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Retail banking remains a central touchpoint for consumers, even as the ways inwhich they manage and move money change. Escalating expectations forspeed and ease continue to transform the branch and banking. How financialinstitutions manage those shifts will be a focus in 2018 and beyond as newtechnologies and players begin to take center stage. Set goals for migratingtransactions to digital channels. Think differently about the experience youprovide and how you can meet changing, consumer expectation.1 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
DisclaimerThis document contains non-public, proprietary information, and confidential trade secrets. By reviewing this document, you agree tomaintain the confidentiality of the information contained herein, and you agree not to photocopy, reproduce, transmit or otherwise distributethis document or the information contained herein, in whole or in part, to any third party without Fiserv’s prior written consent. You agree thatsharing this document or the information contained herein with a third party without Fiserv’s authorization will cause it irreparable harm andthat monetary damages alone would be insufficient. You therefore agree that Fiserv shall have the right to seek injunctive or other equitablerelief, including specific performance, against such breach or threatened breach, in addition to all other remedies available to it at law orotherwise.Information described in this document is believed to be accurate. However, we make no representations or warranties about suchaccuracy. This document does not purport to contain all the information that you may require; and we accept no liability, financial orotherwise, for your use or reliance upon this information.Fiserv reserves the right to revise any portion of its plans at any time without notice. This document is for informational purposes only andthe information contained herein shall not be construed as a contractual obligation or guarantee. Fiserv’s only obligations will be reflected inthe terms of a definitive written agreement between you and Fiserv, when and if such an agreement is executed, and subject to suchlimitations and restrictions as may be specified therein.2 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Community Banking in the USRetail Banking Trends Drive ConsumerExpectationsPat Reetz, SVP Product ManagementApril 27th, 2018 9:10 – 10 am
The Digital Imperative4 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Today’s Agenda The Digital Imperative & Market Expectations Fiserv’s Strategic Response Investing in our client’s success 2019 and beyond digital experience Near-Term Advancements Innovation and A View of What’s Ahead Artificial Intelligence Cloud Strategies Blockchain5 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Morethan22MMobile relationships have becomeparamount in serving the nextgeneration, and Fiserv is definitely onthe right track.– John Orr,mobile banking usersMore than2,200ASP clients ofMobilitiAustin BankDIGITAL78% of our Retail Online customersare using Mobiliti, and 43% of themhave made a mobile deposit. WithoutFiserv helping meet the demand foranytime, anywhere banking, we mayhave lost those customers.– Brian Collins,SVP, Director of OperationsNearly650Mannualtransactions withASP version ofMobilitiMore than80Monline bankingusersFiserv provides cuttingedge technology that letsus create device-agnosticexperiences that provide asingle experience.– Craig Garofalo,SVP and COO6 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Market Expectations7 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
40 Years Ago8 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
13 Years AgoTodayMarket capitalization of SearsMay 2005Market capitalization of AmazonMarch 2018 18.6B 760BMarket capitalization of AmazonMay 2005 14.1BMarket capitalizationof SearsMarch 2018 0.3BSource: yCharts.com, March 20189 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
2018AmazonTargetAnd it's not justSears that'sdwarfed rsJCPenneyMarket capitalization as of March 2018. Source of market capitalization data: yCharts.com10 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
The largest companiestoday are technologycompanies, digital, and“customer obsessed”And, they’re settingcustomer’s bankingexpectationsTech FirmsBecome BanksBanks BecomeTech FirmsSource: Aite, Top 10 Trends in Retail Banking & Payments in 2018, January 4, 20188 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Customers Want Their Banking to Be More Than DigitalSelf-serviceaccount managementSeamless andrelevantnotificationsMoneymovementand paymentsPersonable interaction12 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Customer Experience Is Your BrandCustomer expectations86%of buyers would pay more for a betterexperienceMore personalizationMore optionsTransformation of customer experience processes canConstant contact10%–15% reduction incost to serve for B2C and B2B playersListen closely, respond quicklyyield aGive front-liners more control36% higher average revenue for digital users13Sources: Customer Experience Insight, “Customers Want More: 5 New Expectations You Must Meet Now," June 30, 2016; McKinsey and Company, Customer Experience: Creating Value Through Transforming Customer Journeys, Number 1, Winter 2016; Fiserv, DEI whitepaper; John Moon, Fiserv, “Mobile Banking Adoption: Where Is the Revenue for Financial Institutions,” The Point, January 2016.FORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITED
