Confidential A Payments Approach to Checking Revenue Compliant Fees Consumers Willingly Pay

Confidential Contents Introduction A Payments Approach to DDA Revenues Your Revenue Opportunities Engagement 2

Confidential 3 Introduction 2012 – Present, President and CEO – R.C. Giltner Services, Inc.

Confidential 4 A Payments Approach to DDA Revenues Service Charges on Deposits Banks < $10 Billion, While service charges on deposits are falling, “payments” providers like PayPal are growing revenues over 20% annually. Source: FDIC, PayPal, in millions PayPal Revenues

Confidential 5 A Payments Approach to DDA Revenues The “payments” revenue strategy is exploding. Scan & Pay

Confidential 6 A “payments” approach to segmenting and pricing transaction services is winning relationships and earning fees consumers willingly pay. –Financial institutions focus on “accounts,” which still provide settlement, but their value is at the bottom of the pack in the hierarchy of consumer payment methods, venues and management. –Payment providers create value by focusing on the use, context and experience of specific payments, such as where the payment occurs or the context of before or after the payment. –Use, context and experience segmentation of individual payments drives new revenue and value that can be added to any account. A Payments Approach to DDA Revenues

Confidential 7 Consumers pay more for products and services according to use, context and experience. Large $ % more Grande $ % More A Payments Approach to DDA Revenues

Confidential Segmentation of “payment” revenues within or across all accounts as a add-on services can be focused on 1) NSF revenue, 2) interchange and debit payments and 3) small dollar loans. 8 Non Credit Score Small Dollar Loan Revenues Source: 2012 FDIC, Fair Issacs, CFSI, Our Analysis A Payments Approach to DDA Revenues With Bank Account $32 Billion 3 Interchange (net) $10 B 2 FI Service Charges $44 Billion $31 Billion Bank NSF/OD Fee Revenues 1

Confidential Your Revenue Opportunities Your near-term revenue opportunities in applying the payments segmentation paradigm can grow revenues 39%. A. Tiered NSF Fees – 10%, 90 days B. Prepaid Check Card/Fresh Start – 8% C. Salutary Small Dollar Loan – 21% 9

Confidential overdrafts fee users pay $1,100 a year in fees; 7% of accounts; want items paid; low per item price sensitivity. Heavy NSFer Poor Service 1-5 items a year pay $105 a year in fees,15% of accounts; 6-10 items 6% of accounts. Rare NSFer 22% of accounts <650 credit score 15% of accounts>650 and convenience loan oriented Non NSF Liquidity Borrower No Service Sample FI Good Service Bank Service Key Segments 35 % No Liquidity Use We focus first on segmenting the key existing revenue sources, overdraft and liquidity services. Your Revenue Opportunities

Confidential 11 Tiered NSF fees according to the context of total NSFs presented by the consumer annually maximizes customer service, revenue and regulatory management. Your Tiered Pricing Estimate Sample Competitive Market Fifth Third$37 Chase$35 BBVA Compass$38 Wells Fargo$35 Fulton Bancshares$ Your Revenue Opportunities – Tiered NSF Fees

Confidential 12 We recommend monitoring accounts with 10 or more NSFs, but with monthly deposits averaging less than $20k or where annual NSF/OD fees are more than 3% of annual deposits a year for removal or limitation of use of from overdraft programs. Consumer accounts reflect rising deposit amounts and frequency with increased NSF/OD usage, and overdraft fees consistently below 1% of annual deposits. Sample Client – 5,000 Accounts Your Revenue Opportunities – Tiered NSF Fees

Confidential 13 Prepaid is now promoted as an alternative to checking accounts. –Big retailer promotion is driving consumer interest. –87% of prepaid card users have a checking account. You can create a checking account to serve as a prepaid companion account. Your Revenue Opportunities – Checking Companion Card

Confidential 14 87% of prepaid card users have a checking account. Providing a companion card and services by segment drives better service and revenues. $13.95/mo. Your Revenue Opportunities – Segment Expansion

Confidential 15 Small dollar loans can be delivered with automated underwriting and online automation with SEO marketing with no outward facing customer data. You serve and win customers who can repay with no credit score required. Proprietary Checking Based Small Dollar Loan Program Your Revenue Opportunities – Small Dollar Loans

Confidential 16 Using deposits and net account balances is an alternative way for underwriting loans, similar to Guidance by the OCC (OCC ), FDIC ( P) and CFPB, FIs can define customer ability to repay without credit scores. Your Revenue Opportunities – Small Dollar Loans

Confidential Underwriting Justifies Loans for 67% of FI Accounts <650 Credit Score 17 Nearly Half of Small Dollar Loan Users Have Credit Scores >650 –<650 credit score54% –>650 credit score46% Source: FI Client Source: Our Client Analysis Your Revenue Opportunities – Small Dollar Loans

Confidential 18 We provide the keys to provide a better service for the marketplace: 1.Alternative underwriting documenting ability to repay. 2.Automated, online delivery. 3.Low APR pricing 15% (no payday loan rates). 4.Repayment over many months. 5.Process, usage and risk management controls. 6.Pricing and revenue business model assuring profitability with performance reporting. 7.Superior fairness and transparency. 8.Detailed compliance, regulatory and legal analysis and documentation. 9.Financial empowerment education and support for consumers with website, blog, and outreach kit. Third Party Management Your Revenue Opportunities – Small Dollar Loans

Confidential 19 Without your response, “payments” competitors using aggregation will steal your revenue and customers with their disruptive strategies. $69B Your Revenue Opportunities – Small Dollar Loans

Confidential We integrate simply with any product set with our sales script and “payments” services. Empower Debit Empower Checking Empower Loan Program 20 Your Revenue Opportunities

Confidential Next Steps Let us share the detailed pro forma of the revenue benefits we can bring to you. 21 A Payments Approach to Checking Revenue Compliant Fees Consumers Willingly Pay