Park University MK 371, Case 1 Spring 2014 - William Venable Name:_______________________ Page 1 SUMMARY UMB Financial Corporation is a financial holding company headquartered in Kansas City, Mo., offering complete banking and related financial services to both individual and business customers. Its banking subsidiaries own and operate 141 banking centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska and Arizona. Subsidiaries of the holding company and the lead bank, UMB Bank, n.a., include an investment services group based in Milwaukee, Wis., a trust management company in South Dakota, and single-purpose companies that deal with brokerage services, consulting services and insurance. EARLY HISTORY The story of UMB Financial Corporation in Kansas City, MO, is a success story in the best tradition of American free enterprise. From a storefront bank in Kansas City, MO, with first-day deposits of $1,100 in 1913, it has grown to become a financial holding company with multi-billion dollar assets. It has built a reputation as a financial partner who is dynamic enough to take advantage of opportunities, innovative enough to act on changing customer needs, and traditional enough to emphasize quality above all else. The original bank was chartered first as City Center Bank and was purchased during World War I by W.T. Kemper and Associates. The bank’s strides forward are a testament to a young soldier and son, Rufus Crosby Kemper, who returned from the war and borrowed money to buy into City Center Bank with his father, W.T. Kemper. R. Crosby Kemper Sr. became president in 1919, and during this year, the bank began its steady pattern of growth under the leadership and direction of this new president. He was aggressive in developing contacts for the bank. He would go into the community to solicit business at the close of regular business hours each day. This was an unheard-of practice prior to that time, as many banks simply opened their doors, sat back and waited for the customers to come to them. In 1926, Kemper and his board of directors voted to build a new six-story headquarters for the bank. With expanded physical space, the bank established a trust department, a bond department and correspondent banking services. In 1928, the bank added a “drive-up” window, thought to be the first in the country. By national charter, the bank became City National Bank and Trust Company in 1934. Ten years later, the bank expanded once again and moved to the R.A. Long Building in the heart of Kansas City’s downtown financial center. Today, the bank still owns the building at 928 Grand Boulevard and houses some administrative offices there. In 1945, the bank added an international department to address customer needs in the field of international commerce and travel. R. Crosby Kemper Jr., the third generation of Kemper bankers, joined City Nation.

1. Park University
MK 371, Case 1
Spring 2014 - William Venable
Name:_______________________
Page 1
SUMMARY
UMB Financial Corporation is a financial holding company
headquartered in Kansas City, Mo., offering
complete banking and related financial services to both
individual and business customers. Its banking
subsidiaries own and operate 141 banking centers throughout
Missouri, Illinois, Colorado, Kansas,
Oklahoma, Nebraska and Arizona. Subsidiaries of the holding
company and the lead bank, UMB Bank, n.a.,
include an investment services group based in Milwaukee, Wis.,
a trust management company in South
Dakota, and single-purpose companies that deal with brokerage
services, consulting services and
insurance.
EARLY HISTORY

2. The story of UMB Financial Corporation in Kansas City, MO, is
a success story in the best tradition of
American free enterprise. From a storefront bank in Kansas
City, MO, with first-day deposits of $1,100 in
1913, it has grown to become a financial holding company with
multi-billion dollar assets.
It has built a reputation as a financial partner who is dynamic
enough to take advantage of opportunities,
innovative enough to act on changing customer needs, and
traditional enough to emphasize quality above
all else.
The original bank was chartered first as City Center Bank and
was purchased during World War I by W.T.
Kemper and Associates. The bank’s strides forward are a
testament to a young soldier and son, Rufus
Crosby Kemper, who returned from the war and borrowed
money to buy into City Center Bank with his
father, W.T. Kemper.
R. Crosby Kemper Sr. became president in 1919, and during this
year, the bank began its steady pattern of
growth under the leadership and direction of this new president.
He was aggressive in developing contacts
for the bank. He would go into the community to solicit
business at the close of regular business hours each
day. This was an unheard-of practice prior to that time, as many
banks simply opened their doors, sat back
and waited for the customers to come to them.
In 1926, Kemper and his board of directors voted to build a new
six-story headquarters for the bank. With
expanded physical space, the bank established a trust
department, a bond department and correspondent

