The H

1
The HR Block Emerald Card

• Innovation in Unlikely Spaces

2

• Tax Preparation Industry an unlikely space for
  product innovation!
• -Huge- 130 million taxpayers
• -Regulated (IRS)
• -Decentralized..300,000 EROs
• -Stagnantsame retail business model
  50 years
• -SafeWho wants their tax preparer to
  be innovative?

3
HR Blocks Footprint

• Serves 20 million Clients
• 15 Mkt share
• Assisted and DIY
• 11,000 offices
• 100,000 Tax professionals
• 2.5 Billion Revenue
• Facilitates 35 Billion refunds

4
Enter. The HR Block Emerald Card

• Introduced in 2007
• Over 2 million cards issued!
• An innovative solution that provides a better
  way to disperse tax refunds

5
Understanding the Tax Context

• The world before
• Majority of Tax refunds dispersed using paper
  checks
• Wasted time
• Inconvenient
• Safety concerns
• Downstream costs
• For un-banked client the cost of converting from
  check to cash3-5
• (Limited access to mainstream financial
  services)

6
HR Block Emerald CardWhat is it?

• A prepaid debit card that works like an
  electronic bank account
• Issued by HR Block Bank Mastercard branded
• Distributed by Tax pros at Block retail offices
• Card is automatically loaded with customers tax
  refund-- avoiding need for a paper check
• The card is FREE

7
Emerald Card features
Line of Credit
Savings
Money Transfer
Bill Pay
Spending Account
Its like a Mini-Bank on a card
8
A compelling set of benefits

• FastInstant Distributionprovides quicker access
  to tax proceeds
• Convenient accepted everywhere MasterCard is
  accepted access to cash at over 1 million ATMs
• Safer than cash or check protected with an
  electronic PIN all accounts are FDIC Insured
• Saves Money.no check cashing or overdraft bank
  fees, Save on loan costs
• Year round use Card is reloadable
• Esteemaccess to mainstream financial services
  Savings, Credit, Bill Pay, etc.

9
Results

• More than 2.6 Million cards issued in
  2008largest prepaid program in US!
• Nationally Recognized
• Embraced by 100K Tax professionals
• Over 7.5 Billion refunds loaded on card
• 100 Million in total bank fee savings
• 3 pt lift in client loyalty

10
Lessons in Innovation

• Passion and personal commitment are the
  foundation
• Knowing your customer means walking in their
  shoes
• Dont underestimate inertiastart with the
  clearest case for change
• Look for partners inside and outside
• Learn to assess market readinessbeing first is
  not always the path to glory

11
Lessons in Innovation

• 6. Research helps but it can only take you so far
  
• 7. Unprompted word of mouth is an early clue
  your onto something
• 8. Expect to fail. help your organization learn
  how to deal with it then move on
• 9. Think End to End expand your definition of
  the thing you call a product
• 10. Dont be afraid to look in unlikely spaces

12
Thanks