MUG 2016 General Session

May 2, 2016

Tere Brun, Senior Vice President

Celebrating more than three decades of MISER users!

MUG 2016

2

Welcome

3

Followed by a

presentation by FIS’

cyber security expert,

Tariq Bokhari.

Corporate Update

Organizational Update

Community FI Market

FIS Community Core Strategy

MISER Update

Product and development update including details on standardization and

structure

1

FIS Corporate

Update

4

FIS Today: Empowering the Financial World

100+

COUNTRIES

55K

EMPLOYEES

$9.2

B

REVENUE

20K

CLIENTS

$9T

MONEY MOVED

848M

CARDS PROCESSED

34M

MOBILE financial institutionING USERS

27B

PAYMENT TRANSACTIONS

400+

SOLUTIONS

750M

END CONSUMERS

5

Aligning Our Growth Strategy with Yours

Continue to

strategically

expand solution

portfolio, client

base and talent

Resources

Invest in new

integration across

solution portfolio,

create new

solutions for clients

to leverage

Innovation

Sell, deliver,

operate and

service with

excellence

to maintain and

grow

client relationships

Operational

Excellence

Focus on strong

balance sheet,

strengthen cash

flow, pay down

debt

Financial

Discipline

6

2

Organizational

Update

7

Executive Changes

8

Tere Brun Senior Vice

President

Lynn

Roche Executive Vice

President

Anthony

Jabbour Chief Operating

Officer

Community Core Solutions

9

George

Jennings

Director of

Business

Strategy

34 years of FIS experience

Keith

Gilbert

Director of

Development

26 years of FIS experience

Peter

Conners

Director of

Product

Management

16 years of FIS experience

P.J.

Schunke

Director of

Professional

Services

23 years of FIS experience

Betty

Bynum

Director of

U.S.

Operations

29 years of FIS experience

Doug

French

Director of

Enterprise

and RISC

Operations

26 years of FIS experience

One Community Core Team

10

• Address traditional core silos/organizations

• Leverage talent, solutions and ideas

• Standardize processes across the cores

• Share internal best practices from

development to documentation

• Evolve for a faster response time

Community

Core

Solutions

Development

Professional

Services

Operations Customer

Service

Integrated solution set, driven by a core engine to give clients a 360 degree view of their customers

Providing a Total Solution

11

CONSULTING

Lending Solutions

Digital Solutions

Commercial Treasury

Payments Solutions

ITO/BPO OUTSOURCING

INTEGRATION

CORE

SOLUTION Risk, Fraud and

Compliance

Marketing/Predictive

Analytics

Core Product Focus

12

OPERATIONAL

EFFICIENCY

SUPERIOR

USABILITY

REVENUE

OPPORTUNITIES

COMPLIANCE &

SECURITY INTEGRATION CLIENT

COLLABORATION

With FIS and

targeted

third-party

solutions

Collaboration

and

communication

in focus groups,

conferences,

relationship,

and client portal

Deliver the

“best user

experience in

the industry”

Flexible

products

Streamlined

processes

Timely

solutions

incorporated

in feature/

functionality

3

Community FI

Market Overview

Disruptive Forces Are Impacting Our Industry

CONVERGENCE

OF

FORCES

Mobile Lifestyle

Expectations

New Entrants

Regulatory

Change

Customer

Interaction Models

Technology

14

Market Focus | Banks

Community Core Solutions

15

0

1000

2000

3000

4000

5000

6000

7000

8000

Decline In Number of Banks

12/31/09

12/31/10

12/31/11

12/31/12

12/31/13

12/31/14

12/31/15

• Decline in Number of Banks

– Industry Consolidation

– Similar story for all financial institutions

• Trends

– Effort to keep up with non-traditional new

market entrants

– Continual adaptation to meet millennial

demands

– Assets are on the rise

Source: FDIC

Community Core Solutions

16

• Decline in Number of Credit Unions

– Industry Consolidation

– Similar story for all financial institutions

• Membership Growth

– Increased growth in 2015

• Trends

– Credit Union National Association (CUNA) is

seeing a decline in membership

– Seeing clients aggressively go after new

business and in doing so are dropping the

emphasis on ‘credit union’

