Transcription
Payments, VirtualSolutions, and InnovationAvid ModjtabaiSenior Executive Vice PresidentMay 11, 2017 2017 Wells Fargo & Company. All rights reserved.
Business OverviewPayments, Virtual Solutions, and Innovation
PVSI was formed in 4Q16Deposit Products GroupEd KadletzCards and Retail ServicesBeverly Anderson (1)Treasury, Merchant, andPayment SolutionsDanny Peltz Treasury management Consumer checking andsavings General purpose creditcard Debit card Co-branded credit card Merchant services (cardacceptance) Small business checking Private label credit card CEO digital portal Loyalty/rewards programs Wells Fargo GatewayVirtual ChannelsJim Smith Online and mobile banking 24/7 contact center E-mail, chat, and socialmediaOperationsTiti ColeInnovationSteve Ellis Payment clearing andsettlement Emerging technologiesresearch and development Risk and fraud operations Artificial intelligence Electronic and commercialservices Enterprise utilities Innovation labs Wells Fargo Accelerator Document processing(1) Interim head.Wells Fargo 2017 Investor DayPayments, Virtual Solutions, and Innovation 2
Strong positions in payments and digital #1 in Retail deposits(1) #1 in Debit card transaction and purchase volumePaymentsLeadership #1 in Treasury management #1 in ACH originations(3)(4) #2 in e-Commerce as merchant acquirer #1 in Consumer mobile bankingDigitalLeadership(2)(5)(6) #1 in Consumer online money movement e-delivery #1 in Small business in digital(7)(8) #1 in Corporate/Institutional mobile banking, integratedcorporate banking site, and web site design (9)(1) FDIC data, SNL Financial, as of June 2016. Retail deposit data is pro forma for acquisitions and caps deposits at 1 billion in a single banking branch and excludescredit union deposits.(2) Nilson report, April 2017; total 2016 debit and prepaid transaction volume for consumer and small business. (3) Ernst & Young: 2016 CashManagement Survey of fee-equivalent revenues in the U.S. (4) NACHA, Largest Financial Institution Originators of Automated Clearing House Payments, Year 2016.(5) The Nilson Report, March 2017. (6) Q1 2017 Keynote #1 in mobile overall. (7) 2016 Forrester US Online Banking Functionality Benchmark. (8) 2016 KeynoteSmall Business Scorecard. (9) World’s Best Corporate/Institutional Digital Banks - North America 2016, Global Finance magazine.Wells Fargo 2017 Investor DayPayments, Virtual Solutions, and Innovation 3
Digitally engaged consumer and wholesale customersConsumerWholesaleConsumer Mobile and Online Secure Sessions(# of sessions)Wholesale Mobile Sessions(# of sessions, in thousands)Average MonthlySessions peractive user2014201520163.5x134.1B5.0B16914370175.6B90-day Active Digital Payment Consumers(# in millions)1,3202014(1)20152016Wholesale Mobile Money Movement( in billions) 7% 37%12.713.61Q161Q177.01Q169.61Q17(1) Customers who in the last 90 days transacted with one or more of the following: bill pay, person to person, wires, asset to credit account transfers (on and off-us),global remittance, and small business e-payments.Wells Fargo 2017 Investor DayPayments, Virtual Solutions, and Innovation 4
Progress on credit card, despite softer account opensDeepen EngagementWin New Cards and Customers Increased retail bank householdpenetration from 43.3% to 45.5%(1) 30% of 2016 net new accounts fromnon-deposit WF households; increasedpenetration from 10.1% to 11.2% (1) Grew affluent balances by 10% YoY Launched third American Express Propelproduct and Visa Cash WisePOS-active Credit Cards(#, in millions) Refreshed Go Far Rewards; averageredeemer spend is 4X non-redeemers Launched multi-card offers for existingcustomers Executing early months on book, spend,and upgrade campaigns Optimizing credit lines by customersegment(1)(2)Credit Card Transactions(#, in millions) 4%Credit Card Outstandings( , in billions) 6% 7%7.47.725527025.126.91Q161Q171Q161Q171Q161Q17All charts reference general purpose credit card only. All data is period-end. (1) From 1Q16 to 1Q17. (2) Affluent defined as 25k in total wallet.Wells Fargo 2017 Investor DayPayments, Virtual Solutions, and Innovation 5
Growing digital distribution for credit cardExpand Distribution & Capabilities Building out digital acquisitioncapabilities:--Developing custom underwritingscorecards for non-depositcustomers and prospectsCredit Card Account Opens(by channel)2%12%75%-Leveraging advanced fraud anddigital data and analytics tools2015-Optimizing digital marketingassetsRefreshed credit card digital“shopping” experience Opened wellsfargo.com to prospectapplicantsWells Fargo 2017 Investor Day7%7%Growing affiliate relationships(e.g., creditcards.com,zappos.com) rectMail50%Branch1Q17Payments, Virtual Solutions, and Innovation 6
