Latest Findings on Utility Mobile Bill Pay Benchmarking and Consumer Trends Why Mobile Bill Payment is Thriving and How Utilities are Responding Eric Leiserson,

Latest Findings on Utility Mobile Bill Pay Benchmarking and Consumer Trends

Why Mobile Bill Payment is Thriving and How Utilities are Responding

Eric Leiserson, Sr. Research Analyst

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It’s an EXTRAORDINARY TIME to be in the Utility Payments

Business!

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Why it is an EXTRAORDINARY TIME to be in the Utility Payments Business!

• Payments is where the money is at!

• Presentment is where opportunities are!

• Card payments are challenging!

• Mobile is inevitable and transformative!

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Mobile’s Hyper Evolution in Utility Payments

2011: “Mobile bill pay is coming!”

2012: “Mobile bill pay is here, now what?!”

2013: “Mobile bill pay is surging, how are utilities responding and what have we learned?”

2014: “Mobile bill pay is thriving, where do you stand?”

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Mobile Bill Payments: Entering the Mainstream and Getting Promoted

GEICO’s Maxwell the Pig “Pants and Boots” Commercial

Adopting the Mobile First Mindset

• What are consumers doing with mobile and Mobile Bill Payment

• What are utilities doing with Mobile Bill Payment

• What does this mean to you?

© 2013 Fiserv, Inc. or its affiliates.

What Consumers are Doing with Mobile and Mobile Bill Payment

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2014 is a Watershed Year for Consumer Mobile Usage

• 65% of the US Population has a smartphone

• Mobile Accounts for the Majority of internet usage

• One in two Americans turn to digital devices as their primary method of banking

Sources: U.S. Digital Future in Focus 2014, ComScore, Bank of America and The Financial Brand, 2014

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How Important are People’s Mobile Phones to Them?

Source: Bank of America and The Financial Brand, 2014

Alcohol; 45%

Choco-late; 34%

Shopping; 22%

TV/Movies;

16%

Sex; 13%

Car; 8%

Take people’s phones away, and here’s what they would give up to get it back

Percent of Mobile Bill Payers Grew by 69%; Numerous Reasons Why

6%8%

16%

27%

% of US Online Households using Mobile Bill Pay

2011 2012 2013Pay at last minute

Anytime access

Not near a computer

Convenient when on the go

Saves time

Easy to do

30%

31%

32%

34%

41%

44%

Why?

2014

Source: Seventh Annual Billing Household Survey, Fiserv Inc., 2014

Paying/Receiving Bills via a Smartphone Has a Positive Impact Customer Satisfaction


What effect would paying and receiving bills from a smartphone have on your relationship

with a biller that provided that ability?

Bill Pay Reminders Enhance Customer Satisfaction; 71% More Likely to Activate E-bills

What impact would bill pay reminders have on your customer satisfaction?


How Utilities Stack Up; Percents of Mobile Bill Payments by Type of Bill

Insurance

Electricity

Cable or satellite

Cell phone

23%

30%

39%

56%

26%

39%

51%

54%

2014

2013

Please indicate which bills you paid using your mobile phone (Among Smartphone Bill Payers)


Utility

Volume of Mobile Bill Payment Transactions by Access Channel and Tender Type

Other app9%

Biller app9%

Bank app13%

Text11%

Biller's mobile site29%

Bank's mobile

site29%


Other11%

Prepaid Card9%

Debit card24%

Credit card17%

ACH 39%

Mobile Bill Payment Volume by Access Channel

Mobile Bill Payment Volume by Tender Type

About 40% of Tablet Owners Have Visited a Biller’s Site, Mostly to View or Pay a Bill

No59%

Yes41%

Up from 37% last year and 30% the year before Learn more about service

Marketing offers

Learn about the company

Use online self-service

Contact customer service

Shop

Access bill history

Pay a bill

16%

16%

18%

20%

21%

26%

42%

51%

Among Tablet Owners: Have You Visited a Biller’s site

Reasons for visiting a Biller’s site


© 2013 Fiserv, Inc. or its affiliates.

What About Google Glass and Apple Pay?

