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10/20/2017 1 Vision 2020: Innovation at the Speed of Life Brandon Trease Client Solutions Consultant, Fiserv October 24 th , 2017 © 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL LIMITED FORTUNE Magazine World's Most Admired Companies ® 2014 | 2015 | 2016 | 2017 2011 2016 We are Seeing a Clear Shift to Technology Leaders Source: Visual Capitalist, “The Largest Companies By Market Cap Over 15 Years,” August 2016 *Top 5 By Market Cap 2001 2006 Tech Other #1 #2 #3 #4 #5 $406B $272B $261B $260B $446B $406B $383B $327B $273B $277B $237B $228B $365B $293B $376B $582B $556B $452B $364B $359B

Vision 2020: Innovation at the Speed of Life · PDF file · 2017-10-20© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL –LIMITED FORTUNE Magazine World's Most Admired Companies

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10/20/2017

1

Vision 2020: Innovation at the

Speed of Life

Brandon Trease

Client Solutions Consultant, Fiserv

October 24th, 2017

© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED

FORTUNE Magazine World's Most Admired Companies®

2014 | 2015 | 2016 | 2017

2011

2016

We are Seeing a Clear Shift to Technology Leaders

Source: Visual Capitalist, “The Largest Companies By Market Cap Over 15 Years,” August 2016

*Top 5 By Market Cap

2001

2006

Tech Other

#1 #2 #3 #4 #5

$406B $272B $261B $260B

$446B

$406B

$383B $327B $273B

$277B $237B $228B

$365B

$293B

$376B

$582B $556B $452B $364B $359B

10/20/2017

2

© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED

FORTUNE Magazine World's Most Admired Companies®

2014 | 2015 | 2016 | 2017

the only thing advancing faster than technology is

consumer expectations

3

© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED

FORTUNE Magazine World's Most Admired Companies®

2014 | 2015 | 2016 | 2017

The Extraordinary Rise of Amazon

Amazon is bigger than most brick-and-mortar retailers put together.

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$355.9B

$297.8B

Source: Visual Capitalist, "The Extraordinary Size of Amazon in One Chart", December 2016

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FORTUNE Magazine World's Most Admired Companies®

2014 | 2015 | 2016 | 2017

Technology is Changing the Value of Companies

6

Source: Visual Capitalist, "The Extraordinary Size of Amazon in One Chart", December 2016Data Source: Yahoo Finance (peak value in 2006), Google Finance (values for Dec 30,2016)

$27.8B $1.1B 96%

$18.1B $2.6B 86%

$12.4B $8.3B 33%

$24.2B $8.8B 64%

$24.2B $11.0B 55%

$28.4B $13.2B 54%

$51.3B $40.6B 21%

$214.0B

$212.4B

1%

$17.5B $355.9B

1,934%

CompanyMarket Value2006

Market Value2016

% Change

© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED

FORTUNE Magazine World's Most Admired Companies®

2014 | 2015 | 2016 | 2017

Disruptors are Changing the Banking Landscape

Source: Instantly Brand Monitor in Cooperation with Statista, “Americans Trust Tech Firms More Than Banks for Finance,” June 2015

*Original Question: “Please state for each firm you know whether your overall opinion of the provider of financial products is positive, neutral, negative.”

44%

37%

40%

36%

73% 71%

64% 57%

Banks Tech Firms

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© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED

FORTUNE Magazine World's Most Admired Companies®

2014 | 2015 | 2016 | 2017 8

© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED

FORTUNE Magazine World's Most Admired Companies®

2014 | 2015 | 2016 | 2017 9

10/20/2017

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© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED

FORTUNE Magazine World's Most Admired Companies®

2014 | 2015 | 2016 | 2017

The Digital Triad

ONE Experience

Move Money

Mobile Now

© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED

FORTUNE Magazine World's Most Admired Companies®

2014 | 2015 | 2016 | 2017

Game Changer #1: The Digital Triad

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We spent a lot of years training banking

customers on our terminology:

“DDA, ACH, Routing number,

PIN, Wire, Bill Pay”

This new generation of customers

doesn’t care.LoansDeposits Payments

Digital Strategy for an Always-On World

Money Service

10/20/2017

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2014 | 2015 | 2016 | 2017

Why Should New Entrants Matter to Banks?