Accelerating our growthPayments, Virtual Solutions and Innovation
Our opportunitiesPVSI brings together:Our unique opportunities to accelerate growthacross Wells Fargo: Broad consumerreach Accelerate digital account acquisition withexperiences that are simple and fast, end-toend Deep businessrelationships Provide best-in-class digital payments forevery customer we serve Leading positions inconsumer andwholesale payments Robust digitalpresenceWells Fargo 2017 Investor Day Deliver personalized advice at scale to helpcustomers reach their financial goals Expand and integrate our distribution toreach our customers wherever they are Build a platform for innovation to re-shapeour infrastructure and deliver greater speedand flexibility for customers and team membersPayments, Virtual Solutions, and Innovation 8
Our roadmapAccelerate digital account acquisitionProvide best-in-class digital paymentsDeliver personalized advice at scaleExpand and integrate Wells Fargo distributionBuild a platform for innovationWells Fargo 2017 Investor DayPayments, Virtual Solutions, and Innovation 9
Accelerate digital account acquisitionDespite growth, digital sales are 10% of new account opensSimple, fast, end-to-end digitalaccount open experiencesProductDigital Account Opens(1)15%CAGR1Q151Q161Q17FunctionalityStatus Student LoanEnd-to-end digital loansPersonalLines & LoansEnd-to-end digital loansand linesSmallBusinessFastFlex fast-decisionloans funded next-dayMortgageDigital mortgageapplicationIn pilotSmallBusinessFastFlex line of creditIn pilotBrokerageIntuitive InvestorSM hybridrobo-advisor offeringIn pilotDepositsExpress mobile accountopen and useConsumerCredit(2)Multi-product creditdecisioning and offersMerchantServicesOnline application,approval, and setupSBA LoansOnline application andprequalification (phase 1)2Q17Expected2H17(1) Includes all products available for online applications in the following categories: consumer DDA, general purpose credit card, student loans, home equity,personal loans, personal lines, WellsTrade, and business deposits and credit. (2) General purpose credit card and personal Loans and lines.Wells Fargo 2017 Investor DayPayments, Virtual Solutions, and Innovation 10
From prospect to making a purchase in 5 minutesLaunching May 2017Expected 2H17 Use a picture of an official ID to fill inapplication details Verify new-to-bank customers witha “selfie” Real-time account funding Immediate use of digital debit card Instant access to Wells Fargo MobileBankingWells Fargo 2017 Investor DayPayments, Virtual Solutions, and Innovation 11
Maximize customer choice with multi-product offersExpected 2H17 One application,multiple productapprovals Shifting offers fromproduct-centric tocustomer-centric Customer chooses howto allocate credit limitamong products 100% end-to-enddigital, pre-filled andpre-qualifiedWells Fargo 2017 Investor DayPayments, Virtual Solutions, and Innovation 12
Building robust capabilities for digital acquisitionEasy and Simple,End-to-endDifferentiatedValue Use system of recorddata to provide existingWells Fargo customerswith streamlined digitalexperiences Provide tailored offersfor every customer,leveraging insights andbehavior Leverage trustedsource data to providesimpler applications forprospectsKey Capabilities Enable instantprovisioning of newproducts (e.g., instantdigital debit card)Secure data exchangeEnhanced authenticationDigital product issuanceWells Fargo 2017 Investor DayExpandedReach Underwrite customersholistically (vs. atproduct level) Deliver compellingvalue propositions toattract new customersCustomer-levelbehavioral analytics Drive broader reachand awarenessthrough strategicpartnerships (e.g.,affiliates, co-brand,sponsorships) Embed offers and realtime fulfillment inrelevant off-usenvironments (e.g.,cards in online shoppingcheckout, IRAs in taxsoftware)API capabilitiesAI-driven underwritingDigital and socialmarketingPayments, Virtual Solutions, and Innovation 13
Our roadmapAccelerate digital account acquisitionProvide best-in-class digital paymentsDeliver personalized advice at scaleExpand and integrate Wells Fargo distributionBuild a platform for innovationWells Fargo 2017 Investor DayPayments, Virtual Solutions, and Innovation 14
