Creating Competitive Advantage Via Your Bank Storefront Brian Warrick, Director of Product Solutions

Storefront?

Banking PressuresHousing market collapse, Economic DownturnIncreased complexity in operational efficiency, security & risk managementEvolving regulatory environmentProducts are commoditizedTighter expense & cost controlsCustomers demanding higher levels of service

Housing market collapse, Economic Downturn

Increased complexity in operational efficiency, security & risk management

Evolving regulatory environment

Products are commoditized

Tighter expense & cost controls

Customers demanding higher levels of service

Current TrendsBank closures89 Banks failed in 2009 (so far…)Increased M&A activityAnalysts predict 50% decrease in # of US Banks over coming years (American Banker Analyst Roundtable, 2Q2009)Increased pressure on IT personnelFinancial Insights forecasting first-ever negative growth in IT spending in 2009Small to Mid-size Bank IT staffs consumed with application/infrastructure maintenanceCustomer Attrition increasingTurnover rates reach 15% annually (American Banker)

Bank closures

89 Banks failed in 2009 (so far…)

Increased M&A activity

Analysts predict 50% decrease in # of US Banks over coming years (American Banker Analyst Roundtable, 2Q2009)

Increased pressure on IT personnel

Financial Insights forecasting first-ever negative growth in IT spending in 2009

Small to Mid-size Bank IT staffs consumed with application/infrastructure maintenance

Customer Attrition increasing

Turnover rates reach 15% annually (American Banker)

...But Opportunities AboundWeb Banking on the rise51% of internet enabled US households do some banking onlineOnly 10% of households currently perform banking transactionsMobile Banking to see huge growth50 Million users by 2013 (Tower Group)Switching banks is more commonCustomers are looking for safe havens

Web Banking on the rise

51% of internet enabled US households do some banking online

Only 10% of households currently perform banking transactions

Mobile Banking to see huge growth

50 Million users by 2013 (Tower Group)

Switching banks is more common

Customers are looking for safe havens

Customer Engagement is KeyEngaged customers less likely to leave for competing offer (Gallup Study)37% Retention yield for engaged customers“Extremely Satisfied” website users are 7X more likely to be engaged with their bank15X for ‘Extremely Satisfied” mobile banking usersFirms that minimize turnover will grow 30% faster (Tower Group)For large Banks, a 5% shift in engagement = $1 Billion (JD Power & Assoc)

Engaged customers less likely to leave for competing offer (Gallup Study)

37% Retention yield for engaged customers

“Extremely Satisfied” website users are 7X more likely to be engaged with their bank

15X for ‘Extremely Satisfied” mobile banking users

Firms that minimize turnover will grow 30% faster (Tower Group)

For large Banks, a 5% shift in engagement = $1 Billion (JD Power & Assoc)

Customer Engagement Best PracticesExcellent Customer ServicePersonalized, Effective, EfficientEasy, Multi-channel AccessWeb, eMail, Chat, Phone, BranchSimplicityIntuitive, Informative, No Jargon Promote Trust and ConfidenceSecurity and Consistency

Excellent Customer Service

Personalized, Effective, Efficient

Easy, Multi-channel Access

Web, eMail, Chat, Phone, Branch

Simplicity

Intuitive, Informative, No Jargon

Promote Trust and Confidence

Security and Consistency

The Customer Lifecycle

Online EvolutionBasic InformationalBranch locations, Product list, FAQsExpanded InformationalRates, Calculators, Contact FormsSimple TransactionalBalances, Transfers, Payments, Loan ApplicationsEnhanced TransactionalAccount Origination & Funding, Real-time Loan DecisioningVirtual Financial CenterPersonalized Financial Management, Guidance, Securities & Insurance, Chat~30% of US Banks have Online Account Origination

Basic Informational

Branch locations, Product list, FAQs

Expanded Informational

Rates, Calculators, Contact Forms

Simple Transactional

Balances, Transfers, Payments, Loan Applications

Enhanced Transactional

Account Origination & Funding, Real-time Loan Decisioning

Virtual Financial Center

Personalized Financial Management, Guidance, Securities & Insurance, Chat

~30% of US Banks have Online Account Origination

The Multi-channel Bank

StorefontFirst face to prospects and customersUp to 60% of visitors browse and leavePrimary source for Product and Service informationPersonalization begins here with CustomizationContent should be relevant and currentInteractive tools and features to aide decision makingWebsite feature usage is positively correlated to customer engagement and satisfaction (Gallup)

First face to prospects and customers

Up to 60% of visitors browse and leave

Primary source for Product and Service information

Personalization begins here with Customization

Content should be relevant and current

Interactive tools and features to aide decision making

Website feature usage is positively correlated to customer engagement and satisfaction (Gallup)

Overall CMS Deployment Overview

Success Factors Speed to MarketExtensibility and ReusabilityReduced ExpensesFreedom from the development cycleIT Resources unleashedSeize opportunities

Speed to Market

Extensibility and Reusability

Reduced Expenses

Freedom from the development cycle

IT Resources unleashed

Seize opportunities

Case StudyPre-CMS

Case StudyPost-CMS29% ROI

Case Study - BenefitsChange cycle reduced from Months to HoursContent shared across platformsIncreased Business User Satisfaction$50 Million Deposits Realized~$100K Annual Savings5% Reduction in Phone calls /eMails$90,000 operational expense savings

Change cycle reduced from Months to Hours

Content shared across platforms

Increased Business User Satisfaction

$50 Million Deposits Realized

~$100K Annual Savings

5% Reduction in Phone calls /eMails

Powered by Magnolia

Magnolia Experience Ease of use, minimal trainingScalable and performantReusable – content shared across channelsFeature RichExcellent Support

Ease of use, minimal training

Scalable and performant

Reusable – content shared across channels

Feature Rich

Excellent Support

Thank You!For additional questions or follow-up:Brian Warrick+1.908.256.5892Brian.Warrick@nrg-edge.com