CO-OP NextGen

ATMSM:

In partnership with :

Presented by:

Denny Rogers, Business Development Manager, Diebold

Gil Cowley, Integrated Services Manager, Diebold

Bruce Fielder, Regional Sales Manager, Managed ATM Services

Bonnie Kramer, VP Business Development & Operations, CO-OP

Shared Branching

Bringing Shared

Branching

&

Self Service to ATMs

February 20, 2013

Shared Branching

Convenience,

Continuity,

Cooperation

Why Shared Branching?

The role of convenience

and personal service in

todays retail financial

services environment

bringing convenience to

members

Continuity of service

through various challenges

natural disasters

The credit union difference

you would not see banks

doing this - Cooperation

CO-OP Shared Branching

Provides credit unions the fourth largest branch

network in the country

Strongly positions credit unions to compete against

banks

Provides unprecedented convenience for credit union

members

Exclusive Opportunities for Diebold Upgrade & New

ATM Sales

Quick Overview

CO-OP by the Numbers

3,200 Credit Unions

1,200 Member Owners

33 Million Cardholders

5,000 Shared Branches

300 Call Center Clients

30,500 Network ATMs

9,000 Deposit Taking ATMs

$64 Million In Surcharge

Replacement Savings

2 Billion Annual Transactions

$20.2 Million Patronage Pool

$229.2 Million Since 1996

Celebrating Over 30 years

Slide with Banks vs CSB

Benefits of Shared Branching

Retain and gain membership by providing access where

members work, live and travel

Greatly expand their service area

Level the playing field with bank competitors

Earn revenue

Deepen member relationships

Bolster disaster recovery

CO-OP Shared Branching at a Glance

December 31, 2012

Locations in all 50 states, 4 Countries & 2 U.S.

Territories

24 local networks

1,773 credit unions

7,012 total locations

4,945 Outlets and Standalones

70 Fast Branch locations

2,019 Vcom Units at selected 7-Eleven stores

107.1 million Issued Trans - YTD November

2012

119.1 million Acquired Trans - YTD November

2012

45 million members represented

Represents $454 billion in credit union

Assets

Processing over $126.5 billion for credit union

members November 2012

Average deposit = $1,332; Withdrawal = $709;

loan payment = $566; transfer = $811; Credit

advance = $1,046

Shared Branching Adoption in Todays Climate

A National Perspective

425 new locations added during 2011

108 new credit unions added during 2011

502 new outlets added YTD through 12/31/2012

88 new credit unions added YTD through 12/31/2012

Despite economic turndown, credit unions still believe

shared branching is a valuable asset

How Can Credit Unions Participate?

Issuer - a credit union that allows its members to visit

other participating locations

Acquirer - a credit union that welcomes members of other

credit unions into its facilities

Stand alone service center - a free-standing facility that is

owned and operated by a league, CUSO or CO-OP

Outlet - a credit unions existing branch

All CUs may participate as an issuer, can operate some

or all branches as acquirers

Acquirer Benefits

Opportunities for additional revenue

Outlet retains interchange fees

$1.05 per transaction average gross interchange income

Helps pay for strategic locations

Outlets enhance the national image of credit unions by

providing another access point

It offers members access to more locations

Offsets branch building costs, which can be in excess of

$2 million

Agenda

Credit Union Challenges

Credit Union Benefits

Product Overview

How it Works

Member Experience

Roadmap

Requirements How to Get Started

Future Enhancements

CO-OP NextGen Opteva ATM allows credit

unions to use a mainline Diebold Opteva ATM

and leverage their current ATM fleet allowing them to support traditional ATM transactions and

Shared Branching transactions.

Credit unions want to optimize their ATM channel and capital expenditures.

Challenges and Solutions

CO-OP NextGen Opteva ATM allows credit unions

to migrate routine teller transactions, including

Shared Branching transactions, into the self-service

channel allowing credit unions to maximize branch

efficiencies.

Credit unions want to improve branch

channel process by reducing operational expense and increasing efficiency.

Challenges and Solutions

CO-OP NextGen Opteva ATM allows credit

unions to migrate the servicing of guest

members into the self-service channel. This

allows credit union Member Service

Representatives (MSR) to improve member

service to their own members.

Credit union branch traffic is servicing

more Shared Branching members

rather than their own credit union

members.

Challenges and Solutions

CO-OP NextGen Opteva ATM allows

members to access most of their

membership accounts and perform

self-service transactions.

Credit unions want their

members to have the ability to

access majority of their account

relationship via a self-service

channel.

Challenges and Solutions

CO-OP NextGen Opteva ATM

provides additional source of acquirer

interchange revenue.

Credit unions are focused on

improving their margins and

generating other sources of

non-interest income.

Challenges and Solutions

CO-OP NextGen Opteva ATM offers

expanded and more convenient self-service

transactions option in addition to an

expanded branch reach without building brick

and mortar, 24/7, 365 days a year.

Credit unions want to improve

service and convenience to their

members.

Challenges and Solutions

CO-OP NextGen Opteva ATM is

available to both Acquirers and

Issuers, without the need to purchase

an Acquirer license.

The Credit Union is not an Acquirer

with CO-OP

Challenges and Solutions

What is CO-OP NextGen Opteva ATM?

