Fiserv PPT Template 4x3 Univers
Vision 2020: How Banks Can Win the Payments Race Virginia Heyburn VP Strategy May 3rd, 2017
We are Seeing a Clear Shift to Technology Leaders #2
#3
#4
#5
2001
#1
$365B
$272B
$261B
$260B
$446B
$383B
$327B
$293B
$273B
$406B
$376B
$277B
$237B
$228B
$452B
$364B
$359B
2016
2011
2006
$406B
$582B
$556B
Source: Visual Capitalist, “The Largest Companies By Market Cap Over 15 Years,” August 2016 *Top 5 By Market Cap © 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
Tech
Other
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Disruptors are Changing the Banking Landscape Tech Firms
Banks
44%
40%
73%
71%
37%
36%
64%
57%
Source: Instantly Brand Monitor in Cooperation with Statista, “Americans Trust Tech Firms More Than Banks for Finance,” June 2015 *Original Question: “Please state for each firm you know whether your overall opinion of the provider of financial products is positive, neutral, negative.” © 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Banks Have an Innovation Gap to Bridge Consumer Perception of Innovation Brands of Innovators vs. Banks and Payment Networks 133%
140%
118%
120%
106%
100%
Innovation Gap
80% 60%
44%
40% 20%
30%
0% 2011 Top 5 Banks
34%
31%
37%
Top 3 Carriers*
27%
22% 20%
19%
2013
2014
Top 4 Payment Networks*
Gang of 5
Note: Networks are carriers are normalized for 5 firms for comparison Note: Gang of Five consists of Apple, PayPal, Samsung, Google, and Amazon Source: Javelin Strategy & Research “2015: Gang of Five: Apple Pay vs. Android Pay vs. Samsung Pay vs. PayPal “Pay”?,” March 2015 n=5,878, 6,651, 3,200 FORTUNE Magazine World's Most Admired Companies © 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
2014 | 2015 | 2016 | 2017
®
The Digital Triad ONE Experience Move Money Mobile Now Bank of Things © 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Game Changer #1: The Digital Triad Digital Strategy for an Always-On World
Deposits
Payments Money Service
Loans
We spent a lot of years training banking customers on our terminology: “DDA, ACH, Routing number, PIN, Wire, Bill Pay” This new generation of customers doesn’t care. 6
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Consumers Value the Merits of Non-Banks
Sources: Accenture, Capgemini, Salesforce.com 7
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Unbanked by Choice is a New Phenomenon Most Important Reason for Not Having a Checking, Savings or Money Market Account Don't Have Enough Money
25%
Don't Need or Want an Account
24%
Refused to Answer
15%
Banking History, Credit or ID Problems
10%
I Wouldn't Use an Account Enough
8%
Other
7%
I Don't Like Dealing with Banks
6%
The Fees are Too High or Unpredictable
2%
I Cannot Manage/Balance an Account
2%
Banks Don't Offer the Products or Services I Need
1%
Banks Do Not Have Convenient Hours or Locations
1% 0%
20%
Source: The Federal Reserve System, “Consumers and Mobile Financial Services 2014,” March 2014 8 2017 Fiserv, Inc. or its affiliates. | ©
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Why Should New Entrants Matter to Banks? The Branch is Alive and Well
87%
of consumers will use their branches in the future – and want human interaction when they go there Robo-Advice is Welcomed
46%
of consumers are willing to bank using robo-advice in the future
Value is Important
45%
of consumers say the top reason they would stay loyal is if their bank offers discounts on purchases of interest Switching FIs is Not an Obstacle
11%
of consumers left their bank in the past year – and consumer switching to virtual banks is at double-digit levels
Source: Accenture “2016 North America Consumer Digital Banking Survey - Banking Shaped By The Customer,” June 2016 n=>4,000 © 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Game Changer #2: ONE Experience
Finish Continue Initiate
Seamless movement across touchpoints One experience, multiple engagements New: Chat/App/Voice/Augmented/Virtual Reality 10
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Transformed Branch
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Banks Must Innovate or Lose Profitable Accounts Total U.S. Deposit Accounts (in Millions), 2010-2Q16 900 Number of Accounts
800 700
171
173
178
183
189
196
200
595
611
634
624
613
579
581
2013 2014 Credit Unions
2015
2Q16
600 500 400 300 200 100 0 2010
2011 2012 FDIC-Insured
*May exclude Savings Institutions Prior to 2012
Source: FDIC: FFIEC Call Report 2Q16 and NCUA Call Report 2Q16 © 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Millennials to Inherit $59 Trillion in Personal Wealth
2030
Source: Visual Capitalist, “How Affluent Millennials are Changing the Finance Industry,” December 2015 © 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Game Changer #3: Move Money how much
who
Sender’s Bank
© 2017 Fiserv, Inc. or its affiliates. |
Payment Network
Receiver’s Bank
Receiver
Sender 14
when
Invisible payments Payments apps Interoperable networks
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Today’s Payment Reality is Fragmented
People have numerous payment relationships, but they manage them separately..
