Tomorrow is a consumer-to-business world, where we put the consumer in the center and respond to their preferences and presence. Credit unions that are proactive in defining how their members receive superior service through a converged channel experience will generate greater loyalty. In this 2011 NAFCU Annual Conference session you find out how tomorrow’s member will expect to communicate with your credit union and what the future of the retail delivery industry holds. Presented by Timothy Fikse, Marketing & Deployment Manager, NCR Corporation More info at http://www.nafcu.org/ncr

1. Timothy Fikse
Financial Deployment
NCR Corporation
Solutions to Serve Tomorrow’s CU Members
Relevant Self Service
Marketing Channels
Member
Retention
National Association of Federal Credit Unions l www.nafcu.org

2. How well do you know your members?
How they choose to get information and make decisions
How they select companies across multiple industries
Direct to consumers
87% of consumers
…say it’s important to access
products and services across
different industries in a similar
way using multiple channels.
BuzzBack Reaseach 2010
National Association of Federal Credit Unions l www.nafcu.org

3. Consumers are changing
Time Starved
Scheduling
appointments
Food
shopping
Printing
Less Loyal Boarding Pass
70% of consumers
…say that no matter how hard
Paying they try, they never seem to
Bills have enough time to do all the
things they need to.
by research firm Yankelovich Inc
Digitally
Enabled
Looking for better, new ways to interact
National Association of Federal Credit Unions l www.nafcu.org

4. What happened to consumer loyalty?
“As all too many banks will
queasily admit, there is a
yawning gap between
having a customer focus
and demonstrating a
customer focus day in and
day out.”
“78% of consumers said
when they do a lot of
business with a bank
branch it’s important for
them to be recognized
as a valued customer.”
Consumers are loyal
to
experiences not
companies…
National Association of Federal Credit Unions l www.nafcu.org

5. Evidence for a new way of thinking
What makes a consumer choose a financial institution?
Convenience will continue
to evolve as consumers’
expectations increase
National Association of Federal Credit Unions l www.nafcu.org

6. Give your members what they want
What makes a member a
“satisfied” banking consumer?
J.D. Power and Associates
Imagine what could happen if
these channels were
converged
National Association of Federal Credit Unions l www.nafcu.org

7. Preference
How do I choose to interact?
Internet
ATM & Kiosk
88% of consumers
…say they are more likely to
choose a company that enables
them personalize interactions
across multiple channels.
BuzzBack Reaseach 2010
Mobile/Phone
Branch
National Association of Federal Credit Unions l www.nafcu.org

8. Presence
Where it’s available?
On-the-go
Roaming
• Branch • Hotel
• Store • Casino
• Airport • Hospital
Home
Building
National Association of Federal Credit Unions l www.nafcu.org

9. Growth of Channels in the Financial Industry
Number of Interactions with US Financial Institutions
140
Present
120
Past Future
# of Interactions (billions)
Online
100
Banking
80
Mobile
60
Call
Center
40
ATM
20
Branch
2000 2005 2010 2015 2020
Branch ATM Call Center Mobile Online Banking
Source: Tower Group, ATM & Debit News & internal NCR estimates
New channels augment existing channels
National Association of Federal Credit Unions l www.nafcu.org

10. Tomorrow will require new way of doing business
Preference
B2B
B2C
Consumer to Business
C2B Consumer centric and delivering channel efficiency
Presence
National Association of Federal Credit Unions l www.nafcu.org

11. Optimizing a seamless member experience
ATM/Kiosk Internet Mobile
Assisted/Branch
 Drive lower cost
Cx-banking  Increase dialogue
seamless transition across all channels  Increase response
National Association of Federal Credit Unions l www.nafcu.org

12. Creating a Multi-Channel Experience
Consumer
Confidence
Grow
Revenue
Converged
Channel
Risk and Manage
Regulation
Cost
National Association of Federal Credit Unions l www.nafcu.org

13. Understanding your challenges
“43% of consumers are
more likely to choose a
Rising costs of attracting new members, financial institution that
offers multi-channel self-
as well as keeping the ones you have service.”
Shrinking budgets and resources “Consumers are multi-
channel creatures and they
will no longer tolerate
inconsistent experiences
Marketing campaigns taking too much across a financial
institution’s delivery
channels.”
time to create and launch
Delivering personalized,
orchestrated marketing
across all channels
National Association of Federal Credit Unions l www.nafcu.org

14. Challenges you may face
64% of financial institutions see strong
to very strong improvement in
retention after consumers become online
banking users and then online bill payers
-Aite Group
Multichannel consumers are 20% less
likely to defect to another supplier
– Jupiter Research
Risk mitigation
Capture and fraud
Improve Regulatory
market share/ management
consumer compliance
reduce churn
loyalty
Converged Deepen
consumer Expand Reduce failed
channel
intimacy wallet share consumer
integration
interactions
National Association of Federal Credit Unions l www.nafcu.org

15. Wells Fargo
Investor Day Presentation
More multi-
channel …
… means 1.8x
more products,
… and 1.5x more
profits
Carrie Tolstedt, Senior EVP Community Banking
Multi-channel consumers buy more, are more profitable
National Association of Federal Credit Unions l www.nafcu.org

