From Paper To E-Payments:
The Story of
Wells Fargo Home Mortgage
Nathan Stephenson
Terri Godlevsky
Agenda
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Wells Fargo – Who are they?
The Home Mortgage Industry
What is the ACH Network?
From Paper to E-Payments
Competitors
Conclusions / Recommendations
A Look at Wells Fargo
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Diverse financial service company
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Banking, insurance, investments, mortgage
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Home Mortgage Division = 20% of business
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#1 Home Mortgage Lender
A Look at Wells Fargo (Continued)
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Vision:
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Satisfy customers’ financial needs
Help customers’ succeed financially
#1 Financial Service Provider in each market
Cross Selling
Home Mortgage Industry
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Late 70’s and early 80’s
1990’s
1993
2001 , 2002
Trends
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Customer Protection
Cashless Society  Physical Cash = 8%
What is the Automated Clearing House
(ACH) Network?
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Description
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Five Participants
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Originator
Originating Depository Financial Institution (ODFI)
Automated Clearing House Operator
Receiving Depository Financial Institution (RDFI)
Receiver
The ACH Network
From Paper to E-Payments
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The Ratio of Paper Payments to E-Payments
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In 2000, the ratio was 4 to 1.
In 2002, the ratio improved to 1.9 to 1.
From Paper to E-Payments (Continued)
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E-Payment Methods
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Automatic Mortgage Payment
Online Payments
Just-in-Time Payment
Electronic Bill Presentment and Payment
Equity Enhancement Program
Accounts Receivable Conversion
Competitors
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Top 4 Competitors
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Countrywide Financial Corporation
JPMorgan Chase
Washington Mutual, Inc.
Bank of America Corporation
Strengths
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A Top 10 Mortgage Website
Well Recognized Name
150 Year History
Size
Online Mortgage Application
Weaknesses
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Interest Rate Volatility
Possible Fraud
Security Risks
Reluctance to Accept E-Payments
Opportunities & Threats
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Interest Rates
Perpetual Evolution of Technology
Terrorist Attack
Conclusions
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E-Payment is Beneficial for Everyone
Reduced Costs
More Convenient
Multiple E-Payment Options
Recommendations
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Quality Customer Service
To continue further development of the
customer convenient online features of their
website.