Mobile Marketing for Financial Services

An overview of concepts, strategies, tactics and technologies for mobile enabling the financial services industry. Prepared by:

Michael Ahearn, VP Strategic Marketing

michael.ahearn@iloopmobile.com

Balances at 11:24AM Thurs, Nov 06 B of A Checking: $1299.09 Citibank Visa: $2,022/$37,500 Schwab: $14,544 GEICO Auto Loan: $2325

• Leading technology and services making it fast and easy to create, manage and analyze mobile marketing campaigns and content delivery initiatives worldwide

• Award winning iLoop Mobile Platform is a self-service SaaS solution with open APIs for creating state-of-the-art SMS campaigns, mobile sites, mobile coupons, mobile-enabled Web sites and other mobile marketing initiatives

•  Industry leader in mobile marketing strategy, managed service campaign delivery and professional services

• Customers include Fortune 500 brands, agencies, media companies, and other tier-one companies

About iLoop Mobile

What Mobile Means to Financial Services

Mobile is mission critical to the finance industry’s present & future customer interaction:

• Increase customer “stickyness”

• Bank the “unbanked” in emerging markets

• Help cut costs and automate

• 24/7 always on access to any information

• Key to mobile financial services marketing: convenience & personalization

• Everything must have intrinsic value to the customer—less marketing fluff

• Utility is a core function of financial services marketing

Convenience & Personalization/Relevance

Hello John, The Union Square branch has special SF rates for new home mortgages. Your Alert: Interest rates are now below 5% Stop by 122 Kearney St.

Key Marketing Objectives Served by Mobile

Customer Acquisition • New customers (young/student) • Loans and new accounts • Credit card sales • Small business accounts

Retention & Loyalty • Content delivery • Alert sign up rewards and value add messaging • Promotions and incentives

Brand Awareness & Positioning • New services or programs • Sponsorships • Events • Value added information and content

Cross Sell/Up Sell • Increase “share of wallet”

Mobile Tactics • SMS • MMS: advantage of unlimited text • Mobile Internet • Apps: their utility merits a permanent place on users’ phones • Mobile Enabled IVR (integration of text and voice calls) • Mobile Incentive Marketing & Promotions • Location Aware Messaging (LBS), Geo Fencing, Augmented Reality • UPC/2D barcodes and picture recognition • Search Marketing • Display advertising • NFC to replace debit card with mobile wallet + content delivery

160M (69%) 97M (42%) 90M (38%) 14M (6%) 98M (42%) 234M (100%) 76M (33%) 93M (38%)

Voice Video

Comscore March 2011 data across all 234M US mobile subscribers

1.5M (<1%) 14M (6%) 194M (83%)

The Impact of the Smart Phone

US smart phone penetration Dec. 2010: 27% EU smart phone penetration Dec. 2010: 31%

31% US SMART PHONE PENETRATION

MARCH 2011

Looking Ahead End of 2011 Estimates: Mobile Subscribers: 300M+

Smartphone User Base: 150M

Mobile Internet Users: 120M

Mobile Video Viewers: 90M

Nielsen Nov. 2009

BY END OF 2011… 50%

Forrester “State of US Banking 2011” • Adoption of mobile banking amongst US online adults has doubled in past 2 years • Predict will grow 20% year on year for the next 5 years • 22% say mobile banking is either “very important” or “important” for banks to offer • Used mostly for informational purposes

ü 70% check account balances ü 33% view transactions ü 30% transfer money ü 27% for paying bills

Mobile Finance in the US • 29.8 Million accessed bank, credit or brokerage accounts with a mobile device (Comscore

Dec. 2010) • 54% increase year to year • Mobile sites are preferred, 18.6M accessed (up 58%) compared to apps 10.8M (up 120%) • 8.1M used SMS services • 20% of all mobile phone owning credit cardholders report using their handset to manage

their bank accounts during the past twelve months • 16% of mobile users access their card issuer’s site through a mobile browser, while 13%

do so via mobile application

In the US, Bank of America is a leader of m-banking. Launched in May 2007 it now has 1.5 million

subscribers. (ABI Research)

Business Models for Mobile Marketing Practice

• Platform (SaaS) with API Integration

• Managed Services

• Point Solutions & Proprietary Development

• Hybrid

Strategy

Creative

Execution

Mobile Enablement Platform

Mobile Analytics & Measurement

EXPERTISE TRIANGLES

TECHNOLOGY PROVIDERS

MARKETING AGENCIES

The building blocks of mobile marketing…

Financial Services Verticals

Enterprise Internal Messaging (IT Team) • Internal messaging to sales or support teams • B2B messaging or communications

Pure Mobile Marketing Initiatives (Marketing Team) • SMS: alerts, coupons, promotions, quiz, polls, surveys, content delivery • MMS: deliver video, images, games • Event and co-op campaigns • Mobile sites for content and information outside of business services • Apps

