Omni Channel Banking

17%

36%

55%

63%

36%

32%

28%

23%

Strongly Agree

Somewhat Agree

Mobile and online channels serve different customer

needs and we tailor customer experience accordingly

Omni-channel means delivering the same

capabilities/functionality across all channels

Omni-channel is about ensuring channel integration

and seamless customer transition between channels

Mobile Omni-channel is about ensuring customers have a consistent

experience of our brand irrespective of the channel they use.

Source: Celent Research © January 2015 The Financial Brand

Perception of Omni-channel Banking

Demographic Shifts

Technology Shifts

Behavioral Shifts

Self-Service

MobilityCross-Device Access

The World Around Us

Generational Shift

Gen X 35-50 (1965 – 1980)

Silent 70-87 (1928-1945)

Millennial 18-34 (1981-1997)

Boomers 51-69 (1946-1964)

Source: Pew Research Center tabulation of U.S. Census Bureau population projections released December 2014

http://www.pewresearch.org/fact-tank/2015/01/16/this-year-millennials-will-overtake-baby-boomers/

90

70

50

30

10

2014 2028 2036 2050

29

66 65

8175

Millennial

Gen X

Boomer

Silent

Not just Millennials

Source: Board of Governors of The Federal Rerserve System Consumers & Mobile Financial Services 2015 Report – March 2015

Embracing Self-Service

The Evolution of Self-Service Banking

Channels were added one after the other

2010s

MOBILE

2000s

INTERNET

1980s

CALL CENTER

1970s

ATM

ATM CALL CENTER INTERNET MOBILE

Multiple systems to manage

Application

Layer

Application

Layer

Application

Layer

Application

Layer

Middleware Middleware Middleware Middleware

Core Banking Systems

Multiple versions of the truthNo smooth handoff of transactions

between channels

Channel-specific services

Challenges of Multi-Channel Banking Experience

ATM CALL CENTER INTERNET MOBILE

Core Banking Systems

Omni-Channel Banking

Connectivity Workflow Messaging Business Logic

Challenges of Multi-Channel Banking Experience

Seamless handoff of transactions

between channels

One system to manage

Single versions of the truth

Full suite of banking services across channels

Mobile Saturation Continues to Rise191.4 million people in the U.S. own smartphones

(77.1% mobile market penetration)

http://www.comscore.com/Insights/Blog/Teens-Older-Demos-Driving-Gains-in-U.S.-Smartphone-Penetration

http://www.comscore.com/Insights/Market-Rankings/comScore-Reports-July-2015-US-Smartphone-Subscriber-Market-Share

75.0%

85.1% 84.7%79.7%

66.4%

54.0%

37.5%

85.0%90.2% 89.4% 86.1%

77.1%

63.7%

49.1%

Age 13-17 Age 18-24 Age 25-34 Age 35-44 Age 45-54 Age 55-64 Age 65+

U.S. Smartphone Penetration by Age: Y/Y ChangeSource: comScore MobiLens, U.S., March 2014 – March 2015

Mar-2014 Mar-2015

78%

16%

6%Currently OfferMobile Banking

Plan to Offer withinnext 1-2 years

Do not plan to offermobile banking

FIs Offering Mobile Banking Services

Source: The Federal Reserve © August 2015 Mobile Banking

and Mobile Payment Practices of U.S. Financial Institutions

48%

74%

75%

79%

82%

84%

41%

23%

16%

19%

17%

16%

11%

3%

9%

2%

1%

MOBILE RDC

BILL PAYMENT

ATM/BRANCH LOCATOR

VIEW STATEMENT/ TRANSACTION HISTORY

TRANSFER FUNDS BETWEEN OWNER'S

ACCTS (SAME FI)

CHECK BALANCES

Currently Offer Plan to Offer No Plans to Offer

Mobile Features Offered

Source: The Federal Reserve © August 2015 Mobile Banking

and Mobile Payment Practices of U.S. Financial Institutions

12%

15%

19%

21%

23%

26%

27%

27%

25%

30%

13%

42%

49%

23%

61%

60%

51%

66%

35%

25%

50%

PERSONAL FINANCIAL MANAGEMENT

CHECK RE-ORDER

STOP PAYMENT REQUEST

VIEW CREDIT CARD (BAL, STMT, HIST)

