From Paper To E-Payments: The Story of Wells Fargo Home Mortgage Nathan Stephenson Terri Godlevsky
Agenda Wells Fargo – Who are they? The Home Mortgage Industry What is the ACH Network? From Paper to E-Payments Competitors Conclusions / Recommendations
A Look at Wells Fargo Diverse financial service company Banking, insurance, investments, mortgage Home Mortgage Division = 20% of business #1 Home Mortgage Lender
A Look at Wells Fargo (Continued) Vision: Satisfy customers’ financial needs Help customers’ succeed financially #1 Financial Service Provider in each market Cross Selling
Home Mortgage Industry Late 70’s and early 80’s 1990’s , 2002 Trends Customer Protection Cashless Society Physical Cash = 8%
What is the Automated Clearing House (ACH) Network? Description Five Participants Originator Originating Depository Financial Institution (ODFI) Automated Clearing House Operator Receiving Depository Financial Institution (RDFI) Receiver
The ACH Network
From Paper to E-Payments The Ratio of Paper Payments to E-Payments In 2000, the ratio was 4 to 1. In 2002, the ratio improved to 1.9 to 1.
From Paper to E-Payments (Continued) E-Payment Methods Automatic Mortgage Payment Online Payments Just-in-Time Payment Electronic Bill Presentment and Payment Equity Enhancement Program Accounts Receivable Conversion
Competitors Top 4 Competitors Countrywide Financial Corporation JPMorgan Chase Washington Mutual, Inc. Bank of America Corporation
Strengths A Top 10 Mortgage Website Well Recognized Name 150 Year History Size Online Mortgage Application
Weaknesses Interest Rate Volatility Possible Fraud Security Risks Reluctance to Accept E-Payments
Opportunities & Threats Interest Rates Perpetual Evolution of Technology Terrorist Attack
Conclusions E-Payment is Beneficial for Everyone Reduced Costs More Convenient Multiple E-Payment Options
Recommendations Quality Customer Service To continue further development of the customer convenient online features of their website.