Market Focus | Credit Unions

Sources:

CUNA Mutual Group – Economics, September 2015

Callahan Merger Trends 1985 – 2015

Credit Union

Membership Growth (Annual Percent Growth)

2.9

2.32.2

1.8

1.4

1.1

1.4

1.2

1.6

1.4

0.6

1.5

2.1

2.5

3.13.0 3.0

0

0.5

1

1.5

2

2.5

3

3.5

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

4

MISER Update

47%

53%

Total Clients: 73

In-House: 34

Outsourced: 39

Footprint by Service Type

18

MISER

30%

70%

Client Mix

Credit Unions

Banks

2015 by the Numbers

ENHANCEMENTS

29

TOTAL PARTICIPANTS IN

MISER TRAINING

741

CLIENT LOYALTY SCORE

7.8 RENEWALS

17

ASSETS PROCESSED

(BILLIONS)

228

PROFESSIONAL SERVICE

PROJECTS

163

19

MUG General Sessions

20

TUESDAY, MAY 3

• Keynote: Signature

Moves! How to Stand

Out in a Sit-Down

World!

– 8:30 – 9:30 am

• 2016 MISER Release

Update

– 9:45 – 10:45 am

MONDAY, MAY 2

• MISER DeskTop

Overview

– 10:40 – 11:50 am

• MISER DeskTop

Workflows

– 1:15 – 2:15 pm

WEDNESDAY, MAY 4

• MISER Future

Direction

– 11:00 am – 12:00 pm

MISER Development

Keith Gilbert, Director of Development

Peter Conners, Director of Product Management

MISER Development Update

22

MISER

Organization

MISER Development Update

23

BancPac

MISER

Bankway

HORIZON

Organization

Process Management Product

Shared

Solutions

• Industry Experts

• Consultant-level

Bankers

• Market Interaction

• Liaison to Regional

User Groups and Focus

Groups

• FIS Integration

• Prioritize Product

Roadmap

Set Direction

PRODUCT

MANAGEMENT

• Focused Development

Teams

• Led by Developers

• Industry Analysts

and Programmers

• Strategic

• Regulatory

• Funded

• Corrections

Create Solutions

DEVELOPMENT

• Focused QA Teams

• Led by Industry

Analysts

• Mirrored Client

Environment

• Releases, Flashes

• Root Cause Analysis

• Lessons Learned

Manage Delivery

QUALITY ASSURANCE

Product and Development Responsibilities

24 24

“Quality is the result of a carefully

constructed cultural environment.

It has to be the fabric of the organization,

not part of the fabric.”

Philip B. Crosby

Zero Defects

Slide with Quote Box

Quote Box • Box

– Color:

65/196/220

– Round

corners and bleed off slide

– Top align with

body

copy, 1.89” from top

• Quote copy

– Calibri, 21 pt

(can vary depending on

length of quote)

– Color: White

• Source copy

– Calibri, 14 pt

– Color: White

– Left aligned

Click on the corner of this text

box to delete

25

Origin of Quality

• Providing a product or service that satisfies… our clients

What is quality?

• Leading financial technology company in a very competitive industry

• Consumers expect more and we are in the referral business

• Monetary stewardship

Why focus on quality?

• Internally – Loyalty index, release dates, new issues, prior release issues, hot fixes, support calls, QA and beta issues

• Externally – Functionality, on-time delivery, reliability, efficiency (client perception is reality)

How is quality measured?

• Internally – Credibility, client loyalty/new sales, increased development costs

• Externally – Institutions’ Clients, Institutions’ credibility

What is the cost of bad quality?

• Quality culture – set high overall expectations and share responsibility, no borders, we all own quality

• Identify areas of improvement - learn from mistakes and get better each day, have sense of urgency

• Set high expectations for yourself and your team – your role is the most important role, commit to quality before projects leave your desk

How can we improve quality?