16. Cross Channel eMarketing – What is it?
Single orchestration engine that delivers integrated, relevant, cross-
channel marketing campaigns based on consumers' presence &
preference
ATM / Kiosk
Email
Online Surveys / Banner Ads Online Banking
Email
Mobile (SMS)
Call Center
Digital Signage
On-Demand Printing
ATM Mobile
Social Media Channels
Do you offer a seamless
multi-channel experience for
your members? Branch Call Center
National Association of Federal Credit Unions l www.nafcu.org

17. Personalization based on presence & preference
Welcome Back Andy,
Hi Andy, don’t forget Your Account
your mortgage
Jill’s graduation next Overview is…
payment is due in 7
Dear Valued
month. Would you like days!
Customer,
to view our new
student accounts!
eMail
Online
Andy, your mortgage
Hi Andy, Your Account
payment has been
Please you
Are Select Balance is…
received.
Your Language
interested in a
new HELOC?
Mobile
ATM
Thanks for coming Good Evening Andy,
Good Afternoon,
Goodthe branch
into Afternoon, can we help you get
How may I help
How may Iloan
Andy, the help started with a new
you?
officer will be right
you? HELOC?
with you! Store Call Center
National Association of Federal Credit Unions l www.nafcu.org

18. A view of the Past……or Present?
Branch ATM Telephony Web Mobile
Member Member Member Member Member
Contact Contact Contact Contact Contact
Branch ATM Telephony Web Mobility
Fulfilment Fulfilment Fulfilment Fulfilment Fulfilment
in channel in channel in channel in channel in channel
Sales & Sales & Sales & Sales & Sales &
service service service service service
objectives objectives objectives objectives objectives
Channel-Specific Consumer Paths & Transactions
National Association of Federal Credit Unions l www.nafcu.org

19. Consumer view of channels
Branch
Telephony ATM
Consumer
Contact
Web Mobile
Likelihood to
Consumer
buy more
Profitability
1.8X products 1.5X
Selection based on presence and preference
National Association of Federal Credit Unions l www.nafcu.org

20. Reach the members you want, how they want to be reached
Creating a dialog with your members when
they're ready to listen and then respond “77% of consumers said,
companies should let me
decide how they can contact
me.”
eMarketing should see each member as an
- N. American Technographics Media
individual with unique preferences
“91% of
surveyed
Better Information – Better
executives
Targeting indicate that
- Personalize your campaigns based
creating a
on what your members tell you differentiated
ATM
- Two-way dialogue lets members
take immediate action experience
through
- Know their buying behaviour –
real-time feedback lets you respond customer
in the best possible way personalizatio
n will be very
important to
their ATM
strategy in the
next five
years.”
National Association of Federal Credit Unions l www.nafcu.org

21. Delivering results for your business
98% reduction in cost executing
What if you could…… email campaigns vs. traditional
direct mail
A/B and multi-variant
testing for real-time Reduce time to
results and optimized create and
campaigns execute campaigns
from 3 weeks to 1 day
60% increase in email
campaign conversion 20%-70% email
vs. traditional campaigns open rates
50% reduction in cost and 50%
increase in conversion for ATM based
campaigns
National Association of Federal Credit Unions l www.nafcu.org

22. Putting your ATM network to work
Every member is unique, so
should your marketing message
ATM users are in a financial
mindset – and more likely to
convert
• “Not-on-us” transactions – reach
consumers you don’t know
• Gather valuable new contact
information
• Convert members and non-
members – there and then
• Maintain accurate member
information records
National Association of Federal Credit Unions l www.nafcu.org

23. How do you decide on a provider?
Financial Industry Focus
Complete solution across
multi-channels
Documented productivity
gains
Strong Business
Foundation
Bundled consultancy Market presence &
services to help you position
with direction,
development and
analysis – all in one
SaaS and
Managed Hosting
Services – allowing
You to focus on your
Continued Innovation –
business
Strong R&D focus
Converged channels
Security, payments
National Association of Federal Credit Unions l www.nafcu.org

24. Are your IT resources over-stretched?
Provider should have outsourcing offer
(SaaS) as an option
SaaS requires minimal resources,
minimal risk and low monthly fees
Transitional outsourcing program: hosted
solution until your IT team is ready to
bring in-house if desired • Lower initial investment – no
CAPEX required
• Fast time to market
• Scalable –should meet your
needs today, and tomorrow
• Flexible – should be able to
change as your channel
strategies evolve
• Compatible – should be easy to
integration with all major CRM
solutions
National Association of Federal Credit Unions l www.nafcu.org

25. eMarketing – what it means for your credit union
Engage your members in magic
moments of opportunity
Break the silos between virtual
and physical channels
A single solution for all your
channels - mobile, online, email, social,
“Banks need to personalize
ATM and transform the customer
relationship… A personalized
• Reduce costs and deliver relevant messages on your relationship program is a true
members’ preferred channel differentiator, which cannot be
• Personalized, channel-appropriate communication based on easily copied by the
your members’ preferences competition, and protects
• Reduce time to market with SaaS deployment margins.”
• Increased campaign conversion, product sales and revenue
growth
National Association of Federal Credit Unions l www.nafcu.org

26. Thank-you!
Timothy Fikse
tf185007@ncr.com
678-808-6782
National Association of Federal Credit Unions l www.nafcu.org