Executive Vice President and Head of Global Transaction Services Solutions U.S. Citizens Financial Group

Jim Gifas

Beam Me Up: Small Business in the Mobile Space

1

2

CT

DE

MANH

NJ

NY

PARI

VT

ILOH

MI

4

“ When life gives you lemons… you make

lemonade.”

5

“ When life gives entrepreneurs lemons, not only do they make lemonade— they open lemonade stands.”

6

Small firms:•Represent 99.7 percent of all employer firms.

•Employ just over half of all private sector employees.

•Pay 44 percent of total U.S. private payroll.

•Have generated 64 percent of net new jobs over the past 15 years.

•Create more than half of the nonfarm private gross domestic product (GDP).

•Hire 40 percent of high tech workers (such as scientists, engineers, and computer programmers).

7

Small firms (continued):•Are 52 percent1 home-based and 2 percent franchises.

•Made up 97.3 percent of all identified exporters and produced 30.2 percent of the known export value in fiscal year 2007.

•Produce 13 times more patents per employee than large patenting firms; these patents are twice as likely as large firm patents to be among the one percent most cited.

8

new businesses a month

Source: The Kaufman Foundation

9

What is a small business?“An independent business having fewer than 500 employees”

Although, as you know, for some industries the SBA defines small businesses not by their headcount but by their annual revenues

Source: The Office of Advocacy of the Small Business Administration

10

A business is a businessWhatever its size, however you define it, however you may want to abbreviate it – SME, SMB – with the same pressures to perform as any global Fortune 500 company:•to offer a product or service that the marketplace values enough to purchase •to make a payroll •to deliver premier client service•to pay taxes•to contribute to its community•to make a profit for its owners, whether they’re the beloved founders operating the cash register out front or thousands of institutional and individual shareholders around the world

11

12

13

14

15

16

17

18

19

20

• 8 of the top 25 banks will have a solution out in 2008.

• 14 of the top 25 by end of 2009.

• Mobile access is a natural and innovative add-on to today's corporate cash management services.

• Businesses of all sizes are already indicating that they would like to gain access to mobile services. Banks have to be able to offer these services in order to innovate, respond to market demand and remain competitive in a crowded and highly mature playing field.

Corporate Mobile Banking: The Times They Are A-Changing

21

is now.The time to provide

mobile banking services to business customers

22

As for mobile banking for small businesses in particular, the Aite Group conducted a study, published in 2009, called “The ROI of Small-Business Mobile Banking,” in which the consulting firm surveyed 283 small businesses across the United States. For the purposes of this study, a small business was defined as a firm that generated less than $10 million per year.

For a then-and-now comparison of the findings — and to quantify the remarkably rapid change in the mobile banking marketplace among small business owners in just the past few years— we asked the Aite Group to update its 2009 study…

23

How likely would your business be to consider making the following types of business transactions? (%)

2009 2011Check bank account balance• Already do this 13 33• Definitely/probably would consider 24 31

Make internal bank funds transfers• Already do this 5 26• Definitely/probably would consider 22 28

Pay bills• Already do this 5 29• Definitely/probably would consider 21 26

24

2009 2011Approve debt or credit card transactions• Already do this 2 17• Definitely/probably would consider 22 32

Make expedited payments• Already do this 1 19• Definitely/probably would consider 22 33

Make transfers between external bank accounts• Already do this 2 15• Definitely/probably would consider 18 31

Approve wires• Already do this 1 14• Definitely/probably would consider 17 26

25

2009 2011Capture and send check images for remote check deposit using mobile device camera• Already do this 2 13• Definitely/probably would consider 15 37

View and make pay/no-pay decisions on positive pay exceptions• Already do this 1 12• Definitely/probably would consider 15 32

Approve payroll batches and other ACH payments• Already do this 1 15• Definitely/probably would consider 13 23

26

What is the most you would be willing to pay per month for the convenience of mobile banking capabilities? (%)

2009 2011Between $5 and $10 per month 15 18

Between $11 and $15 per month 3 6

Between $15 and $20 per month 4 9

Between $21 and $25 per month 5 8

Not willing to pay for this service 73 54

27

Which channel would you prefer to use to conduct mobile banking transactions?

