TransferNow: The Next Generation of A2A Transfersfiles.constantcontact.com/d3e27a28001/6259feed-5060-42b7-943a-60471b741846.pdfTransferNow: The Next Generation of A2A Transfers Presented

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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Agenda

• Market Landscape

• Intro to TransferNow

• Risk Management

• Demo

• Q&A

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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…


The only thing advancing faster than

technology is consumer expectations.

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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.


Strategic Context

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To remain relevant, financial institutions must continue to own the

primary banking relationship.


Money Movement is the Most Adopted Fintech Functionality

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Source: EY FinTech Adoption Index, 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


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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video/NOW - Network for Our World.mp4


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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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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Payments and Transfers Made Simple

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who

a profoundly simple

payment experience

how

much

when


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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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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Approximately

13.9 interbank transfers per year

Source: Javelin, 2015

Many Are Heavy Users


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


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.


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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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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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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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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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


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?


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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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.


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.


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


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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Demo

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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

Mail

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


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 [email protected]

by April 30, 2017

mailto:[email protected]


Thank You!

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Documents

TransferNow: The Next Generation of A2A Transfersfiles.constantcontact.com/d3e27a28001/6259feed-5060-42b7-943a-60471b741846.pdfTransferNow: The Next Generation of A2A Transfers Presented