Hello and thank you for stopping by. This presentation is all about creating member experiences that go beyond basic banking -- building deeper and more meaningful relationships that result in stronger loyalty, greater wallet share, and bottom line growth for your credit union.

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So here's a sneak preview of what we do. Larky is a mobile, local engagement platform that helps you engage with your members "beyond the branch".

So what exactly does that mean?! Practically speaking, we negotiate compelling discounts at local merchants and then deliver them to your audience through client-branded mobile apps *right at the point of sale*. And we instruct users to pay with your FI's credit or debit card to redeem the discount. We also use the platform and location-based services to help you offer products and services to your users at the right time and place -- right when they need it.

These are just some of our partners. We'll show you some examples of how they're using our platform to build deeper engagement with their audiences.

Let's start with why. What is the problem? Why do we need to think beyond basic banking? Why do we need to enhance our user experience?

We've talked to thousands of CEOs, COOs, marketers and operators from financial institutions, and these are the high-priority goals and challenges that they talk about.

First and foremost, FIs want to stand out from their competition. They know that continuing with the status quo, offering the same basic banking services simply lumps them in with their competitors and that's a recipe for a slow death. They know that many of the services their clients get from them -- like low rates, great customer service, mobile banking, etc - can be gotten from other banks or credit unions, from national or regional institutions, and increasingly from tech companies and retailers like Google, PayPal, Square, Apple, and others. So they know that they need to stand out and offer something more than just the basic banking services.

A lot of our customers cite retention and acquisition as important reasons for using Larky. In 2014, a CapGemini survey of 18,000 people showed that only 50% of banked consumers are confident they’ll have the same primary account in six months. Of course, this doesn’t necessarily mean that the other 50% are going to leave you, but it does mean that they are *less loyal that you'd like them to be*. They are vulnerable to better offers, be it a better rate or better technology, or something else.

Most of the people we talk to are also looking to grow wallet share. They know that, even if their clients use them as their preferred financial institution (PFI), that doesn’t necessarily equate to loyalty. In early 2015, a Bain & Company study showed that 50% of financial products are purchased from non-primary institutions. So your clients may have their primary checking/savings account with you, but they've got their car loan from someone else, their mortgage somewhere else, and they do their investing somewhere else too. So this is a big opportunity and a big challenge for most of the FIs we talk to. They want to keep their brand top of mind so when their audience needs a new financial product or service, they come to them instead of someone else.

Of course, many of the FIs we talk to need to keep their cards top of wallet to drive card swipes and more interchange revenue. So delivering the right incentives to get users to choose your card over another one is crucial. It's even more crucial during the coming holiday shopping season when 20% of retail sales happens in about 2 months.

Most community banks and credit unions live and breathe local, so they relish the opportunity to drive traffic to local business.

And finally, many of the FIs we talk to are worried about the migration to mobile and digital-only banking. If users are spending more and more time online, on mobile, and less time interacting with your staff or coming into your branches, then there is much less opportunity to cultivate personal relationships that are at the core of long-term relationships and long-term loyalty. So we see many of our clients reaching out to their users "beyond the branch", trying to create meaningful experiences that boost loyalty and their bottom line.

So here's the net-net of this story:

As banking becomes more commoditized, we need to give our audience more reasons to stick with you, more reasons to use your cards instead of others, and more reasons to do *more of their business with you.*

We developed a concept called "contextual engagement", which is all about using technology and contextual cues to engage with your audience in personalized, meaningful, and relevant ways that help you achieve your goals and boost your bottom line.

Contextual engagement means creating personal, meaningful and relevant experiences that show your audience that you care about them throughout their lives, not just when they’re banking.

Contextual engagement enables us to go beyond basic banking to wow people and show them that **you are more than just a bank; you are more than just a credit union.**

Ok, so this all probably sounds good in concept. But practically speaking, what does this mean?

Quite simply, it means communicating and engaging with your users in meaningful ways every day, within their daily routines.

So we use contextual cues like user location, time of day, demographics, and more to help you send messages and offers to users right when they need you.

Here is a concrete summary of what your audience gets from this engagement platform:

> Your users get compelling discounts at local merchants. By our estimates, each user can save $1,000 or more per year if they use their discounts.
> And your clients get relevant, valuable offers from you at the right time and place, right when they need them.

And here is what your financial institution gets from this engagement platform:

> A powerful communication tool that drives long-term loyalty
> More card swipes and higher interchange revenue.
> Greater wallet share because users more often turn to *you* when they need a new financial product.
> And, you set yourselves apart from every competitor in your market.

Now, let's take a look at some examples of contextual engagement in action.

When you're near your local pizza shop, you get an alert like this one. This was an automatic, real-time alert based on your proximity to the merchant. It didn't require opening the app or searching for local discounts. The alert and the app itself is branded with your name, logo, look and feel.

When you want to pay, the instructions are clear and simple and of course, it tells you to pay with your Main Street Savings credit or debit card.

There are other things we can do using location-based services and contextual engagement.

For example, driving onto a car dealer's lot is a strong indicator of purchase intent. So it makes sense to send people a real-time alert right there to raise awareness of your car loan rates.

You could do the same thing for real estate transactions.

As we mentioned, branch time is down and, as a result, it's getting harder and harder to establish and maintain personal relationships. So why not invite someone in when they're nearby. Give them a reason to come visit you.

Imagine waking up on your birthday and your credit union is the first one to send you a birthday greeting: Half off a smoothie at your favorite smoothie shop!

How else would you like to communicate with your users *in context*? This is an open-ended question that gets people to start brainstorming ways to use the platform and often, they come up with new ideas that we've never thought of.

Let's look at what you can expect when you boost engagement and loyalty.

An Ernst & Young study asked 32,000 consumers, "What would you be willing to do if your financial institution offered a better experience?"

The two that stand out here are highlighted. If you reward members for being loyal, or find ways for them to save money, there is substantial potential increases in the number of accounts and services and deposits and investments from each member.

Here are some results from some of our clients.

We negotiate compelling merchant offers.

We build and maintain white label assets.

We make launch + adoption successful.

We provide online analytics dashboard

So you're probably wondering what does this service cost and can I afford it. We charge a one-time set-up fee which is almost always under $10,000. And then we charge ongoing monthly fees based on your audience size and the number of deals that we negotiate for you. The monthly fee ranges from $495/month on up to a few thousand for larger institutions.

So here are some clear take aways from this presentation:

1. Technology is now available that enables you to connect with users at the right time and place -- in context. And that means you get a unique way to engage with your users that is fully branded for your FI.

2. Your users get tangible savings from local merchants and you get to support local businesses in your community.

3. This whole thing is turnkey - we do the heavy lifting.

4. This is a great way to move from soft and immeasurable marketing -- like billboards, print ads, radio, TV, sponsorships, etc -- to concrete and measurable value-added marketing. Many of our clients are simply moving a few points of their marketing budget from soft to concrete and getting much better ROI.

This is what Larky does. We incorporate all of these activities to create a mobile, local, geo-targeted engagement platform.

Member acquisition simply costs more. So you typically get more bang for the buck by focusing a larger portion of marketing budget on existing members.

A Bain & Company study showed that increasing retention of your most profitable members can increase profits by 25% or more.

And the same Bain study concluded that loyal customers (those who give their FI an NPS >9) buy 14% more products than non-loyal customers.