Transactional Infrastructure for eFinance Investor Meetings June 12 th - 15 th 2001 New York, Boston, Los Angeles

Transactional Infrastructure for eFinance

Investor Meetings June 12th - 15th 2001New York, Boston, Los Angeles

Bill Gorog – Chairman

Al Dominick – President/CEO

Steve Mullins – CFO

Deirdre Skolfield, CFA – Director, IR

[email protected]

InteliData Confidential - Page 3

Table of ContentsTable of Contents

I.I. The OpportunityThe Opportunity

II.II. Why InteliDataWhy InteliData

III.III. FinancialsFinancials

IV.IV. Positioning FrameworkPositioning Framework


The Opportunity:18,000,000,000 Consumer Bills Annually

Billers

• Billers spend $1.50-$2.00 to produce bills

• In last 3 years most large billers have implemented their own web sites for e-billing & e-payment

• Lack broad, standardized distribution & adoption

Consumers

•Consumers spend $.34+ to pay

•Consumers have access – 56% Internet enabled

•View banks as trusted agents


The Opportunity:18,000,000,000 Consumer Bills Annually

What Banks Want -• To protect and leverage relationships with

both consumers and billers

• To generate additional revenue

• The ability to route and retrieve bills and payments through an Interbank exchange – not a non-bank third party


The Value Proposition

• Billers can save $15-30 Billion annually with EBPP

• Banks can save up to $20 Billion annually in check processing costs

• Consumers will pay for convenience

• Billers will pay for distribution

• Banks can collect revenue from both Billers and Consumers

• Vendors who enable banks to participate can share in revenue

Everyone is motivated


Why Hasn’t It Happened?

Then: (1995-2000)

• Banks initially outsourced bill payments

• Costs high- customers unhappy

Now: (2000-2001)

• Banks now bringing systems in-house

• Customers want real time disbursement and payment so they save money


Why Now?

• Billers actively seeking distribution channels

• Consumers interested in receiving and paying bills electronically

• Banks are concerned about protecting the banking industry’s payment franchise - bringing infrastructure in-house

• SPECTRUM – has emerged as a broadly supported, bank-sponsored, open exchange for bills and payments

• Competition is heating up between banks and non-banks – banks have recognized the threat to their prime franchise


What Banks Want

• Control - over customer data and service quality

• Economics – better pricing• Better service – Real time presentment and

payment• Choice – ability to route transactions to

multiple processors using open standards• Competitive advantage – over non-bank

providers• Protection – preserve bank/biller

relationships• Better systems – trusted, reliable, scalable

systems


Why InteliData?

• Transaction processing technology leadership– Developed infrastructure for Visa Interactive and

Integrion– Intellectual property behind Spectrum

• Solutions designed specifically for financial institutions– Provide reliability and control over customer

relationships– InteliData’s suite of products can be delivered in-

house or via an Application Service Provider (ASP)

• A decade of experience– InteliData products and services in 21 of top 50 banks,

2 of top 10 brokerage firms and several leading credit card issuers

– Proven scalable programs & systems


Mission

InteliData will become the dominant provider of software solutions that put financial institutions in control of electronic banking, bill payment and bill presentment services.


Representative Customer Base

Banks Brokerage Card Issuers Processors

Total Solution National City

BB&T

BankWest Corp

Associated Bancorp

Compass Bank

First Tennessee

Alliance Capital

Scudder Kemper

National City

Citibank USA

Standalone

Gateway

Solutions

USAA

Bank of America

First Union

Citibank

Citibank UCS Fiserv

Princeton ecom

Standalone

EBPP Solutions

First Union

Hancock Bank

5 Corp Credit Unions

ALLTEL


EBPPExchanges

PaymentProcessors

LegacySystems

IntegrationPoints

InteliData Solution Suite

Bill Payment

TransactionDelivery

Legacy Integration

TransactionProcessing

DeliveryChannels

BillPresentment

Web Banking

OFX Gateway

Transactional Infrastructurefor e-Finance

BankWebSite

&Content

• DDA• Loan• Card

• Metavante• CheckFree• eCom• ACH• on-us

• Spectrum• CheckFree• RPPS• BSPs

Web

Wireless

Aggregators

Money

Quicken


Financial Strategy / Goals

• Become profitable and cash-flow positive

• Completed 2 year shift from software licensing, lumpy revenue model to a stable, steadily growing recurring revenue model

• Home Account acquisition perfect for strategy

• Cost containment, ruthless expense control -- after a year and a half of heavy development mode


