CFSI Network Summit September 27-28, 2016

Will the Network please stand up? CFSI leads a network of committed financial services innovators advancing consumer financial health.

Nonprofits & consumer advocacy

organizations

Prepaid program managers & issuing

banks

Credit bureaus & technology vendors

Payments networks Mega-banks, regional & super-regional banks

Professional services firms

Small banks & credit unions

Growing fintech companies Tax prep players

Network Summit Purpose

To expand and accelerate efforts of CFSI’s Network to advance consumer financial health in the United States by providing an intimate forum and “space apart” for sharing of knowledge and best practices, and the deepening of mutually beneficial relationships.

Ground Rules

•  Think big! •  Give us feedback •  Share but keep confidential

Anti-Trust Statement

The Center for Financial Services Innovation (CFSI) assigns the highest priority to full compliance with both the letter and the spirit of the antitrust laws, and it is vital that this meeting be conducted in a manner consistent with that policy. Attendees are expected to ensure that their participation and communications at the meeting do not violate anti-trust laws. Care must be taken when participants communicate, whether at formal or informal meetings, social discussions, conference calls, or electronically, to ensure that no conduct becomes or appears to be anticompetitive. In general, the types of discussion that should be avoided are those that may suggest or tend to reflect agreements among competitors as to price; terms of sale that could impact price; allocation of customers, markets or territories; boycott or joint refusals to do business with others.

Introductions

•  Find someone not on your team. •  Introduce your name, company, what you

do and what experience you have with FinTech Partnerships.

Fireside Chat Adrienne Harris, Special Assistant to the President for Economic Policy, White House National Economic Council Jennifer Tescher, President & CEO, CFSI

Assessing Partnerships: How to Leverage Tech Advantages Jo Ann Barefoot, Barefoot Innovation Group Tom Brown, Paul Hastings LLP Adam Shapiro, BBVA John Thompson, CFSI

NextUp:SomePitches…

Case Studies from Our Network: •  Regions Bank and Avant •  Even and Wright Patt •  Neighborhood Trust & FlexWage

Regions Bank & Avant

Even & Wright Patt

Neighborhood Trust & FlexWage

Case Studies from Our Network: Regions Bank & Avant Kandy Shirley, Regions Bank Don Richman, Avant Sohrab Kohli, CFSI

CFSI Working Groups: Savings Working Group Kristen Bryant, D2D Nashila Somani-Ladha, D2D Tanya Ladha, CFSI

Measuring Financial Health: Early Insights from CFSI’s Financial Health Beta Group Molly Thiel, Guaranty Bank Creighton Blackwell, Coastal Federal Credit Union Thea Garon, CFSI

CFSIisconveningpioneersinfinancialservicestocommittomeasuringandimprovingtheircustomers’financialhealth.Phase1:DataCollec/onandRepor/ng(H22016)CompanieswillcollecttransacHonalandself-reporteddataontheircustomers.Phase2:AnalysisandEvalua/on(Q12017)CFSIwillanalyzedatacollectedfromcompaniesandcalibratethefinancialhealthscore.Phase3:PublishResultsandLearnings(Q22017)CFSIwillreleaselearningsfromthisprojectandarevisedfinancialhealthscore.

FinancialHealthBetaProject

CFSI’s Financial Health Beta Project

The Beta Cohort

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Panel Discussion w/ Guaranty Bank and Coastal Federal Credit Union

Molly Thiel Executive Vice President, Retail Banking Guaranty Bank Creighton Blackwell Vice President, Corporate Affairs Coastal Federal Credit Union

Be a Financial Health Leader in 2017 CFSIisexcitedtoannouncethe2017FinancialHealthLeadersProgram.Followinguponthesuccessofthe2016FinancialHealthBetaProject,thisprogramisanopportunityforNetworkMemberstodemonstrateyourcommitmenttofinancialhealthbymeasuringthefinancialhealthofyourcustomersinmulHpleways.ParHcipantswill:

1.   Measurethefinancialhealthofyourcustomersin2017.Forexample:•  ExecuHngaFinancialHealthassessmentorsegmentaHonwithCFSI•  IndependentlysurveyingyourcustomersusingCFSI’ssurveyinstrument•  TrackinginternalfinancialhealthKPIsbasedonCFSI’sindicators

2.   ShareaggregatedataandinsightswithCFSIandtheNetwork

Inreturn,parHcipantsreceive:•  Designa/onasa“FinancialHealthLeader”intheCFSINetworkfor2017•  Publicpromo/on(ie,EMERGE,CFSI’swebsite,pressopps,etc.)