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What Utilities are Doing with Mobile and Mobile Bill Payment

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Key Mobile Stats Among 70 Utilities Surveyed

43% have mobile optimized websites

26% of utilities have mobile bill payment

32% have alerts

24% have apps (iOS and Android)

Top Business Motivators for the Mobile Channel

Do you see the development of the Mobile Device channel providing a means to:

Increase online self-service

Meet customer demand

Increase paperless

Increase E-Payments

Enhance customer service

72%

74%

82%

84%

93%

Source: Third Annual Biller Mobile Bill Pay Benchmark Study, Blueflame Consulting for Fiserv, Inc., 2014

N=70 utilities

17% of Utility Web Visits Come From Mobile Devices; Top Activity is Billing and Payment

Don't Know

30% +

20% - 25%

10% - 15%

Up to 5%

37%

11%

5%

5%

11%

11%

5%

11%

5%

What do your customers usually do?

Customer care

Review account status

Don't Know

View bills & balances

Bill Payments

5%

16%

21%

26%

26%


N=70 utilities

What percent of customers come from mobile devices?

Service Updates and Bill Pay are Top Mobile Priorities for Utilities


What are your organization's priorities among these Mobile service options?

N=70 utilities

Market services

Recent activity/usage info

Alerts and Notifications

Communications

Customer Service

eBills

Mobile Bill Pay

Service Updates (outages, etc.)

8%

7%

10%

13%

13%

14%

37%

47%

83% Believe A Consistent User Experience Across Interfaces is Important / Very Important

Biggest Drivers for MBPP Adoption Continues to be Customer Service and Cost Savings

What are the primary drivers for your organization's consideration and/or adoption of Mobile Bill Pay and Presentment?

Matching Tablestakes

Reaching out to new customers

Wave of the future

Customer Acceptance/Adoption

Potential increased eBill Adoption

Potential cost savings

Providing better customer service

9%

22%

38%

55%

67%

70%

94%


N=70 utilities

More and More Utilities Believe Mobile Will Influence EBPP and Paperless Adoption Over the Years

Do you think mobile will influence the adoption of electronic Bill Pay and paper statement turn-off?


2012 2013 2014

17% 16% 12%

67%49%

49%

17%31% 40% Yes, significant

Some, incremental gains

Potentially in the long run

No, only marginal gains

N=70 utilities

Mobile Influence on Adoption of Paperless E-bills; Results

40 Paired year/year comparisons of participating companies’ paperless e-billing rates and deployed MBPP features

eBills Mobile Bill Pay Alerts and Notifications

17% 17%14%

25% 25%21%


Compare to average of 3% increase in e-bill penetration for Billers who do not offer MBPP functionality

+47% +47%+50%

N=128 Billers

Top Business Obstacles Utilities Face to Mobile Deployment—Increasing Concern for Security

Too many Devices/ Operating Systems

Benefits are difficult to quantify

Customer Adoption

Complexity of the task

Security Concerns

Conflicting Priorities

IT Resource Challenge

20%

22%

27%

30%

35%

55%

72%


What are the top 3 Obstacles to Mobile deployment and adoption?

N=70 utilities

Lessons Learned from Experience

“The impact of the consumerization of these devices with our customer base with the rapid growth and availability of the devices, and the apps that have been developed for them, the expectations from our customers around usability and features has increased tremendously.”


(Utility, 1MM+)

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Taking Action

• Adopt a “Mobile First Mindshift”

• Employ an Omni-Channel Mobile Billing and Payment Strategy

• Track online visits from mobile devices and monitor changing technologies and preferences

• Proactively collaborate with other teams and market experts

Embrace this Extraordinary Time in the Utility Payments Business!

Questions and Answers

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Contact Information

Eric Leiserson, Sr. Research Analyst, Fiserv

[email protected]

Latest Findings on Utility Mobile Bill Pay Benchmarking and Consumer Trends

Why Mobile Bill Payment is Thriving and How Utilities are Responding

Eric Leiserson, Sr. Research Analyst

Latest Findings on Utility Mobile Bill Pay Benchmarking and Consumer Trends Why Mobile Bill Payment is Thriving and How Utilities are Responding Eric Leiserson,

Documents

mobile bill payment

utility mobile bill

type of bill

percent of mobile bill

utility slide

smartphone mobile accounts

consumer mobile usage

peoples mobile phones