15 © 2017 Fiserv, Inc. or its affiliates.
|
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Speed is the New Black
Relative size of words reflects the frequency with which the future of electronic billing and payment was described in one word by industry analysts from Aite Group, Celent, Forrester, IDC Financial Insights, Javelin Strategy & Research and Mercator Advisory Group.
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
New Players Proliferate Consumers have increasing choices for all financial services.
17 © 2017 Fiserv, Inc. or its affiliates.
|
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Large Tech Companies a Clear Threat in Money Movement
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Primary Bank No Longer the Top Preferred Mobile Wallet Provider Likelihood of Choosing Company as a Mobile Wallet Provider PayPal
34%
Visa
22%
56%
27% 51% 45% 43% 48%
Your Primary Bank MasterCard
28% 25%
American Express Apple Pay
28%
20%
Android Pay
27%
17% 16%
Facebook
14% 13%
MCX CurrentC
16% 16%
0%
10%
20%
2013
29%
21% 19%
Starbucks
2014
34%
34% 31%
24%
Microsoft
2015
37%
25%
20%
63%
42%
25% 22%
30%
40%
50%
60%
Source: JAVELIN, “What’s In Your Mobile Wallet?,” March 2016 © 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
70%
Game Changer #4: Mobile Now “What do you want to do?” Becomes “What can we do for you?”
20
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Who Will Own Financial Conversations?
21
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Game Changer #5: Bank of Things Home purchase
Auto purchase
• Hyper-competitive, hyper-connected • Network interoperability • Artificial Intelligence for personalized service • Bank creates customer routine
College choice
• Partner and collaborate • Aggregate data with all partners • Build interconnected network beyond traditional “bank-owned” channels innovation
Car insurance 22
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
The Internet of Things
“The Internet of Things (IoT) describes the phenomenon of everyday devices connecting to the Internet through tiny embedded sensors and computing power.” © 2017 Fiserv, Inc. or its affiliates. |
Accenture
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
The Digital Triad ONE Experience Move Money Mobile Now Bank of Things © 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Thank You!
25
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Vision 2020: How Banks Can Win the Payments Race Virginia Heyburn VP Strategy May 3rd, 2017
We are Seeing a Clear Shift to Technology Leaders #2
#3
#4
#5
2001
#1
$365B
$272B
$261B
$260B
$446B
$383B
$327B
$293B
$273B
$406B
$376B
$277B
$237B
$228B
$452B
$364B
$359B
2016
2011
2006
$406B
$582B
$556B
Source: Visual Capitalist, “The Largest Companies By Market Cap Over 15 Years,” August 2016 *Top 5 By Market Cap © 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
Tech
Other
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Disruptors are Changing the Banking Landscape Tech Firms
Banks
44%
40%
73%
71%
37%
36%
64%
57%
Source: Instantly Brand Monitor in Cooperation with Statista, “Americans Trust Tech Firms More Than Banks for Finance,” June 2015 *Original Question: “Please state for each firm you know whether your overall opinion of the provider of financial products is positive, neutral, negative.” © 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Banks Have an Innovation Gap to Bridge Consumer Perception of Innovation Brands of Innovators vs. Banks and Payment Networks 133%
140%
118%
120%
106%
100%
Innovation Gap
80% 60%
44%
40% 20%
30%
0% 2011 Top 5 Banks
34%
31%
37%
Top 3 Carriers*
27%
22% 20%
19%
2013
2014
Top 4 Payment Networks*
Gang of 5
Note: Networks are carriers are normalized for 5 firms for comparison Note: Gang of Five consists of Apple, PayPal, Samsung, Google, and Amazon Source: Javelin Strategy & Research “2015: Gang of Five: Apple Pay vs. Android Pay vs. Samsung Pay vs. PayPal “Pay”?,” March 2015 n=5,878, 6,651, 3,200 FORTUNE Magazine World's Most Admired Companies © 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
2014 | 2015 | 2016 | 2017
®
The Digital Triad ONE Experience Move Money Mobile Now Bank of Things © 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Game Changer #1: The Digital Triad Digital Strategy for an Always-On World
Deposits
Payments Money Service
Loans
We spent a lot of years training banking customers on our terminology: “DDA, ACH, Routing number, PIN, Wire, Bill Pay” This new generation of customers doesn’t care. 6
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Consumers Value the Merits of Non-Banks
Sources: Accenture, Capgemini, Salesforce.com 7
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Unbanked by Choice is a New Phenomenon Most Important Reason for Not Having a Checking, Savings or Money Market Account Don't Have Enough Money
25%
Don't Need or Want an Account
24%
Refused to Answer
15%
Banking History, Credit or ID Problems
10%
I Wouldn't Use an Account Enough
8%
Other
7%
I Don't Like Dealing with Banks
6%
