1 Thoughts on what’s new & current best practices.RBC Royal Bank Presentation to: Eastern Ontario Treasurer’s Association August 22, 2o14 Sam Romano, CTP, Treasury Solutions Specialist, Public Sector, Ontario Thoughts on what’s new & current best practices.

2 What We’ll Cover……. Doing more with less – a common themeWhat FI’s are working on – Emerging capabilities “Traditional” collections processes – best practices Opportunities to collaborate Eastern Ontario Treasurer’s Association

3 Mobile & Emerging PaymentsIt’s a jungle out there! Mobile & Emerging Payments Eastern Ontario Treasurer’s Association

4 Mobile & Emerging PaymentsAdoption rates will continue to escalate FI’s remain a crucial participant in most emerging & mobile payment applications Eastern Ontario Treasurer’s Association

5 Mobile & Emerging PaymentsEastern Ontario Treasurer’s Association

6 Mobile & Emerging PaymentsThings to think about….. Many emerging payment options are “front ends” to existing bank systems (ACH) Technology is often simply means to the same end Take the time to fully understand: Payment flow Settlement characteristics and location of funds Fee structure Eastern Ontario Treasurer’s Association

7 Tax Bill Printing & LockboxTax bill content standardized 2001 Remittance Portion (stub) not standardized Print/mail costs largely driven by volumes Declining cheque volumes in lockbox Down 14% (CPA stat 2012) But cheques won’t disappear… Association has an opportunity to collaborate with service providers: Print shops, ERP’s, Lockbox operators and FI’s

8 Internet Banking Very popular among taxpayers Cost effectiveAnnual volume growth ~5%

9 Internet Banking Best practice: prevent unpostable items before they arrive! Add “edits” to your roll number or account number system If unpostables a big problem, FI’s can “scrub” or delete roll # database Eastern Ontario Treasurer’s Association

10 Internet Banking Your internet banking portal can be used for other payments: Animal services Rec centre fees Parking permits/tickets etc… Use your customer (roll #) to differentiate payment types Eastern Ontario Treasurer’s Association

11 Internet Banking FI’s have expanded their payment reporting optionsEDI no longer the only file option - easy CSV or flat files now common Some FI’s offer reporting tools such as software packages Real opportunity for payments integration Straight-Through-Processing Eastern Ontario Treasurer’s Association

12 Remote Deposit CaptureEastern Ontario Treasurer’s Association

13 Remote Deposit CaptureWhat is it? Eastern Ontario Treasurer’s Association

14 Remote Deposit CaptureEastern Ontario Treasurer’s Association

15 Remote Deposit CaptureWhat is it? On the radar of most Canadian FI’s – USA doing it for years Rollout to customers will be staged Potential positive impact on Town Office processes Not a replacement for lockbox (no remittance scan) Smart phone photo – send to bank Eastern Ontario Treasurer’s Association

16 Some Final Thoughts ……. Gov’t bodies promoting use of more electronic payments (CRA) Eastern Ontario Treasurer’s Association