Keeping Clients in Step with Expectations14 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Key Elements of a Winning Digital tyFlexibilityMake it easy to useand delight thecustomerLet me integratecontent from sales toserviceDeliver a consistentlyexcellent clientexperienceGive me thecapabilities to matchmy requirements 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
intelligent experiences16 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Our Plan to Deliver These ExperiencesCoreInvestments InnovationInside TargetedAcquisitionsAccount processingData and analyticsDigitalDigital bankingEvents and alertsplatformCommercialPaymentsEnterprise ServicesFrameworkDigital branchFiserv DesignLanguagePaymentsLending kflow IntegrationImplementationExperienceAvailability &Performance17 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
The Outcome of Our InvestmentsDigital banking platformRedefining how digital experiences are delivered toyour customersIntegrated digital coreReimaging the account processing solutionexperience in a digital worldCommercial servicesBringing a digital experience to your small businessand corporate clients18 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Mobile Banking19 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
We’re delivering 15 Mobiliti enhancements including a UI refresh Refreshed mobile banking userinterface adopts best in class iOS andAndroid platform standards Increase user satisfaction, quality andaccessibility by leveraging nativeoperating system Boost app ratings and gather valuablecustomer insights with ratings promptsImages are for illustrative purposes only20 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
46%INCREASE IN POINT OF SALETRANSACTIONS12%INCREASE INPRODUCT HOLDINGSMOBILE USER VALUE(Post Adoption)ROI Study Results26%INCREASE INATM TRANSACTIONS36%INCREASE IN REVENUE FROMTRANSACTION ACCOUNTSSource: 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 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Deposit Originations22 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Customer Expectations for Digital Account Opening70% of consumers attempted to use a digital channel to open a checking account Of these, one in three attempted to start their application on a mobile device* Of these, one in 12 were successful in completing the application on a mobile device*Consumers still prefer online over mobile for opening new accounts Why: Want to complete the process successfully Problem: Everyone wants mobile first*Source: Javelin Strategy & Research, "Digital Account Opening Fails to Deliver a Single-Channel Experience,” Feb. 16, 201715 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Consumers Abandon Digital Account OpeningLengthy data entry formsProcess was too complicatedDoesn’t offer the products the customer wantsDocuments have to be physically signedUnclear instructions of what is needed and whyProcess was too longRequired to visit branch to completeNondigital mobile processApplicant cannot verify themselves24 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Originate Deposits New Mobile responsive UI Supports Deposit Accounts Data capture via smart phone cameraImages are for illustrative purposes only25 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Must-Haves to Reduce AbandonmentMust Be FastMust Be Easy“15 minutes? Who said that?We need to get it down to5–10 minutes.” 26Fast, responsive user interfaceCollect only the information neededLeverage technology to skip data entryDisplay content and progress indicatorsto manage expectations for how long itwill take 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITED“It should be so easy,my 11-year-old could log inand open an account.” Limit decisions and data entry Clear terminology Complete application without havingto visit branch to complete processMust Be anOmnichannel Experience“I should be able to pull myphone out, do a couple stepsand then complete the processon my desktop.” “Mobile first” design with progressiveenhancements Leverage platform-specificcapabilities Easy-to-use “save for later” optionFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Mortgage Originations27 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Rocket Mortgage funded 7 billionof Quicken Loans’ record 96billion in total closed loan volumein 2016, ranking as a top-30national lender.According to Quicken,the growth of RocketMortgage comes fromits appeal to a “newgeneration” ofhomebuyers.– Ben Lane, HousingwireMortgage lenders continueto pour money intoautomating the loanapplication process. Thebest-known example isRocket Mortgage byQuicken Loans. But Quickenisn’t the only lender thatembraces automation.Quicken Loans willbe working toautomatically validateincome, asset andemploymentverification in 2018.“Quicken Loans has worked diligently to provideclients a completely online mortgage experiencefrom application to closing. The next step in thisevolution is to digitally move the note to theindustry stakeholders who need it.”– Jay Farner, Quicken Loans CEO– Holden Lewis, NerdWallet28 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Within 5 Years, Two-Thirds of Millennials Are Likely to Be Homeowners%48Of millennials would becomfortable using theirsmartphones to researchloan optionsSource: Fiserv Expectations & Experiences, Borrowing & Wealth Management, 201729 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