Continue to lead across the payments value mall Business #1 retail depositmarket share (1) #1 small businesslender (4) #1 debit cardtransaction andpurchase volume #1 SBA 7(a) lender #1 online moneymovementexperience (3)(2)Corporate #1 TreasuryManagement(5) #1 in small businessdigital(6)(7) #1 ACH originator(8) #2 merchant acquirer fore-commerce companies (9) Best Bank for Paymentsand Collections (10)Wells Fargo processed 145T in payments in 2016 Put real-time payments in our customers’ handsOurOpportunities Make business payments easier and more flexible Be the premier payments provider for digital ecosystems(1) FDIC data, SNL Financial, as of June 2016. Retail deposit data is pro forma for acquisitions and caps deposits at 1 billion in a single banking branch andexcludes credit union deposits. (2) Nilson report, April 2017; total 2016 debit and prepaid transaction volume for consumer and small business. (3) 2016 ForresterUS Online Banking Functionality Benchmark. (4) U.S. in dollars, loans 1MM, 2015 Community Reinvestment Act government data. (5) In dollars and units,internal analysis of U.S. SBA fiscal year-end data, 2016. (6) 2016 Keynote Small Business Banker Scorecard (7) Ernst & Young: 2016 Cash Management Survey offee-equivalent revenues in the U.S (8) NACHA, Largest Financial Institution Originators of Automated Clearing House Payments, Year 2016. (9) The Nilson Report,March 2017. (10) Global Finance Magazine: World’s Best Treasury & Cash Management Providers 2016. North America.Wells Fargo 2017 Investor DayPayments, Virtual Solutions, and Innovation 15
Put real-time payments in our customers’ handsDigital CardsZelle (WF SurePay)Rewards Credit CardUpdated experienceexpected 3Q17Wells Fargo 2017 Investor DayFirst bank to deliver Zelleexperience in mobile app;additional features June 2017Payments, Virtual Solutions, and Innovation 16
Make business payments easier and more flexibleEmbedded services throughAPIs and SDKsPush-to-cardDisbursement Reach consumer payees usingjust a debit card number APIs to enable integration of Wells Fargo intoour customers business tools Funds delivered in 30 minutes Broad use cases (e.g., benefitspayments, insurance claims)Software Development Kit (SDK) embeds WFpayment options within merchants’ mobileapps (coming soon)Launched 4Q16Wells Fargo 2017 Investor Dayv2.0 expected 2H17Payments, Virtual Solutions, and Innovation 17
OurStrengthsUniquely positioned to serve digital ecosystems Industry leader in commercial tech banking A payments provider for eCommerce leaders (e.g., Stripe, Paypal) Mass customization and integration enabled by API capabilities Broad consumer scale and reach Highly engaged digital customer baseFor platformsFor hosted businessesFor consumers Robust paymentsprocessing capabilities Financial productsrelevant to eco-system(e.g., rental propertyfinance) Cross promotion andintegration with WFproducts Best-in-class risk andfraud management tools Seamless integrationwith digital properties Co-brand capabilitiesWells Fargo 2017 Investor Day Streamlined paymentacceptance Small business financialproducts and advice Differentiated value andexperiences for WFconsumers (e.g., paywith points) Convenient embeddedpayment capabilitiesPayments, Virtual Solutions, and Innovation 18
Our roadmapAccelerate digital account acquisitionProvide best-in-class digital paymentsDeliver personalized advice at scaleExpand and integrate Wells Fargo distributionBuild a platform for innovationWells Fargo 2017 Investor DayPayments, Virtual Solutions, and Innovation 19
Deliver personalized advice at scale“How can I managemy day-to-daybudgeting?”“How can I buildmy credit for thefuture?”“How can I developa regular savingshabit?”“How do we createan investmentstrategy?”Wells Fargo 2017 Investor DayPayments, Virtual Solutions, and Innovation 20
Helping customers reach their goalsPredictiveBankingLaunched 2Q17FICO ScoreLaunched 2016SpendSaveBorrowInvestConsumer CashManagementExpected 2H17Daily ChangeLaunched 4Q16Wells Fargo 2017 Investor DayIntuitiveInvestorExpected 2H17Payments, Virtual Solutions, and Innovation 21
Our roadmapAccelerate digital account acquisitionProvide best-in-class digital paymentsDeliver personalized advice at scaleExpand and integrate Wells Fargo distributionBuild a platform for innovationWells Fargo 2017 Investor DayPayments, Virtual Solutions, and Innovation 22
Evolving with our customers’ preferences600MM tellertransactionsTraditional900MM ATMtransactions440MM phone calls3.4B (1) mobilesecure sessionsWF Distribution2.2B (1) onlinesecure sessionsOff-WF websitesSocialmediaEmergingInternet of ThingsAll figures represent full year 2016.Unless noted, all figures represent full year 2016. (1) Based on annualized 1Q17 actuals.Wells Fargo 2017 Investor DayPayments, Virtual Solutions, and Innovation 23
