The rise of the digital consumer has led to an explosion of data collected across all touchpoints in the financial services industry. Real-time online interactions are the new normal. To engage Millennial customers, marketers must leverage innovative solutions. In fact, 75% of Millennials don’t receive many offers from their bank and 43% feel their bank doesn’t communicate through preferred channels. Omni-channel strategies can help you successfully engage your customers with real-time interactions as well as outbound campaigns. In this webinar, learn more about how Amazon Web Services (AWS) and FICO can help you build better customer engagement. AWS Speaker: Peter Williams, Partner Technology Lead FICO Speaker: Manish Pathak, Director, Product Management

1. © 2018 Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Customer engagement in the
age of digital transformation
January 30, 2018 | 10:00 AM PT
© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.

2. © 2018 Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Today’s speakers
Peter Williams, Global Technology Lead, Financial Services
Partners, Amazon Web Services, Inc.
Manish Pathak, Product Management Director, FICO
Stephen D. Hendrick, Research Director, Application
Development and Management, EMA

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• Challenges in the Financial Services industry
• FICO Marketing Solutions Suite
• Digital transformation on Amazon Web Services (AWS) for the
Financial Services sector
• Q&A/Discussion
Today's Agenda

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Learning objectives
• How to use existing customer data to predict future behavior
• The benefits of using predictive analytics to create user profiles to
leverage in real time
• How you can model outbound and real-time customer interactions to
create a single campaign
• Understanding the core benefits of using AWS

5. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Stephen D. Hendrick
Research Director, Application Development and Management
January 2018
Digital Transformation in the
Retail Banking Industry
How Retail Banking will be very different by 2020

6. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Prepare for Digital Disruption Everywhere
72% 71%
55%
51%
48%
Technology
Factors
Market Factors Regulatory
Concerns
Macro-Economic
Factors
People Skills
1Source: IBM Global C-Suite Study, 2015
Twin forces: Technology and market factors are transforming the competitive landscape1

7. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
What is Digital Transformation?
Digital Transformation is adopting business processes and practices to
help organizations compete effectively in an increasingly digital world.1
1Source: MIT Sloan Management Review, 2017
Market Factors
• Market Evolution
• Market Knowledge
• Stakeholder Commitment
• Staff Training
• Regulatory Requirements
• Business Model Evolution
• Organizational Structure
Technology Factors
• Cloud
• Mobility
• Advanced Analytics
• Agile Development
• Machine Learning
• Artificial Intelligence
• Social Media

8. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Banking & Financial Services:
Positioned for Digital Disruption and Transformation
59 57 56 54 53 53
50 50 49 48
Telecoms Banking/Fin
Svc
Public Sector Retail Healthcare Logistcs Automotive Media Manufacturing Energy/Utilities
1Source: Coleman Parkes, Why Digital Transformation Matters, 2016
The top-performing sectors on the Digital Transformation Business Impact Scorecard1

9. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
The Dichotomy of the Banking Industry
1Source: PwC Banking 2020 Survey, 2017
87% Percent of banking industry executives that feel
innovation is somewhat or very important.1
11% Percent of banking industry executives that believe
They are well prepared to address innovation.1

10. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Changing Customer Demographics and Loyalty
1Source: Timetrade, Why Millennial Consumers Want Personalized Service, 2016
50%
Millennial percent of U.S. workforce
by 2020.1
80%
Percent of millennials who would
switch financial institutions for better
credit card rewards.1
93%
Percent of millennials who say no or
low fee banking is important when
choosing a financial institution.1
72%
Percent of millennials in 2016 who
use a financial institution’s mobile
app.1

11. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Why Innovation Matters in Banking
1Source: CSI, The Changing Landscape of Digital Banking, 2017
60% Percent of U.S. population that own smartphones.1
52%
Percent of smartphone owners who have used
mobile banking in the past 12 months.1
32%
Percent of bank customers who prefer
to do their banking online.1
29%
Percent of smartphone user who will switch to another
mobile site or application if they can’t find what they want.1
81% Percent of U.S. adults who will use mobile banking by 2020.1

12. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Examples of Digital Transformation in Banking
Threats1
Geographical branch banking is no
longer a useful differentiator.
Surviving banks will be low cost
producers of expanded portfolios
who manage risk better.
Banks must transition from a
product/service to a customer-of-
one focus.
1Source: PwC Banking 2020 Survey
Solutions
The cloud and mobility enable services to the
customer when they need it & where they are.
Real-time delivery of decision & process
automation are key to assessing eligibility,
multi-channel offer management, & efficiency.
Advanced analytics, decisioning, and machine
learning are key enablers for defining markets-
of-one.

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FICO Marketing Solutions
Suite

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Market Trends & Emerging Themes
• Age of the Digital Consumer
─ Path to engagement has changed with available channels
and devices, and content available at your fingertips
• Rich Customer Experiences/Personalized
Engagements
─ Context awareness and historical data guide personalized
engagements but focus remains on delivering the best
customer experience
• Real-time Interaction Management
─ Need for real-time interactions across digital touchpoints is
the new norm and marketers need to adapt
• Predictive Analytics in Real-Time
─ Explosion in data points and technologies that can process
big data has fueled the need for machine driven decision
optimization across marketing workflow

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Rise of the digital consumer
58%Financial consumers report
using cross-channel journeys
– Forrester1
~40%US consumers have not
stepped into a bank in 6 mo.
- Bankrate.com2
18 – 34
35 – 54
55+
1MX, Forrester’s Predictions for the Future of Digital Banking, April 22, 2016
2Sheyna Steiner, Branch banking still popular with Americans, December 21, 2015

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Now more than ever: “Know Your Customer” a key
ingredient for building loyalty in banking
70%Consumers feel relation with
their bank is NOT personal
– Accenture3
46%Millennials don’t think bank
markets to them effectively
– The Financial Brand4
80%FIs admit delivering zero to
basic personalization
– Digital Banking Report5
3 Accenture Consulting, North American Consumer Digital Banking Survey, July 25, 2017
4Jeffry Pilcher, 50 Fact Revealing Millennials’ Mindset and Myths About Money, June 9, 2015
5Sammi Reinstein, Evergage, Financial Services Firms Need Personalization: Stats Roundup, July 11, 2017

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Key challenges for financial institutions
• Making sense of the data deluge
─ US produces 2.6M GB of data/minute
─ 0.05% of data is analyzed
─ User data fragmented in various systems and data streams
• Addressing the multi-channel journey
─ Digital customer journeys are multi-channel and
unpredictable
─ Customer demand ”always-on” interactions
• Investing in Analytics is no longer a “nice-to-have”
─ Amount of data generated is impossible to analyze
manually
─ Predicting customer’s next move and identifying future
needs in real time

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FICO® Marketing Solutions Suite
Multi-Channel Customer Interactions
• Simplifies and accelerates the process of:
─ Building 360-degree view of the customer
─ Turning complex data into actionable insights for
multi-channel personalized engagement
─ Operationalizing data for precisely targeted,
timed actions
• Puts the power of data-driven decisions in
the hands of marketers:
─ Mapping customer journeys across time and
channels
─ Persistent history of interactions and customer
responses to continually learn and adapt future
engagements
─ Better utilization of valuable IT resources
─ Increasing organizational agility

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FICO Marketing Solutions Suite
FICO® Real-Time Experience Manager
Use real-time data integration and advanced
analytics to deliver one great customer experience
after another
FICO® Customer Dialog Manager
Launch and manage campaigns that engage
customers in personalized cross-channel
conversations that earn attention and create value
FICO® Message Director
Design a coherent content strategy for personalized
campaigns and real-time interactions across channels
FICO® Customer Data Integration
Integrate real-time and offline data from any source
into a consolidated customer view