Source: Accenture “2016 North America Consumer Digital Banking Survey - Banking Shaped By The Customer,” June 2016

n=>4,000

87%of consumers will use their

branches in the future – and

want human interaction when

they go there

46%of consumers are willing to bank

using robo-advice in the future

45%of consumers say the top reason

they would stay loyal is if their

bank offers discounts on

purchases of interest

11%of consumers left their bank in the

past year – and consumer

switching to virtual banks is at

double-digit levels

The Branch is Alive and Well Value is Important

Robo-Advice is Welcomed Switching FIs is Not an Obstacle

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2014 | 2015 | 2016 | 2017

Seamless movement across touchpoints

One experience, multiple engagements

Game Changer #2: ONE Experience

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Initiate

Continue

Finish

New: Chat/App/Voice/Augmented/Virtual Reality

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2014 | 2015 | 2016 | 2017

Game Changer #3: Move Money

15

whohow

much when

Sender’s Bank Receiver’s Bank

Sender Receiver

Payment Network

Invisible paymentsPayments appsInteroperable networks

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Market Expectations – P2P Payment Opportunity

P2P transaction volume P2P market share

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$ billions

Source: Aite Group, “Digital Person-to-Person Payments in the U.S.: The Competitive Landscape,“ 2017

$ volume Third-party providers play a role

83%of digital P2P market share is owned by financial institutions.Alternative providers Financial institutions

A strong growth curve

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© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED

FORTUNE Magazine World's Most Admired Companies®

2014 | 2015 | 2016 | 2017

Game Changer #4: Mobile Now

17

“What do you want to do?”

becomes

“What can we do for you?”

© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED

FORTUNE Magazine World's Most Admired Companies®

2014 | 2015 | 2016 | 2017

Mobile Users: Increased Product Holdings

Source: Fiserv Inc., “Mobile Banking Adoption: Where is the Revenue for Financial Institutions?”, January 2016

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Source: Bank Study

Among banks in the study, the average unique product holdings – the number of different

products held by a customer – increased by 12% in the three months after adoption of

mobile banking

Average total product holdings increased by 11% post-adoption

Mobile banking customers have higher product holdings compared to branch-only customers

Consumers who use mobile are likely more engaged with their financial institutions.

10/20/2017

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2014 | 2015 | 2016 | 2017

Mobile Users: Increased Transaction Frequency

Source: Fiserv Inc., “Mobile Banking Adoption: Where is the Revenue for Financial Institutions?”, January 2016

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• Transaction frequency is higher among

existing mobile banking users in the

financial institutions studied, compared to

consumers who don’t use mobile banking

• The correlation between mobile banking

and transaction frequency could be

because immediate mobile access to

financial information, including balances,

may influence additional transaction

behaviors, including POS transactions, and

ATM withdrawals and deposits.

© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED

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2014 | 2015 | 2016 | 2017

Mobile Users: Lowered Attrition

Source: Fiserv Inc., “Mobile Banking Adoption: Where is the Revenue for Financial Institutions?”, January 2016

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• Consumers with

mobile banking are

less likely to leave

their financial

institutions

• Mobile banking

provides an extra

point of engagement

and satisfaction for

consumers.

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2014 | 2015 | 2016 | 2017

Revenue ImpactMobile Adoption ROI Study Summary

Source: Fiserv proprietary research, 2015 (Mobile ROI Study) Pre/Post – mobile enrollments and transactions primarily in the 2014 considered as the base month. Calculations are done using 3 months window.

21

MO

BIL

E U

SE

R V

AL

UE

(Po

st A

do

ptio

n)

Mobile adoption drives deeper, more profitable engagements

An active/engaged mobile

user represents approx

$200 in incremental annual

revenue

Post Mobile Adoption Impact

INCREASE IN POINT OF SALE TRANSACTIONS

46%

INCREASE IN

PRODUCT HOLDINGS12%

INCREASE IN REVENUE FROM

TRANSACTION ACCOUNTS36%

INCREASE IN

ATM TRANSACTIONS26%

DECREASE IN

BRANCH TRANSACTIONS32%

© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED

FORTUNE Magazine World's Most Admired Companies®

2014 | 2015 | 2016 | 2017

Millennials to Inherit $59 Trillion in Personal Wealth

Source: Visual Capitalist, “How Affluent Millennials are Changing the Finance Industry,” December 2015

2030

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FORTUNE Magazine World's Most Admired Companies®

2014 | 2015 | 2016 | 2017

Ways to Defend and Succeed Against Non-FI Threats

Invest in

Sustainable

Innovation

Digital First

All Form Factors

Digital Sales

Consumers trust

FIs more than

non-Fis

Advantage FIs:

established

relationships

with regulators

Lead in

Customer

Experience

Focus on

Digital

Simple and

convenient

Easy and always

on

Zero tolerance

for defects

Leverage

Established

Position of Trust

Build, Buy,

Partner, Fund?

Build

innovation

teams

Choose WHERE

to innovate

Innovate Faster

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FORTUNE Magazine World's Most Admired Companies®

2014 | 2015 | 2016 | 2017

Who Will Own Financial Conversations?

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© 2017 Fiserv, Inc. or its affiliates. |CONFIDENTIAL – LIMITED

FORTUNE Magazine World's Most Admired Companies®

2014 | 2015 | 2016 | 2017

Thank You!

27

Vision 2020: Innovation at the

Speed of Life

Brandon Trease

Client Solutions Consultant, Fiserv

October 24th, 2017