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Innovating in Mobile Technology to Serve More Members & Meet More Needs
Board of Governors of The Federal Reserve System "Cash, Check or Cell Phone?"
Victor Pascucci III
USAA, Assistant Vice President
Office of Enterprise Transformation
February 23, 2010
PUBLIC INFORMATION: May be discussed or shared with non-USAA employees.
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Agenda
1. Introduction to USAA
2. View of the Mobile Environment
3. How USAA has Innovated in the Mobile Environment to Serve More Members, Meet More Needs
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What We Do
Our Mission
The mission of the association is to facilitate the financial securtiy of its members, associates, and their families through provision of a full range of highly competitive financial products and services; in so doing, USAA seeks to be the provider of choice for the military community.
Our Core Values - Service, Loyalty, Honesty, and Integrity.
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Who We Are
- We Know What It Means To Serve
- Founded in 1922 by 25 army officers to ensure each other
- banking, insurance, and investments for 7.4M of America's active and former military and their families
- Fortune 100Company assets, Fortune 200 income
- Forrester Research Inc - top-ranked company by cusumers for customer advocacy
- BusinessWeek top Customer service champs
- 2009 returned $1.2 billiono to our members
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Image of military men sitting out side at a table in a partitioned area with a sign that says "USAA IS MOVING MOBILE IN A WHOLE NEW DIRECTION. TRY USAA MOBILE."
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Mobile Internet Outpaces Desktop Internet Adoption
iPhone + iTouch Users= 8x AOL Users 8 Quarters After Launch
Chart entitled iPhone + iTouch vs. NTT docomo i-mode vs Netscape vs. AOL Users
First 20 Quarters Since Launch
Line chart with 4 series. Quarters Since Launch on the x-axis and Subscribers (in millions) on the y-axis. First series: Mobile Internet, iPhone + iTouch, Launched 6/07. Rises steadily from zero at launch to about 57 million users at 9 Quarters Since Launch. Second series: Mobilie Internet, NTT docomo i-mode, Launched 6/99. Rises from zero at launch to about 25 million users 9 Quarters Since Launch. Continues to rise to about 40 million users at 19 Quarters Since Launch. Third series: Desktop Internet, Netscape, Launches 12/94. Rises from zero at launch to about 11 million users 9 Quarters Since Launch. Peaks at about 50 million users 17 Quarters Since Launch, then begins to decline. Fourth series: Desktop Internet, AOL, V2.0 Launched 9/94. Rises from zero at launch to about 7 million users 9 Quarters Since Launch. Continues to rise to about 19 million users 19 Quarters Since Launch.
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AT&T 50x Mobile Data Traffic Increase in Past 3 Years
Chart Entitled: AT&T Mobile Data Traffic Growth, CQ2:06 - CQ2:09"
Y-axis: Mobile Data Traffic on AT&T;s Network
(Normalized, CQ2:06=100)
X-axis: Quarter
The chart shows a 4,932% increase in Mobile Data Traffic over the period included in the chart.
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Consumer Demand
Chart Titled: Desktop and Notebook Sales
The chart show an increase in notebook sales from around 5 million in 2003 to a projected level of around 35 million in 2012. The charts shows a decrease in desktop sales from around 13 million to around 5 million over the same time period.
Source: Consumer Electronics Association, Q2-08.
Consumers always want to be mobile
Chart Titled: Feature and SmartPhone Sales
The chart shows a rise in SmartPhone sales from about 5 million is 2003 to a projected level of about 150 million in 2012. Over the same period, the chart shows an initial rise in Feature phone sales from around 75 million to about 110 million in 2007, before giving way to a decline to a final projected leval of about 20 million. Source: Consumer Electronics Association, Q2-08.
Consumers always want to be connected
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Chart entitled "U.S. Mobile Banking Adoption"
X-Axis: Year. Y-Axis: Number of US Adults, in millions
The charts shows a rise in the Number of US Adults from about 10 million in 2007 to a projected level of 108 million in 2012, a 58 percent adoption rate. Source: Mobile Channel Usage Forecast, Javelin Study, Jan. 2008
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Industry Supply
Chart Entitled "Wireless Data Services Revenue"
Charts shows a rise in Wireless Data Services Revenue from about $5 billion in 2004 to a projected level of about $100 billion in 2012. Source: Consumer Electronics Association, Q2-08
Increased Carrier Revenue
Chart Entitled "Bandwidth Growth"
Charts shows a rise in cable bandwith growth from a level of almost zero in 2002 to a projected level of about 7,600 Kbps in 2012. Over the same time period, the chart shows a rise in mobile bandwith growth from a level of almost zero to a projected level of about 17,600 Kbps. Source: Consumer Electronics Association, Q2-08
Increased Data Speeds
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"iPhone App Growth"
Chart titled 0 to 3 Billion...in 18 Months.
Line chart showing the number of iPhone Apps increasing from zero in July 2008 to 3 billion in December 2009.
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Chart entitled "3G vs. 4G – In Perspective"
'74 Corvette vs. Land Speed Record
3G speeds: 35 KB/s
4G speeds: 1.5 MB/s
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Chart entitled "3G vs. 4G – In Your Face"
Image depicting how 4G is much faster than 3G
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USAA's Challenge
Members want USAA with them, wherever…
Where our members are - total members
North America: 6,656,446
Europe: 97,210
Asia: 51,589
Africa: 802
South America 2,302
Australia: 1,136
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Remote Deposit Capture
DEPOSIT@HOME®- Introduced over three years ago
- Uses a scanner, computer, and internet connection
- Introduced August 2009
- Uses a camera enabled smartphone, cellular network or WiFi
- On Jan 1, 2010 surpassed $250 million in deposits via the iPhone (144th day in production).
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USAA- What Our Members Say
Member Inspired and Market Driven Need
"I really have no need for a local bank. I like being able to do it all online." – Justin Moran member since 1997
"Don't know how we made it before [email protected] like cell phones. – Anonymous Member October 29, 2009
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Image of a news headline that reads "Say Cheese & Deposit: Bank Allows Check Deposits Using Pics"
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Low Bandwidth, Feature Phones
Image of the logon screen on a low bandwith feature phone
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USAA Mobile Web Adoption
USAA Mobile Adopters
- 900K Weekly log-ins
- 27M log-ins YTD
- 81% Use Smartphones (iPhone, BB)
- 35% Use iPhones
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What's Next: Device Expansion
- Blackberry
- Android
- Windows Mobile
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What's Next - Voice Activated Transactions
Speech and Mobile Integration
Image of a man in his car talking into his SmartPhone, directing it to make a payment to his account
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USAA's iPhone Application
Statistics:
Over 390K Downloads
150K Unique Members Depositing Checks
Over $250M Deposited via D@M
Only Financial App with a 4+ Rating
Apple Staff favorite
Apple iTunes
"Great app!!
It far exceeded all of my expectations for an iPhone app from a a financial institution! Love it!!"
Number 1 Free Finance App on App Store
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Image of a man using a pda.
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Image of USAA logo