Online Statements, Check Imaging & Check Reorder April 21, 2004 Michal Geller Director, Product Management

Agenda Why Check Imaging, Online Statements and Check Reorder? Check Imaging Check Reorder Online Statements Digital Insight Offerings Turnkey (Load) Solution or Vendor Options Please questions throughout the call. We will collect them and respond to them at the end of the call.

Internet Banking Options: How These Products Fit ProductMeets Consumer Demand Provides Measurable ROI Online StatementsXX Check ImagingXX Check ReorderXX Funds TransferXX Account AggregationXX WirelessX Web/Direct ConnectX Red = Must-Haves

Product Trends

Third Party Vendors Increase Online Adoption Source: Digital Insight. December 2003 data

Product Choice Increases Retention Source: Digital Insight

What is Check Imaging? Integrated check image viewing from the account history screen in Internet Banking Some options allow for in- branch research

Why Check Imaging? 16% of end users view checks each month on average 68.9% of Internet Banking end- users would be willing to accept an online image in lieu of paper – Gomez The average check copy retrieved from microfilm cost $7 and takes 3 days – Tower Group Check 21 will increase adoption of imaged checks. Presenting them to the end-user leverages the investment.

Check Imaging Benefits Improved access to Check Information National City Corp saw a 26% increase in customer satisfaction Fraud Reduction Improved customer service response for: Research Reconciliation Self Service Check images can be available as soon as they are imaged rather than waiting for end of month Source: Check Imaging: Moving to Prime Time and Beyond, Celent, 2003, BTN 2004.

Check Imaging: ROI Calculator CheckOnlineCost RetrievalImageSavings Number of Online Customers15,000 Average Expense7.00$ *0.10$ 6.90$ Average number of images retrieved per month per customer Monthly expense for image retrieval1,050$ 495$ Total Savings555$ * Source:Robert Hunt, Tower Group.

Check Imaging Increases Internet Banking Penetration FI #1 California CU 52,000 members 22% Increase in new IB users/month FI #2 Eastern Bank $2B assets 27% Increase in new IB users/month FI #3 Eastern Bank $250M assets 39% Increase in new IB users/month

Check Reorder It makes check order easy Increase check orders No need to remember logins, codes, MICR, RTN, etc. Users tend to upgrade to more expensive checks Increase revenue per order Available for Harland, Deluxe, Liberty and Clarke American Users spend between minutes on Check Reorder application (Harland) Average upsell is between % vs. offline

Check Reorders Soar Behind Internet Banking Integration with Home Banking Put on Main Home Banking Navigation

What are online statements? Online storage and access of statements available from within Internet Banking

Why Online Statements? Stop sending paper! Save $1-$2 per end user Monthly marketing opportunities Faster availability Historical statements Web benefits such as reminders, searches and personalization Multiple vendor choices or load solution

Online Statements: ROI Calculator

Average Online Statement Penetration Months Since Live DateOnline Statement Penetration* < 6 Months22.9% 6-12 Months22.2% Months24.0% > 18 Months31.3% Overall Statement Penetration29.1% * Number of users who have accepted the Online Statement Disclosure / Users who have logged in within 180 days. Averaged across all IB clients using EPSIIA or Integrated Statements.

Online Statement Solutions Vary Integrated vs. Single Sign On (SSO) Service Bureau vs. In-House PDF vs. HTML Delivery Multiple Marketing Options Notifications Monthly “envelope stuffers” Custom marketing messages within statements Clickable Check Images

Opt Out of Paper The true benefit of Online Statements

Opt Out of Paper Choices and availability of options can be customized

Opt Out of Paper

PDF Statements Replicates your print statement exactly

HTML Statements More flexible design and functionality

HTML Statements

Clickable Check Images View checks directly from within the statement

Multiple Statement Types Supported

Cross-Sell and Upsell Use monthly reminders to promote products Perform targeted marketing within eStatement base

Marketing Opportunities Use monthly reminders to promote products Perform targeted marketing within eStatement base

Strategies to Increase Adoption: eStatements Bundle with Internet Banking Waive account fees with eStatements/Charge for Paper Bundle eStatements with free Bill pay. Eastman CU Case Study Online Statements save printing and mailing costs and reduce the impact of the decrease in Bill Pay revenue from members. In one month: Internet Banking enrollments grew over 600% Bill Pay enrollments increased over 1,700% along with a 20% increase in Online Statement sign-ups.

Online Statements Increase Internet Banking Penetration FI #1 CU in the Northwest 56,000 Members 10% Increase in new IB users/month FI #2 California CU 65,000 Members 32% Increase in new IB users/month Average New Users/Month FI#1FI#2 Online Statements Effect on New Users Average Before Average After

Online Statements: FI Focus Total Members opting out of paper statements Average Cost Per Paper Statement Monthly Cost Savings for Members who have opted out Wescom CU (as of 6/2003) 16,135$0.62$10, Credit Union #11400$2.00$2, Credit Union #2 19,819$.58$11, Source: Wescom Resources Group

Online Statements: Benefits of Internet Banking Integration Orange County’s Credit Union Provided eStatement solution on their website. < 10% Online Statement Penetration The month after they integrated with Internet Banking > 20% Online Statement Penetration – Representing over $2500 of additional cost savings in that month alone. Within a year: 27% Online Statement Penetration

Online Statements: FI Focus “Over 10% of our members have chosen to eliminate their paper statement in lieu of online statement access. Our initial savings resulting from decreased printing charges have totaled over $30,000 monthly." -Kerry Parry Mountain America Credit Union

Digital Insight Check Imaging 1. Load FI sends check images to our vendor for storage and retrieval Billing and customer support through Digital Insight 2. Preferred Vendor has contracted with DI to provide superior support for DI customers 3. Available Vendors (Over 50 Total Vendors)

1. Load FI sends print files to our vendor for storage and retrieval Billing and customer support through Digital Insight 2. Preferred Vendor has contracted with DI to provide superior support for DI customers 3. Available Vendors (Over 25 Total Vendors) Digital Insight Online Statements

We can help find the right solution to meet your needs, including showing multiple options.

Summary Check Imaging & Online Statements can save you money Increased IB Penetration Reduced costs Self Service Check Reorder can make you money Increased orders at less cost Multiple Options for each DI Load options Get a referral for a Preferred Partner Ask about the availability of your current vendor

Q&A We will be posting the slides from this conference on the client site within the next few days Preferred Vendors on DI client site:

Online Statements, Check Imaging & Check Reorder April 21, 2004 Michal Geller Director, Product Management