Executive Overview: Talking Points for Banks/Credit Unions
Delivered by: eMONEco/JBD Consulting
Slide 1: mobile monē/JBD branding
· Introductions
· Overview of discussion/goals of meeting
Slide 2: Strong Beliefs Drive Us
· An introduction of our core essence; born from the ideas that Access, Choice and Perspective are the foundation for a new payments ecosystem
· We solve real money movement and real money management problems
o Our five pillars of strength
§ Safe and Secure - We ensure that all applicable governmental regulations and industry best-practices are adhered to/exceeded; we protect the consumer with individually insured accounts (FDIC today, seeking NCUA), not aggregate account protection
§ Real Value - Our users benefits exceed any in the industry; they simply do more for, and provide more value to, our account holders; pricing is more than competitive and transparent
§ Technologically Advanced - We own our proven technology, allowing us to control security, compliance, quality and features; cloud-based/SaaS – no costly infrastructure and implementation requirements; no integration to core systems
§ Mobile Money Management – It’s not in the near future – it’s now! 91% of adult Americans have cell phones (source: Pew Internet and American Life Project); they ABOSOLUTELY should be able to manage their money from their mobile phones
§ Financial Stability - Part of a family of companies backed by a multi-billion dollar, privately held corporation
· You know what drives us. What drives you? Acknowledge pain points audience has shared; if specifics haven’t been shared, offer for discussion
o Community reinvestment/regulatory concerns
o Serve unbanked/under-banked
o Attract millennial AKA Gen Y (other target market)
o Quest to become/better positioned as the Primary Financial Institution (PFI)
o Drive for innovation and mobile technology channels, without high cost/integration
o Multi-channel consistency and choice/options; account aggregation
o New revenue streams
Slide 3: Real Solutions for Real Problems in Real Time
· Lead with real problems: offer personal examples from our founder, your own experiences, or other customer discussions – real examples get heads nodding, often the audience shares examples of their own
· Move into a high level description of mobile monē/what is it?
· Users securely send money to anyone, anytime, anyplace, anywhere using a mobile phone number
· The mobile number is used to affect a virtual bank account with routing/transit number
o The account number is protected behind the mobile number; no need to share secure account information
o Through mobile phone/SMS Text
§ Of course
· Balances
§ BUT THEN!
· Transfers
· A2A transfers
· P2P transfers
· Payment requests
· Approvals
· Account lock/unlock
· Notices/alerts
· Transaction history
· Set the stage for partnership and benefit; we can easily, quickly and cost-effectively position them to
o Answer demand for P2P payments
o Offer account aggregation
o Grow revenue and customer base
o Better meet the needs of Gen Y/business customers (merchants, business owners)
§ With a real-time funds transfer network offering same-day/immediate settlement, robust (possibly un-matched?) security and affordable multi-channel options
· High level recap: mobile monē is
o Easy to use
§ Multi-channel, mobile phone centric banking and payments platform
§ Cloud-based/SaaS offering
§ Offers timely, simplified payments processing
o An account aggregator
§ Linking to any authorized external account
o Secure
§ Multiple layers – industry-based and proprietary
§ Individually FDIC insured account
§ Personalized debit cards – not generic
o Offering same-day and/or real-time settlement
o Reducing or eliminating interchange fees
o Partnering with the industries biggest players
§ MasterCard
§ FIS Global
§ NYCE Network
§ Safe, secure issuing banks
Slide 4: Evolution and Growth
· We believe the sheer volume of mobile phone usage - combined with increased mobile functionality - means mobile money management and transactions tool are a requirement to stay in the game
· As of May 2013
o 91% of American adults have a cell phone
o 56% of American adults have a Smartphone
o 28% of cell owners own an Android; 25% own an iPhone; 4% own a Blackberry
o 34% of American adults own a tablet computer
o 29% of American adults check bank account balance or do other online banking
o 9% of American adults have texted a charitable donation from their phone
§ Source: Pew Internet and American Life Project
· Review the evolution and growth from the customer perspective (noted on slide copy)
· Hit on main point: transaction and customer growth through the viral nature of texting money to friends, family and vendors
o Use beta launch of mobile monē as example: 1 new account typically expand 150% or to 1.5 accounts
Slide 5: Endless Opportunities: All-in-One
· Mobile monē isn’t B2B or B2C; it’s a powerful hybrid solution that can position you in any or all of these areas
· Mobile payments and mobile banking are not only two of the fastest growing initiatives, they also can introduce banking and payments services to new markets if properly deployed INCLUDING UNDERSERVED MARKETS (GEN Y, credit-challenged, cash users, etc.)
· We’ve developed a single solution that addresses all five of today’s ‘hottest’ areas of financial services interest
o Banked (Chase, BofA) – Account aggregation: connect all credit cards, debit cards, checking, savings, share draft accounts to your mobile monē wallet and benefit from the added security and multi-channel accessibility to funds 24/7
o Under-Banked (MetaBank, netSpend) - Benefit from the low-cost delivery of a full featured multi-channel banking tool that adds levels of transaction security not commonly made available to the under-banked and unbanked members of society
o Peer-to-Peer (obopay, PayPal) - Simply put, DO MORE…PAY LESS! A need for a cost-effective Person-to-Person (P2P) micro-payments OPEN network was clearly recognized and mobile monē delivers the perfect real-time multi-channel solution
o Merchant Network (VISA, MasterCard) - Expand reach to a broader customer base and save money on current transactions by reducing interchange costs with same day settlement
o Remittance (Western Union, MoneyGram) - Transfer money from any mobile phone (monē account) to anyone’s mobile phone anywhere in the world at a fraction of the cost of a wire transfer or retailer transfer with IMMEDIATE AVAILABILITY
Slide 6: Multi-Channel Payments Services
· This is a high-level overview of access channels – not detail
· Banking, Commerce, Remittance and Payments
o Consistent, seamless interaction experiences
o Channel shift at will – no dependency on devices
o 24/7 availability
o Reporting and tracking in real time
o On demand statements
o Multiple support options: online, mobile, IVR, live operator
· Interactive Voice Response (IVR) account management
o Secure voice or touch tone
o mAUTH! Added layer of multifactor authentication requiring authorization via confidential information prior to transaction release
· SMS Text account management (98% of mobile phones are SMS capable!)