TRANSFER FUNDS BETWEEN OWNER'S

ACCTS (DIFFERENT FI)

MOBILE P2P TRANSFER

BILL PRESENTMENT

Currently Offer Plan to Offer No Plans to Offer

Mobile Features Offered

Source: The Federal Reserve © August 2015 Mobile Banking

and Mobile Payment Practices of U.S. Financial Institutions

Online Secure Chat

• Secure communication across any device– Web (desktop, laptop)

– Tablet

– Mobile

– Watch

• Text Chat / SMS

• Phone / VoIP

• Video chat

Internet of Things – Anytime, Anywhere

Cross-Device Engagement

11%

44%

62%

81%

5%

32%

52%

84%

Which of these Devices do youuse for banking? (2014)

Which of these devices do you expect to beusing for banking in 24 months? (2016)

Laptop

Smartphone

Tablet

Phablet

Source: Carlisle & Gallagher © January 2015 The Financial Brand

Multi-Device Banking

Smooth Transition of Transactions Between Devices

Remote Loan Application

Through Online Banking

Follow-up by or

Assistance Through

Phone Banking

Walk-through by Loan

Officer at the Branch

Sample Scenario of Loan Account Opening

More and more people are

comfortable applying for

banking products remotely.

Often customers

need assistance

and clarifications.

People still want to be face-

to-face when they create and

grow a relationship.

Good News: Reduced Cost

Bad News: Dealing with complex environments

3.5%

14.3% 16.2%

13.4%

46%

37%

2.8%2.0%

15%

2.2%

10.0%6.7%

10.5%5.9%

2.7%

1366x768

19%1920x1080

8.0%

1280x1024

4.7%

1280x800

5.0%

768x1024

5.2%

320x568

4.1%

1440x900

4.2%

1600x900

4.4%

360x640

6.4%1024x768

5.6%

June 2015

IRIS – An Omni-Channel Platform

OS and Browser Agnostic

Anytime, Anywhere Service

Eliminates the Need for Multiple Products

(Internet Banking, Tablet Banking, Mobile

Banking for both Consumer and Business)

Device and Resolution Sensitive

Responsive Design

Provides an optimal viewing experience across a

wide range of devices using HTML5 and CSS3

The user interface automatically adapts to

the device the user uses to access the

service.

Responsive Design

• Single code base

– No longer managing multiple code bases

• Single content repository and single content

architecture

– No added work to share content across channels

• Any device, any OS, any resolution

• Consistent look and feel

• Consistent functionality

IRIS Omnichannel Banking

Online SecurityACH & Wire

Transfer

Online Account

Opening

Personal Financial

Management

Statement

Request

Customer

Service

Check / Deposit

Image Viewing

Check

Deposit

Bill PayATM / Branch LocatorFunds TransferAccount Inquiry

Full Suite of Online Banking Products Across Devices

Member

Mobile Deposit

Business

Mobile Deposit

Member

Online

Banking

Business

Online

Banking

Member

Mobile Banking

Business

Mobile Banking

IRISTM

Anywhere Banking

Personal Banking Product Features

Accounts

• Account Overview

• Account History

• Account Details

– Checks and Deposit Images

Check Deposits

Funds Transfer

Bill Pay

Customer Service

• Alerts

• Stop Payments

• Check Orders

• Update Personal Information

Keeping Pace as Business Banking Needs Grow

SoHo and

Micro-BusinessSmall Business

Commercial

and Corporate

Sample Scenario of an Entrepreneur Journey

Same needs as a Consumer Use Personal Acct

Value Time over Money

DIY

Need Biz Acct & some services Begin Delegation of functions

Need enhanced payment capabilities

Increased Cash Management needs

Multiple Biz Accts & services Refined job functions

Pursue efficiency in tech

Seek timely insight for

financial decisions

Business Banking Product Features

Remote Deposit Capture

• Merchant Item Capture

• Business Mobile Capture

Business Bill Pay

Treasury Management

• ACH

• Wire Transfer

• Positive Pay

• Roles Based User

Entitlements

Accounts

• Account Overview

• Account History

• Account Details

– Checks and Deposit

Images

Customer Service

• Update Personal

Information

• Check Orders

• Alerts

• Stop Payments

Questions and Answers