How Will FinTech Change the Way Challenger Banks Reward and Engage Consumers Mladen Vladic General Manager of Loyalty Services, FIS
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How Will FinTech Change the Way
Challenger Banks Reward and Engage The CardLinx Association
Consumers
Mladen Vladic CARDLINX WEBINAR 2020 September 9
General Manager of Loyalty Services, FIS
Today’s Agenda
Welcome from Becca
Donahue, Director of
Meeting Services, The Open Q&A From All
CardLinx Association Attendees
9:00 AM 9:10 AM 9:45 AM 10:00 AM
Presentation from CardLinx Meet-Ups
Mladen Vladic, Begin
General Manager of
Loyalty Services at FIS
NEW! The FinTech Friday Weekly Podcast
cardlinx.org/podcast
Coming Up In October… https://cardlinx.org/events/webinars/
‘Fiction Becomes
Reality: The New
Age of One-to-
One Marketing’
Speaker:
Ryan Wuerch, CEO
Tuesday, October 20
9am-10am PST
CardLinx West | October 7, 2020 | via Zoom
https://cardlinx.org/events/cardlinx-west-2020/
Ashwin Raj, Paul Siegfried
VP of Payments Senior Vice President
Lyft TransUnion
Ryan Wuerch Mehmet Sezgin
Chief Executive Officer CEO
Dosh myGini
CardLinx East | December 8, 2020 | via Zoom
‘Looking Beyond 2021: The Age of Digital Commerce Post Covid-19’
To Pre-Register:
Email Rebecca@
cardlinx.org
Bruno Chauvat Darby Sieben
Sarah McCrary Chi ef Executive Officer
Chi ef Executive Officer Tra vel sify
Head of Ampli
Ga s Buddy RBC Ventures
HOW WILL FINTECH CHANGE THE WAY CHALLENGER BANKS REWARD AND ENGAGE CONSUMERS? Mladen Vladic, General Manager - Loyalty, FIS September 9, 2020
COVID-19 Global Influence
FIS CEO, Gary FIS was involved in Involved in EU / UK Partnered with Successfully Lobbied Partnered with
Norcross was successful lobbying payments advisory Government lobbied for Congress to U.S. Treasury
appointed a for deferrals of groups to increase Banking Service in waiver of ensure all to help and
member of the Payment Network, contactless the UK to provide excessive channels could engage in
White House April tech changes transaction NHS workers chargeback, be used to operationalizing
Great American and cost increases threshold amounts grocery supplies, fraud penalties distribute relief to economic relief
Economic Revival until July along with to aid in social waiving and and fees for the small businesses. for individuals
Industry Group. some cost changes distancing. reducing fees. travel sector. and businesses.
deferring until
October.
10Transformative Forces
BIG DATA
Analyzing complex data to reveal patterns, trends, and
associations that provide new customer insights.
EXPERIENCE
Delivering simple personalized digital experiences and loyalty
driven value across multiple channels.
NETWORK EFFECT
Leveraging componentized platforms to initiate instantaneous adoption.
PACE OF CHANGE
A constantly accelerating time to market for new technology.
11Rapidly Changing Payments Landscape
Confluence of factors driving rapid pace of
innovations benefiting consumers!
• Changing consumer behavior trends accelerated by COVID-19
• Shift to eCommerce spend
• Use more online/mobile banking instead of in-branch servicing
• Increased use of call center/chat services
• Rise of contactless payments
• Online payments and bank transfers/wire
• Remote financial adviser services
• Rise of digital payments and the slow decline of plastic
• Rise of nontraditional financial service providers
• Faster payments
12Rewards have dramatically evolved
Disrupting the traditional loyalty landscape by creating a new type of currency
Pay with Points
Acceleration of this trend by
consumers looking to access and
monetize loyalty currency for an
immediate benefit
Consumers expect full flexibility and
dynamic value exchange
Premium
Airline Retailers
Miles
Utility Based
Diners
Rewards
Club POS & Ecom m erce
Experience Post Transaction
Based Redem ption
Rewards Connected Car Paym ents
Source: Deloitte Center f or Financial Serv ices analy sisAs consumer needs change, the cost to meet
those needs is driving down ROI
Rewards Expense vs. Card ROI Reasons for using Cards 3
$180 6%
$168
Rewards, offers, and
$150 $140
$145
$155
72% discounts
4.4%
$120
4.0%
3.8%
4%
53% Not having to carry cash
$90 3.4%
Buying things I could not
$60 2%
36% afford without credit
2015 2016 2017 2018
Average issuer rewards expense1 (M) ROI of large US card issuers2 (%)
Source: (1) Federal Financial Institutions Examination Council, Consolidated Reports of Condition and Income (Call Reports), (2) Bureau of Consumer Financial
Protection, "The Consumer Credit Card Market," August 2019. (3) Deloitte Center f or Financial Serv ices. Pay ments survey among US consumers, 2019.The impact of COVID-19 has rapidly
accelerated trends that we have
been seeing for years in terms of
banking and digital payments.
Go forward strategy:
✓ Reassess your go-to-market
strategy and value proposition
✓ Adjust as needed
✓ Execute
15Q&A
At this time, we will open the meeting up
to Q&A. If you have a question please
unmute yourself or type the question in the
chat box at the bottom of the screen.Event Feedback Survey
A 4-question survey will pop up on
your screen. Please fill out this survey
as it helps us understand how to
better prepare for virtual events in the
future.
All answers are confidential.CardLinx Meet Ups
At this time, you will now be paired up for
CardLinx Meet Ups in a private breakout room.
You will have 15 minutes to connect. The
meeting will conclude once Meet Ups are over.THANK YOU The CardLinx Association
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