FulldetailscomingthisFall.TellyourRelaHonshipManagerifyou’reinterested.

Take the First Steps to Fin Health Measurement

1.  Expressyourinterestinbecominga2017FinancialHealthLeader!

2.  JoinustomorrowfortheFinancialHealth

WorkingGroup(Wed,10am)

ChicagoNewYorkSanFranciscoWashington,D.C.

ConnectwithuscfsinnovaHon.com YouTube@cfsinnovaHon #finhealth LinkedIn Facebook

ThankYou

Dispatch from DC: Upcoming Regulatory Focus and What You Need to Know Gary Stein, CFPB Jeanne Hogarth, CFSI

Accessing Consumer Data: The Relationship Between Banks, Data Aggregators and FinTech Brian Costello, Envestnet|Yodlee Leigh Phillips, EARN Adam Shapiro, BBVA Beth Brockland, CFSI

©2016 Center for Financial Services Innovation. All rights reserved

Aggregators

Third-Party Apps

©2016 Center for Financial Services Innovation. All rights reserved

Available: Consumers have the ability to view their financial information within the trusted and secure third-party application of their choice.

Reliable: Consumer financial data is timely, consistent, accurate and complete.

User-permissioned: Consumers provide explicit consent for each data use case and consent is renewed on a regular basis. Consumers can easily view, modify and revoke consent for data sharing.

Secure: All entities follow applicable laws and industry best practices with regard to data privacy and security.

Limited to the use case: Only the minimum amount of data required for the use case is collected, and the data is stored only for the minimum amount of time needed.

An inclusive and secure financial data ecosystem is one in which financial institutions, data aggregators and third-party applications coordinate to provide data to consumers that are:

CFSI’s Consumer Data Sharing Principles (draft)

1

2

3

4

5

Chicago New York San Francisco Washington, D.C. Connect with us

cfsinnovation.com YouTube @cfsinnovation #finhealth LinkedIn Facebook

Thank You

Network Dinner

GreenRiver 259 E Erie St Chicago, IL 60611 6:00-9:00pm

CFSINetworkSummitSeptember 27-28, 2016

Fireside Chat: Build, Buy or Collaborate Dominic Venturo, US Bank

Rob Levy, CFSI Thea Garon, CFSI

CFSI Working Groups: Financial Health Working Group

Welcome!

Purpose: To convene financial health leaders to discuss CFSI’s latest financial health work, to share ideas about how companies can measure and are measuring financial health, and to help all companies prepare for measuring financial health in the future.

Thanks

MetLifeFoundaHonisamajorsponsorofCFSI'songoingconsumerfinancialhealthwork.

Agenda •  IntroducHons

•  UpdatesfromCFSI

•  CFSI’sFinancialHealthiniHaHvepast,present,andfuture

•  CFSI’sfinancialhealthscoremethodologyandpreliminaryresultsonthenaHon’sfinancialhealth

•  WorkingSession

•  CreaHngafinancialhealthmeasurementplanforyourcompany

•  Peerfeedbackoncompanymeasurementplans

•  Wrap-up

Introductions

Where have we come from? Where are we going?

201825%ofNetworkMembersacHvelymeasurefinancialhealth

2017Supportandincentfinhealthmeasurementw/FinHealthLeadersProgram

2016Createafinhealthscoreandbetatestfinhealthmeasurement

2015-2016Developfinancialhealthindicators

2014-2015UnderstandstateoffinancialhealthinAmerica

2014Definefinancialhealth

Be a Financial Health Leader in 2017 CFSIisexcitedtoannouncethe2017FinancialHealthLeadersProgram.Followinguponthesuccessofthe2016FinancialHealthBetaProject,thisprogramisanopportunityforNetworkMemberstodemonstrateyourcommitmenttofinancialhealthbymeasuringthefinancialhealthofyourcustomersinmulHpleways.Par'cipantswill:

1.   Measurethefinancialhealthofyourcustomersin2017.Forexample:•  ExecuHngaFinancialHealthassessmentorsegmentaHonwithCFSI•  IndependentlysurveyingyourcustomersusingCFSI’ssurveyinstrument•  TrackinginternalfinancialhealthKPIsbasedonCFSI’sindicators

2.   ShareaggregatedataandinsightswithCFSIandtheNetwork

Inreturn,par'cipantsreceive:•  Designa/onasa“FinancialHealthLeader”intheCFSINetworkfor2017•  Publicpromo/on(ie,EMERGE,CFSI’swebsite,pressopps,etc.)

FulldetailscomingthisFall.TellyourRela'onshipManagerifyou’reinterested.

