Competition and Innovation

1
Competition and Innovation

• Mary Hockridge June 17, 2008
• EVP Sales Marketing
• NetDeposit, Inc.

2
Agenda

• Background Perspective on the Payments
  Landscape
• Impact Technology Innovation has on Competition
• Strategic Approach - NetDeposit Zions
  Bancorporation

3

• Innovation distinguishes between a
  leader and a follower.
• Steve Jobs
• "The power is shifting from the wireless
  carriers to the handset manufacturers,"
  Andrew Erlichson, CEO of Phanfare,
  Quoted in USAToday 06.09.08

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Innovation and the Payment System

• Changes customer expectations
• Alters how customers want to interact with
  payment products
• Fuels competition and enables bank
  disintermediation

5
Examples Non-Bank Payment Solutions
Biometrics
6
Zions Bancorporation Technology Companies
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Zions Strategy to Leverage Innovation

• Demonstrate leadership through active
  participation
• Open new markets and enter them
• Shape the market ecosystem for Payments
• Enable competing financial institutions with
  products and services
• Work with processors and technology companies to
  enable a robust competitive environment
• Position financial institutions in the center of
  the payments value chain

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Summary - An Offensive Strategy
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Question and Answers