The Fees are Too High or Unpredictable
2%
I Cannot Manage/Balance an Account
2%
Banks Don't Offer the Products or Services I Need
1%
Banks Do Not Have Convenient Hours or Locations
1% 0%
20%
Source: The Federal Reserve System, “Consumers and Mobile Financial Services 2014,” March 2014 8 2017 Fiserv, Inc. or its affiliates. | ©
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Why Should New Entrants Matter to Banks? The Branch is Alive and Well
87%
of consumers will use their branches in the future – and want human interaction when they go there Robo-Advice is Welcomed
46%
of consumers are willing to bank using robo-advice in the future
Value is Important
45%
of consumers say the top reason they would stay loyal is if their bank offers discounts on purchases of interest Switching FIs is Not an Obstacle
11%
of consumers left their bank in the past year – and consumer switching to virtual banks is at double-digit levels
Source: Accenture “2016 North America Consumer Digital Banking Survey - Banking Shaped By The Customer,” June 2016 n=>4,000 © 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Game Changer #2: ONE Experience
Finish Continue Initiate
Seamless movement across touchpoints One experience, multiple engagements New: Chat/App/Voice/Augmented/Virtual Reality 10
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Transformed Branch
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Banks Must Innovate or Lose Profitable Accounts Total U.S. Deposit Accounts (in Millions), 2010-2Q16 900 Number of Accounts
800 700
171
173
178
183
189
196
200
595
611
634
624
613
579
581
2013 2014 Credit Unions
2015
2Q16
600 500 400 300 200 100 0 2010
2011 2012 FDIC-Insured
*May exclude Savings Institutions Prior to 2012
Source: FDIC: FFIEC Call Report 2Q16 and NCUA Call Report 2Q16 © 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Millennials to Inherit $59 Trillion in Personal Wealth
2030
Source: Visual Capitalist, “How Affluent Millennials are Changing the Finance Industry,” December 2015 © 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Game Changer #3: Move Money how much
who
Sender’s Bank
© 2017 Fiserv, Inc. or its affiliates. |
Payment Network
Receiver’s Bank
Receiver
Sender 14
when
Invisible payments Payments apps Interoperable networks
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Today’s Payment Reality is Fragmented
People have numerous payment relationships, but they manage them separately..
15 © 2017 Fiserv, Inc. or its affiliates.
|
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Speed is the New Black
Relative size of words reflects the frequency with which the future of electronic billing and payment was described in one word by industry analysts from Aite Group, Celent, Forrester, IDC Financial Insights, Javelin Strategy & Research and Mercator Advisory Group.
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
New Players Proliferate Consumers have increasing choices for all financial services.
17 © 2017 Fiserv, Inc. or its affiliates.
|
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Large Tech Companies a Clear Threat in Money Movement
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Primary Bank No Longer the Top Preferred Mobile Wallet Provider Likelihood of Choosing Company as a Mobile Wallet Provider PayPal
34%
Visa
22%
56%
27% 51% 45% 43% 48%
Your Primary Bank MasterCard
28% 25%
American Express Apple Pay
28%
20%
Android Pay
27%
17% 16%
14% 13%
MCX CurrentC
16% 16%
0%
10%
20%
2013
29%
21% 19%
Starbucks
2014
34%
34% 31%
24%
Microsoft
2015
37%
25%
20%
63%
42%
25% 22%
30%
40%
50%
60%
Source: JAVELIN, “What’s In Your Mobile Wallet?,” March 2016 © 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
70%
Game Changer #4: Mobile Now “What do you want to do?” Becomes “What can we do for you?”
20
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Who Will Own Financial Conversations?
21
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Game Changer #5: Bank of Things Home purchase
Auto purchase
• Hyper-competitive, hyper-connected • Network interoperability • Artificial Intelligence for personalized service • Bank creates customer routine
College choice
• Partner and collaborate • Aggregate data with all partners • Build interconnected network beyond traditional “bank-owned” channels innovation
Car insurance 22
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
The Internet of Things
“The Internet of Things (IoT) describes the phenomenon of everyday devices connecting to the Internet through tiny embedded sensors and computing power.” © 2017 Fiserv, Inc. or its affiliates. |
Accenture
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
The Digital Triad ONE Experience Move Money Mobile Now Bank of Things © 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Thank You!
25
© 2017 Fiserv, Inc. or its affiliates. |
CONFIDENTIAL – LIMITED
FORTUNE Magazine World's Most Admired Companies® 2014 | 2015 | 2016 | 2017
Vision 2020: How Banks Can Win the Payments Race Virginia Heyburn VP Strategy May 3rd, 2017
