Banking Technology in Receivables Collection Strategy Overview

Trends in Consumer Behavior  Movement towards electronic based solutions – Decrease in paper bills/statements – Decrease in sending payments to lockboxes  Desire for consumers to have multiple ways to make payments such as – Direct debit – Web-based – Phone-based – In-person – Kiosk – Wireless  Desire to use alternative payment channels such as – ACH – Credit cards – Debit cards 2

C-2-B Strategy Trends in Consumer Behavior 3

How to Get Ready for the Future?  Focus on electronic payments – Paper is declining, so many billers who process internally should really examine their cost structure – As paper payments continue to decline, the cost of maintaining in-house lockboxes will continue to increase – US Postal changes likely to hasten migration to electronic payments  Focus on consolidating vendors for electronic payments and standardizing the posting and financial settlement of the payments  Don’t try to build everything yourself – Use valued vendor relationships to accomplish the transition to electronic collections  Strategize how you want your collection process to look in the end prior to starting projects – Get the game plan first before running plays – This will reduce the chance of moving down paths that conflict with one another 4

C-2-B Paper and Electronic Presentment Model AR Customer Billing File Paper bill print and mail (To consumer) AR Master File Billing File(s) EBPP/EIPP Biller branded web presentment of bill to consumer BANK bill payment sites web presentment of bill to consum er Print/Mai l 5

C-2-B Paper and Electronic Collection Model 1.A single A/R posting file 2.Financial settlement for all transactions 3.Detail reporting of all payment streams for reconcilement and control Payment Sources Merchant Services ACH Services & E-Lockbox Lockbox services BANK info systems and internet reporting AR System EBPP/EIPP Walk-in payment centers ACH Direct Debit program Online bill payment transactions Collection agencies, etc. Paper checks & return items IVR (interactive voice response) Biller direct EBPP solution Deliver bills to consolidation sites Mobile/SMS 6

E-Lockbox Online Bill Payment Consolidation

E-Lockbox Overview and Benefits  Questions – Do payments coming to you via a computerized check from bill-payment providers require manual data entry? – Are you getting transmissions of bill payments from multiple sources such as CheckFree, Metavante, Online Resources, Western Union, IPay, etc?  What is it? – An efficient, streamlined process to collect incoming payments that have been initiated by consumers using various financial institutions, collection agencies, credit counseling agencies or walk-in payment center  Benefits – By automating the collection of these bill payments with a single transmission, you can reduce the number of check and list remittances you receive – Also, eliminates the need to manage multiple electronic transmissions from individual vendors that produce these types of payments – Gives your company the ability to perform customer service using an internet based platform for paper and electronic transactions 8

E-Lockbox Process Flow Biller Consumer’s Online Banking/Bill Payment Provider Consumer Pay Bills Collection and Credit Counseling Agencies, and Walk-in Payment Centers Dollars and Consumer Payment Information 1.Dollars Immediately Available 2.Invoice Information in A/R File. Information can be combined with BANK Lockbox data file. Internet based Client Service Module Customized Filtering/routing available 9 BANK

EBPP/EIPP Services Biller Direct Electronic Bill/Invoice Payment and Presentment

EBPP/EIPP Overview and Benefits  What is it? – A secure way to present invoices to your customers online and an electronic payment collection system that enables your customers to make timely, reliable payments in a secure, online environment  Benefits – Allows you to eliminate paper invoices, while streamlining and receiving automated payments – Secure – presentment and receipt – Can be accomplished without major investment or complex implementation (BANK developed and maintained website) 11

EBPP/EIPP Process Flow Web IVR EBPP/EIPP Engine Generate Files CC Settlement Instr. ACH File BANK ACH Ops BANK Merchant Svc Biller BANK Next Day Settlement Next Day Settlement A/R Posting File (Download Or Lockbox Merge) Notification Call Center Billing File Loading (upload Or file transmission) Payment Channels Payment Options 12

13