InteliData Business Lines

1. Internet Banking and Transaction Processing 2. Card Solutions

3. OFX Gateway Solutions

4. Bill Payment and Presentment Solutions


Internet Banking & Transaction Processing

Q1 O1E Q2 01E Q3 01E Q4 01E YE 2001 E YE 2002 E

# of Customers 305,000 335,000 376,000 414,000 414,000 609,000

Revenue per Customer $1.62 $1.79 $1.98 $2.19 $2.19 $2.32

Total Revenue (thousands) 2,300 2,400 3,400 3,900 12,000 18,100

Employees 102 61 61 52 52 59


Card Solutions

Q1 01E Q2 01E Q3 01E Q401E YE 2001 E YE 2002 E

# of Customers 523,000 736,000 378,000 484,000 484,000 1,136,000


Total Revenue (thousands) 501 1,032 712 922 3,167 6,857

Employees 43 36 32 32 32 32


OFX Gateway Solutions

Q1 01E Q2 01E Q3 01E Q4 01E YE 2001 E YE 2002 E

# of Customers 600,000 645,000 795,000 845,000 845,000 1,393,000


Total Revenue (thousands) 310 647 968 1,064 2,989 4,914

Employees 22 22 22 22 22 24


Bill Presentment and Payment Solutions2 Models

Inhouse Outsource

License 400k-700kProf Svcs 100k-300k 100k-300kRecurring Rev $.20-.40 cust/month $.75-1.50 cust/month

Revenue in thousands Q4 01E Q1 02E Q2 02E Q3 02E Q4 02E YE 2002 E

Software License 0 165 200 300 500 1,165

Integration Services 250 50 150 250 350 800

Recurring Revenue 0 21 72 172 342 607

# of Banks 1 3 4 5 7

2002


Revenue

Revenue 2001 Q1 01E Q2 01E Q3 01E Q4 01E 2001 E 2002 E(Thousands)

EBPP 250 250 1,000-2,500

Card 501 1,032 712 922 3,167 6,000-8,000

OFX 310 647 968 1,064 2,989 4,000-6,000

Internet Banking 2,340 2,416 3,402 3,855 12,013 17,000-21,000

Total 3,151 4,095 5,082 6,091 18,419 28,000-37,500


Financials

Q1 01E Q2 01E Q3 01E Q4 01E 2001 E 2002 E

Revenue 3,151 4,095 5,103 6,191 18,419 28,000-37,500

Operating Loss -7,005 -5937 -4,419 -3,195 -20,556 (-8,180 - -1,150)


INTD Customer Penetration Assumptions

Jan 2001 actual = 3.4% Jan 2003 forecasted = 6.8%

3.42%

6.82%

1.00%

3.00%

5.00%

7.00%

9.00%

11.00%

13.00%

15.00%

Jan 2001 Jan 2003


Positioning FrameworkINTD Position A provider of e-finance transactional infrastructure

Target Market Large banks (assets > $3 billion) and other financial service providers including brokerages, card issuers & processors.

What Makes Us Unique

Transaction processing technology leadership: InteliData’s platform-independent technology is developed from a history of technology leadership

Solutions designed specifically for financial institutions: InteliData’s technology puts financial institutions in the center of electronic bill presentment and payment. Deep expertise in payment capabilities.Reliability and control over their customer relationships.Focus on flexible transactional solutions such as OFX and electronic bill payment and presentment (EBPP)InteliData’s suite of products can be delivered in-house or via an Application Service Provider (ASP) model.

A Decade of ExperienceInteliData products & services in 21 of the top 50 banks, 2 of the top 10 brokerage firms and several leading credit card issuersStrategic relationships with ALLTEL, FirstData, Spectrum, Fiserv, Metavante, Princeton eComDeveloped infrastructure for Visa Interactive, Integrion and Spectrum


Positioning Framework - (2)

InteliData Solution Framework

Front-end delivery of requests accommodating multiple types of client interface technologies such as browsers, Personal Finance Managers (PFM,) phones, handheld devices, or use existing client software provided with the EBPP Framework or build your own. Middle-tiers provide for a core set of services accessible by all applications of the framework, along with a distributed architecture to support high performance, high availability that scales and load-balances to meet varying transactions volume demands. Enterprise information systems tier that provides an integration capability to multiple payment networks such as Spectrum, CheckFree, RPPS, as well as backend systems.

InteliData Solutions

Financial Messaging Systems (OFX Gateway) supporting OFX, IFX, PFMs, wireless, for a wide range of banking, investment and EBPP transactions Real-Time e-Banking Transaction Processing and Legacy Integration (Interpose Transaction Engine) Transactional Web Interface (Interpose Web Banking) Payment Warehouse and Routing (Interpose Payment Warehouse) Bill Presentment Aggregation/Collection and Warehousing (CSP Server) e-Billing and e-Payment for Credit Cards (InteliData Card Solutions)

Documents

Transactional Infrastructure for eFinance Investor Meetings June 12 th - 15 th 2001 New York, Boston, Los Angeles