3. banking services.
In 1928, the bank added a “drive-up” window, thought to be the
first in the country.
By national charter, the bank became City National Bank and
Trust Company in 1934. Ten years later, the
bank expanded once again and moved to the R.A. Long Building
in the heart of Kansas City’s downtown
financial center. Today, the bank still owns the building at 928
Grand Boulevard and houses some
administrative offices there.
In 1945, the bank added an international department to address
customer needs in the field of international
commerce and travel. R. Crosby Kemper Jr., the third
generation of Kemper bankers, joined City National in
1950. He became president in 1959 and led then United
Missouri as it became the first regional bank to
install its own computer processing center in 1960.
As banking laws changed, Missouri Bancshares, Inc. was
formed in 1969 as a one-bank holding company.
The Company’s name was changed to United Missouri
Bancshares, Inc. in mid-1971 when it became a
multi-bank holding company.
In the next decade, the new holding company acquired regional
banks and became a billion-dollar
corporation with offices strategically located throughout
Missouri and Illinois.

4. Park University
MK 371, Case 1
Spring 2014 - William Venable
Name:_______________________
Page 2
EXPANSION AND GROWTH
UMB launched the first offerings from its no-load mutual fund
family with the inception of the UMB Scout
Stock Fund, the UMB Scout Bond Fund, the UMB Scout Money
Market Fund, and the UMB Scout Tax-free
Money Market Fund.
All the banks in the system continue to project the image of
innovative and responsible service that the
senior Kemper started so many years ago. In 1986, a new
headquarters for the holding company and UMB
Bank, n.a., the lead bank, was built at 1010 Grand Boulevard in
Kansas City.
As federal banking regulations changed in the 1980s, the
Company ventured into interstate banking and
acquired FCB Corp. and its three banks in southern Illinois in
1987. The banks in St. Louis and southern
Illinois were merged in 1994 to form UMB Bank of St. Louis,
the first interstate bank in the Midwest able to

5. offer banking center locations on both sides of a state line,
improving customer service.
Legislation allowed expansion into the Colorado market in
1992, and the Company purchased Valley Bank
and National Bank of the West in Colorado Springs. Columbine
National Bank in Denver became a part of
the UMB system in early 1992. In the fall of 1994, these banks
were merged into what was the largest state-
chartered bank, UMB Bank Colorado, n.a.
Kansas interstate banking laws were passed in July of 1992,
allowing UMB to become the first Missouri
bank to announce merger agreements in that state. In early
1993, the Company acquired several Kansas
banks along the I-70 corridor and merged them into two banks.
UMB Bank, n.a. and UMB National Bank of
America continue to have a strong growth-oriented presence in
Kansas.
In 1994, the name was changed to UMB Financial Corporation.
This name was much better suited for this
multi-bank holding company that was now offering an expanded
product line throughout the four states of
Missouri, Illinois, Colorado and Kansas.
UMB expanded into Oklahoma after acquiring The Oklahoma
Bank and its holding company, First Sooner
Bancshares, in 1995. It also increased ATM coverage by
installing 120 ATMs in various QuikTrip® and
Texaco® StarMart convenience stores, bringing the total to
more than 300. New grocery store banking
centers opened in Denver, CO, Lawrence, KS, Warrensburg,
MO, Kansas City, MO, St. Louis, MO,
Springfield, IL., and Colorado Springs, CO. Planning for the
future, UMB established a Year 2000 Project

6. Team to look into the possible computer issues that could arise
with the turn of the century.
UMB in conjunction with Visa Interactive introduced UMB PC
Direct in 1995, making UMB one of the first
banks in the Midwest to offer an online banking product. With
this service, UMB customers are able to pay
bills, reconcile accounts, and transfer funds between accounts
all from the convenience of their computer.
Plans for an operations and technology hub in downtown Kansas
City were unveiled.
NEW TECHNOLOGIES ENHANCE GROWTH
The Kellogg Group gave UMB its highest quotient on its list of
the top 100 banks (7.7 ATMs per $100 million
in assets). American Banker also reported that UMB was ranked
No. 1 in terms of ATM coverage and
convenience. UMB opened the bank’s first full-service banking
center in Omaha, NE. Ground was broken for
the new UMB Bank Technology Center in downtown Kansas
City. For commercial and correspondent
customers, UMB launched UNITEPlus®, a customizable, Web-
based account reporting product. This
service allows customers to view transaction details, loan
status, lockbox reports or to originate ACH
payments.
UMB became the first bank in the United States to create Web
EDI, an Electronic Data Interchange service
for commercial customers, making business communication and
document exchange easier. UMB's online
expansion continued as its subsidiary, UMB Financial Services,
Inc., member NASD, SIPC, introduced an