2009 2011SMS (text messaging) 21 20

Mobile browser-friendly Web sites 46 39

App downloaded to your mobile device 33 40

28

Which of the following best describes how you feel about the level of security for making online payments using a mobile device? (%)

2009 2011Very secure 4 8

Adequately secure 17 —

Somewhat secure 39 —

Sufficiently secure — 50

Not secure at all 40 42

29

30

Clients place high value on cash management tools that are

convenient reliablesecure

accessible

31

To be successful, our solution would have to provide:•Immediate accessibility and control for the executive on the move•Transaction history, approvals and decision making – any time, any place•Greater responsiveness to time sensitive transactions and duringpeak periods (e.g., end of quarter, settlement periods, etc.)•Full integration with future SMS functionality•Additional opportunity to monitor for security and fraud prevention purposes•Usefulness for the cash manager in any segment – from large corporate to small business users•Business continuity planning – an alternative channel for business in unforeseen circumstances such as floods, computer crashes, snowstorms, epidemics

32

33

Through accessMOBILE’s easy-to-use and intuitive interface, customers can:•approve pending transactions •view account history and transaction details •get current-day snapshots •perform intra-company funds transfers •receive alerts and bank mail

34

35

36

In the year since its launch, nearly three quartersof the target market has downloaded the app.

37

38

““When I am traveling, I constantly need When I am traveling, I constantly need to call the office to see if a customer to call the office to see if a customer payment has come in. This application payment has come in. This application allows me to get the information from allows me to get the information from anywhere in real time, which will allow anywhere in real time, which will allow us to ship product and ultimately us to ship product and ultimately improve our customer satisfaction.improve our customer satisfaction.””

39

“ With accessMOBILE, I’mno longer tied to my desk.”

“While on a business trip to Texas, I was able to approve wires on the road. Normally I would have to assign the task to the company president, which was difficult as he is not always in the office. With accessMOBILE I was able to remain in control without disrupting normal processes.”

“While on a business trip to Texas, I was able to approve wires on the road. Normally I would have to assign the task to the company president, which was difficult as he is not always in the office. With accessMOBILE I was able to remain in control without disrupting normal processes.”

40

41

“With a limited staff of management (which travels), on many occasions I have been able to conduct critical business from anywhere I have a good cell phone signal … from Arizona to West Virginia. Great flexibility.”

42

43

accessMOBILE Benefits for Citizens

•We know that we are delivering what customers want and need for their businesses.

•It is a real differentiator in our marketplace and provides us with significant competitive advantage.

•Awarded a 2011 Computerworld Honors Laureate for accessMOBILE

•Mobile banking technology strengthened the stickiness of our relationships with our commercial customers.

44

accessMOBILE Benefits for Citizens (continued)•Mobile banking technology has also strengthened the stickiness of our relationship with our commercial customers by making it easier for them to conduct business with the bank. It also demonstrates that RBS Citizens listens to our customers and develops innovative offerings that not only satisfy customers’ commercial banking requirements, but exceed their expectations.

•And now, with accessMOBILE, we can efficiently and effectively leverage our online application and mobile channels.

45

46

At the larger firms, too, CFOs and treasurers want same conveniences they have in their personal lives.

47

Security remains a primary concern.

49

50

51

No representation, warranty or assurance of any kind, express or implied, is made as to the accuracy or completeness of the information contained in this document and Citizens Financial Group, Inc. (“CFG”) accepts no obligation to any recipient to update or correct any information contained herein. The information in this document is published for information purposes only. Views expressed herein are not intended to be and should not be viewed as advice or as a recommendation. You should take independent advice on issues that are of concern to you. This document does not purport to be all inclusive or constitute any form of recommendation and is not to be taken as a substitute for the recipient exercising his own judgment and seeking his own advice. This document is for your private information only and does not constitute an analysis of any potentially material issues nor does it constitute an opinion to buy or sell any investment. Prior to entering into any transaction, you should consider the relevance of the information contained herein to your decision given your own investment objectives, experience, financial and operational resources and any other relevant circumstances. Neither CFG nor any other person, shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits, arising in any way from the information contained in this communication.

Executive Vice President and Head of Global Transaction Services Solutions U.S. Citizens Financial Group

Jim Gifas

Beam Me Up: Small Business in the Mobile Space