SERVICE REDEFINED: DEVELOPING BEHAVIOR-BASED PROGRAMS FOR CREDIT UNIONS

THE NEW DEFINITION OF SERVICE

MIKE KERSTENDAMIEN HAYES

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MARKET DISRUPTERS OF THE LAST DECADE

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FINANCIAL CRISIS

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DATA AGGREGATION

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NEW CHANNELS

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THE PROBLEM IS THAT MOST PRODUCTS DO NOT SUPPORT SERVICE STRATEGIES


Meh.

Most banks offer products that treat all customers the same rather than focusing on building products and service programs that respond to the unique behaviors of their age and lifestyle.

CURRENT STATE OF INDUSTRY PRODUCTS

Product designs do not reflect your strategic goals

Limited differentiation creates commoditization

Similar products create front-line sales challenges

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POLLING QUESTION

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Conducted November 2014 Surveyed 1,200 consumers Consumers represented 3 groups:

lower mass market upper mass market mass affluent

Surveyed 400 small businesses

OUR SURVEY WITH INFORMA


NOTABLE RESULTS…

20% of millennials are currently shopping for a checking account

Millennials are 64% less likely than the overall market to prefer a product with overdraft coverage

75% of millennials bank with the same institution as their parents

88% of un/underbanked would pay between $5-$10 monthly for an account with no other surprise fees

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NOTABLE RESULTS…

63% of mass affluent would increase deposit balances to receive cash rewards on their checking account

Mass affluent have no statistical difference in preference between interest versus cash rewards (2.6% higher preference for interest)

97% of small business owners are satisfied with their current banking relationship

96% of small business owners with a credit relationship selected their bank based on credit rather than deposit or treasury services.

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NOTABLE RESULTS…

Consumers (including Millennials) at all levels are willing to perform “sticky behaviors” in order to receive rewards

All prefer monthly rewards. Millennials would switch to an FI with a product

that offered ATM fee refunds and online, mobile and debit card access with a low monthly fee.

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OUR CULTURE AND EXPECTATIONS HAVE CHANGED


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OUR INDUSTRY IS UNDER ATTACK


OVERVIEW

OUR MISSIONTO IMPROVE THE PROFITABILITY AND PRODUCT INNOVATION OF FINANCIAL INSTITUTIONS BY PROVIDING SMARTER, DEEPER, ACTIONABLE ANALYTICS ON THE FINANCIAL BEHAVIORS OF CONSUMERS AND BUSINESSES.

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Winner201220132014

America’s fastest growing private companies

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WHAT IS BEHAVIOR-BASED PRICING?


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Customer/Account Incentives:

Interest rate adjustmentsCash backATM surcharge reimbursementsTransaction fee refundsService charge rebatesPointsAnnual bonusesMerchant specific discounts or credit

Deploying programs that drive customer behaviors based on incentives that motivate them

Reward for behaviors Banks wants:

DepositsAccount feesInterchange E-statementsLoan usageFinancial services relationshipPrimary relationship status (DD)

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EXAMPLE PROGRAMS IN THE MARKET TODAY


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EXAMPLE PROGRAMS IN THE MARKET TODAY

DEVELOPING YOUR BEHAVIOR-BASED PROGRAMS

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INTEGRATION WITH CORE

© 2014 SAYLENT TECHNOLOGIES, INC. PROPRIETARY AND CONFIDENTIAL

FI’s files

Data ServiceRelational

Account360 Data FlowFI’s files

FI’s files

FI’s files

Customer Tables Staging Tables

Live Tables

Reward files Creating XML

Reward files Creating XML

ProfitabilityHousehold Keys

Etc.

Cash Back IncentivesFee Rebates

Interest Rate AdjustmentsSC Waivers

Core AccountsTransactionsMortgages

InvestmentsEtc.

Product PackagesProgram QualificationCustomer Messages

A PROVEN SOLUTION

Launched in 2010 thru Channel Partners

Installed at over 150 Financial Institutions

• Ranging from $50M to $30B• 5 Million accounts on A360• $100 Billion Total Deposits

Holistic view of the customer to include checks, ACH, debit, bill pay, direct deposit, eStatement, loans, etc.

BAI Best in Show

Best Midsize Bank

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Launched new flagship account in March 2013. CNN award for Best Midsize Bank in 2013, due to A360-driven Checking account.

Program attributes:- Cash Back on Debit transactions- Balance and Estatement requirement- cash back on qualified transfers to savings- 5% annual savings bonus

Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-130

10,000

20,000

30,000

40,000

50,000

60,000

New Checking Accounts

# Ac

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Best Midsize Bank

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ACCOUNT360 USE CASE: $22B ASSET BANK

ACCOUNT360 USE CASE: $7B ASSET FI

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CAPITAL BANK’S METRICS/ROI

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THANK YOU FOR ATTENDING

How can we help your bank? Let’s schedule a follow up call and in-depth demo to see how Account360 can help your bank.

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AND THE WINNER IS…

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CONTACT INFORMATION

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Damien HayesSenior Revenue [email protected]

Mike KerstenSales [email protected]

Economy & Finance

SERVICE REDEFINED: DEVELOPING BEHAVIOR-BASED PROGRAMS FOR CREDIT UNIONS