Mobile Banking: Baby Steps to Get in the Game

May 19, 2011

PRESENTED BY: Phil Capodice, Consultant, Treasury Strategies George Ravich, EVP & Chief Marketing Officer, Fundtech Ltd.

w w w . T r e a s u r y S t r a t e g i e s . c o m 2! Understanding the Underlying Forces

w w w . T r e a s u r y S t r a t e g i e s . c o m 3! The Social Backdrop

4G - 2008

3G - 2001

2G - 1991

1G - 1978

w w w . T r e a s u r y S t r a t e g i e s . c o m 4! The Social Backdrop

4G - 2008

3G - 2001

2G - 1991

1G - 1978

Current Norms: • User comfort • Ubiquitous presence • Immediacy

w w w . T r e a s u r y S t r a t e g i e s . c o m 5! Commercial Mobile Banking

2010: Fundtech introduces Mobile 2007: Wells first ACCESSplus to offer mobile banking app for 2006: Wells Fargo corporates: offers mobile alert CEOMobile services to small businesses 1997: Merita Bank offers retail banking via text message: Coke anyone?

w w w . T r e a s u r y S t r a t e g i e s . c o m 6! Current Use is Limited

Do you use mobile banking applications for Treasury?

Yes Reasons for Not Using Mobile Applications

Don't believe data is secure Don't use mobile devices Current bank(s) do not offer a mobile application for treasury or payments Other

w w w . T r e a s u r y S t r a t e g i e s . c o m 7! Comparison Between Norms

4G - 2008

2010: 2007: Wells Fundtech first to offer introduces Mobile 3G - 2001 2006: Wells mobile Fargo offers banking app ACCESSpl mobile alert for us services to corporates: 1997: Merita small CEOMobile 2G - 1991 Bank offers businesses retail banking via text 1G - 1978 message: Coke anyone?

Personal Mobile Use Corporate Mobile Banking

User comfort Security concerns

Ubiquitous presence < 4% of corporate users

Immediacy Immediacy

w w w . T r e a s u r y S t r a t e g i e s . c o m 8! Typical Treasury Structure

Median Worldwide Treasury FTE

0 Asia-Pacific Europe North America

Middle Market Mid-Corporate Large Corporate Revenue: <$1 Billion $1-5 Billion >$5 Billion

w w w . T r e a s u r y S t r a t e g i e s . c o m 9! Typical Treasury Structure

w w w . T r e a s u r y S t r a t e g i e s . c o m 10! Typical Treasury Structure

w w w . T r e a s u r y S t r a t e g i e s . c o m 11! User Base By Region

Q: If your bank were to oﬀer mobile corporate banking services in the next 12 months, how likely would you be to use it to perform advanced funcons?

Very Likely Likely

Western Europe (n=121) 25% 12%

North America (n=87) 13% 16%

Asia-Paciﬁc (n=61) 13% 15%

All other geographies (n=41) 12% 15%

Source: Aite Group, 2010

w w w . T r e a s u r y S t r a t e g i e s . c o m 12! What Do They Want?

Information

Execution

w w w . T r e a s u r y S t r a t e g i e s . c o m 13! What Do They Want?

Desired Uses of Commercial Mobile Banking

View balances 99.0%

Confirm trades 83.0%

Approve payments for release 70.0%

Release payments 61.0%

Execute trades 56.0%

Other 46.0%

Reset user passwords 31.0% Source: 2010 TSI survey of 539 treasury practitioners globally

w w w . T r e a s u r y S t r a t e g i e s . c o m 14! Other Insights

Extension of TMS

Easy to learn

Increased convenience

w w w . T r e a s u r y S t r a t e g i e s . c o m 15! Mobile Corporate Banking Baby Steps to Get In The Game

Thank You for Attending Today !

