Prepaid NOW: join the evolution
2
The Evolution of Prepaid is NOW.
As an industry, we have matured and evolved significantly in the last 20
years.
• Are you caught up on the latest innovations?
• Do you know today's prepaid consumer?
• Are you prepared for tomorrows?
Learn more about Prepaid' s past, present and future and engage in
open discussion on this dynamic industry.
4
CFPB encourages banks to offer lower-risk deposit services…
“…urging all financial institutions to make [these]
lower-risk offerings broadly available…”
“…estimated 10M Americans are “unbanked”…”
Regulations
5
Healthy Not healthy 43% 57%
68 million are “underbanked” or “unbanked”
138 million people are struggling financially
Your customers are changing
7
Sources: 1FIS actual prepaid platform data; 2FDIC study on U.S. Financial Landscape – 2014; 3BI Intelligence Prepaid Report November 2015; 4Consumer payments monitor.
Definition of Millennial: Age 18-30 or 18-34 (depending on source).
42% of all prepaid
spending is done by millennials1
27% of millennial prepaid
cardholders earn more than
$100k/year3
60% of “millennials
with money” own a prepaid card4
1/3 of millennials
are underbanked or unbanked2
80% of prepaid cards
are owned by millennials3
Customers need an alternative banking experience that mimics the way they live
8
58%
cannot meet minimum banking
requirements1
51M
underbanked Americans2
86%
own a smartphone3
71%
would rather visit a dentist than
a bank4
39%
of U.S. households used alternative financial
services in 20142
.
Sources: 1FIS market study, 2014; 2FDIC study on U.S. Financial Landscape – 2014; 3Nielsen
2014 Millennials study; 4Forbes – Millennials And Money: How Banks Are Missing The Mark – 2015
A Solution for your customers
10
Providing options that we are all used to having
Ways to use account (card and application):
• Shop anyplace Visa®/MasterCard® are accepted
• Use mobile bill pay (with same day posting)
• Send card-to-card money transfers
• ATM withdrawals
Load options
11
Mobile check
deposit In-branch check
deposit*
Cash in-branch
Direct
deposit
MoneyGram® 350,000 agent locations
in over 200 countries
ACH
Mobile and web
12
App, mobile web and web – all in one • Real-time balance/dynamic transaction history
• PFM/budgeting tools/up to 9 ‘set-aside’ accounts
• “Near-me” location services
Security/accessibility • Thumbprint authentication
• Same login, mobile and web
• SSO integration to ScoreCard® Rewards
• Cardholder can ‘suspend’/’un-suspend’ card
A solution for your institution
13
Turnkey go-to-market solution
• Attract younger client base and identify your brand
• Fully brandable white-label (mobile, web, card)
• Marketing materials to help lower customer acquisition costs
• Loyalty rewards to help retain and attract millennials
• Complementary to other bank services
• Program management – call center/cards/compliance
Expense management gap
15
Businesses need a better solution
Expense Management
Approximately 35% of business expenditures in the U.S. still occur via:
Source: FIS Analysis
Employees sharing
corporate cards
Employees using personal
cards and filing expense
reports
Cash handed out with paper
receipts filed
Voice of the market There is a high level of interest
* 2015 Qualtrics Survey of managers and executives from 500 companies with at least 10 and up to 40,000 employees.
85% are interested in such a solution
80%
believe this solution can replace part of their current card program
believe this solution can complement their current card program
68% use American Express® Corporate Cards
16
90%
Expense management anywhere, anytime
17
No need for credit
checks, cosigners or
card sharing
Time and money
savings
with elimination of
manual processes
High level of security,
flexibility and control
Easy to use with
mobile account
access
User-friendly online
administrative portal
and mobile app
Simple ACH funding
and
online bill pay
BENEFITS
Tailored to business spending
Complete control over employee spending
• Attractive program for business customers
• Strengthen business relationships and increase stickiness
• Implementation is handled completely by FIS
• FIS provides marketing materials (www.biznowcard.com/ABCBank)
• Low cost, one-time start-up fee with no additional costs and no liability
Simple
Enrollment
Financial software
integration
Incentives
Flexibility, security, control
Simple enrollment
No credit
checks
18
Mobile account access
Reporting and
administrative tools
How it works
Payments and expense management
Payment card + mobile application
Cash flow management – distributed
employee solution
Meeting the requirements for:
manager | controller | employee
19
Feedback from pilot participants
21
“… as the owner of a new startup, it’s great to have absolute control
of my budget from the get go.”
21
“I love this product … it will
help me save time in support of my
clients’ accounting needs.”
“It’s great … to know what my field
agents are up to anywhere in the country at anytime all from my
smartphone or computer.”
“Production increased
five times …”
“Thank goodness … I don’t have to
use my own personal credit cards for
product supplies anymore.”
“Finally … a product that can help me manage my employees’
expenses.”
How do families and groups share funds?
23
ShareNOW™
Their son, Mark,
is off at college
and needs funds
Mike & Lia
Open a
ShareNOW
account
Their mom’s elder care provider,
Ruth, takes her
shopping and to
her medical
appoints
Mike & Lia use
the account to
help with daily
budgeting
Complete control over group spending
24
Flexibility, security, control
Loyalty
Simple enrollment
No credit
checks Mobile account access
Administrative Tools
Tailored to small groups, families and community organizations
• Attractive program for families, small groups and community organizations
• Strengthen relationships and provide accountability
• Implementation is handled completely by FIS
• FIS provides marketing materials
Market opportunity
25
• 1.6M U.S. nonprofit organizations
• 87K charitable foundations
• 124M families in the US
• 100K public schools
• 2,818 accredited four year colleges
• 6,616 national fraternity chapters on ~ 800 college campuses
• 5,384 national sorority chapters on ~ 800 college campuses
Sweepstakes – point burners and gamification
28
Engagement for low points
Low CPPR
Point burner strategy