An industry-first, self-service innovation, gives members access,

connection, and convenience by providing shared branching

transactions as well as traditional ATM transactions via the dominant

delivery channel, ATMs.

A self-service standard

Access to all account relationships

Initiate Shared Branching using other cards if needed

A software solution that maximizes and leverages mainline

ATM infrastructure

An exclusive product to CO-OP Financial Services in partnership

with

How it Works:

Functions and Transaction Flows

How it Works: Shared Branching

Enrollment and Authentication Enrollment and Authentication Process

Enter Credit Union Name (not necessary for Home Credit

Union)

Enter Account Number

Swipe/dip a card with Track 1 (name matching)

Answer 3 challenge questions

Member establish PIN

Member will re-enroll for incorrect or forgotten PIN

Member will have access to VCOM at selected 7-

Eleven stores and CO-OP Fast Branch

Enrollment Screen Flow

Enrollment

PIN Selection

How Is This Leading Edge Solution

Possible?

CO-OP has sponsored the development of IFX Terminal Handler

IFX is an open messaging specification to transmit financial data

between financial services entities and their customers or

vendors

IFX standard uses a client/server conceptual framework

CO-OP and Diebold are the first in the United States

to offer this leading edge technology

How does this work with other

CO-OP ATM products and services?

Leverages core terminal driving and processing with

CO-OP ATM Monitoring and Management Tools

Gasper Monitoring, Device Inquiry, Cash Management, Remote Key

Management

Consolidated reports, balancing and settlement

Utilize existing CO-OP reports

CO-OP Administrative Tools

Web Data Navigator, EZAdmin (Check Imaging), E-Reports

CO-OP ATM Managed Services

CO-OP Total Revelation

CO-OP Check Imaging & Visual Control required on NextGen

Shared Branching ATMs

Standard ATM vs. NextGen ATM

Standard ATM

NextGen ATM

Standard ATM vs. NextGen ATM

Standard ATM

Fast Cash

Cash Withdrawal

Check and Cash Deposits

Balance Inquiry

Transfers/Payments

Payments

Mini-Statement

NextGen ATM

Fast Cash

Cash Withdrawal

Check and Cash Deposits

Balance Inquiry

Transfers/Payments

Payments

Mini-Statement

Enrollment & Authentication

Cash Withdrawal/Advance

Check and Cash Deposits/Payments

Balance Inquiry

Transfers and Payment Transfers

Mixed Cash/Check Deposits

Additional Shared

Branching

Transactions

Including all available

sub-accounts

NextGen ATM Key Differentiators

Ability to make payments by check or cash in one single transaction

just like with a teller

Standard ATMs often require a deposit to an account, then a transfer to

the loan to make a payment (if funds are available)

Access to ANY credit union account or sub-account

Standard ATMs can normally only access accounts linked to ATM/debit

card limiting most transactions to checking and savings accounts

Earn income from acquirer interchange revenue

Standard ATMs do not offer this capability to provide full-service

transaction sets not only to your own members but also to guest

members and earn non-interest income

$0.91 per transaction average gross acquirer interchange income

What are the requirements?

31

Requirements

Requirements General

ATM must be CO-OP driven, direct

attached

CO-OP Shared Branching is the shared

branching provider

ATM must be TCP/IP

Hardware

Diebold Opteva ATM

IDMbd & ENA, Touch Screen

Core2 Duo Processor (3Ghz)

2GB RAM (4GB Recommended)

32

Requirements Software

Agilis 3.0 IFX with Shared Branch Plug In 1.1

Microsoft Windows XP Pro

Operating System

with Service Pack 3

CO-OP ATM Check Imaging

ATM Visual Control

33

NextGen ATM Roadmap*

2013 Q1-Q2 2013 Q3-Q4

Diebold Integrated

Services Windows Patches

Endpoint Security

Agilis Updates

Advisor/Opteview/ASD

EPP Reporting

Virtual Keyboard

Continuous Processing

Check Withdrawal

Multi-Vendor

Campaign Management

Cardholder Personalization

Target Marketing

34

*These are target dates and can shift depending on priority and resources

Video Teller (Concierge Video)

EMV

Windows 7 Migration path

Enhanced or alternate

enrollment and authentication

Dispense algorithm

PCI Requirements

36

How can Diebold help

PCI Requirements

Diebold Confidential

1. ATM Endpoint Protection

2. Software Deployment (Patch Management)

3. Anti-Skimming

4. Agilis Software Updates

Concierge Video ATM

37

WHAT DOES IT DO?

Option for consumers to engage in two-way video

conversation with a call center rep or financial services

expert while transacting at the ATM

WHAT VALUE DOES IT PROVIDE?

Allows for more complex transactions at an ATM in

order to achieve greater transaction migration

Opportunities for targeted marketing to increase sales

Expanded access to financial services experts for a

more robust and tailored consumer experience

As-needed video functionality allows for improved

consumer experience while still optimizing efficiency

Straightforward upgrade for Opteva ATMs

Software-Led Services

38 38

Integrated Services for Financials

SelService

3 Easy Ways To Get Started

CO-OP Diebold

National Relationship Manager

or Regional Sales Manager Current Diebold Contact

www.co-opfs.org/nextgen www.diebold.com

800-782-9042, option 2 800-999-3600