Electronic Bill Presentment

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Electronic Bill Presentment Payment via Secure
eMail
Presented by Garin Toren Chief Operating
Officer
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Email EBPP is not new, its only new in North
America
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Research 2004 / 2005

• Gartner believes that, by 2006, e-mail will
  become the dominant delivery mechanism for
  e-bills, as more consumers discover the
  convenience of the e-mail box as an e-bill
  aggregator (0.7 probability)
• Avivah Litan, Research VP, Information Security
  Risk, Gartner, Jan 2004
• "There are several advantages to a corporation in
  pushing sensitive information to a customer
  rather than having them go pull the information,
  and one of the biggest advantages is that's the
  preference of the customer. Avivah Litan,
  Research VP, Information Security Risk,
  Gartner, Jan 2004
• It is imperative that billers maximize cost
  saving opportunities. Vendors like Striata are
  allowing for bill payment directly from within
  email, limiting the involvement of banks, but
  also eliminating the need for the consumer to
  visit a website to pay a bill. This push of
  (email) bills to consumers allows for expanded
  self-service, and hence reduced call center
  volume, as well as outstanding bills being paid
  more quickly.
• Bruce Cundiff, Lead Analyst, Jupiter Research,
  Dec 2004

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ABSA Bank Case Study

• Background to Bank
• Leading SA Bank (1 of big 4 retail banks)
• 6 mil. Customers, 680 Branches, 5 000 ATMs, 31
  000 Employees
• /- 8 have email addresses
• Perceived as having strong online strategy
• Innovative in technology adoption
• Environment
• High fraud rates
• Costly Internet banking infrastructure
• Cost-income ratios under pressure
• Major repositioning and rebranding initiatives
• Aggressive competitors encouraging churn

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Initiative Objectives

• Primary
• Reduce costs and therefore improve profitability
• Increase customer loyalty and retention levels
• Improve service levels
• Improve target marketing opportunities
• Secondary
• Encourage move from physical to virtual
• Instant delivery and delivery tracking
• Add flexibility and value-added functionality to
  billing elements for customers
• Dramatically reduce billing costs,
• enhance customer service and
• provide a dynamic and flexible
• marketing channel

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Implementation Requirements

• Primary
• Deliver secure statements by email
• Credit Card Statements
• Vehicle Finance Statements
• Allow for target marketing to individual
  customers
• Create customer self-service functionality
• Replicate look and feel of paper statements
• Secondary
• Create additional value above paper
• Provide consolidated account statements
• Allow for document images for online confirmation
  or rejection
• Provide navigable information

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Results

• Project implementation 16 weeks
• Scoping, planning, procurement, installation,
  training and roll-out
• Achieved real conversion
• 20,000 customers (200,000 docs) per month in Y1
• 36,000 customers (340,000 docs) per month in Y2
• Target 180 000 customers (1,7m docs) per month
• Cost savings 70 - 80 per document sent (R5,6m
  per annum)
• Exceptionally positive customer feedback
• Minimal call centre impact with incoming email
  management
• Inclusion of targeted marketing within
  operational communication
• Adoption strategy comparisons for a
  demographically similar base
• Opt-in (Vehicle Finance) achieved 17 adoption
• Opt-out (Credit Card Statements) achieved 95.6
  adoption

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The Solution
ASBA Credit Card demo striata to open.
Customer extremely satisfied with the project
results. Striata has been chosen as the de
facto messaging platform within the group.
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EBPP Adoption

• EMail Bill Presentment and Payment strategies
  drive significant customer adoption
• Remove the need for the customer to register
• Deliver the statement directly into the
  customers inbox
• Existing customers Encourage paper truncation
• Opt-out
• Opt-in
• New customers Never send paper at all
• Personalize all aspects of the bill associated
  marketing material
• Leverage direct customer service functionality
• Take instant payment (where applicable)

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Payment Options

• Paying the secure email bill can be achieved
  through three different options
• Payment directly from within the email.
• Secure linking to an Internet payments page.
• Secure linking to the billers online bill pay.

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Discussion
Thank you for your time today!