Implementing Business Mobile RDC Lessons Learned and Outcomes

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1 Implementing Business Mobile RDC Lessons Learned and Outcomes Rod Young, CoBiz Financial Larry Andretich, U.S. Bank November 5, 2015 Be sure to tweet about the #RDCSummit and

2 About The Presenters Rod Young SVP Product Solutions CoBiz Financial Larry Andretich Vice President/Senior Product Manager U.S. Bank 2

3 About CoBiz Financial $3.1 billion in assets Footprint throughout Colorado and Arizona Planning Commercial banking Commercial real estate banking Mezzanine financing Treasury management Structured finance Public finance Protection Employee benefits offerings Retirement advisory services Commercial & personal lines Personal Wealth planning Private banking services Investment management services 3

4 About U.S. Bank thousand $ 419B 3,164 million million customers employees assets branches $ 249B loans A1 Moody s 1 A+ S&P 1 EST 5 th largest commercial bank in the U.S. $ 297B 1863 deposits #1 in ROE, ROA, and AA Efficiency Ratio DBRS** among our peer banks 2 1. The debt ratings established for U.S. Bancorp by Moody's and Standard and Poor s reflect the rating agencies' recognition of the strong, consistent financial performance of the Company and the quality of the balance sheet. Debt ratings as of 10/5/ Peer Banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI, USB, WFC. Source: U.S. Bancorp Corporate Profile, period ending June 30, Credit products offered by U.S. Bank National Association. Deposit products offered by U.S. Bank National Association. Member FDIC U.S. Bank. All trademarks are the property of their respective owners. 4

5 Value of Mobile RDC to FIs RDC and mobile RDC value by the numbers Overall mobile banking penetration vs online banking Users 13% Business users 12% Consumer users 14% 3-year growth in mobile RDC transactions dollars customers revenue 46% 108% 44% 40% 5

6 Value of Mobile RDC to FIs Primary focus is on commercial banking Small branch network and geographic footprint Rely on alternative channels for gathering deposits RDC helps us compete with organizations with a much larger footprint 6

7 Value of Mobile RDC to End Users Ease of use and convenience on the consumer side Similar on the commercial side with the added value of control and monitoring at the home office for payments in the field 7

8 Value of Mobile RDC to FIs Drive incremental fee-based revenue by customer acquisition and increased check volume Increase customer loyalty and expand share of wallet Further or establish your FI s position as an innovator and leader in mobile technology Don t be left out of this growing market Revenue, deposit growth 8

9 Value of Mobile RDC to Businesses Save time and improve working capital Reduce deposit delays Manage receivables more efficiently Mobile RDC benefits can include: Ability to make deposits almost anywhere Reduction of hardware investment Elimination of trips to the office or branch 9

10 The CoBiz Project 2006 launched RDC 2012 launched mobile RDC for business 2014 launched mobile RDC for consumer 10

11 Evaluation process The CoBiz Project Started evaluation in 2011 Looked at four different options/offering Decision based on three high-level criteria: Speed to market Turn key Development time frame Project Experience Cost Not just low cost provider, but value for the offering Ease of ongoing management Deployment Training Servicing 11

12 U.S. Bank Mobile RDC Extension of current business RDC solutions Complements web-based products Mirrors capabilities of web-based products Image interrogation, duplicate detection, etc Pricing A la carte Business segment Expand RDC risk infrastructure Product launch Build and deliver pilot program Full product launch 12

13 Results Matter Tipping the balance and winning business Large Plumbing company bids out deposit business One of the pain points for the client was collection in the field Proposed mobile RDC as part of a comprehensive receivables solution Won the business based on ability to provide a solution to their issue with a service that was only offered by larger FIs 13

14 Results Matter 2015 mobile RDC accounts Consumer Commercial registered devices % monthly 3-year 47% 53% revenue 40% 14

15 Large client win Results Matter Prospect had considered deploying RDC for several years Cost of scanners for 2,500+ sites made the proposal too expensive Reduced cost of mobile devices resuscitated the business case SDK/API for integration of mobile RDC into a client s mobile app Scalable for large or small deployments Suitable for customized solution YOY growth 51% in mobile checks processed 31% in mobile device usage 15

16 Branding matters Lessons Learned Combining with other mobile apps is: Preferred on the consumer side A nice-to-have on the commercial side App management is a bigger deal than originally anticipated Implementation process evaluation 16

17 Lessons Learned Socialize your plan and include all possible stakeholders Android and iphone devices and operating system updates Business client decision Use of personal devices versus company provided devices Security implications Equipment purchase and maintenance Legal and privacy considerations Simple is better 17

18 Lessons Learned Compliance and regulatory impacts FFIEC guidance for RDC Risk management Customer agreements and selection criteria Monitoring and reporting Success metrics Be specific on how you define success 18

19 Questions? 19

20 Additional Takeaways CoBiz Bank case study 20

21 Thank you! Rod Young SVP Product Solutions CoBiz Financial Larry Andretich Vice President, Senior Product Manager U.S. Bank U.S. Bank is not affiliated with other organizations mentioned. Some of the information presented has been obtained from sources believed to be reliable, but is not guaranteed as to accuracy or completeness. It is not intended to serve as a recommendation or solicitation for the purchase or sale of any particular product or service. It does not constitute advice and is issued without regard to any particular objective or the financial situation of any particular individual. These views are subject to change at any time based upon market or other conditions and are current as of the date indicated on these materials. Products and services may be subject to credit approval. Eligibility requirements, restrictions and fees may apply. Deposit products offered by U.S. Bank National Association. Member FDIC U.S. Bank National Association. MMWR (10/15)