Latest Findings on Utility Mobile Bill Pay Benchmarking and Consumer Trends Why Mobile Bill Payment is Thriving and How Utilities are Responding Eric Leiserson, Sr. Research Analyst

It’s an EXTRAORDINARY TIME to be in the Utility Payments Business!

Why it is an EXTRAORDINARY TIME to be in the Utility Payments Business! Payments is where the money is at! Presentment is where opportunities are! Card payments are challenging! Mobile is inevitable and transformative!

Mobile’s Hyper Evolution in Utility Payments 2011: “Mobile bill pay is coming!” 2012: “Mobile bill pay is here, now what?!” 2013: “Mobile bill pay is surging, how are utilities responding and what have we learned?” 2014: “Mobile bill pay is thriving, where do you stand?”

Mobile Bill Payments: Entering the Mainstream and Getting Promoted GEICO’s Maxwell the Pig “Pants and Boots” Commercial

Adopting the Mobile First Mindset What are consumers doing with mobile and Mobile Bill Payment What are utilities doing with Mobile Bill Payment What does this mean to you?

What Consumers are Doing with Mobile and Mobile Bill Payment

2014 is a Watershed Year for Consumer Mobile Usage 65% of the US Population has a smartphone Mobile Accounts for the Majority of internet usage One in two Americans turn to digital devices as their primary method of banking Sources: U.S. Digital Future in Focus 2014, ComScore, Bank of America and The Financial Brand, 2014

How Important are People’s Mobile Phones to Them? Take people’s phones away, and here’s what they would give up to get it back Source: Bank of America and The Financial Brand, 2014

Percent of Mobile Bill Payers Grew by 69%; Numerous Reasons Why 4/21/2017 5:09 PM Percent of Mobile Bill Payers Grew by 69%; Numerous Reasons Why % of US Online Households using Mobile Bill Pay Why? Percent of smartphone owners using mobile to pay bills increased 33% to 40% of smartphone owners have paid a bill with their device Average Number of Bills Paid Using It Increased by 48% 26% More iPhone Users Paid Bills Using Mobile Phone Last Month Than Android Users 2011 2012 2013 2014 Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014

Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014 Paying/Receiving Bills via a Smartphone Has a Positive Impact Customer Satisfaction What effect would paying and receiving bills from a smartphone have on your relationship with a biller that provided that ability? Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014

Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014 Bill Pay Reminders Enhance Customer Satisfaction; 71% More Likely to Activate E-bills What impact would bill pay reminders have on your customer satisfaction? Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014

Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014 How Utilities Stack Up; Percents of Mobile Bill Payments by Type of Bill Please indicate which bills you paid using your mobile phone (Among Smartphone Bill Payers) Utility Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014

Volume of Mobile Bill Payment Transactions by Access Channel and Tender Type Mobile Bill Payment Volume by Access Channel Mobile Bill Payment Volume by Tender Type Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014

About 40% of Tablet Owners Have Visited a Biller’s Site, Mostly to View or Pay a Bill Reasons for visiting a Biller’s site Among Tablet Owners: Have You Visited a Biller’s site Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014

What About Google Glass and Apple Pay?

What Utilities are Doing with Mobile and Mobile Bill Payment

Key Mobile Stats Among 70 Utilities Surveyed 43% have mobile optimized websites 26% of utilities have mobile bill payment 32% have alerts 24% have apps (iOS and Android)

Top Business Motivators for the Mobile Channel 4/21/2017 Top Business Motivators for the Mobile Channel Do you see the development of the Mobile Device channel providing a means to: Q6 ranked according to 2014 numbers N=70 utilities Source: Third Annual Biller Mobile Bill Pay Benchmark Study, Blueflame Consulting for Fiserv, Inc., 2014 Draft Deck

4/21/2017 17% of Utility Web Visits Come From Mobile Devices; Top Activity is Billing and Payment What percent of customers come from mobile devices? What do your customers usually do? Note: Reliability of Data is limited for these graphs due to low number of responses inside the business case section N=70 utilities Source: Third Annual Biller Mobile Bill Pay Benchmark Study, Blueflame Consulting for Fiserv, Inc., 2014 Draft Deck

