mobile_banking__payments

8/7/2019 Mobile_Banking__Payments

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www.firethornmobile.com

Mobile Banking & Payments

Kelly BudayDirector of Marketing, Firethorn


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Proprietary and Confidential

Keys to SuccessThe Federation


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Emergence of third screen phenomenon 242 million mobile phones in the US

Explosive Growth of Wireless Broadband Data Networks

Exponential demand for mobile data and applications

Data ARPU Growth (Average Revenue Per User)

Increasing adoption for online financial services Online usage drives overall customer profitability

Growing consumer demand for convenience = need for 5th delivery channel 61 percent of adults between 25 to 34 say they are interested in making

purchases with their mobile phone*

Punchline: mobile banking is prime for market adoption*Source: Bank System & Technology, June 25, 2006/ Visa USA (San Francisco) Research), CTIA 2007

The Time is Now


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Mobile Bankingisthe News

US BankerMagazineJune 2007


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Consumers Expect Convenience & Control

Consumer

PDAPDA

MP3MP3

Nameaddress

Pay to

123345634 2345

Nameaddress

Pay to

Nameaddress

Pay to

123345634 2345

Checkbook

Bank CardBank Card

Wallet

234 124 2345VISA

234 124 2345VISA

Credit

234 124 2345VISA

234 124 2345VISA

Debit

Sky MilesVISA

Sky MilesVISA

Points

Sams Club

Membership

Keys

Grocery

GYMMembership

LoyaltyGrocery

GYMMembership

Loyalty

A Device


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Consumer Need Access to Finances

Four (4) retail banking relationships1

One (1) or two (2) accounts with their primaryfinancial institution1

Thirteen (13) credit obligations; nine (9) likely tobe credit cards 2

Make fifty-eight (58) individual payment choicesmonthly, 46 of which are in-store (check, cash,

credit/debit, gift card)3

Cash and check constitute 47% of payments(57% in 01)3

Two thirds (66%) of families need their next

paycheck to meet expenses4

Consumers will not log on to more than three (3)sites to view their financial information

1 A.T. Kearney, How does your financial institutiongrow?

2 Fair Isaac Corporation, Average Credit Statistics

3 ABA; Dove Consulting, 2005/2006 Study ofConsumer Payment Preferences

4 Josh Hyatt, Money Magazine, American PayrollAssociation, Scraping by on $150,000 a year


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Consumers Want Mobile Financial Services

49% would be willing to use mobile banking andpayments via their wireless device1

40% of US adults would access or manage bank

accounts from their mobile phone (eMarketer 2006)

75% of online bankers would likely adopt the solution1

Celent estimates 10% of online bankers will be using

mobile banking by the end of 2007 (WSJ 21, Feb 07)

86% would check credit card and account balancesa median of four times per month1

70% would prefer to obtain mobile banking servicefrom their Financial Institution versus a cell phoneprovider or an alternative payment vendor1

1 in 4 customers would consider switching banks ifoffered free mobile banking (Forrester 2005)

1. MQA Research, Mobile Finance Survey, 1023respondents, March 2006

Wh A M bil Fi i l


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What Are Mobile FinancialServices

Mobile Financial Services are wirelessly enabled applicationsand services, accessible through or operated on the handset,that facilitate financial transactions and/or the management of

financial services.Retail

Purchasing

Purchase goodsand services atretail locationsusing payment

accountsembedded inthe handset

Sending

Money

$

Banking

On the Go

Check balances,transaction

history and pay

bills anytime -anywhere

Pay personaldebts, transfermoney abroad

or send moneyto the kids -wirelessly

Purchase hardgoods and

services via a

WAP browseshoppingexperience

Present, accessand/or redeemoffers at the

point ofpurchase

Mobile

Internet CommerceMobile

Marketing


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80% U.S. Market Penetration and Growing

Cultural Phenomena Ever Increasing Value &

Versatility

Highly Personal, Trusted and Ever-Present

Unique Attributes:

Why Mobile Will Change Money

Sw iss Army Knife

of the 21st Century

+ =

Mobile Gives Money

Graphical User Interface

Robust Computing Platform

Secure Storage

Interactive Data Network

Unprecedented Convenience


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Complexity of Mobile Commerce

21 + Monitor

Browser

Desktop Usability

Open Network

2.5 Screen

Thousands of Devices

Mobile Usability

Proprietary Network


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Internet Banking vs. Payment Networks

Universal UI/UX Across BrandsHighly Custom Branded UI/UX

Internet Banking Payments Networks

Cost Center ($B)/Free Customer Access Profit Center ($B)/Interchange

Brand and Differentiation is Key Access, Distribution, Ease Of Use is Key


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Which way is WAP?