43

Measuring Financial Health: Preliminary Results and Insights

43

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CFSI’s Financial Health Indicators SPEND 1. Spend less than income 2. Pay bills on time and in full

SAVE 3. Have sufficient liquid savings 4. Have sufficient long-term savings or assets

BORROW 5. Have a sustainable debt load 6. Have a prime credit score

PLAN 7. Have appropriate insurance 8. Plan ahead for expenses

SPEND

SAVE

BORROW

PLAN

CFSI’s Financial Health Score

Financial Health Score XXX

Spend

XX

Save

XX

Borrow

XX Plan

XX

•  Algorithmdrivenby8mulHple-choicesurveyquesHonscorrespondingto8indicatorsofFinHealth.

•  EqualweighHngacrosscomponents(Spend,Save,Borrow,Plan)andindicators.VariableweighHngwithinindicators.

•  Calibratedagainstotherfinancialhealthassessmenttoolstorefinethealgorithm(CFPBandCFHS).

•  Providesamacro,moment-in-Hme,snapshotofanindividual’sfinancialhealth.

Characteristics of Financial Health Score

SPEND

1.Overthepastyear,howwouldyoudescribeyourHH’sincomeandexpenses?2.Overthepastyear,whichofthefollowingstatementsbestdescribeshowwellyourHHiskeepingupwithyourbillsandcreditcardpayments?SAVE

3.HowlongcouldyoumakeendsmeetifyourHHlostyourmainsourceofincomeandhadtoliveoffyoursavingsthatarenotsetasideforreHrement?4.HowconfidentareyouthatyourHHwillhaveenoughmoneysavedforreHrementandotherlong-termopportuniHes?

8 Survey Questions BORROW

5.Asoftoday,howwouldyoudescribethedebtyourHHcurrentlyhas?6.Howwouldyourateyourcreditscore?PLAN

7.HowconfidentareyouthattheinsurancepoliciesyourHHownswillprovideyouwithenoughsupportincaseofanemergency?8.DoesyourHHplanaheadtopayforlarge,irregularexpenses?OTHER

•  Whatisyourage?•  WhatisyourapproximateannualHHincome?

Interpreting the Financial Health Score

Unhealthy Healthy 0102030405060708090100

Fin Health Scores in America (Averages)

Financial Health Score

64 Spend

64 Save

49 Borrow

56 Plan

72

N=400,+/-5%marginoferror

3%

8%9%

11%

15%14%

16% 16%

6%

0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90-99

Percen

tofP

opula/

on

FinancialHealthScores

Distribution of Financial Health Scores

Distribution of Component Scores

Spend

64

NaHonalAverage

Save

49

NaHonalAverage

Borrow

56

NaHonalAverage

Plan

72

NaHonalAverage

Average Scores by Segment

Next Steps •  ExplorehowtransacHonaldatacanaugmentFinancialHealthScores.

•  AssesswhethertransacHonaldatacanbepredicHveofconsumers’financialhealth.

•  FinalizeFinancialHealthScorealgorithm,benchmarks,andsurveyguide.

•  Releasefindings,insights,andbestpracHcesaroundFinancialHealthmeasurementin2017.

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Working Session: Drafting your company’s financial health measurement plan

54

Getting into the weeds

1.  Individuallybycompany,filloutthefinancialhealthmeasurementplanworksheet(15minutes)

2.  Gatherinsmallgroupsbycompanytypetoshareplansandgetpeerfeedback(25minutes)

Peer feedback small groups

CompanyType Examplecompanies BetaCompany

BigBank/FI BBVA,CapOne,PrudenHal Sunrise

Small/MedBank Metabank,Amalgamated Guaranty

CreditUnions Coastal

Fintech(large) Fiserv,LendingClub,NewDay Netspend

Fintech(small) Lendstreet,UrbanFT

Nonprofit Everfi

Small groups: Each company presents… 1.  Whatispossibleformeasuringfinancialhealthatyourcompanyin2017?

2.  Whatwouldyouhopetolearnfromthedata?

3.  What’sthebiggestchallengeyouanHcipate?

4.  What’sthenextimmediatestep?

5.  [OpHonal]WhatquesHonsdoyouhaveforthegroup?

6.  [Group]WhatquesHonsorsuggesHonsdoyouhaveforthepresenter?

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Wrap-Up

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FinTech Entrepreneurship Live: When to Build it Yourself Leigh Phillips, EARN Vicki Zhou, WiseBanyan Sameh Elamawy, Scratch Vinay Patel, Bee Ty Griffin, CFSI

See you next year: The Kimpton Gray Chicago October 5-6, 2017