Serving our customers in their channel of choiceSocial Media ChatbotsPowered by Kasisto(WF Startup Accelerator)Proprietary Bot (WF Labs)Providing secure access toservices on customers’digital platforms of choiceTesting hand-offsbetween chatbots andmessaging serviceIn pilotIn pilotWells Fargo 2017 Investor DayPayments, Virtual Solutions, and Innovation 24
Seamless cross-channel customer experiencesStreamlined digitalapplicationDigital advocates help create a moreefficient experience in-branch and at homeFasteraccount openNFC/MobileAuthenticationWells Fargo 2017 Investor DayMobile documentcaptureDigitalself-serviceDigital branchFinancial health phoneconversationsFinancial healthdigital toolsAdvicePayments, Virtual Solutions, and Innovation 25
Our roadmapAccelerate digital account acquisitionProvide best-in-class digital paymentsDeliver personalized advice at scaleExpand and integrate Wells Fargo distributionBuild a platform for innovationWells Fargo 2017 Investor DayPayments, Virtual Solutions, and Innovation 26
Building enterprise capabilities and platformsCapabilityAdvancedAuthenticationAPIs andDeveloperGatewayArtificialIntelligence/Speech andMessagingKey Business Results Deployed one-time passcodes acrosschannels (e.g., card-free ATM) Launched suite of biometriccapabilities (e.g., fingerprint, voice,and eye verification)ExamplesCEO eyeprintauthentication Introducing new prospect verificationcapabilities (e.g., selfie technology)and passive authentication (e.g., realtime mobile identity services) 8 business solution APIs deployed todate supporting 4 LOBs Launched developer portal 20 additional APIs and SDKs plannedfor deployment by the end of 2017 Piloted predictive banking capability(provides insights based on customerbehavior) Delivering financial servicesinformation through virtual assistantsand chatbotsWells Fargo 2017 Investor DayPush-to-carddisbursementWells FargoChatbotOne-timepasscodePaymentsacceptance kitPredictiveBankingPayments, Virtual Solutions, and Innovation 27
Collaborating to deliver for our customersStartup Accelerator(Launched 2014)Wells Fargo 2017 Investor DayRecent CollaborativeRelationshipsPayments, Virtual Solutions, and Innovation 28
SummaryOur Strengths:Our Opportunities: Market leadership, scale,and deep relationships Accelerate digital accountacquisition Strong market positioning Provide best-in-classdigital payments Long track record ofinnovation Focused strategy andaligned team Clear mandate to drivechange on behalf of theenterpriseWells Fargo 2017 Investor Day Deliver personalizedadvice at scale Expand and integrate ourdistribution Build a platform forinnovationPayments, Virtual Solutions, and Innovation 29
Biography
Avid ModjtabaiSenior Executive Vice President,Payments, Virtual Solutions, and InnovationWells Fargo 2017 Investor Day Avid Modjtabai is responsible for Wells Fargo’s Payments, Virtual Solutions andInnovation (PVSI) group, and leads approximately 35,000 team members. ThePVSI group brings together the company’s robust payments platforms, digitalcapabilities, online, mobile and phone channels and innovation teams. PVSIincludes Deposits, Card and Retail Services, Treasury Management, MerchantServices, Virtual Channels, Operations, and the Enterprise Innovation Group. A 24-year veteran of Wells Fargo, Modjtabai has served in a number of seniorleadership roles prior to leading PVSI including: head of the Consumer LendingGroup and enterprise-wide Operations, head of the Technology and OperationsGroup and Chief Information Office, head of Human Resources, and head of theInternet Services Group. Modjtabai has been named as one of the “Most Powerful Women in Banking” byAmerican Banker. Additionally, she received the “Ellis Island Medal of Honor,”awarded for her outstanding personal and professional achievements, coupledwith preserving the richness of her heritage. As an active member of the community, she serves on the board of trustees forThe Marine Mammal Center and on the board of directors for Avnet, Inc., aleading global technology distributor. She earned a Bachelor’s degree in industrial engineering from StanfordUniversity and an MBA in finance from Columbia University.Payments, Virtual Solutions, and Innovation 31
credit union deposits.(2) Nilson report, April 2017; total 2016 debit and prepaid transaction volume for consumer and small business. (3) Ernst & Young: 2016 Cash Management Survey of fee-equivalent revenues in the U.S. (4) NACHA, Largest Financial Institution Ori
