is your largest branch open for business?should you have it “locked” behind online banking?...

Is Your Largest Branch Open for Business?

“eStrategy” for Today’s Financial Institutions

Ron DalyPresident/CEO

DigitalMailer, Inc.www.digitalmailer.com

What We’ll Cover Today

What is the world of eStrategy and why it’s so valuable

Where are financial services going on the web

Seven steps of an eStrategy

The new moments of opportunity

Summary and questions

The World of an “e” Strategy

All financial services delivered remotely via

Website (information, education, delivery, Social Media)

Online banking (transactions, acct opening, documents)

Mobile (info, transactions, alerts, marketing)

Communication (email, SMS, Voice, SmartApps, Chat, Video Chat)

Remote Delivery (ATM, Share Branches, Call Center, AVR, RDC, Mobile capture)

Your Virtual Branch MUST be your biggest &most cost effective branch in your network

You can’t out branch them but - the digital communication channel levels the playing field to compete with the largest banks!

# Bank of America branches…. 6,000# Wells Fargo branches…. 3,300# TD Bank branches….. 1,300

# Your CU branches…. ???

Trouble is… very few use it to its full potential!

According to the History Channel the Smart Phone is the #1 Gadget of the past 100 years

Another Cool Gadget ….

New “Mobile” Access Devices are Appearing

Internet ConnectivityCreate a Wi-Fi hotspot using SYNC® with MyLincolnTouch™ and your phone.

Where are Financial Services Going?

One Place for Sure is MobileFRB Predicts M-Banking & Payments will Grow

2,300 US Adults

Security Concerns

42%

Mobile Phones

87%

Smartphones44%

Smartphone for M-

Banking21%

Make Payments / Purchases

12%

Female Use55%

Fed’s “Consumers & Mobile Financial Services” Report

“A significant fraction of mobile users appear to be interested in using phones to make mobile payments.”

What are GEN Y & other Mobile Users Doing on Their Mobile Devices?

• Phone Calls

• Email

• Text messaging

• Music

• Games

• Surfing the web

• Smart Apps

• Facebook & Social Media

• GPS

• Scanning QR Codes

• Photos/Instagram/Snapchat

• Payments & much more

The Rise of NeoChecking Accounts

The future of retail banking?

NeoChecking accounts Mobile-first design PFM the focus, not the add-on Fluid accounts blending prepaid, debit, and credit

Or these Guys!

Say hello to Bluebird

Your Checking & Debit Alternative

Loaded with features. Not fees.

Decoupled “Stuff” Breaking the Financial Product Mold

Payment Channels are breaking!!

Watch Out Visa and MasterCard: PayPal Is Coming to a Brick-and-Mortar Store Near You By Martha C. White | February 15, 2012

Target REDcard

By definition, decoupled debit cards are processed via the Federal Reserve ACH System as the mechanism for reaching a consumer’s checking account as a debit to their account for their purchase. The payment side of the product operates like an electronic check, but the product is more than just a payment card.

The Target Red Card program is a great example of how the value proposition works. Consumers enroll with Target, provide their checking account to be debited and receive 5% discount at the register when they use the Red Card to pay. Target saves the fees they would have otherwise paid to the payment networks and banks and gives the savings back to their customers.

Redstone FCU Opens Right Choice Services Store

DECATUR, Ala. (November 2012) –Redstone FCU has opened its first Right Choice Money Services store, which will offer low priced, basic financial services, including check cashing, money orders, money transfers, bill pay, and reloadable prepaid cards.

Because of Right Choice’s relationship with Redstone, people can easily transition into full service credit union accounts, if they choose.

Allied Payments Mobile Picture PayPicture Pay™ is a mobile payment product that allows a user to Point, Shoot,

and Pay their bills.

Merchants are using Technology to takeback the Customer Relationships

Starbucks CEO reinvents the spiel; Top-secret plans aim to keep it fresh

The bulk of Starbucks' innovation over the next several years will be technology-focused, Schultz says. Not surprising for a company that claims an astounding 54 million Facebook fans globally.

"We are witnessing a seismic change in consumer behavior," he says. "That change is being brought about by technology and the access people have to information."

How folks pay for their Starbucks coffee could be the nearest-term change with the widest impact.

