Cash Management and Mobility A Bank in the Palm of Your Hand

1
Cash Management and MobilityA Bank in the Palm
of Your Hand
Amy Johnson Vice President, Wells Fargo
November 20, 2008
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Agenda

• Mobile why should we care?
• Mobile what should we care about?
• Cash Management and Mobility
• Questions and Discussion

• But first
• Who carries cell phones?
• Multiple phones
• Do more than just email

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Business Drivers Why should we care?

• Mobile Technology is changing the way people live
  their lives
• Quickly

From this.
To this.
- devices - speed - the reach (always on) the
community snowball effect
4
Why Should We Care?

• Mobile Technology has already changed the way
  people live their lives.
• 81 of global executives stay connected to work
  through mobile devices. (source Korn Ferry
  International, 2007)
• For people under age 30, one third only have a
  cell phone (no landline). Overall, 3 in 10
  households only take calls on cell phones.
  (source CDC National Health Interview Survey,
  2007)

71 of Brits claim that alarm clocks are
obsolete. 36 prefer to use their cell phones.
(source Travelodge survey, 2008)
Five of ten best selling novels in Japan in 2007
were written on cell phones. (source The
Economist 4/12/08)
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Doing Things Mobilly Cell Phone
Usage, by Age
Tomorrows employees, customers, vendors,
business partners, are very comfortable in
different modes, and will EXPECT to do business
mobilly.
Jupiter Research, 2006
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Mobile Landscape The 4 Channels

• Text Messaging
• Get automated flight status alerts from your
  carrier
• Get alerts on your credit card activity
• Text to 46645 (GOOGL) for information.
• translate postage stamp in french returns
  timbre-poste
• sushi 94040 returns specific restaurants in
  area code 94040
• 8 USD in YEN returns the current equivalent of
  840.60103 yen
• ATM 94707 returns a list of bank ATMs and
  locations
• Mobile Browser
• Check in to your flight.
• Sit in the A group on Southwest Airlines
• Or check in and go right to the express kiosk to
  print your boarding pass
• Read news. Shop. Get video highlights.
• Use mobile banking.
• Application, resident on the phone
• Either on deck or downloaded after purchase
  such as from Apple AppStore
• Google Maps
• Calendar, Camera, Games, etc
• Voice

Want more Google examples? Go to
http//www.google.com/intl/en_us/mobile/sms/
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What About Banking?

• Of the 4 Mobile Channels
• Messaging
• is most likely the first service provided by
  banks
• account monitoring and fraud alerts
• via email or text message
• Mobile Browser
• likely offer cash management if same function is
  available online
• works on multiple devices
• Downloaded Application
• potentially offered by banks
• might be solution specific, such as for iPhone
  only, or only for investments
• more likely for consumer banking
• represents larger technical investment from banks
• Voice
• Offered now for Customer Service, Voice Wires

• Mobile Banking World
• consumer
• payments
• corporate /treasury
• service

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Mobile Banking

• Retail/Consumer
• mobile browser, text messaging, downloaded
  applications
• balance lookup, transaction history, transfers,
  ATM and branch locator, person to person payments
• mobile wallet in the future
• card information, stored value on phone
• Payments
• merchant accepts contactless payments using card
  readers
• common in Asia
• pilot projects in various places in US transit,
  fast food

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Corporate Mobile Banking Why?

• The Future
• Look at all of the age statistics for mobile
  usage these are our future customers and future
  employees
• Mobility is fundamentally changing peoples
  behavior today
• The default is online and connected and reachable
• Still respond to emails, even though you turn on
  your Out of Office message?
• People will expect the same from their bank
• Work life and personal time more cross over
  for our own convenience
• The Present
• Mobile landscape has changed from 5 years ago
• Faster, more robust, more ubiquitous
• Dual control for transaction approvals and fraud
  prevention when someone is away from the office
• Ability to manage your banking when the bank is
  open and your office is closed (Holidays)
• Ability to manage your banking should a disaster
  happen (enhances DR plans)
• The opportunity is here. Improve work efficiency
  and effectiveness
• Cant find someone to approve the electronic
  transfers?

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Corporate Mobile Banking What and How

• Snack Size, Dont Super Size
• Critical
• Time Sensitive
• Completed by people who are away from their desks
• No time to boot up a laptop
• Ideal for dual control approvers often one or
  more approvers will be hard to reach

• Mobilize, Dont Miniaturize
• Dont recreate website on the mobile device
• Targeted Information
• Task Oriented

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Customer demand is strong for a variety of
features
Customer Service
Payment Initiation
Payment Approvals
Positive Pay Decisioning
InteractiveExecution
Administration
Transfers
Investments
Balances / Account Info
Payment Details
View Check Images
Alerts
Basic Reporting
StaticInformation
Informational
Size of Circle Represents Customer Demand
Managerial
Color Represents types of Mobile Abilities
Transactional
Service Related
Source Celent 2008
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Wells Fargo Business Approach

• Provide what you need, when you need it
• Real time and actionable

• Future
• Information/process flows
• Link information to streamline processes
• How does being mobile change the workflow?
• Different mobile channels
• Voice
• Browser
• Text Message
• Widget

• Now
• Information delivery
• Alerts/Notifications
• Reporting
• Transactions
• Approvals
• Authorizations
• Decisions
• Exceptions

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Corporate Mobile Banking Where?

• While traveling away from the office
• In meetings, but at the office
• Before, during, after commute hours
• BCP business continuity during outages

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Day in the Life - All via Mobile

• Morning Commute or Morning Coffee
• check your cash positions
• view calendar of payments due
• initiate a wire
• At the Office, But in a Meeting
• receive text message alert of potential fraud
  item (e.g. over ACH pre-set limit)
• view exceptions, take action
• After Hours
• view end of day balances and sweep amounts
• approve a one time wire limit increase for staff
  member
• get confirmation of month end close
• review and release payroll ACH batch

Combination of text message, email, calendar,
mobile browser
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Mobility Challenges

• New channel brings new environment
• Number of players
• Authentication
• Network speeds
• Security
• Device differences
• Testing
• Customer Service
• Business model is still evolving!

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Security

• Messaging
• Text messages sent in the clear must not contain
  confidential info
• Message remains on the device unless you delete
  it
• Mobile Browser
• Session should not cache data on the device
• Session should time out after period of time
• Log in and transaction credentials required
• 2nd factor where necessary
• Session should be https, or SSL, secure socket
  layer 128-bit encryption throughout the network
• Applications
• Potential for greater security (unlike phishing a
  website)
• Application and data are on the device if its
  lost or stolen
• must have mechanism to wipe the device
• Log in and transaction credentials required
• 2nd factor where necessary

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Mobile Wholesale Banking

• Questions?
• Contact
• Kim Knight
• kimberly.j.knight_at_wellsfargo.com
• 615 279-4624
• Amy L. Johnson
• amy.l.johnson_at_wellsfargo.com
• 415 371-4546

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Wells Fargo (NYSE WFC)

• Based in San Francisco, CA
• US 575 billion in assets and over 159,000
  employees
• Over 5,900 stores and 6,900 ATMS
• Wide range of financial products and services
  domestically and internationally
• Specifically for wholesale transactional and
  asset based lending, treasury management,
  equipment leasing, international services,
  investments, insurance brokerage, risk
  management, and real estate services
• Moody Aaa Rating SP AAA Rating

(as of 12/31/07)