A Digital OpportunityThe Cost of Mortgage Lending Is RisingWhere’s the expense?1,9871,7931,832Sales represent well over halfof the 0201120122013Costs continually rising since2010, with retail now over 6,000 per loan4,3514,4384,841201420152016Direct expense all costsfrom point-of-sale throughclosing (loan officers, salesmanagers, processors,underwriters, closers, salesand operations management)Retail Fulfillment Expense - /LoanRetail Sales and Marketing Expense - /LoanStratmor Technology Insight Survey, 201730 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
PCLenderDigital Mortgage SolutionA comprehensiveSAAS solutionSupporting banks,credit unions andmortgage bankersAdvanced reportingwith hundreds ofpreconfigured reports31 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDLife-of-loan support fromorigination to post-closing,including consumerengagement portalsComprehensive trainingand ongoing learningEmbeddedcompliance andloan quality rules.Always growing andalways includedSolves the problemfor addressing thefollowing: First mortgages Closed-end secondmortgages HELOCs Construction lendingPreconfigured systemconfiguration speeds theimplementation process andreduced system maintenanceincluding integration withindustry leading serviceprovidersRules-based systemsprovide moreaccurate processingand streamlines userworkflow unliketemplate-basedsystemsFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
We’re Leading With Our Rapid Mortgage Mobile Experience New mobile responsive UI LOS integration to support real-time activity Data capture via smartphone camera Real-time data accessImages are for illustrative purposes only32 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
We’re Focused on Creating Differentiation and Value for CustomersComponents of the digital mortgageRules-based workflowAutomatically analyze loan data and move the loanto the next step based on validated data and rules.Manual processing is only exception basedAutomated data gatheringand analysisAutomatically obtain data for theborrower and loan from dataproviders to validate information andclose the loan fasterBorrower andweb-based experiencesAllow borrowers and users to self-service and beconnected in real time to the loan and closing process33 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDPaperless processingElectronically obtaining necessaryinformation to support the loan processautomatically for the borrowerDigital compliance analysisAdhere to compliance automaticallybased on data, workflow and borrowerengagementElectronic signatures / e-signSpeed up the time of the loan and reduce the costsand risks with manual papers and processingFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Zelle & Payments34 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Digital Payments In the Past YearPartnershipsAndroid PaySamsung PayApple iOSVisa (token image)35 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDRetail (In-Store) Payments25% of sales6 year effortFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Different User Needs Different AppsBanking .CardMobile PaymentsDebt PaymentDifferent Apps Clean, flat purpose built UX/UI foreach user experience Faster to add functionality Faster user feedbackIntegrated Experience Shared brandingFacebook & Amazon Shared login credentials Ease of login via Touch ID36 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Digital Experiences Drive Demand Consumer-facing P2P paymentsolution Enables people to send moneyto family, friends and othersZelle and YourFinancial Institution Uses recipient’s email addressor mobile number Funds are available to therecipient within minutes37 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
What is Zelle?-- Component --OutcomeTransactions38Network Peer-to-Peer (P2P) Governance and operating rules Collaboration with leading networks, Visaand MasterCardBrand Common, consumer-facing P2P brand Intuitive experience National advertising campaignTechnology Alias-based directory connects financialinstitutions, facilitates faster payments Immediate Messaging Fraud risk management 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDUsersParticipantsFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Zelle in Mobiliti ASPUsers will access through dedicated Zelleoption on the Payments tab of MobilitiImages are for illustrative purposes only. Final design subject to change.39 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Instant PaymentZelle Turnkey to Zelle Participating BankZelle TurnKey through the NOW network provides a directconnection to the bank and Early Warning for posting debits andcredits.Zelle Turnkey Bank ADigitalChannelPlatformEWSFiserv ServicesSSOZelleParticipatingBank(s)Zelle TurnkeySolutionPayment essingSystemReal-Time Payment InstructionDirect Send Transaction using DDA account # with end of day settlement40 2018 Fiserv, Inc. or its affiliates. CONFIDENTIAL – LIMITEDFORTUNE Magazine World's Most Admired Companies 2014 2015 2016 2017 2018
Instant PaymentZelle Turnkey to Zelle Common App UserZelle TurnKey through the NOW network provides a directconnection to the bank and Early Warning for posting debits andcredits.Zelle Turnkey Bank ADigitalC
Retail banking remains a central touchpoint for consumers, even as the ways in which they manage and move money change. Escalating expectations for speed and ease continue to transform the branch and banking. How financial institutions manage those shifts will be a focus in 2018 and beyond as