Already, Starbucks is producing more than 3 million mobile payments per week. That, says Schultz, exceeds the combined mobile payments of the next 10 companies closest to Starbucks. "This will result in a much deeper experience with our customers," he says.

For consumers, that will mean much more one-to-one marketing, says Schultz. That is, specific deals and promos could be specially targeted to individual consumers based on their buying habits.

USA TODAY April 25, 2013

Starbucks Just 30 Days Later

Starbucks CEO: We Process 4.5 Million Mobile Transactions Per Week

30 May 2013

Now a multi-billion dollar business, Starbucks' mobile payment app is processing more than 4.5 million transactions a week, the company says, despite its humble origins as a way to reduce customer wait times at stores.

Speaking at the Sanford C. Bernstein Strategic Decisions Conference, president and CEO Howard Schultz said he expects adoption to further increase as the card expands into grocery stores and the way in which customers use mobile phones continues to evolve.

“Basically over this past year and a half, we've noticed a seismic change in consumer behavior and that seismic change primarily is due to social and digital media and the rising tide of mobile phones replacing desktop computers,” Schultz said.

Where are Financial Services Going?

• A2A & P2P transfers

• Remote Deposit for all

• Voice of the Customer

• Instant approval lending

• Online Account Opening

• email marketing – 1 to some

• Mobile  banking/alerts

•All  paper documents online

• Mobile Deposit Capture

• Unlocked MCIF Data drive content & sales

• PFM tools

• Customized websites

• Dynamic email &   newsletters

• Social Media everywhere

• Chat 24/7

• Offers targeted by Geo‐location

• Mobile payments

• Technology closing deals 24/7

• Match PFM & product set

• Info flows each way

• Charge for the old model

• New delivery devices

• Virtual Safe Deposit boxes

• Bidding for financial service

• RFID Chip Technology

Web 3.0 Web 4.0Web 2.0

NOW 1-3 yrs 3-5 yrs

Mobile Strategy

Strategic Focus of an “e” StrategyAKA …. How Can We Compete with Banks & Non-Banks?

Leverage technology to:

Increase service and convenience

Use unique features in each channel to target opportunities

Reduce dependency on expansive & expensive branch network

Move communication towards a new one-to-one level

Stop “pushing” info and start sharing info both ways

New Technology…Should you have it “Locked” Behind Online Banking?

Requiring online banking only gets you part of your membership.

Multi-factor authentication doesn’t have to only be in front of online banking (DMI’s mobile MFA tool)

Standalone lets the consumer select the products and features they want

Most technology has an API these days. Be sure to negotiate the cost in the buying or renewal process

eStrategy Step #1Decide on the Goal & Where You Want to Go

What do you want from the strategy….

More new customers?

More profitable business from your existing customers?

Elimination of paper and old technology systems?

Limiting the number of new branches?

Younger members that might stay with your bank or CU as they age?

Just like a GPS system..You’ve got to know the destination before you get the map!

eStrategy Step #2Get the tools in place for service & convenience

Rebuff or replace anything in Web 2.0 financial services that cannot support Web 3.0 and 4.0 transactions

Acquire state-of-the-art financial services technology missing in Web 2.0

Create a financial services Web 3.0 plan

Start positioning for Web 4.0

Continue the Transition to Non-Branch Banking and a “Different” Type of Branch

If you can do it in a branch you must be able to do it online in all browsers

Ask yourself… is there anything you can do right now in a branch that you can’t do online??

Transition from Online Bankingto Mobile & Tablet Banking

Ask yourself… is there anything you can do right now in online banking that you can’t do on a tablet or mobile app??

eStrategy Step #3Create an “e” place in the Organization

Create “C” level position with authority to do what it takes to grow business and drive eStrategy aligned with Corporate strategy. WHY?

Ad-hoc programs launched at different times and they don’t talk to each other

Virtual communication is inconsistent (email, online banking, website, mobile)

Multiple ways to communicate with some overlap, singular attempt or not at all

Lack of efficiency and effectiveness because customer information is “locked” and not available to target next product or service

And it’s only going to get worse!

Take Advantage of the New Moments of Opportunity

JIMMY CHOO

$1400

Can I afford it?

How should I pay?

Can I get an offer?

What did others pay?

