Mobile DepositOptions for Consumer, Small Business and

Corporate Customers

May 24, 2017Tim Wilcox, Product Manager

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RDC Market Update

Four trends defined the RDC market space over the past year

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• Mobile RDC remains top of mind at financial institutions

– Consumed the bulk of the industry activity over the past year

– Most surveyed insitutions already had some sort of small business product

– There is healthy interest in further improvements in product efficacy

• Institutions are wise to offer business mobile deposit

– The majority of institutions have implemented a consumer solution with higher limits

– More capable products are available but institutions are slow to act on them

• Despite well-founded enthusiasm around mobile

– Commercial desktop RDC deployments continue to grow at a double-digit pace

– We are in the final stretch, but it may be a long one

• Risk and compliance finally appears to be in balance with banks desire to serve customers

– Institutions are actually behaving as if they want customers to deposit digitally

– Eligibility requirements are relaxing and deposit limits are rising

– RDC-related losses remain at or below established thresholds

Source: Celent State of Remote Deposit Capture 2017

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“Mobile is the new scanner, but

desktop scanners aren’t dead

yet. Reflecting both the

explosion in preference for all

things mobile as well as the

extraordinary convenience of

mobile RDC"

Source: Celent State of Remote Deposit Capture 2017

Advice for financial institutions

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• Think like your customers

– As payments slowly migrate from paper to electronic an integrated RDC/lockbox capability will become more important

• Serve small business with a two-tier product strategy

– Small business RDC adoption barriers are easy to overcome

– Use risk management capabilities available (instead of restrictive eligibility requirements an tight deposit limits)

– Businesses can well be served with mRDC multi-item deposit capability

– Larger businesses and those taking field-based payments, serve by extending desktop RDC with mobile capture

• Maximize utilization, not revenue

– Beyond the mobile banking feature, mRDC if done well, can become a mass market deposit- gathering channel

– This allows the migration of branch-based transactions to digital channels

– Freeing the branch channel to transform into the sales and service platform it must become

– Eliminating the use of one-size-fits-all deposit limit construct without undue risk

– The cost savings benefit of large scale transaction migration far exceeds the small revenue opportunity

Source: Celent State of Remote Deposit Capture 2017

FIS trends in consumer and small business mRDC

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• Institutions are gradually lowering barriers to adoption

– Raising deposit limits

– Reducing eligibility requirements making mRDC available to more consumers and small businesses

– Most institutions make funds available as they do at the teller line (next day available funds

• FIS continues to see strong adoption of mobile deposit by institutions

– New integrated solution deployments for institutions of all sizes

– Institution customer organic growth continues as institutions lower barriers to adoption

– Sales promotions help drive adoptiono $5 checks to make first mobile deposit

o Branch promotions

o Website and email promotions

• Integrated approach streamlines enrollment:

– Enables lower operational cost and convenience for user enrollment

– Institution selects eligibility parameters

– Dynamic deposit limits can eliminate the one-size-fits-all barrier

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Consumer and Small Business Solution

FIS Xpress Deposit Update

RDC solution for consumers and small businesses

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FXD introduced in 2008; Mobile deposit added in 2010:

• ASP delivery

• Self-contained RDC application with complete support capabilities, risk controls, auto-approval, exception review and activity reporting

• Financial institution (FI) controls all deposit parameters – enrollment, amount and velocity limits, holds, cutoff times, etc.

• FIS manages data center operations, software development and maintenance, compliance and audits, etc.

FIS consumer and mobile RDC experience

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512 FIs in production 8.25 M+ end users enrolled

in production

17 top 100 institutions in

production

More than 50 institutions in

implementation

3.2 M+ deposits processed

monthly (98% is mobile

channel)

Five Mobile Banking

Vendors integrated with

FXD

Six institution-developed

Mobile Banking apps

integrated with FXD

$1.7 B deposited monthly

(95% is mobile channel)

FIS Consumer & Business

Mobile Banking app enjoys

the largest number of

enrolled end users

FXD Feature Summary

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• FXD automated enrollment API

– Customer Name, eligible accounts, product code, product type

– Deposit limits

– Email Address

– Tenure

• FXD mobile deposit API

– Deposit account information and check image submission

– Response errors codes from initial IQA or accepted with Deposit ID

– Restrictive endorsement options

– Deposit history and check images request and responses

– IP Address of device for each deposit if FXD to track

• MISnap SDK option or manual photo

• Deposit automated approval

– Institution deposited item business rules

– Institution risk amount threshold

Mitek MiSnap™ – The Mobile Image Capture Experience

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Commercial and Small Business Integrated Desktop & mRDC Solution

FIS DirectLink Merchant

DirectLink Merchant has a responsive design

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Delivers an enhanced customer experience

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• Modern UI designed for ease-of-use

• Built-in functionality to enhance

customer scanning experience

– DREAM auto corrects items that were

scanned upside down and/or backwards

• Flexibility in Branding

– Bank logos

– Color schemes

– Custom terminology

• Responsive Design

– Look and feel of the solution remains the

same regardless of the device

With both mobile and desktop integration

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• DirectLink Merchant mobile deposit delivery options

– Delivered using any browser available now

– Standalone brandable native mobile app in development

– Mobile API for Integration to Mobile Banking apps in development

• Multiple check deposits from desktop or mobile device

• No amount entry during mobile check capture

• Manage and monitor while on the go

– Manage desktop and mobile deposits from a single platform

– Consolidated desktop and mobile deposit reporting

– Evaluate and track recent deposits

– Review and approve pending deposits

– Custom fields available for user entry (invoice number, customer account, etc.

– Export data captured from desktop or mobile to A/R system

Target commercial customers and small businesses with simplified capture on the mobile device

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Small Business customers

• Use of owned device

• Low-volume check deposits

Field Agent Model and Workflow

• Image Capture

• Image/Item Processing Tools

• Custom remittance fields (e.g. route # or invoice #)

• Deposit Transaction Research

Use Case – Mobile Workforce

• Service companies

• Insurance agents

• Food Service companies

• Distributors

• Initial product rollout June 2016

• 32 institutions live

• 26 institutions scheduled for implementation

• 1,650+ scanners deployed

• 175,000+ items deposited monthly

• Mobile capture beta institution begins full

implementation May 2017

• Mobile capture general release April 2017

DirectLink Merchant Summary

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Mobile Deposit Demonstration

FIS DirectLink Merchant

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Questions

Tim Wilcox

tim.wilcox@fisglobal.com

©2017 FIS and/or its subsidiaries. All Rights Reserved. FIS confidential and proprietary information.

Mobile DepositOptions for Consumer, Small Business and

Corporate Customers

April 12, 2017Tim Wilcox