Grow Deposits with FIS Digital Account Creation

May 23, 2017Lynn Jordan

Institutions are challenged with:

• Protecting customers from the

emerging threat landscape

• Providing tailored, personalized experiences

• Delivering on expectations for real-time

• Creating data-driven connections and

value across converged channels

• Driving new revenue streams

• Increasing engagement and loyalty

Expectations are rising

The Competitive

Landscape is Changing

Drive Innovation and Expand Digital Capabilities

Grow Sales and Increase Engagement

Enhance Security and Reduce Fraud

Expand Real-Time Offerings

Enable Data-Driven Marketing and Analytics

Create Operational Efficiencies

Our VisionProvide industry-leading digital solutions that keep our clients

competitive and relevant with the top financial institutions

Grow Deposits with Online/Digital Account Creation

• Account Creation: a deposit acquisition platform for the Digital Channels

• FIS client perspective

• Discussion

Philip P. Richards

SVP – Operations & Strategy

Cassidy Beckstrand

AVP – Online Banking Manager

Over 50% of Consumers use Digital Channels to Open Deposit Accounts

Consumers who shop in digital channels, expect financial institutions to provide all the information they need to choose products and apply for new accounts in digital channels.

Online/Digital Account Creation

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• Allows customers to easily apply, open and fund new deposit accounts through your public website

• Supports checking, CDs, savings, and money markets

• Applicant information is screened and verified for CIP information

• Applicant can be screened through debit bureau and credit bureau based on your requirements

• Customers can fund the new account through card transactions, electronic ACH transfer, check or direct deposit

• Includes a “Fast Path” for your current customers

• Significant level of integration with the FIS cores MISER, Bankway and HORIZON

• New Responsive Design User Interface expands your reach into all Digital Channels

Full-featured solution for deposit acquisition in self-service channels

Success in Digital Account Acquisition Includes Sales and Marketing Strategies

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Account Creation is the third step in the process

• Your deposit acquisition strategy needs to include a digital marketing strategy.

• We recommend visiting a variety of FI websites to see how others are presenting their product offers.

• Prospects should be directed to your website from a digital search. Google “checking account” for a state in your footprint to see your competition.

• If you are expanding into Digital Account Opening with Responsive Design, your sales pages on your public website will need to be in Responsive Design for those shoppers that come in on their phones.

Digital Marketing is a Critical Stage of the ProcessSuccessful FIs are investing more every year

• The process needs to be different from branch account opening. Why?

– The customer’s attention is easily lost

– Using a laptop, or a tablet or a phone is different than sitting in a branch bank.

Your prospective customer can easily slip away if:

The process is too long or hard to navigate

Questions seem intrusive or irrelevant

The product offer seems overly complex

They feel uncomfortable or confused by the process

• Regulations allow for a “paperless” process

– Non-documentary verification of CIP information

– eSign acceptance of disclosures

– Signature cards not required when other processes are in place

• The most successful clients do not confine themselves to traditional

assumptions and processes but focus on building the best possible user

experience.

The Digital Account Opening ProcessUser experience is different from the branch account opening process

FIS Can Help You Design an Experience That Will Meet the Expectations of Your Prospects

• When you are implementing your Digital Account Creation experience, it is important to make branding and configuration choices that will provide a streamlined customer experience.

• Your public web site is critical to the sales process. You may need to refresh your public website to move the customer easily into the digital account opening experience.

Forrester recommends, when designing the account opening process: “Reframe the discussion around the customer

rather than internal operations. Use Journey Maps to help employees adopt an outside-in perspective and understand

how their individual actions can collectively result in good or poor customer experiences”

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Why is it Important to Keep it Simple?

Starts after the customer has selected a product

The Account Creation Process

• Applicant enters information for application phase

• Selects product options – ATM cards, checks, overdraft protection, etc.

• Reviews and accepts disclosures electronically

• Immediate identity verification (IDV) with OFAC screening

• Out-of-wallet questions (IDA)

• QualiFile screening

• ACH funding with immediate account validation or test transaction validation

• Check funding

• Card funding – credit and debit cards

• Customer record is created and account is opened in deposits

• New account information is given to the customer

Information

Gathering

Applicant

Screening

Funding the

Account

Account

Opening

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The new Responsive Design User Experience expands your market reach to tablet and phone users.

Digital Account CreationIt’s here!

User experience options to support your sales strategies

Deposit Account Opening on Account Creation Platform

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SINGLE ACCOUNT CREATION ADMIN TOOL FOR ANY UX

INTEGRATION TO Your FIS Core Deposit System FOR ONGOING SUPPORT

Digital Account

Creation

All Device Sizes

Browser

Mobile

Account

Opening

Phone App

Pilot 2017

AND

New account opened

and delivered online.

Activation of online and

mobile servicing

Funding the account:

multiple options and

safeguards

Full evaluation of the

applicant from identity

verification to product

qualification

Complete application

and accept disclosures

Online Account

Creation

PCs and Tablet

Browser

Phase 1 (early 2017)

• Leverage mobile responsive UI from OAC

platform wrapped in a mobile banking app

Phase 2 (proposed TBD)

• SSO for existing customers to fast path OAC

user experience

Phase 3 (2018 target)

• Add functionality that allows for data capture

from a photo of the ID

Mobile app Account Opening Roadmap: Mobile integration options (pilot 2017 Q2)

Bankway, MISER and

HORIZON Integration

FAQ: How Many New Accounts Can We Get?

