Transactional Infrastructure for eFinance
Investor Meetings June 12th - 15th 2001
New York, Boston, Los Angeles
Bill Gorog – Chairman
Al Dominick – President/CEO
Steve Mullins – CFO
Deirdre Skolfield, CFA – Director, IR
703-259-3000
Dskolfield@intelidata.com
Table of Contents
I.
The Opportunity
II.
Why InteliData
III. Financials
IV. Positioning Framework
InteliData Confidential - Page 3
The Opportunity:
18,000,000,000 Consumer Bills Annually
Billers
Consumers
• Billers spend $1.50$2.00 to produce
bills
• In last 3 years most
large billers have
implemented their
own web sites for ebilling & e-payment
• Lack broad,
standardized
distribution &
adoption
•Consumers spend
$.34+ to pay
•Consumers have
access – 56% Internet
enabled
•View banks as trusted
agents
InteliData Confidential - Page 4
The Opportunity:
18,000,000,000 Consumer Bills Annually
What Banks Want • To protect and leverage relationships with
both consumers and billers
• To generate additional revenue
• The ability to route and retrieve bills and
payments through an Interbank exchange –
not a non-bank third party
InteliData Confidential - Page 5
The Value Proposition
• Billers can save $15-30 Billion annually with
EBPP
• Banks can save up to $20 Billion annually in
check processing costs
• Consumers will pay for convenience
• Billers will pay for distribution
• Banks can collect revenue from both Billers
and Consumers
• Vendors who enable banks to participate
can share in revenue
Everyone is motivated
InteliData Confidential - Page 6
Why Hasn’t It Happened?
Then: (1995-2000)
• Banks initially outsourced bill payments
• Costs high- customers unhappy
Now: (2000-2001)
• Banks now bringing systems in-house
• Customers want real time disbursement
and payment so they save money
InteliData Confidential - Page 7
Why Now?
• Billers actively seeking distribution
channels
• Consumers interested in receiving and
paying bills electronically
• Banks are concerned about protecting the
banking industry’s payment franchise bringing infrastructure in-house
• SPECTRUM – has emerged as a broadly
supported, bank-sponsored, open
exchange for bills and payments
• Competition is heating up between banks
and non-banks – banks have recognized the
threat to their prime franchise
InteliData Confidential - Page 8
What Banks Want
• Control - over customer data and service
quality
• Economics – better pricing
• Better service – Real time presentment and
payment
• Choice – ability to route transactions to
multiple processors using open standards
• Competitive advantage – over non-bank
providers
• Protection – preserve bank/biller
relationships
• Better systems – trusted, reliable, scalable
systems
InteliData Confidential - Page 9
Why InteliData?
• Transaction processing technology
leadership
– Developed infrastructure for Visa Interactive and
Integrion
– Intellectual property behind Spectrum
• Solutions designed specifically for financial
institutions
– Provide reliability and control over customer
relationships
– InteliData’s suite of products can be delivered in-house
or via an Application Service Provider (ASP)
• A decade of experience
– InteliData products and services in 21 of top 50 banks,
2 of top 10 brokerage firms and several leading credit
card issuers
– Proven scalable programs & systems
InteliData Confidential - Page 10
Mission
InteliData will become the dominant
provider of software solutions that put
financial institutions in control of electronic
banking, bill payment and bill presentment
services.
InteliData Confidential - Page 11
Representative Customer Base
Total Solution
Banks
Brokerage
Card Issuers
National City
BB&T
BankWest Corp
Alliance Capital
Scudder
Kemper
National City
Citibank USA
Processors
Associated
Bancorp
Compass Bank
First Tennessee
Standalone
Gateway
Solutions
USAA
Bank of America
First Union
Citibank UCS
Fiserv
Princeton ecom
Citibank
Standalone
EBPP Solutions
First Union
Hancock Bank
ALLTEL
5 Corp Credit
Unions
InteliData Confidential - Page 12
InteliData Solution Suite
Delivery
Channels
Transaction Transaction
Processing
Delivery
Legacy
Integration
Web
Money
Quicken
Legacy
Systems
OFX Gateway
Wireless
Aggregators
Integration
Points
Bill Payment
Bank
Web
Site
&
Content
Web Banking
Bill
Presentment
Payment
Processors
EBPP
Exchanges
• DDA
• Loan
• Card
• Metavante
• CheckFree
• eCom
• ACH
• on-us
• Spectrum
• CheckFree
• RPPS
• BSPs
Transactional Infrastructure
for e-Finance
InteliData Confidential - Page 13
Financial Strategy / Goals
• Become profitable and cash-flow positive
• Completed 2 year shift from software
licensing, lumpy revenue model to a stable,
steadily growing recurring revenue model
• Home Account acquisition perfect for
strategy
• Cost containment, ruthless expense
control -- after a year and a half of heavy
development mode
InteliData Confidential - Page 14