Business Services (Product Team) • Account alerts • Account management via mobile web/apps • Transactions • Transaction verification • Customer service

Mobile Marketing for Finance Today

• Account SMS Alerts (balance, overdraft, fraud etc. every bank today) • Mobile sites & apps for account info • Direct check deposit (Chase app—take a picture of a check and deposit it) • Delivery of one time passwords via SMS for online banking (Paypal & top US banks) • Money transfer alerts (Western Union) • Loyalty rewards via mobile (mobile rewards and content for existing loyalty programs) • Mobile Promotions & Incentive Marketing ($100 to open an account, ringback ads for free

minutes) • Brand and services awareness (mobile sites and apps with loan info and other bank

services) • Customer help (dropped loans recovery) • Value add information (stock quotes, interest rates) • Coupons (Amex purchases…incentives for use of card and upsell of more cards …no

coupon, it just credits your account)

Deutsche Bank: Internal Enterprise Messaging

• Deutsche Bank integrated SMS with help and support system for IT support

• Like as SAP system integrated with SMS communications

• Example: ATM machine goes down, field repair gets the ticket via SMS

• SMS has replaced pagers due to ubiquitous global penetration and use

• The mobile advantage: system provides centralized management of IT messaging

Escalation Level 5 Ticket IN1184437 Priority repair ATM # 453321 Branch Contact James Walker

Western Union: Customer Account Communications SMS, mobile Internet and mobile-enabled online Web sites. Key solutions provide SMS verification of money transfers to customers in 44 countries worldwide. •  SMS verification allows Western Union

to identify the receiver of money transfers to build customer base

•  Western Union mobile site for mobile services information and opt-in

•  Mobile site provides retail locations, coupon promotions, money transfer tracking, mobile greeting cards and more

•  Online Website for sign-up of SMS money transfer verification

MARKETING CAMPAIGNS •  Mother’s Day “send a bouquet of

flowers” mobile greeting card campaign •  US Hispanic demographic SMS

campaign “Orlandi Valuta” with SMS/IVR integration for money transfer discount coupons

•  “Happy Wednesdays” SMS coupon promotion for transfer discounts

Amex Open Forum: The Small Business Social Club

CONTENT ACROSS DEVICES

http://www.openforum.com/mobile

http://www.openforum.com/

http://www.openforum.com/whatsbooming

SEED CONVERSATONS

THROUGH THOUGHT LEADERS

Social is Mobile | Mobile is Social

Financial Services Marketing Worldwide

Barclays: SMS Follow Up Service 50% conversion of incomplete loans

300% greater success than email

Pageonce: Unified Personal Accounts Top 5 iPhone Productivity App, 3M users

10,000 downloads/day at launch

US Bank AccelaPay First full bill pay for prepaid card

2011 Paybefore Award winner

Bharti Airtel SIM card payment app

Carrier network mobile wallet

Local Promotion Xmas Weekend UK Campaign

FIFA 2010 WC Soccer Alerts

CIBC App for Home Buyers Suite of mortgage tools for house hunting

Request for locked interest rates

Bankinter: Advanced Mobile Capabilities

Augmented Reality: Bankinter iPhone 3Gs/4G & Android App

Video camera on iPhone is used to “see” live surroundings • Augmented Reality technology overlays geo-relevant info and graphics in real time over what you are looking at using your phone camera • Uses camera, GPS, compass and movement sensors • Office and ATM location maps and directions • Other important info provided per location (handicap access, hours, distance) • Second layer providing info on residential and commercial property for sale. Focus camera on a specific building for info including price, size, pictures, property characteristics etc.

Takeaways: Best Practices for Mobile

• Think Objective, Strategy then Tactic • Don’t get distracted by sexy technology—make sure tactics have a measurable objective • Adapt your tactics to the ever changing channel preferences of your customers • Work with a mobile solutions platform that already takes care of regional compliance and

privacy regulations • Integrate mobile with existing CRM data—you should work with a Master Persona of your

customer • There is no such thing as mobile marketing—only mobile enabled marketing. Integrate

mobile campaigns with other digital and traditional media. • Leverage the power of customer mobile opt-in via the Internet to capture preference and

profile for future segmented messaging • Understand the regional adoption of handsets and their feature adoption with your target

customers • Understand mass marketing vs. niche marketing in mobile

Conclusion: The challenge and opportunity of mobile marketing for financial services is to discover what content or information is valuable to the customer, and then delivering it quickly and conveniently to their mobile device…it is not advertising as we’ve know it.

For financial services, this will be dominated by utility, with other opportunities to engage.

Visit www.iloopmobile.com to learn how we can help you mobile enhance your health care marketing.

Contact sales@iloopmobile.com (408) 907-3360 and we’ll help you get started.

Thank You

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