Banking to the Future Financial Mainstream
Transcript of Banking to the Future Financial Mainstream
Banking to the Future Financial Mainstream
Betsy Flynn President/CEO Community Financial Services Bank
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Who are Unbanked and Underbanked? Unbanked: No checking or savings account. Underbanked: Have an account, but
continues to rely on alternative financial services, like check-cashing services, payday loans, rent-to-own agreements or pawn shops.
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National Statistics on Unbanked and Underbanked 7.7% of U.S. households are unbanked 17.9% of U.S. households are underbanked 43% of households with a yearly income below
$30,000 are either unbanked or underbanked 54% of black households and 43% of Hispanic
households are unbanked or underbanked, compared to only 18% of white households
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Unbanked and Underbanked in Kentucky 11.9% of households in Kentucky are
unbanked 23.7% of households in Kentucky are
underbanked
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Unbanked and Underbanked in Marshall County 8.7% of households in Marshall County
are unbanked 18.8% of households in Marshall County
are underbanked
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How to Reach Unbanked? Mobile Websites and Devices Mobile Payments Checking accounts that have varied rewards
ATM Refunds Rewards for Debit Card Usage
Marketing towards International Demographics
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How to Reach Underbanked? Extended Mobile Services Varied Payment Options Free/No Minimum Balance Checking/Savings
with Debit Card Access Second chance accounts Grass roots campaigns
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Reaching Unbanked and Underbanked Through Mobile
0%
20%
40%
60%
80%
$100M or Less $100M to$250M
$250M to$500M
More Than$500M
Banks with Mobile BankingYes No, But Plan to Within 24 Months No Interest
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Do you plan to offer Mobile Banking?15%
47%
38%
Yes No, but plan to within 24 months No, not planning to
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Reaching Unbanked and Underbanked Through Mobile
0% 20% 40% 60% 80% 100%
DownloadableApp
SMS/TextMessage
Mobile Web
Method of Mobile Banking
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Mobile Payments
26%
56%
18%
23%
51%
27%
10%
55%
35%
6%
28%
66%
0% 20% 40% 60% 80%
Currently offer
Plan to offerbefore 2013
Not planning tooffer before
2013
Over $500million$251 - $500million$101 - $250million
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Mobile Payments
85.1%
40.4%
4.3%
0.0%
0% 20% 40% 60% 80% 100%
Mobile web payments (WAP)
SMS based/text message payments
Other:
Contactless NFC (Near FieldCommunication)
What type of mobile payments do you support?
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Mobile Payments
50%
75%
15%
100%
33%
87%
67%
73%
0% 20% 40% 60% 80%100%
SMS based/textmessage payments
Mobile webpayments
Over $500 million$251 - $500 million$101 - $250 millionUnder $100 million
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Emerging Payment Products
14.0%
25.2%
27.4%
48.8%
69.6%
0% 10%20%30%40%50%60%70%80%
Mobile payments
Consumer RDC
Electronic P2P payments
Prepaid cards
Consumer international payments
Currently Offer
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Emerging Payment Products
47.30%
33.40%
20.70%
13.80%
5.10%
0% 10% 20% 30% 40% 50%
Mobile payments
Electronic P2P payments
Consumer RDC
Prepaid cards
Consumer international payments
Plan to offer before 2013
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Mobile Technology
0% 20% 40% 60% 80% 100%
Online Users
Online Acive
Bill Pay Users
Bill Pay Active
Online Banking and Bill Pay Users
2009 2010 2011
Online Active
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Debit Card Transactions PIN (Debit) NON-PIN (Credit)
2009 – 587,967 2009 – 1,162,557
2010 – 690,323 2010 – 1,340,548
2011 – 767,152 2011 – 1,532,948
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ATM Transactions On-Us Transactions Foreign Transactions
2009 – 138,194 2009 – 20,503
2010 – 144,630 2010 – 19,384
2011 – 154,055 2011 – 22,413
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Mobile Applications Mobile Website Mobile Remote Deposit Mobile App for Merchant to Process Credit
Cards Mobile Online Financial Management Alerts
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New Website Online Loan Payment Option for Credit/Debit
Cards New Website Translation in Spanish Online Account Opening Live Chat with Call Center Staff Online Financial Management Tool
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International Customer Base Website translation in Spanish Translated brochures Student accounts tailored to International
students at Murray State University Bilingual Call Center team member
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Banking Centers Relationship Banking International Communication Capabilities Video Conferencing Digital Media
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