Suitable for viewing balances and transaction history, but not forsecure financial transactions

Unmanaged security experience

Browser security patches require device replacement Consumer usability issues; slowness, timeouts, loss of signal

Expiring technology that will not support future functionality likecontactless payments

Misperception WAP is faster to market and mirror of Internet banking

Mobile banking is not Internet banking Application development/device management still required

Incumbent on institution to manage devices and usability


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Sending out an SMS

Suitable for balance inquiries and transfers but little else

Does not provide for bank recognition

Does not drive new account openings and/or cross-selling

Expensive for the customer, drives down banks profitability

Prone to security breaches, namely man-in-middle attacks

Will not support future functions, such as contactless


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I Did It My App Incumbent on institution to:

Build, host and maintain their own application

Certify its application on wireless carriers networks

Develop future functionality

Insure sufficient security and compliance Market solution and educate users

Is cost, labor and resource intensive

Creates silo effect around institution as market evolves

This approach not supported by most wireless carriers

Lack of support for ongoing device management

No carrier marketing support


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Individual Mobile Application Analogies

Number of

Providers

Brand Names

Email 10+ majors

Hundreds of minors

Hotmail, GMail, AOL, AIM, Yahoo!,

Earthlink, Comcast, Charter, TimeWarner

Instant Messaging 8 Majors MSN, Google Talk, AIM, ICQ, Yahoo!,LCS, Sametime, Reuters

Media Hundreds CBS, NBC, Fox, CNN, ESPN MTV,Nickelodeon

Sports NFL: 32

MLB: 30

NBA: 30NHL: 30

Golf: Hundreds

Panthers, Patriots, Giants, Yankees,Mets, Braves, Spurs, Suns, Mavericks,

Rangers, Ducks, Capitals, Tiger Woods,Phil Mickelson, Vijay Singh

Banking & Payments 25+ Majors

Thousands of Minors

Wachovia, SunTrust, Regions, Synovus,BancorpSouth


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Firethorn Mobile Consumer Wallet

Includes everything in consumers wallets today Debit/Credit Cards

Loyalty/Membership Cards

Insurance Cards

Single, secure downloadable applicationbank-branded

Managed by Firethorn for financial institutions

Authorized by wireless carriers

Controlled by the consumer Vision supported by leading financial institutions

Wachovia, Regions, SunTrust, BancorpSouth, Synovus, among

others Vision supported by wireless carriers

Firethorn only mobile banking and payments applicationauthorized on AT&T network; also partnered with Verizon

Wireless


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Distribution & Discoverability Discoverability and ease of use is critical

Simplicity and Consistency

Mobile applications for new services must be Intuitive Easy to learn/explore Deliver perceived value quickly

Consumers will not adopt disparate islands of service en masse

Integrated Service and Support Wireless subscribers expect coordinated support from wireless operators for

wireless service, devices, as well content/other service providers

Ability to call one number if device is lost or stolen will be expected

Security

Customer Expectations: introduce services with sensitive information in

controlled fashion to avoid high profile security events (undermines trust)

Driving Mass Adoption


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The Front Door Approach

AT&T intends to create an embedded wallet platform throughwhich trusted providers offer their branded services. Advantagesinclude:

Promotes significantly greater consumer adoption due to

discoverability and increased trust

Application and service providers pre-certified by AT&T prior toinclusion

Consumers not required to download various applications frommultiple, potentially untrusted providers (but can at customeroption)

AT&T does not intend to support disparate third party applicationsfor MFS

Introduces unmanageable risks

Limited resources to secure and improve the core wallet

application

Embedded Apps Drive Adoption


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Mobile Banking as a starting point

Aggregated banking solution Server integrating with Financial Institutions Contains financial institutions branding

Future plans to support different account types

Java client w/ built-in security Downloaded from FIs Online Banking Web Site Requires PIN upon client invocation

Local storage is encrypted and stores no sensitive

personal data Remote client de-activation in the event of a lossphone

AT&T authorized/certified

Service features include: Account Balance Inquiry, Funds Transfer, Bill View/Payment, Transaction History


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BancorpSouth Co-branded Statement


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BancorpSouth Co branded StatementStuffer

B S h C b d d POS P


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BancorpSouth Co-branded POS Poster

BancorpSouth Co-branded Banner Ad and


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pOnline Banking Login Page Ad

Banner Ad

Online Banking Login

Page


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June 27, 2007

www.firethornmobile.com

Thank You.

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