Service Updates and Bill Pay are Top Mobile Priorities for Utilities 4/21/2017 Service Updates and Bill Pay are Top Mobile Priorities for Utilities What are your organization's priorities among these Mobile service options? 83% Believe A Consistent User Experience Across Interfaces is Important / Very Important Compare with old Q13. Top rank based on combining ranks 1 and 2 N=70 utilities Source: Third Annual Biller Mobile Bill Pay Benchmark Study, Blueflame Consulting for Fiserv, Inc., 2014 Draft Deck

4/21/2017 Biggest Drivers for MBPP Adoption Continues to be Customer Service and Cost Savings What are the primary drivers for your organization's consideration and/or adoption of Mobile Bill Pay and Presentment? Q23. What are the primary drivers for your organization's consideration and/or adoption of Mobile Bill Pay and Presentment? Note: The data from 2012 for this question was compiled from open ended responses as in the 2012 survey there were not ‘tick box’ options given. In the 2013 Survey, responses from the 2012 survey were converted to a multiple choice – mark all that apply response options. N=70 utilities Source: Third Annual Biller Mobile Bill Pay Benchmark Study, Blueflame Consulting for Fiserv, Inc., 2014 Draft Deck

4/21/2017 More and More Utilities Believe Mobile Will Influence EBPP and Paperless Adoption Over the Years Do you think mobile will influence the adoption of electronic Bill Pay and paper statement turn-off? Q10. How far along in the process of supporting your customers adoption of Mobile is your Organization? N=70 utilities Source: Third Annual Biller Mobile Bill Pay Benchmark Study, Blueflame Consulting for Fiserv, Inc., 2014 Draft Deck

Mobile Influence on Adoption of Paperless E-bills; Results 4/21/2017 Mobile Influence on Adoption of Paperless E-bills; Results 40 Paired year/year comparisons of participating companies’ paperless e-billing rates and deployed MBPP features +47% +47% +50% Q10. How far along in the process of supporting your customers adoption of Mobile is your Organization? Compare to average of 3% increase in e-bill penetration for Billers who do not offer MBPP functionality N=128 Billers Source: Third Annual Biller Mobile Bill Pay Benchmark Study, Blueflame Consulting for Fiserv, Inc., 2014 Draft Deck

4/21/2017 Top Business Obstacles Utilities Face to Mobile Deployment—Increasing Concern for Security What are the top 3 Obstacles to Mobile deployment and adoption? Q24. What are the top 3 Obstacles to biller adoption? N=70 utilities Source: Third Annual Biller Mobile Bill Pay Benchmark Study, Blueflame Consulting for Fiserv, Inc., 2014 Draft Deck

Lessons Learned from Experience 4/21/2017 Lessons Learned from Experience “The impact of the consumerization of these devices with our customer base with the rapid growth and availability of the devices, and the apps that have been developed for them, the expectations from our customers around usability and features has increased tremendously.” (Utility, 1MM+) Source: Third Annual Biller Mobile Bill Pay Benchmark Study, Blueflame Consulting for Fiserv, Inc., 2014 Draft Deck

Embrace this Extraordinary Time in the Utility Payments Business! Taking Action Adopt a “Mobile First Mindshift” Employ an Omni-Channel Mobile Billing and Payment Strategy Track online visits from mobile devices and monitor changing technologies and preferences Proactively collaborate with other teams and market experts Embrace this Extraordinary Time in the Utility Payments Business!

Questions and Answers

Eric Leiserson, Sr. Research Analyst, Fiserv Contact Information Eric Leiserson, Sr. Research Analyst, Fiserv Eric.Leiserson@fiserv.com

Latest Findings on Utility Mobile Bill Pay Benchmarking and Consumer Trends Why Mobile Bill Payment is Thriving and How Utilities are Responding Eric Leiserson, Sr. Research Analyst