26

`

Development Strategy Community Core

27

• Quality Culture

– Origin of Quality

– Risk ratings

– Assess release content

– Root cause analysis / lessons learned

– Sense of urgency

• Leverage Talent

—Product management, business and

technical knowledge

—User design, Business intelligence

• Leverage Solutions

– User experiences

– Integration

– Security

– Compliance

5

First Award

28

WELCOME

Pat White Client Executive

FIS / UNISYS 2015 FIRST Award

30

FIS/Unisys Sixth Annual FIRST Award

“Next Best Product” Using Analytics to Serve Members

Problem

• Lack of CRM System

• Lack Content for Messaging that is

– Relevant

– Timely

– Appropriate for the Audience

• Low Response Rates to Marketing Campaigns

– High Cost-Per-Acquisition

– High Opportunity Costs

Approach

• Archive Promotional Efforts (2013)

• Data Governance (2012) – What is a product?

• Profit Models (2012) – What do we want to sell?

• Dimensional Warehouse (2013) – Provides broad perspective of product adoption

– System-agnostic

• SSAS & Sequence Clustering (2015)

• SSIS for Training & Automation

Sequence Clustering

• Clusters on Account Ownership & Relevant Demographic Factors

• Shows Relationship & Closeness between Clusters

• Shows Relative Concentrations

Sequence Clustering

• Profiles Clusters

• Distributes Attributes Visually

Sequence Clustering

Sequence Clustering

Results & Applications

Member-Level

predictions allow for

analysis of trends &

forecasting demand

for certain product

lines.

Individualized

messaging promotes

most relevant

products in multiple

channels

Informs engagement

& retention

strategies

Thank You

Presented By

Casey Foltz

Business Intelligence Manger

Oregon Community Credit Union

FIS / UNISYS 2015 FIRST Award

40

FIS/Unisys Sixth Annual FIRST Award

“Manage My Cards Anywhere”

Wings Financial

About Wings Financial Credit Union

Founded: 1938 Headquarters: Apple Valley, MN Branches: 22 (16 MSP) Asset Size: $4.2 Billion * Members: 205,000 * Employees: 473 * * As of 12/31/2015

Membership is open to: : 13 county MSP Metro : Aviation Industry Employees : Seattle-Tacoma Metro : Wings Financial Foundation : Existing Members’ immediate family

Introduction Vision execution

Steadily close the gaps between what must be done in a branch vs. what can be done via the digital channels.

Enabling Toolsets

The combination of Cohesion and .NET continue to be limited primarily by one’s imagination.

Practical Application Description

In May of 2015 we automated the ability for members to report their debit cards lost or stolen and to order a new card. With this functionality deployed both to our Home Banking site and our Mobile Application, members could now easily report their cards lost or stolen immediately without having to worry about contacting our call center.

Functionality Specifics – Report Card Lost or Found

– Report Card Stolen

– Order a Replacement Card for one reported lost or stolen

– Order a Card for a checking account that never had a card

– Disable ATM Withdrawals only

– Disable Point of Sale transactions

– View / Enroll in Signature Rewards™

Home Banking Screens

Mobile App Screens

Member’s Love This

Since the launch of this program, we’ve seen member’s use the tool to take control of their debit cards on their terms.

Home Banking Mobile App

Cards Reported Lost/Stolen

1000 800

Cards Suspended 515 420

New Cards Ordered 990 300

ATM/Purchases Disabled 650 350

Signature Rewards Enrollments

570 126

5,721 Transactions *Estimated 286 hours saved Forecasted .25 FTE savings by Year end

*Assuming a 3 minute transaction time for teller or call center representative

Wings Financial Foundation

The Wings Financial Foundation is a 501(c)(3) nonprofit organization that provides youth and adult educational programs to fulfill a growing need for financial literacy at every age. The Foundation also administers a number of scholarship opportunities to support members' higher education. Contributions to the Wings Financial Foundation go directly to support these educational initiatives. Financial Education Wings Financial offers many opportunities for members to learn ways to improve their financial health. Member and Community Education Wings offers a variety of financial education classes to groups in our aviation and community fields of membership. Junior Jet Saver Youth Program For members up to age 12, Wings offers a program to help young members learn the value of saving and keeping track of their money. Ask a representative for details. SOAR Young Adult Program This new program offers young members the chance to take the first steps in managing their finances. For program information, please email Wings is partnering with BestPrep's Minnesota Business Venture Camp and offering 6 scholarships to attend one of this year's camp session.

Thank You

Presented By

David Mason CIO/SVP Digital

Wings Financial Credit Union