o Secure, encrypted SMS (short message service) text
o mAUTH! Two factor authentication (noted above)
§ Send SMS Text transaction>mobile monē responds for validation>provide 4-digit PIN
§ Prevents ‘spoofing’/unauthorized transactions
· Spoofing uses SMS to set whom the message appears to come from by replacing the originating mobile number (Sender ID) with other alphanumeric text.
· Internet/web-based account management (‘online banking’)
o Secure login with multi-factor authentication
· Mobile App
o Smart devices (phone, tablet, TV)
Slide 7: Spend Less, Charge Less, Earn More
· The business/operating model allows you to decrease internal cost and collect revenue while decreasing risk
o Good Funds Model
o No high-tech/high-cost implementation or integration to core/legacy systems
· High level overview and application/examples of hybrid solution by each category (audience determines examples/focus on their interests/problem needing solution)
o Banking
o Cards
o Platform
Slide 8: The Power of mobile monē
· What are the components of the mobile monē program? Overview of each category – explain the content of each section
Slide 9: The Comprehensive Program
· Use program roles overview ppt explaining roles (shared August, 2013) for detail as needed
· Issuer/Issuing FI
· Program Manager (us)
· Processor (FIS Global)
· Compliance
Slide 10: mobile monē Account
· How an account is created
· Online registration on the mobile monē site (can be co-branded) using key information: applicant name, mobile number, social security number, birth date
· Real-time OFAC check
o Pass = immediate access, continued account set up
o Fail = notice that additional information is required, contact XX
· When OFAC check is passed, a virtual bank account is created tied to the mobile phone number
o This product is the mobile monē Wallet
§ Combination of mobile banking, payments, commerce, remittance with account security firewall
o Digital funds stored until use
o Funds transfer and payments processing through multi-channels reviewed earlier
o Account aggregation options for checking, savings, credit, etc.
o Optional virtual card for online/ATM use (no physical card created)
§ Account holder name, card number, CVV security code, customizable PIN
· An optional, physical prepaid MasterCard debit card (brandable) tied to mobile monē Wallet is offered
o This is the mobile monē Card
o Good funds, reloadable debit card tied to virtual account
§ Account holder name, card number, CVV security code, customizable PIN
o Accepted anywhere MasterCard is accepted: online, in store
o ATM access 24/7
· All are treated as separate buckets within the account
o With multiple funds delivery, funds loading and account connectivity option = segue to next 3 slides
Slide 11: Real-time Funds Delivery
· Walk through points on slide
Slide 12: Real-time Funds Loading
· Walk through points on slide
Slide 13: Full Account Connectivity
· Walk through points on slide
· For external bank/share draft connectivity: two small deposits are made; once confirmed online, the accounts are fully activated
Slide 14: The Rules of Engagement Have Changed = ISPL
· This slide is for two bank targets
o Merchants and businesses that accept/use credit card rails
§ Current or potential customers
· mobile monē creates a new merchant and business payments ecosystem that benefits everyone
o Banks (hero mode!), businesses, merchants and consumers
o In the mobile monē ecosystem, traditional card processors are not controlling fees, funds delivery, timing
· Walk through traditional flow
· Walk through mobile monē open loop flow
o Proprietary payments management (technology, operating system) for point of sale (POS)
· Benefits
o Reduced, if not eliminated, interchange fees – take the 2-4% costs out of the equation
o Real-time and/or same-day settlement – immediate cash flow
o Faster processing – Just in Time payments
o Certainty of payment
o Convenience!
§ ‘Get out of the check writing game’
§ Reduce cash on hand requirements
o As a mobile monē load center, a new revenue stream is created for merchant
§ Cash back option to customers – increase customer traffic
o No negative impact based on credit rating OR transaction volumes
· Loyalty can be rewarded (See slide 16: Loyalty Services)
o Through lower costs, faster processing and communication channels
§ Merchants can pass along benefits - like special offers - to current customer base, drive traffic and virally expand into new markets (promotion, word of mouth)
§ Small businesses can offer better service, terms and pricing to customers, vendors
Slide 15: Expanded Benefit Services
· In return for their trust and usage, offer customers REAL ADDED VALUE through mobile monē Benefit Services
· Designed to provide substantial financial relief (discounts) for health care/related services as well as everyday living expenses
· Walk through points on slide
Slide 16: Loyalty Services
· Designed to increase transactions and market share = profitability
· Reward card usage – make mobile monē the card of choice for all payments with merchandise rewards
· Cardholder accumulates points for every net dollar spent on qualified purchases
· Scoring platform
o Web-based administrative tool to monitor program, perform cardholder maintenance, make inquiries and receive reporting
· Activity scoring
o Daily on qualified, posted transactions
§ Signature and/or PIN
§ ACH and/or cash reloads
§ Promotional
§ Direct Deposit and/or Bill Pay enrollment/usage
§ Cumulative activity
§ Merchant categories
§ And more!
Slide 17: mobile monē Humanity Imagery from web site and collateral
· Recap the most salient points from discussion
· Next steps