InteliData Business Lines
1. Internet Banking and Transaction
Processing
2. Card Solutions
3. OFX Gateway Solutions
4. Bill Payment and Presentment Solutions
InteliData Confidential - Page 15
Internet Banking & Transaction Processing
Q1 O1E
# of Customers
Q2 01E
Q3 01E
Q4 01E YE 2001 E YE 2002 E
305,000 335,000 376,000 414,000
414,000
609,000
Revenue per Customer
$1.62
$1.79
$1.98
$2.19
$2.19
$2.32
Total Revenue (thousands)
2,300
2,400
3,400
3,900
12,000
18,100
102
61
61
52
52
59
Employees
InteliData Confidential - Page 16
Card Solutions
Q1 01E
Q2 01E
Q3 01E
Q401E
523,000
736,000
378,000
484,000
484,000
1,136,000
$0.31
$0.33
$0.41
$0.47
$0.47
$0.66
Total Revenue (thousands)
501
1,032
712
922
3,167
6,857
Employees
43
36
32
32
32
32
# of Customers
Revenue per Customer
YE 2001 E YE 2002 E
InteliData Confidential - Page 17
OFX Gateway Solutions
Q1 01E Q2 01E Q3 01E
# of Customers
Revenue per Customer
Q4 01E YE 2001 E YE 2002 E
600,000 645,000 795,000 845,000
845,000 1,393,000
$0.10
$0.13
$0.17
$0.17
$0.17
$0.18
Total Revenue (thousands)
310
647
968
1,064
2,989
4,914
Employees
22
22
22
22
22
24
InteliData Confidential - Page 18
Bill Presentment and Payment Solutions
2 Models
Inhouse
Outsource
License
400k-700k
Prof Svcs
100k-300k
Recurring Rev $.20-.40 cust/month
100k-300k
$.75-1.50 cust/month
2002
Revenue in thousands Q4 01E Q1 02E Q2 02E Q3 02E Q4 02E YE 2002 E
Software License
0
165
200
300
500
1,165
Integration Services
250
50
150
250
350
800
Recurring Revenue
0
21
72
172
342
607
# of Banks
1
3
4
5
7
InteliData Confidential - Page 19
Revenue
Revenue 2001
(Thousands)
Q1 01E Q2 01E Q3 01E Q4 01E
EBPP
2001 E
2002 E
250
250
1,000-2,500
Card
501
1,032
712
922
3,167
6,000-8,000
OFX
310
647
968
1,064
2,989
4,000-6,000
Internet Banking
2,340
2,416
3,402
3,855
12,013
17,000-21,000
Total
3,151
4,095
5,082
6,091
18,419
28,000-37,500
InteliData Confidential - Page 20
Financials
Q1 01E
Q2 01E
Q3 01E
Q4 01E
2001 E
2002 E
Revenue
3,151
4,095
5,103
6,191
18,419
28,000-37,500
Operating Loss
-7,005
-5937
-4,419
-3,195
-20,556
(-8,180 - -1,150)
InteliData Confidential - Page 21
INTD Customer Penetration Assumptions
Jan 2001 actual = 3.4%
Jan 2003 forecasted = 6.8%
15.00%
13.00%
11.00%
9.00%
7.00%
6.82%
5.00%
3.00%
3.42%
1.00%
Jan 2001
Jan 2003
InteliData Confidential - Page 22
Positioning Framework
INTD Position
A provider of e-finance transactional infrastructure
Target Market Large banks (assets > $3 billion) and other financial service providers including brokerages, card issuers &
processors.
What Makes Us Transaction processing technology leadership:
InteliData’s platform-independent technology is developed from a history of technology leadership
Unique
Solutions designed specifically for financial institutions:
InteliData’s technology puts financial institutions in the center of electronic bill presentment and payment. Deep expertise
in payment capabilities.
Reliability and control over their customer relationships.
Focus on flexible transactional solutions such as OFX and electronic bill payment and presentment (EBPP)
InteliData’s suite of products can be delivered in-house or via an Application Service Provider (ASP) model.
A Decade of Experience
InteliData products & services in 21 of the top 50 banks, 2 of the top 10 brokerage firms and several leading
credit card issuers
Strategic relationships with ALLTEL, FirstData, Spectrum, Fiserv, Metavante, Princeton eCom
Developed infrastructure for Visa Interactive, Integrion and Spectrum
InteliData Confidential - Page 23
Positioning Framework - (2)
InteliData
Solution
Framework
v Front-end delivery of requests accommodating multiple types of client interface technologies such as
browsers, Personal Finance Managers (PFM,) phones, handheld devices, or use existing client software provided
with the EBPP Framework or build your own.
v Middle-tiers provide for a core set of services accessible by all applications of the framework, along with a
distributed architecture to support high performance, high availability that scales and load-balances to meet
varying transactions volume demands.
v Enterprise information systems tier that provides an integration capability to multiple payment networks such
as Spectrum, CheckFree, RPPS, as well as backend systems.
InteliData
Solutions
v Financial Messaging Systems (OFX Gateway) supporting OFX, IFX, PFMs, wireless, for a wide range of banking,
investment and EBPP transactions
v Real-Time e-Banking Transaction Processing and Legacy Integration (Interpose Transaction Engine)
v Transactional Web Interface (Interpose Web Banking)
v Payment Warehouse and Routing (Interpose Payment Warehouse)
v Bill Presentment Aggregation/Collection and Warehousing (CSP Server)
v e-Billing and e-Payment for Credit Cards (InteliData Card Solutions)
InteliData Confidential - Page 24