

37.5

67.8

1.9

2.0

17.8

54.1

76.7

214.2

0 20 40 60 80 10

0

12

0

14

0

16

0

18

0

20

0

22

0

Downloaded games

Downloaded ring tones

Accessed the internet

Sent mobile emails using email svc

provider

Sent instant messages

Sent text messages

Gen Y

Older households

EACH FEATURE SELECTED, how often did you use <FEATURE> last month?

15

15

Gen Y Higher Participation in Text Messaging and Mobile Data Plans

44%

68%

32%

56%

0%

20%

40%

60%

80%

100%


Yes

No

Do you currently pay for a monthly text messaging plan with your mobile provider that allows you to send and receive a certain number of text messages each month?

69%82%

18%31%

0%

20%

40%

60%

80%

100%


Yes

No

Do you currently pay for a monthly mobile data plan that allows you to access the wireless internet or other

music / video services using your mobile device?

16

16

Gen Y More Likely to Want to Check Credit Card Balance, Locate an ATM and Receive/Pay Household Bills Using Cell

9%

36%

39%

36%

36%

52%

83%

11%

31%

39%

43%

46%

61%

85%

0% 20% 40% 60% 80% 100%



Transfer money between accounts






Gen Y

Older households

During a typical month, please indicate which of the following mobile financial services features you think you would use through your cell phone or other mobile device. Select all that apply.

17

17

Among Users of Each Feature, Gen Y Thinks They Would Use Most Features More Often

1.9

1.6

2.6

2.7

5.3

4.9

7.9

1.8

2.2

2.9

3.3

4.5

5.6

8.7

0 2 4 6 8 10



Transfer money between accounts


Receive/pay household bills*




Gen Y

Older households

Potential users only: How often do you think you would use <feature> during a typical month?

Previous surveys show that Gen Y households pay fewer bills on average than older households

18

18

Gen Y More Likely to Use Mobile Finances to Help Manage and Control their Finances

5%

16%

32%

41%

50%

66%

69%

76%

2%

18%

35%

51%

45%

68%

74%

78%

0% 20% 40% 60% 80% 100%

Don't see any benefi ts

Spend less time managing fi nances

Less paperwork to manage

Help me manage and control fi nances

Check for fraudulent account

activity

Access fi nancial services without a

computer or branch

Access fi nancial services anytime I

want

24/ 7 access to account balance

Gen Y

Older households

Among respondents who would consider using Mobile Finance during a typical month: What benefits do you see from accessing financial services through your cell phone or other mobile device?

19

19

Gen Y Less Worried about Lack of Knowledge How MFinance Would Work, Coverage outside Area and Loss of Paper Trail

17%

18%

19%

31%

44%

46%

49%

72%

13%

12%

12%

19%

44%

49%

47%

72%

0% 20% 40% 60% 80% 100%

Afraid network would go down, losing

access to fi nances

Would lose paper trail

Worried about access outside cell phone

coverage area

Don't know enough about how it works

Size of the screen is too small

Worried about losing phone and impact

that could have on my fi nances

Afraid of cost

Concern about the security of accessing

fi nancial information using a cell phone

Gen Y

Older households

Among all respondents: What are your concerns about accessing financial services through your cell phone or other mobile device?

20

20

Gen Y More Interested in Receiving Account and Bill Pay Alerts

56%

62%

75%

84%

59%

72%

87%

76%

0% 20% 40% 60% 80% 100%

Scheduled alerts (e.g.,

Regularly scheduled updates on

balances for your accounts)

Bill pay alerts (e.g., You have a

bill that is due)

Account alerts (e.g., Your

balance has fallen below your

defi ned amount)

Security alerts (e.g., Your

online banking password has

been changed or revoked)

Gen Y

Older households

Would you sign up for the following text alerts if they were offered to you by your financial institution? These messages would be sent directly to your mobile device by your financial institution.

Having bank or credit union sponsor Mobile Finance is preferred provider by 84% of Gen Y respondents who would consider using it. Would alleviate security concerns.

21

21

Gen Y Easier to Reach with Cell Phone Promotions; Willingness to Pay for MFinance about the Same as Older Households

29%

7%

9%

20%

26%

12%

15%

33%

0% 10% 20% 30% 40% 50%

Willing to pay a

small

surcharge for

MFinance

Respond to

targeted ad

Marketing

promotion thru

cell

Likely to

partic ipate in a

sweepstakes

Gen Y

Older households

Please tell us how likely your would be to do each of the following activities on a 0 to 10 scale where 0 is not likely at all and 10 is extremely likely? %s Providing a 7-10 rating shown.

Would you be willing to pay a small monthly surcharge (less than $5) to your bank or cell phone service provider to access and use mobile financial services?

22

22

Gen Y Make Significant Use of Selected Banking Services that Could Be Performed Using a Mobile Phone

30%

62%

84%

74%

27%

57%

78%

87%

0% 20% 40% 60% 80% 100%

Access bank's

services by

phone

Use online bill

pay

Visit a branch

Use online

banking

Gen Y

Older households

Check balances 11.8 times

39% 3 or more branch visits last month

55 % pay 4+ bills using online bill pay

32% 3+ times access bank’s svcs using phone

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23

Summary

Almost a quarter of cell phone users are already conducting some form of Mobile Finance

This familiarity is translating into more interest in a prospective Mobile Finance service (3/4s of respondents would consider it, up from 49% two years ago)

Security is a definite concern, but having Mobile Finance sponsored by a bank and providing security related alerts would help mitigate this concern

Geny Y respondents more interested in Mobile Finance:

• More likely to have a mobile texting or data plan

• Less concerned about some barriers (e.g., losing paper trail)

• More likely to respond to promotions

Documents

2008 survey conducted by Fiserv/Checkfree