. Very brief company background

. Emergence of mobile corporate banking

. Mobile ACCESSplus

. Demo

Geography – 16 locations, 4 continents London Zurich Frankfurt Wales N’ham Geneva

San Francisco Boston Tokyo New Jersey Los Angeles Tel Av iv Atlanta Pune Singapore

5 Development Centers 2 Managed Service Centers 3 ASP Data Centers Australia 16 offices

Sales by Geography Revenue $142

Europe 40% North America 40%

ROW 20%

Fundtech’s Product Domain

Bank Operaons Customer Facing

Payments Financial Cash Management/ (Domesc, Cross-Border, SEPA, FX) Messaging Electronic Banking

High Value Financial Supply Bacs CLS SWIFT Cash Management Payments Chain Payments

SWIFT Corporate Domesc & Mul- Electronic Invoice ACH Mass Country Cash Presentment and Corporate Expense Payments Access Management Payment Report Mgt.

Bank Liquidity Payments Corp. Liquidity Supply Chain Management Services Hub RTGS Connecvity Management Financing

Cash Flow Operaons

2011 Presentation Usage of Mobile Banking Services

. Fast growth in consumer use of mobile banking services.

. Tablets are a new business productivity tool. . A “game changer” for mobile corporate banking

“Many business have raced to snap up iPads” Aug.24, 2010

. Fielded with gtnews October 2010 . Analysis done by AiteGroup . 320 Total respondents

Respondent Demographics

. Interest / Likely to Use – 65% likely to use basic functions – 56% likely to use advanced functions

. Key Benefits – 39% Anytime access to account info. – 38% take immediate action

. Key Concerns – 65% say that security is a concern – Of those not interested – security is the reason

. 49% willing to pay extra for mobile services . Fixed annual or transaction fee

“…first-mover advantage exists for any institution addressing the unmet market need for corporate mobile banking.”

“Whether to offer corporate mobile banking services is something that all commercial banks around the globe should be considering.”

Christine Barry

The survey of 267 bankers

. 54% say mobile corporate banking top/very important priority

. 42% rated customer interest extremely or very high

. 31% believe its a competitive differentiator for their bank

. 77% think fraud/security is biggest barriers to growth

Is mobile banking services an incentive for small businesses to move from the retail platform to the cash management platform?

168 banker responses

. Handle multiple operating systems . Institute security . Deal with mobile networks . Connect into bank’s backend / become a channel

Platforms targeted by Mobile Applications in 2010

Projected platforms targeted by Mobile Applications in 2011

Registration Daily Use Termination

Password

Digital Certificate

Activation

Approved

Mandate

Corporate KYC

. Authorization . Digital Signing . Encryption – Transmission – Storage . Location – GPS feature in smartphones

. Natural / Voluntary . Mandate revoked . Lost / Stolen – Remote Kill – Encrypted Store

. Visibility . Real-Time Information . Approval & Release Treasurer + Sales Person + . Payment Initiation Managing Director . Payment Capture . Administration

CASHplus Desktop

w w w . T r e a s u r y S t r a t e g i e s . c o m 46! Questions

Phil Capodice Consultant Treasury Strategies 312.628.69xx [email protected]

George Ravich EVP & Chief Marketing Officer FundTech 201.215.6530 [email protected]

w w w . T r e a s u r y S t r a t e g i e s . c o m 47! About Treasury Strategies, Inc.

Who We Are Treasury Strategies, Inc. is the leading treasury consulting firm working with corporations and financial services providers. Our experience and thought leadership in treasury management, working capital management, liquidity and payments, combined with our comprehensive view of the market, rewards you with a unique perspective, unparalleled insights and actionable solutions.

What We Do Corporations We help you maximize worldwide treasury performance and navigate regulatory and payment system changes through a focus on best practices, technology, liquidity and controls.

Treasury Technology

We provide guidance through every step of the technology process. www.TreasuryStrategies.com/ Our expert approach will uncover opportunities to optimize the value networking/netCommunity.htm of your treasury through fully integrated technology solutions. @TreasuryStrat Financial Services Our experience, analytic approach and benchmarks provide unique consulting solutions to help you strengthen and grow your business.

w w w . T r e a s u r y S t r a t e g i e s . c o m 48!