Nancy Gail Daniels, EVP &COO

What’s Next IS What’s Now

US Conference 2016

Branch ATM’s

Today: Two Separate Worlds

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•  “Omnichannel” • OCC Branch Challenges • Difficult In Driving Further

Transaction Cost Reductions

Consumer

Retail ATM’s

•  EMV, EMV, EMV • CFPB “Choke Point” •  Lower Transaction Fees and

Increased Operational Cost

Today: Different Consumers

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“Digital Natives” more comfortable with

technology than people and demand

convenience

“Traditionalists” prefer personal relationships

over technology at the expense of

convenience

“Under-Banked” 30% of the US, who

need both access to a range of services, and

convenience

Common Thread Is Convenience

Branch ATM’s

Tomorrow: Worlds Collide

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Consumer

Retail ATM’s Convergence

FI and Retail are Converging Now EVOLVE Technology

Why EVOLVE?

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• ATM Technology Has Reached An Evolutionary Peak

• ATM’s: A Financial Services UTILITY • Consumers Expect Utilities To Be

Available 100% Of The Time • Does Your ATM Fleet Meet This

Consumer Expectation?

What’s Next IS What’s Now

ATM’s And Customer Satisfaction

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Relational Quality

Customer Satisfaction

Switching Intentions

Loyalty Intentions

Core Quality

Perceived Value

Direct Link Between ATM Availability And Future Intentions

Projected Transaction Shift

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2015

Off Premise Transactions Will Double

5.8 B ATM Transactions

1.8 B ATM Transactions

Bra

nc

he

s O

ff P

rem

ise

4.0 B ATM Transactions

205,000 ATM’s

220,000 ATM’s

Cash Dispense

Deposit Enabled

2020

6.5 B ATM Transactions

3.5 B ATM Transactions

3.0 B ATM Transactions

Recycling

200,000 ATM’s

VideoEnabled

190,000 ATM’s

Financial Crisis

New Regulation

Cost Increases

Transaction Shift

Emerging Technology

5.5

6

6.5

7

7.5

8

8.5

9

9.5

10

10.5

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Billi

ons

of $

20 N

otes

Cash: More Of It 8

$20 Notes In Circulation Will Reach 10 Billion By 2020

Impact of Mobile (e.g. Apple Pay, Samsung Pay)

2015 2015 2020 2010 2005

Retail Market Saturation

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•  ATM Are Pervasive

•  Low quality locations are a symptom of saturation

•  Consumers Will Choose On Value, Quality, Convenience

•  ATM Locations Will Decrease Due to Natural Selection

Location, Location, Location

Consumer Behavior Changes

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2016 2020

Transactions Will Shift To The Most Convenient Touch Point

Fewer Tellers

Consumers Forced To Use Self Service

Consumers Shift To The Most Convenient

Touch Point

Off Premise Technology Will Match FI Capability

Demographic Shift to Tech Savvy Millennials

ATM Ecosystem Pyramid

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Lowest TCO

Hardware

Software

Multi-Vendor

Break Fix/CIT Services Best In Class

Tight Connections Between Components Drive The Best Solution

Summary

12 Confidential

What’s Next IS What’s Now

•  Retail And Financial ARE Converging •  ATM Are Now A Utility •  Consumer Expectation Is 100% Availability •  Transactions Will Shift To Off Premise Locations •  Consumer Will Focus On Convenient Touch Points •  Integrated HW/SW/Services Essential For Efficiencies

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Nancy Gail Daniels, EVP &COO

Thank You!

US Conference 2016