From Javelin Research

– A large regional bank reports “tremendous year-over-year growth

in online account opening” for checking after upgrading its digital account

opening capabilities, but “we’re not quite at the one-third mark.”

– An FI’s size is a “horrible predictor” of digital account opening success.

The most successful FIs are the ones that emphasize digital account opening.

– Banks that succeed in online opening are the people who put a focus on it;

one FI might be successful, while others struggle because marketing support

is weak. “You still have to drive awareness and interest before you get clicks.”

FIS observations

– Success in account acquisition in the digital channels is driven by the FIs ability to

bring qualified, motivated people to the start of the process.

– The most successful clients are those that work at it all the time, adjusting

the process to maximize their results.

– Success metrics will be driven by the strategy and don’t look the same

for every FI.

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FIS Digital Account Creation Client Panel

FIS Info Share - May 2017

Philip P. RichardsSenior Vice President - Operations & Strategy

Online Account Opening

OAC

IC Federal Credit Union

Located in North Central MA

$550 Million in assets7 Branch Locations35,000 MembersField of Membership - 6 counties

Worcester, Middlesex, Franklin, Hampden, Hampshire, and Norfolk

FIS Client Relations

• Miser Core Banking Application

• Consumer Banking (CeB) and Business Banking (BeB) – Including Bill Payment People Pay, External Transfers, ACH and Wire Transfer

• Connections CRM

• Online Account Creation• Pilot for OAC

Debit Card Auto-Fulfillment

• EFT-Debit

• Credit Cards – Card Base

• Web Services

Online Account Creation

Adding6-Month CD1 Year CDand aMoney Market(in production now)

Application Stats

Average of 53 OAC Applications per month

Abandoned or Failed:- Abandoned (potential reasons why)- Cannot save and resume application- Existing Members need to verify last statement balance- Failed - largely due to efunds failure

Summary 2016 thru March of 2017OAC To Date Average

Completed 141 10In Progress 37 3

Abandoned 279 19Failed 289 21

# of OAC Applications 746 53

Completed Rate 24%Abandoned Rate 37%

Failed Rate 39%

Online Account Creation

• Upgrade from OAC to DAC (Digital Account Creation) will offer an easier experience on any device.• Expands market reach with responsive design for

mobile phones and tablets • Fully digital with touch screen and orientation

functionality

• Enhancement to CeB (Q4-17) with Account Opening through the platform that will provide current Members the ability to easily open new accounts.

Who is Applying Online

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

30%

22%

15%

8%

0%

Relationship Balances

OAC Accounts & Relationships 2016 thru March 2017

Opened with OAC Other Product & Service Balances

OAC Product Total Acct Bal #Accts Dep Bal Loan Bal Average

Intelligent Checking $ 177,258.00 98 $ 822,398.34 $ 1,302,146.70 3

Intelligent Savings $ 301,654.08 33 $ 379,109.63 $ 545,534.00 3

Veterans Reward Checking $ 1,392.61 6 $ 8,698.63 $ 486,428.22 4

Veterans Savings $ 45.08 2 $ 8,466.43 $ 316,849.12 2

Grand Total $ 480,349.77 139 $ 1,218,673.03 $ 2,650,958.04 5.52

New MemberAcquisition (planned for late Summer/Fall)

Communicate via email to non-members with link to hidden promotional page

Tracking behindthe scenes with a special code from the “Open Account” button that passes through to OAC, thento our Miser Core andConnections

Future Road Map

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FIS Digital Account Creation Client Panel

First National Bank of LaytonOnline Account Creation (OAC)

Bank Profile

• Open since 1905

• Northern Utah community bank

• 7 branches

• $300 million in assets

• Launched OAC in January 2017

OAC Process Overview

• Checking, savings, money markets and CDs

• Online products mirror branch products

• Questions go to customer service department

• Accounts are opened and serviced under branches

• Customers can fund through internal and external transfers,

checks, and direct deposit

OAC Results

January through April

• 200 OAC applications

• 34% of all personal accounts opened

Strategies

• Actionable items for our digital marketing

• Promotions (CD special, bonus promo)

• Tech bar

• Abandoned applications

OAC Advice

Implementation

• Determine how your institution will use OAC

• Task force

• Use the documentation

• Test the ACH funding process thoroughly

• Use and review settings for IDV, IDA & eFunds

• Use the FOS fraud prevention letter

• Online banking (CeB) auto connection off

OAC Advice

Launch

• Only move to production when ready

• Work closely with web team

• Email disclosures for compliance

• Website landing page information

OAC Advice

Post Launch

• Internal tracking and Acquire reports

• Get CDD follow up project implemented

• IDV passport and account generating with core

Overall Experience

• Simple user experience

• Good project management

• Look forward to using responsive Digital Account Creation

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Discussion

What’s Next

Visit us in the Solutions Expo

Digital Account Creation kiosk