1. Mobile Banking Presented by: Cindi Lieblich Vice President – Product Development First Data Corp.

2. Agenda The Market The Market The Models The Models The Future of Mobile The Future of Mobile

3. The Market

4. Mobile phones are pervasive – 254+ million mobile U.S. subscribers; 84% penetration – 1 billion+ SMS messages exchanged per month (Aberdeen Group) Consumers want mobile banking – 73% of consumers want to see account balance information on mobile phones – 61% of 25-34 year-olds would make purchases using mobile phones – 53% of consumers want to see transaction history on mobile phones (Celent) – 50% of 18-25 year-olds say mobile banking is important in choosing FI – 49% of customers would use a mobile banking/payment application Strong analyst forecasts for mobile banking – 11 million U.S. households will use mobile banking by 2010; 32 million by 2016. – By end of 2010, 30% of all online banking households will engage in mobile banking – 204 million users will generate mobile payment transactions worth ~$22B by 2011. Mobile Banking Demand (CTIA) (Celent) ((VISA) (MQA Research) (OnlineBanking Report) (Juniper Research))) (Celent)

5. Mobile Usage is Growing

6. Mobile Banking Affects Bank Selection 50% of Generation Y respondents say mobile banking is somewhat/very important in choosing their bank. (Celent) Source: mFoundry research

7. Bank Customers Already Using Mobile 54+% of incoming calls to bank call centers made from mobile phones Over half of incoming calls relate to basic account inquiries Celent Predicts: Calls to bank call centers will be displaced by mobile banking

8. Smart Phone Users Dominate Device characteristics improve usability Data Plans/Usage of other mobile applications Active Online Banking User Consumer Profile- Commuter, Shopper, Traveler Mobile Banking User Profile (CTIA) (Celent) (Aberdeen Group) (Visa) 27%18-24 years old 37%25-34 years old 29%35-44 years old

9. 9 US Market Opportunity Mobile banking has been successful in Europe and Asia Similar adoption expected in the US: Tower Group forecasts 16% adoption by 2012 US Mobile Banking Adoption ForecastEurope Mobile Banking Experience millions of users

10. The Models

11. Mobile Models

12. Mobile Model Deployment

13. Available from any mobile device with Secure Sockets Layer (SSL) Internet access Streamlined Internet banking functions designed for mobile browser access – Balances – History – Transfers – Alerts – Bill Pay Research In Motion, the RIM logo, BlackBerry, the BlackBerry logo and SureType are registered with the U.S. Patent and Trademark Office and may be pending or registered in other countries – these and other marks of Research In Motion Limited are used under license WAP Model

14. Push Account Alerts SMS Model Pull Account Information

15. Mobile Alerts Perceived value of mobile alerts Source: Javelin Strategy & Research, March 2007 Both Financial management alerts Fraud-related alerts

16. Download Application from institutions website Account Information View Balance View/Search Transactions Transfers Bill payment One Time PIN for high risk transactions Find a branch/ATM Virtual wallet (future) Application Model

17. Download Application from institutions website Account Information View Balance View/Search Transactions Transfers Bill payment One Time PIN for high risk transactions Find a branch/ATM Virtual wallet (future) Application Model

18. Mobile Vendors VENDOR EXPERIENCE RANGES FROM 8 YEARS TO 6 MONTHS Source: Company data as of November 2008, Aite Group

19. Mobile Models by Vendor TEXT MESSAGING IS THE MOST COMMON COMPONENT OF MOBILE BANKING SOLUTIONS Source: Company data as of November 2008, Aite Group

20. The Future of Mobile

21. The Future of Mobile Trends IFM 2-way SMS Alerts P2P Payments Mobile Commerce/Virtual Wallet Mobile Marketing

22. Mobile Alerts – Next Phase Interactive Financial Messaging (IFM) – Two way SMS alerts – Fraud Prevention tool – Out of Band Authentication – Bill Pay, Cash Management transaction approval

25. Mobile Alerts

26. Person to Person (P2P) Payments Person-to-person transfers permit consumers to conduct financial transactions with their most trusted relationships, friends and family.

27. Mobile Commerce Trends Five trends are enabling mobile commerce to evolve Technology for delivering data over a wireless network has become sophisticated Near field communications has become the standard for payments Consumers are viewing their mobile device as more than a phone Contactless POS readers and cards are poised for critical mass Mobile phone ownership is high Trends 500K retail locations enabled by 2008 Evolution of 3G networks enables mCommerce 92% of adults use a mobile phone 84% of handsets are Internet ready As opposed to bar code, Bluetooth, etc.

28. Mobile Commerce: The Consumer View Convenience – Access to account information and funds via handset – According to Gartner, mobile banking can appeal to customers whose lifestyles or occupations keep them away from the computer Speed – Faster checkout Value – Reduce the number of items a consumer must carry – Handset now replaces the wallet Security – McAfee finds that 72% of mobile consumers are concerned about security 1 – Mobile handset can provided added security features 1 Mobile Payments World, Feb 08, Wireless Users

29. The Consumer Experience The consumer can register their card online and can enroll for automated reload Consumer has a mobile device with an NFC chip, enroll for the mobile wallet, and stores the partner card in their wallet or at home for safe-keeping Consumer uses the personal device with the NFC chip to make purchases or reload at a retail location

30. Mobile Marketing: mMarketing may consist of a consumer choosing to receive a promotion while they are at the POS, in the subway, anywhere…. Mobile user taps phone to smart poster to acquire coupon Smart poster in the subway station Text message (with permission) with offer Taps phone Offer Received On Mobile Phone

31. YOUR PHONE The Future of Mobile Commerce Encompasses banking, payments, and marketing activities conducted over a mobile device Mobile Banking and Account Services Mobile Payments Mobile Marketing Balance inquiries, transaction history, intra-account funds transfer, bill pay, etc. Advertising, location-based promotions, loyalty, rewards, CRM, etc. Purchase of goods or services remotely, via remittances or at the POS using a mobile device Lays the foundation of consumer acceptance Improves business models, convenience and secure solutions Tightens FI and merchant connections to their customers

32. The Mobile Opportunity What Customers Want Help me stay in control of my finances! Keep it Secure! Must be easy to use! I need low balance alerts and the ability to transfer money

33. The Mobile Opportunity What Customers Want Can I afford it? What is my Balance? Have I been paid?

34. Questions?