member experience: blurring the lines between …...the dinner bill starts to open new account at...

Member Experience: Blurring the Lines

Between Digital and Physical

Jaime Dominguez

Director, Strategy and Product Management

© 2018 Fiserv, Inc. or its affiliates. | CONFIDENTIAL – LIMITED

FORTUNE Magazine World's Most Admired Companies®

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Agenda

• Market Insight

• Meeting Member Expectations

• 2030 Landscape

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Market Insight

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Date

4

Source: IDC, US Banking Digital Transformation Spending Forecast 2017; Javelin, “Online Banking Forecast 2016: Optimizing Online Banking in a

Mobile Era.”; Source: Aite Group 2017; Bain Report – customer in retail banking Global Edition 2016

U.S. FI Spend

$20.2 billion

to Support Digital

Transformation

Initiatives in 2017

U.S. Banking Digital Transformation Spending Projection

$-

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

2015 2016 2017 2018 2019 2020

Hardware Software IT Services Internal IT

($B)



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Your members’ last best experience becomes their expectation

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Consumers expect to be able to engage with their credit union …

6

When it’s convenient for me

With immediate results

With any device I choose

Without interrupting my life



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Generational Segments

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Traditionalists Baby Boomers Gen X Millennials Gen Z

1922 ‒ 1945 1946 ‒ 1964 1965 ‒ 1978 1979 ‒ 1999 2000 to Current Day



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Millennials Are More Likely to Interact With Their Primary FI Through Mobile Platforms; Boomers Rely More on Computers

Last Time Logged Into Primary Financial Organization’s Banking Site

BASE: ALL QUALIFIED RESPONDENTS (Q99/1): Q717a/Q717b When was the last time you logged into your primary financial organization’s banking site on [a mobile device (smartphone, tablet, or wearable device)] [a computer (laptop or desktop)]?BASE: VISITED FO’S SITE IN THE PAST MONTH (Q717a/1-5) (Q717b/1-5): Q719a/Q719b Approximately how many times have you logged into you primary financial organization’s banking site on [a mobile device (smartphone, tablet, or wearable device)] [a computer (laptop or desktop)] within the past month?

8

Total (n=3,050) Total (n=3,050)

Logged on Through Mobile Device Logged on Through ComputerAverage number of computer logins:

9 past month

Average number of mobile logins:

11 past month

30%

23%

6%

2%

3%

2%

2%

1%

3%

30%

Within the last day

Within the last week

Within the last 2 weeks


Within the last month

2 to 3 months ago

4 to 6 months ago

7 to 12 months ago

More than a year ago

Never

33%

29%

9%

2%

6%

4%

2%

2%

3%

10%

Within the last day

Within the last week



Within the last month

2 to 3 months ago

4 to 6 months ago

7 to 12 months ago

More than a year ago

Never

*Note: Revised Question Set Q1 2018

Boomers (53-71)

(40%)

Seniors (72+)

(65%)

Millennials (18-37)

(42%)

Urban Consumers

(40%)

Boomers (53-71)

(38%)

Seniors (72+)

(15%)Rural Consumers

(35%)



2014 | 2015 | 2016 | 2017 | 2018

Source: Aite: Top 10 Trends in Retail Banking & Payments in 2018 as of January 4, 2018

Tech Firms

Become FIs

FIs Become

Tech Firms

The largest companies

today are technology

companies, digital and

“customer obsessed”

And, they’re setting

members’ banking

expectations

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Digital Transformation: A Member Experience, A Member Journey

BryceBanker

JimBack-office Operations

“I want an experience that feels tailor-made for me.”JessicaIT Manager

HaleyBusiness Manager

Sends Jessica money for half the dinner bill

Starts to open new account at her financial institution on her tablet

Goes to branch to continue opening account

Monitors security

one experience | personalization | money movement | security

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2014 | 2015 | 2016 | 2017 | 2018

Top 5 FI Trends for This Year

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• Frictionless member journeys

• Modernize regulatory compliance

• Enhance the use of AI, big data and advanced analytics

• Create differentiation

• Transform the workforce



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Meeting Member Expectations

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2014 | 2015 | 2016 | 2017 | 201813

• Convenience

• Ease of use

• Frictionless interactions

• Immediacy

Always On, Always Connected



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Blur the Lines Between the Physical and Digital Worlds

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Technology

Process

Member

Culture



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Creating an extended journey for the member goes beyond a re-designed physical space…

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Extend Service

Omnichannel

Think Differently: Streamline Journeys

Frictionless

Streamline Experts



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New Business Model: Branch Self-ServiceCU Results

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• Teller cost savings of 40% through a full

digital transactional experience

• Branch cash has been eliminated

• Night-drop service eliminated

• Branch staff reallocated to focus on

greater value

• Branch and drive up hours extended

including weekends, some locations

to 8 p.m.

