Innovation, Changing Customer Behavior and Privacy · Bill presentment preferences 2013 Aite 2018 E&E Paper Only Paper & Digital Digital Only Utility Specific EBPP behaviors Utility

Innovation, Changing Customer

Behavior and Privacy

Leah Phillips, Brenda Magri

and Andrea Whisler

© 2019 Fiserv, Inc. or its affiliates.

Deliver best-in-class payments experiences to customers

Deliver value to your customers

Increase customer satisfaction

Data driven innovation and prioritization

Digitization & automation

Supplier diversity

Cybersecurity and privacy

Utility industry aspirations

2

© 2019 Fiserv, Inc. or its affiliates.

Expectations & behaviors, along with technology, have evolved with respect to bill payment

Offline

Online

DigitalBroad

NarrowPaper bill Cash Check

60s, 70s, 80s Mid-2000s–Today

Debit

Mobile

Text

Email

Apple Pay

Google Pay

PayPal

Reach / Engagement

Mid-90s–Mid-2000s

FI bill pay BillerE-bill

IVRCSR

Credit

Walk-in

ACH

Wave 1

Wave 2

3

© 2019 Fiserv, Inc. or its affiliates.

How are consumers paying their bills today? An evolution of methods, channels & experiences …

>75% of payments are now electronic (ACH, debit card, credit card)

~60% of payments are happening online (Biller Direct, FI Bill Pay, 3rd Party)

Digital delivery continues to rise

1Aite - How Americans Pay Their Bills, Jan 2013/2017 | Aite - Sizing eBill Adoption, June 2017 | InfoTrends - NA Transactional Consumer Survey, May 2018 | E&E - Consumer Payments, December 2018

4

40%

15%2%

10%

23%

10%

Direct Debit/IVR

FI Bill Pay3rd Party

Walk-in

Mail

Bill payment preferences1 Payment method preferences1

6%4% 4%

40%26%

19%

36%

36%46%

7%

10%15%

11%20%

15%

2010 2013 2016

Biller DirectDebit Card

Credit Card

ACH

Check/MO

CashOther

Online bill pay trend1 Bill presentment preferences

62%68% 72%

38% 30% 25%

2% 3%

2010 2013 2016

3rd Party

FI Bill Pay

Biller Direct68%

19%

13%

36%

34%

30%

2013Aite

2018E&E

■ Paper Only ■ Paper & Digital ■ Digital Only

Aggregate EBPP behaviors

© 2019 Fiserv, Inc. or its affiliates.

Utilities bill pay behaviors

1Aite - How Americans Pay Their Bills, Jan 2013/2017 | Aite - Sizing eBill Adoption, June 2017 | E&E - Consumer Payments, December 2018

5

40%

15%2%

10%

23%

10%

Direct Debit/IVR

FI Bill Pay3rd Party

Walk-in

Mail

Bill payment preferences1 Payment method preferences1

6%4% 4%

40%26%

19%

36%

36%46%

7%

10%15%

11%20%

15%

2010 2013 2016

Aggregate EBPP behaviors

Biller DirectDebit Card

Credit Card

ACH

Check/MO

CashOther

Bill presentment preferences

2013Aite

2018E&E

■ Paper Only ■ Paper & Digital ■ Digital Only

Utility Specific EBPP behaviors

Utility specific behavior callouts

44%

12%

16%

21%

5%

ACH

Credit Card

Debit Card

Check/MO

Cash

25%

16%

59%

Digital Only

Paper & Digital

Paper Only

6%

38%

15%

12%

24%

IVR

Biller Direct

FI Bill Pay

In Person

Mail

■ E&E■ Aite

81%Charge fee for

credit card payments

25%Are considering absorbing card

fees

30%Reduction of card fees in past 2 years

46%

Are offering mobile app bill payment

BILLING & PAYMENTS MAKES UP ~20% OF

JD POWERSCUSTOMER SATISFACTION SCORE

Online bill pay trend1

3rd Party

FI Bill Pay

Biller Direct 62%68% 72%

38% 30% 25%

2% 3%

2010 2013 2016

68%

19%

13%

36%

34%

30%

© 2019 Fiserv, Inc. or its affiliates.

But consumers are changing how they interact with the digital world…

Consumers expect multi-channel, multi-modal - multi-experience -NOW.

6

© 2019 Fiserv, Inc. or its affiliates.

What will billing and payments look like in 5 years?

- “State of the Connected Customer,” Salesforce, June 2018

Percentage of consumers who believe that technology has transformed, is transforming or will

transform their experience within five years:

7

77%

(Chatbot)

87%

(AI / cloud)

87%

(Voice assistants)

© 2019 Fiserv, Inc. or its affiliates.

Key technologies to driving a frictionless customer experience

Technologies reaching

critical mass adoption

• Mobile bill presentment

• Apple Pay, Google Pay, direct debit with bank

• Analytics/dashboard capabilities

Emerging technologies

• Digital assistant

• Field payments

• AI/predictive analytics

• Biometrics

8

© 2019 Fiserv, Inc. or its affiliates.

Balancing Innovation with Security and Privacy

9

© 2019 Fiserv, Inc. or its affiliates.

Certified PCI compliant

Certified HiTrust compliant

Get the AOC and review the SOC

Talk to the security/privacy professionals and muzzle the buzzwords

Security training and evolving threats

Security and privacy investment

Key security attributes for a payments partner

10

© 2019 Fiserv, Inc. or its affiliates.

Be sure of PCI compliance

11

© 2019 Fiserv, Inc. or its affiliates.

HITRUST isn’t just for healthcare

• Originally established to test an organization against HIPPA controls – the gold standard of security and privacy

• Aligns with NIST Cybersecurity, PCI and HIPPA control requirements

• Certification requires assessment by 2 entities

In short – It’s a big deal!

12

© 2019 Fiserv, Inc. or its affiliates.

Ensure you get the AOC (not the congresswoman) and review the SOC.

AOC

• A form for merchants and service providers to attest to the results of a PCI DSS assessment.

• It must:

• Be provided on the council’s official AOC document

• Clearly identify the service(s) being supplied to you

• Clearly identify summary of requirements tested

• Clearly identify date completed (must be less than 1 year from your ROC or SAQ)

SOC

• Internal controls on financial reporting

• Internal controls for Security, Availability, Processing, Integrity, Confidentiality and/or Privacy

13

“Bottom line, if your service provider refuses to provide you with their AOC…then find another service provider.”

- “Who Needs an AOC and Why?” Proofport.com 2019

© 2019 Fiserv, Inc. or its affiliates.

“Muzzle the buzzwords and talk to the

professionals…this isn’t a part-time job.”

– Brenda Magri, Sr. Director and ISSO, Fiserv

14

Bank-level

CASTLE

FORTRESS

Armored

© 2019 Fiserv, Inc. or its affiliates.

Security and privacy are not destinations…it’s a never-ending journey

Be certain to know the level of security

training and ongoing commitment from your

partner organization.

Investment is critical in a world of constantly

evolving threats and an ever-changing

landscape.

15

© 2019 Fiserv, Inc. or its affiliates.

Q&A

16

© 2019 Fiserv, Inc. or its affiliates.

In This Session

17

Brenda MagriSr. Director, Security [email protected]

Leah PhillipsVice President, General [email protected]

Andrea WhislerVice President, Client Management [email protected]

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