Proprietary/Confidential

TheInformedBanker:TheSignificanceofMobileBankingPresentedby:SteveNikitas

April26,2018

Presenters

2

ModeratorChristineAhlgrenDirector,StrategicBusinessAlliances

StephenNikitasSeniorStrategyDirector

TodayWe’llDiscuss…

● Mobilebankingtrends

● Whytoinvestinmobilebanking

● Howtostayaheadofconsumermobilebankingexpectations

3

U.S.ConsumerSmartphoneOwnership

Source:CornerstoneAdvisors– ReinventingCheckingAccounts4

89%85%

77%

65%

53%

88% 86% 84%

75%

62%

93% 91% 90%

82%

67%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18-24 25-34 35-44 45-54 55-752015 2016 2017

CosttoMakeaDeposit

Teller$8

ATM$.80

Mobile$.08

Teller

ATM

Mobile

Source:JLLResearch– BranchBanks:NavigatingASeaOfIndustryChangeSource:Bancography – 2016/20175

Branchtransactorsare12%morelikelytorecommendtheirFI

MobileBankingApplicationUse

Iuseamobilebankingapplication3ormore

timesperweek23%

Iuseamobilebankingapplication3ormoretimespermonth

15%

Iusedamobilebankingapplicationafewtimes

ayear7%

Ihaveamobilebankingapplicationonmy

phonebutIdon’tuseit3%

Idonotuseamobilebanking

applicationatall52%

Source:HarlandClarke– MobileDepositSurvey6

UnderstandingConsumers

81%

61%58%

55%52%

0%

25%

50%

75%

100%

RewardMeForMyBusiness

GiveMe"AnyTimeandAnyPlace"Access

ToBalances

SeeMeAsAPerson ProvdeMeWithWealthBuilding

Advice

TellMeWhatIAmSpendingMoneyOnAndHowICanSave

TheTop5WaysMyFICouldImproveMyLifestyle

Source:CGI– UnderstandingConsumersInTheDigitalEra7

UnderstandingConsumers

81%

61%58%

55%52%

34%

84%

55%

37%34%

0%

25%

50%

75%

100%

RewardMeForMyBusiness

GiveMe"AnyTimeandAnyPlace"Access

ToBalances

SeeMeAsAPerson ProvdeMeWithWealthBuilding

Advice

TellMeWhatIAmSpendingMoneyOnAndHowICanSave

TheTop5WaysMyFICouldImproveMyLifestyle

SatisfactionIngeneral,55%ofconsumersaredissatisfiedorambivalentwiththeirFinancialInstitution

Source:CGI– UnderstandingConsumersInTheDigitalEra8

AccountAcquisition

CompetitiveRates/Fees- 12%

Convenience -16%

Divorce/Marriage - 2%

ExistingRelationship - 25%Moved - 3%

NeededAnAccount -14%

Recommendation - 16%

Reputation/Trustworthy - 10%

Advertising- 2%

WhyIOpenedANewAccount

Source:Bancography – Bancology – April2017– Volume629

MobileBankingUsers

14.6%

19.7%

41.3%

24.4%

HowOftenDoYouUseYourPrimaryCheckingAccount'sMobileBankingApplication?

MorethanOncePerDay OnceDaily AFewTimesPerWeek OncePerWeekOrLess

Source:S&PGlobalMarketingIntelligence– 2017U.S.MobileBankingLandscape10

MobileBankingUsers

18.9%

52.8%

28.3%

HowManyTimesInTheLast30DaysHaveYouVisitedABranchOfYourPrimaryFI?

None 1-3Times 4OrMoreTimes

Source:S&PGlobalMarketingIntelligence– 2017U.S.MobileBankingLandscape11

MobileBankingUsers

67%

33%

DidYouMeetWithAnEmployeeDuringYourBranch

Visit?MoreThan$10KInSavings

Yes No

Source:S&PGlobalMarketingIntelligence– 2017U.S.MobileBankingLandscape12

57%

43%

DidYouMeetWithAnEmployeeDuringYourBranch

Visit?LessThan$10KInSavings

Yes No

MobileBankingUsers

37.7%

46.2%

52.4%

65.5%

83.3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

RDC

PayBills

TransferMoneyBetweenAccounts

ReviewTransactions

CheckBalance

WhatMobileBankingFeaturesDoYouUseTheMost?

Source:S&PGlobalMarketingIntelligence– 2017U.S.MobileBankingLandscape13

MobileBankingUsers

19.2%

25.0%

29.3%

32.8%

36.7%

0% 5% 10% 15% 20% 25% 30% 35% 40%

TravelNotification

ViewBalanceW/OLoggingIn

TurnDebit/CreditCardOn/Off

FingerprintLogin

CreditScoreTracking

WhatMobileBankingFeaturesAreMissing?

Source:S&PGlobalMarketingIntelligence– 2017U.S.MobileBankingLandscape14

MobileBankingUsers

17%

32%

28%

33%

28%

58%

48%

15%

25%

27%

33%

47%

50%

45%

0% 10% 20% 30% 40% 50% 60% 70%

BetterHours

MoreBranches

BetterMobileApp

Service

HigherInterestRate

LowerFees

IncentiveOffer

WhatWouldInfluenceYourChoiceOfANewFI?

MoreThan$10KInSavings LessThan$10KInSavings

Source:S&PGlobalMarketingIntelligence– 2017U.S.MobileBankingLandscape15

MobileBankingUsers

Yes10%

No90%

DidYouSwitchYourPrimaryCheckingAccountInThePast

Year?

Source:S&PGlobalMarketingIntelligence– 2017U.S.MobileBankingLandscape16

Yes40%No

60%

WouldYouContinueUsingYourMobileBankingApplicationIfYourFICharged$1/Month?

Yes22%

No78%

WouldYouContinueUsingYourMobileBankingApplicationIfYourFICharged$3/Month?

MobileBankingUsers

Source:CornerstoneAdvisors– ReinventingCheckingAccounts17

69% 69%

78%

88%

31% 31% 22% 12%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

YoungMillennials OldMillennials GenX BabyBoomers

WhatTypeOfCheckingAccountDoYouOwn?

FreeCheckingAccount Fee-BasedCheckingAccount

MobileBankingUsers

Source:CornerstoneAdvisors– ReinventingCheckingAccounts18

27%

32%

18%

10%

10%

14%

8%

2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

YoungMillennials OldMillennials GenX BabyBoomers

AttitudesTowardAnAmazonCheckingAccount

CloseOutMyCurrentCheckingAccountAndOpenAnAccountWithAmazon

OpenACheckingAccountWithAmazonInAdditionToMyCurrentAccount

AmazonisthinkingaboutofferingaCheckingAccountandchargingamonthlyfeeof$5to$10.Thiswillcomewithcellphoneprotection,IDtheftprotection,roadsideassistanceandmore.

MobileBankingUsers

19%

32%

15%

8%

8%

12%

9%

3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

YoungMillennials OldMillennials GenX BabyBoomers

AttitudesTowardAnAmazonCheckingAccount

CloseOutMyCurrentCheckingAccountAndOpenAnAccountWithAmazon

OpenACheckingAccountWithAmazonInAdditionToMyCurrentAccount

AmazonisthinkingaboutofferingFREEChecking

Source:CornerstoneAdvisors– ReinventingCheckingAccounts19

ExamplesofCampaignstoIncreaseMobileAdoption

20

Q&A

21

Typeyourquestioninthechatpanel

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StephenNikitasSeniorStrategyDirector

ThankYou!