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Engine for analytically driven personalization
Data Integration Customer Data
FICO® Decision Management Suite
Business
Rules
Analytical
Models
Optimization
Marketing Workflow
Real-Time
Interactions
Data Ingestion
Real-Time
Operational Data
Store
360o Customer
Profile
Real-Time
Interactions
Outbound
Campaigns
FICO® Message
Director
Next Best Offer
Engine
3rd Party
Analytical Models
FICO® Customer
Communication
Services
Build and deploy advance data
science models
Customer Profile, Context & Preference
Leverage 3rd Party
Models as needed
SMS, Phone, Apps
Build interactive workflows and deploy
seamless omni-channel
communication strategies

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DEMO

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FICO® Marketing Solutions Suite
• Data-driven, highly scientific approach to optimizing omni-channel customer experiences
FICO® PrescreenNow®
• Instantly pre-approve customers using bureau data and common decision framework
• Engage customers as they interact with your institution – online, mobile app, phone or branch
• Increase lifetime value of customers through cross-selling
Prospect Database – Risk-Aware Acquisitions
• Targetable and marketable universe for Invitation-To-Apply and Pre-qualified offers
• Flexible processing framework – Marketing data appends, campaign segmentation and
performance history with standard and ad-hoc reporting
Closed-Loop Automated Account Based Marketing
• Easily integrate with FICO offerings in Account Management space – TRIAD/Strategy Director
& Blaze Advisor
• Seamless and omni-channel customer dialogue using channel of choice
Marketing Solutions for Financial Industry

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Why the cloud?

24. © 2018 Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Business-specific
solutions that can deliver
rich, multi-channel online
experience
Significant
maintenance savings
Faster Time to Market Agility to extension to
the AWS Cloud and run
when required
AWS solutions | Digital transformation
AWS Partner Network (APN) Partner solutions help deliver rich, multi-channel online
experiences to the right customers at the right time, while leveraging data-driven strategies
to maintain and grow your target market.

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Complex legacy infrastructure makes it hard…
The Financial Services Borg Cube:
Historically grown, monolithic, and complex
infrastructure
 Expensive to run
and to change
 Innovation
constrained and slow
 Step change cost
reductions difficult

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…for FS to drive digital transformation
Source: McKinsey

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How financials transform their business with the cloud
Build a compliant and protected
environment
Drive digitization and compete with
disruptive technologies
Use increasing amounts of data to
identify new business models and growth
opportunities
Reduce risk with better tools, better
data and latest security technology
Structurally lower the cost base by
eliminating costly technical debt make
run and change simpler
Highly scalable infrastructure for
analytics that matter to the industry
The need to increase profitability and
resource constraints in all areas
Ability to bring new ideas to market
faster

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AWS differentiators: breadth of reach and breadth
of services
Highly
scalable
Fully
managed
Fast,
consistent
performance
Event-driven
programming
Fine-grained
access control
Document & key-
value structures
18 Regions – 52 Availability Zones – 102 Edge Locations
AI and ML
capabilities
Region & Number of Availability Zones
New Region (coming soon)

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Financial institutions trust AWS to transform their
businesses
Banking & Payments InsuranceCapital Markets
Capital One

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Percentage of the 2016 Forbes FinTech
50 that use AWS
Many FinTech startups choose AWS
“Banks aren’t being disrupted by FinTech
technology, they’re being disrupted by customer
expectations.”
- McKinsey & Company
96%

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Q & A

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Learn more about FICO solutions on AWS
Solution brief: http://www.fico.com/en/data-centric-approach-to-successful-digital-marketing
eBook: http://www.fico.com/en/latest-thinking/ebook/the-challenges-of-digital-marketing
Learn more about Financial Services on AWS
https://aws.amazon.com/financial-services/
Try AWS for free:
https://aws.amazon.com/free
Next steps and further information:

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Thank you!
© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.