The New Moment of Opportunity - ATMs

The New Moment of Opportunity - Post Sale

Triggered Emails & Ads automatically cross-sell related products to those just previewed or purchased

recommends other items you might want before you leave.

If you liked that, you might also like this…..

Another Angle

Customer’s who bought this also bought (liked, previewed) this…..

It works because no one wants to be left out of the crowd!

Educational Email Series for New Vehicle Cross-sells

Members are automatically loaded into existing cross-sell email series each day to remain engaged with

a member that has new vehicle loan through four follow-up emails

The New Moment of Opportunity – Social Media?

eStrategy Step #4Set a Corporate goal to Collect Customer Contact Points

To leverage technology to provide the ultimate in convenience, 24/7 customer service and profitable growth your technology will need:

• Email addresses• Cell phone numbers• Home phone numbers

Collect them all in one central location that shares the data with other technology and make sure the database is easy to update from any source.

eStrategy Step #5Start to drive messaging towards devices &

one-to-one communication

Old way Same message to everyone

Good Same message to some

Better Same message to few

Future Targeted one-to-one messaging

Through those email addresses, cell phone numbers &home phone numbers

eStrategy Step #6 Open data for Event Driven Marketing & Communications

Legacy Core Systems

Core data off loaded to “unlocked” MCIF System

MCIF data off loaded to Targeted Ad Engine & Automatic Relationship Builder System

Ad Engine and ARB can drive 1-to-1 communication in all these channels

eMCIF System

Where key data is stored to feed Web 2.0, 3.0 and 4.0 technology to communicate via print, email, mobile or phone

Legacy MCIF Systems

Automated Communication Creates Efficiencies!Digital FCU ARB Statistics

Total Sent: 2,654Total Opens: 55.31% (1,468)Total Clicks: 24.57% (652)Unsubscribed: 0.19% (5)Bounced: 0.87% (23)

Incomplete Loan Application Email

Total Sent: 15,510Total Opens: 58.28% (9,039)Total Clicks: 26.69% (4,139)Unsubscribed: 0.08% (13)Bounced: 4.02% (623)

Approved Pending Documents Email

Total Sent: 1146Total Opens: 52.89% (3234)Total Clicks: 15.36% (939)Unsubscribed: 0.20% (12)Bounced: 4.11% (251)

Approved Pending Documents (14 Day Reminder) Email

Variable Field Inserting switches images and $$$ insert based on HELP available balance

New Customer On-boarding with “Youthful” imagesFrom Online Account Opening Report

eStrategy Step #7Once open…

Get Personal… Get Local…

and let an enhanced communication, sales and service network

take over where technology provides consistent, managed

virtual contact at every online level where consumers want to

conduct business. Contact is optimized for communication,

convenience, efficiency and promotion of product growth.

eStrategy Summary

#1 Decide on the goal & where you want to go

#2 Get the tools in place for service & convenience

#3 Create an “e” place in the organization

#4 Set corporate goal to collect customer contact points

#5 Drive messaging towards one-to-one communication

#6 Open data for event driven marketing & communications

#7 Once open… Get Personal… Get Local…

What will the History Channel say about Your CU’s Virtual Branch 10 years from now?

DigitalMailer’s Virtual Branch Contributions

eStatements2000

Email Engine &

Alerts 2002

Secure Forms 2006

Automatic Relationship Builder Email

2007

Mobile Alerts 2008

Online Surveys

2009

Crisis Managemen

t System2009

CustomerCommunicatio

n Center

2009Electronic Document

Management System

2010

Data-driven Ad Engine

2012

My Virtual StrongBox

2012

Multi-factor Authentication

2012

Leeflet2013

DigitalMailer(CUSO established 2000)

250 Credit Unions using DMI 18 over $1 Billion in assets Over 5 million members

Ron DalyPresident/CEO866-994-4900 ext 102rdaly@digitalmailer.com

Who is DigitalMailer?

DigitalMailer, Inc. (www.digitalmailer.com) helps banks & credit unions open their largest branch – the virtual branch. Using its expertise and today's technology, DigitalMailer helps financial institutions connect with customers in the online channel they prefer, driving consistent, managed messages that are optimized for communication, convenience, efficiency and promotion of product growth.