• Annual savings is projected at $2.1M



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Only Digital Can Connect the Dots: Game Changers

One Experience

Deliver precisely what your member wants

Personalization

Operate efficiently and profitably

Security

Reduce risk

Money Movement

Speed up and simplify transactions

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Automated Account Alerts

Banking

Card Controls

Card Free Cash

Client Acquisition

App Store

ATM Check Deposit

Card Instant Issue

CRM

Digital Front Office

Commercial Online Banking

Consumer Online Banking

Immediate Funds Availability

Marketing & Adoption

Online Money Management

Online Account Funding

Online Account Opening

Online Lease & Loan Management

eBills, eStatements, eInvoicingand eNotifications

Mobile Bill Capture

Mobile Bill Payment

Small Business Invoicing

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eSignatures

Mobile Customer Acquisition

Virtual Teller

Web Services Integration

Analysis and Reporting

Automated Check Fraud Detection

Automated Risk Automated Signature Verification

Behavioral Analytics

Biometrics

Credit Score Monitoring

Deep Device Inspection

Knowledge Based Authentication

Out-of-Band Authentication

Secure Browser

Integrated Payables


Mobile

Money Exchange Network

Overnight Checks

Person-to-Person

Real-time ACH

Wires

Digital Check Deposit

Enrollment


Wallet

Enabling a Seamless Digital Experience for Your Members



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A Member Journey

BryceMSR

JimTeller






Performs teller transactions


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Account Open: Save Process

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Out and About

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2014 | 2015 | 2016 | 2017 | 2018

Lobby Manager: Check In

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A Member Journey

BryceMSR

JimTeller








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Lobby Manager: Notify Bryce

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Member Information: Notable Events

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A Member Journey

BryceMSR

JimTeller








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2014 | 2015 | 2016 | 2017 | 2018

Biometric Authentication: Faster and More Secure

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2014 | 2015 | 2016 | 2017 | 2018

A Member Journey

BryceMSR

JimTeller








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Formula for Success

Enterprise addressable market opportunity includes digital and payment solutions, account processing and surround solutions.

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SuperiorClient Experience

Intuitively

Differentiated Solutions

QualitySolutions & Delivery

Likelyto Recommend

+

+



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2030 Landscape

30



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The Generational Segments

Number of births by year illustrates the significant size of both the Millennial generation

and the Gen Z group that follows

Source: U.S. Bureau of the Census

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

19

22

19

25

19

28

19

31

19

34

19

37

19

40

19

43

19

46

19

49

19

52

19

55

19

58

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

20

12

20

15

20

18

20

21

20

24

20

27

20

30

20

33

20

36

20

39

Mill

ion

s o

f B

irth

s

Traditionalists Baby-Boomers

Gen X Millennials Gen Z Gen AA (??) and beyond

31



2014 | 2015 | 2016 | 2017 | 2018

Credit Union• Complex• Multichannel• Old Processes• Timely

Technology Company• Convenient• Ease to use• Frictionless interactions• Immediate

2030• Brand focused

• Digital primary across all market segments

• Branches• Fewer and smaller footprints through

automation• Learning centers• Remote experts• Digital and branch tightly woven

• Focused on social influencers for marketing

• FI will be merged inside social apps like Instagram

• Processes will be streamlined with redesigned compliance to match

• Internet of things will be more integrated with banking capabilities

Equalizer• Technology• People• Process

32

What Does This Mean for the Credit Union?



2014 | 2015 | 2016 | 2017 | 2018

Your members’ last best experience becomes their expectation

33



2014 | 2015 | 2016 | 2017 | 2018

Q&A

34

member experience: blurring the lines between …...the dinner bill starts to open new account at...

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