1. Hype or The Real Deal? Eric Leiserson Mobile Billing and Payment: Utility Benchmarking and Latest Consumer Trends Utility Payment Conference

2. The Smartphone World We Live In 2

3. 3 “I’m still discovering cool stuff I can do with my smartphone. Today I sent a photo to my mom, bought some music, trimmed my sideburns, blended a smoothie and received and paid my bills!” The Smartphone World We Live In

4. Key Question 4 With all the coverage and activity on mobile payments where are consumers and billers (utilities) with respect to Mobile Bill Pay and Presentment (MBPP)?

5. Overview The Ubiquitous, All Inclusive, Incredible Hyper Growing Smartphone New Consumer Mobile Bill Presentment and Payment (MBPP) Insights from the 2012 Billing Household Survey New Biller MBPP Insights from clients and Fiserv Commissioned Mobile Biller Benchmark Study 5

6. 6 The Ubiquitous, All Inclusive, Incredible Hyper Growth Smartphone Marketplace

7. 7 56 minutes a day is the average amount of time Android Users spends interacting with mobile web and apps 84 percent of smartphone users have accessed the Internet on their phone in the past week 21 percent of mobile phone owners have used mobile banking in the past 12 months Hyper Changing Mobile Habits of Adults Have a Smartphone 50% of Adults Have a Smartphone Sources: Nielsen, Mobile Insights, Q1 2012, Google,2012, Pew Research Center’s Internet & American Life Project 2011 and 2012, Consumers and Mobile Financial Services, Federal Reserve, 2012

8. Smartphone Ownership is Increasing Across all Demographics 8 18-24 25-34 35-44 45-54 55-64 75K+ 50-74K 30-49K Less <30K High School Grad < High school College + Some College % of Adults who own a smartphone By Age Group Income LevelEducation Source: Pew Research Center’s Internet & American Life Project, 2012 2012 2011

9. U.S. Smartphone Penetration by Ethnicity 9 Source: Nielsen, Mobile Insights, Q1 2012

10. 10 Mobile Bill Payments Under Banked Have Higher Levels of Mobile Payments and Mobile Bill Payments

11. Mobile Banking Adoption Will Also Fuel Bill Pay and E-bill 11 Source: Consumers and Mobile Financial Services, Federal Reserve, 2012 The Potential: If the concerns of non-users of mobile payments were addressed, 34% say they would pay bills online using their phone 20% of Americans with a both a bank account and a mobile phone has used mobile banking in the last 90 days. 25% of which paid a through their Bank’s Mobile Web or App

12. 12 Consumer Mobile Presentment and Payment Findings from 2012 Billing Household Survey

13. 13 Mobile Bill Payment Adoption Among Online Consumers Increased 33% Between 2011 and 2012 from 6% to 8% Why Almost 8 Million Consumers Paid Bills Over Their Mobile Phone Source: Billing Household Survey, Fiserv, Inc., 2012 Among Smartphone Owners: 12% Paid a Bill Through Their Smartphone, an Increase of 41% 3% of offline households paid a bill through their mobile phone

14. Type of Bills Paid Through Mobile Device 2011 vs. 2012 14 2012 2011 Which bills did you pay through your mobile device? Sources: Billing Household Survey, Fiserv, Inc., 2011 & 2012

15. 15 Almost One in Three Very Interested/Interested in Viewing and Paying Bills from Smartphone; Prefer Multiple Options Through mobile browser Base: Among smartphone owners who are very interested and interested in mobile billing and payments Through a mobile app What is your interest level in a biller providing multiple billing and payment options such as viewing bills, making payments and seeing nearby walk-in payment locations? Source: Billing Household Survey, Fiserv, Inc., 2012

16. Bill Payment Main Function Consumers Desire In A Biller App or Mobile Website 16 What are the main functions you would like for a biller to provide via a mobile browser or app: Source: Billing Household Survey, Fiserv, Inc., 2012

17. Using Mobile Browser to Reach Provider’s Website Most Common Method 17 Bill Pay Access through Smart Phone Sources: Billing Household Survey, Fiserv, Inc., 2012

18. Majority of Bills Funded with Cards Followed by ACH 18 Of the bills paid using the texting, browser or app capabilities of your cell phone, how many were: Sources: Billing Household Survey, Fiserv, Inc., 2011 & 2012

19. 19 Mobile Bill Pay Benchmark Study: Utility Results

20. Main reasons for Billers’ mobile plans are customer service, billing and payment, and customer demand 20 Source: Biller Mobile Bill Pay Benchmark Study, BlueFlame Consulting for Fiserv, Inc., 2012 Do you see the development of the Mobile device channel providing a means to:

21. Billing & payment along with service updates are top mobile priorities for billers 21 What are your organization's priorities among these potential Mobile service options? ("1" is most important priority, "2" is second most important, etc.) 4% Service updates 22%4% 36%13%3% 33%34% Bill presentment 16%22%11%7% Recent acct activity/usage 18%7%13%18% Pmt alerts/notifications 21%24%11% 1 23456 Customer communications 2%9% 18%29% Mobile bill pay 26% Source: Biller Mobile Bill Pay Benchmark Study, BlueFlame Consulting for Fiserv, Inc., 2012

22. Billers believe billing & payment is a main mobile activity for consumers at their site 22 What do you customers typically do with your organization while they interact through their mobile device? Source: Biller Mobile Bill Pay Benchmark Study, BlueFlame Consulting for Fiserv, Inc., 2012

23. Mobile is in the planning stages for most utilities and is handled by multiple groups in their organization 23 Does your organization have an overall mobile strategy? Who (or which area) has responsibility for Mobile Bill Pay and Presentment in your organization? Check all that apply Source: Biller Mobile Bill Pay Benchmark Study, BlueFlame Consulting for Fiserv, Inc., 2012

24. Majority of billers plan to outsource billing and payment functionality 24 Source: Biller Mobile Bill Pay Benchmark Study, BlueFlame Consulting for Fiserv, Inc., 2012 How do you envision using an outsourced provider for mobile functionality?

25. Mobile web and downloadable app are both preferred by billers 25 What would be your preferred approach to providing Mobile Bill Pay and Presentment to your customers? Check all that apply Dedicated bill pay app 15% Downloadable full self-service app 64% Mobile web version 68% Source: Biller Mobile Bill Pay Benchmark Study, BlueFlame Consulting for Fiserv, Inc., 2012

26. Mobile web and iOS apps are top preferences for providing billing information to customers’ mobile devices 26 1 2 3 4 5 If possible, what approaches have you followed,(or anticipate) using to provide billing information to customers’ mobile devices? ("1" is most preferred, "2" is second most preferred, etc.) Source: Biller Mobile Bill Pay Benchmark Study, BlueFlame Consulting for Fiserv, Inc., 2012

27. 27 Questions and Answers