Electronic Banking

1
Electronic Banking

• David L. Peterson
• Executive Vice President

2
Online Banking

• Many consumers and businesses now want to have
  access to their bank beyond traditional office
  hours
• The reliability of the Internet, even in remote
  areas is becoming the standard for the delivery
  of banking services
• Consumers are becoming more non-cash oriented,
  using debit cards more frequently
• Volume of checks written is decreasing

3
Portrait Of An Online Customer

• Generates 50 more revenue than an average
  customer.
• Holds 20 higher average balances.
• Uses more bank products and services.
• Costs you about 14 less than customers who use
  branches only.
• Online customers are 50-80 less likely to leave
  the bank those who use your bill pay offering
  are even less likely to leave.

Source CSFB Case Study, March 2001
4
Online Banking Usage 2004
www.banktechnews.com January 2004
5
Why Bank Online?
www.banktechnews.com January 2004
6
Additional Online Usage

• Bill Payment
• Local bill payments within the financial
  institution
• Pay any merchant
• Cross-border
• Account to Account transfers

Source CSFB Case Study, March 2001
7
Business Needs

• Cash Concentration between FI accounts
• Wire Transfer
• Currency / Bond transactions
• Tax Payments
• Low cost, small value clearing house (ACH)
• Initiation of debits and credits targeted to
  consumers to automate traditional paper based
  transactions

8
What Small Businesses Use/Want
ACH
Source Magnet Communications survey, American
Banker, August 1, 2001
9
Merchant Costs Per Payment Type
ACH payment methods are cheapest form of
electronic payment for merchants to accept.
Cost (Cents)
0.20
0.12
Credit/ Offline Debit Cards
Food Stamp Coupons
Online Debit Cards
Cash
WIC Checks
ACH (E-Checks)
Checks
Primary Source FMI Cost Study of Retail
Payments, 2000 ACH E-Check Source Banks,
Billers, Prove Eager To Truncate Checks
American Banker Friday, January 17, 2003 By
Will Wade
10
On The Horizon

• Checks converted into electronic debits
• Conversion of Lockbox/Dropbox Checks, Returned
  Checks, Point-of-Purchase Checks, Web Checks, and
  Telephone Checks
• Stored-value / Smart cards
• WiFi / Radio Frequency
• ACH Cross Border

11
Parting Advice

• Provide 24x7 access for all consumers, including
  access to check images
• Improve online services for small businesses
• Email Alerts for Check Clearance Bill Pay
• Offer ACH for low value payments
• Work towards giving online consumers
  account-to-account payment options

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David L. PetersonExecutive Vice President
www.goldleaf.com PH [phone] FAX (229)
794-4126 E-mail david_at_goldleaf.com