7. online service offering trading, account information, and
individual stock and mutual fund information. The
UMB Service Center was opened in 1998 for retail customers
who need live assistance. It operates seven
days a week. Taking a large step toward the approaching
millennium, UMB renovated and successfully
tested 99 percent of its mission-critical, internally controlled
computer systems. During the fall, UMB became
the first bank in the country to engage in a successful public
test of its most common deposit transaction
systems for Year 2000 readiness.
Park University
MK 371, Case 1
Spring 2014 - William Venable
Name:_______________________
Page 3
Continuing with its successful expansion, UMB opened the
210,000-square-foot UMB Bank Technology
Center in October 1999. This building houses operations and
Management Information Services personnel,
which improves workflow, productivity and service. UMB
processed more than $3.3 trillion in electronic
payments and transfers during that first year, making it one of
America’s top 20 banks in terms of
operational volume and cash management services. Accolades
continued in 2000 as UMB was named one
of America’s top 10 banks for e-business innovation by PC

8. Week Magazine. It was also honored with a 2000
Web Business 50/50 Award sponsored by CIO Magazine.
2000 brought the rise of a third generation of bankers at UMB.
R. Crosby Kemper III took over as president
of UMB Financial Corporation and UMB Bank, n.a., as his
younger brother and former president, Sandy
Kemper, left to focus on eScout, an online business-to-business
network of independent businesses. As R.
Crosby Kemper Jr. celebrated his 50th year in banking, he
stepped up to become senior chairman of UMB
Financial Corporation and UMB Bank, n.a. The board then
appointed R. Crosby Kemper III to chairman and
CEO of both companies. In that same year, the younger Kemper
was also inducted as chairman of the
Missouri Bankers Association.
After decades of serving nonprofit clients, UMB launched UMB
Nonprofit Financial and Advisory Services in
February 2001. This division fosters the financial success of
nonprofit clients by offering them the tools they
need to achieve financial stability while preserving their
missions as they grow.
During 2001, UMB acquired Sunstone Financial Group, Inc.,
which changed its name to UMB Fund
Services, Inc. in 2002. This Company is nationally recognized
for its superior mutual fund services. UMB
strengthened its position as a premier provider of full-service
corporate trust services when it acquired State
Street Bank & Trust Company of Missouri, n.a.
Also in 2001, UMB established Scout Investment Advisors, Inc.
to manage its customers’ accounts directly
and serve as advisor to the UMB Scout Funds family of mutual
funds.

9. CONTINUITY FOR THE NEXT GENERATION
In February of 2002, UMB acquired the name-in-title rights to
Riverport Amphitheatre in St. Louis, MO, and
renamed it UMB Bank Pavilion. On April 23, 2003, R. Crosby
Kemper III opened trading on the NASDAQ
Stock Market in honor of UMB’s 90th anniversary. In May of
that same year, UMB announced the sale of its
Employee Benefits Division to Marshall & Ilsley Trust
Company, n.a., allowing UMB to focus on its core
product offerings.
2004 brought about a leadership change as R. Crosby Kemper
III resigned as chairman and CEO of UMB
Financial Corporation. His younger brother, J. Mariner Kemper,
took over the helm. Peter deSilva was
brought on as president and COO of the holding company and
was subsequently named chairman and CEO
of UMB Bank, n.a.
GUIDING PRINCIPLES
Our Shared Vision:
To be recognized for the unparalleled customer experience.
Our Shared Mission:
With our position of trust and our tradition of integrity, our

10. shared mission is to know our customers
and anticipate their needs; advocate and advise; innovate and
surprise.
Our Shared Values:
Customers First
We do the unparalleled to create an environment that
consistently exceeds the expectations of our
customers.
Integrity & Trust
We demonstrate our uncompromising honesty and integrity to
earn the trust of everyone we serve.
Park University
MK 371, Case 1
Spring 2014 - William Venable
Name:_______________________
Page 4
Performance & Strength
We achieve sustainable greatness by delivering on our promise,
remaining independent and

11. maintaining financial soundness.
Associate Spirit
We rely upon our people and their collective attitude and skills
to differentiate us from our
competition.
Source:
https://www.umb.com/AboutUMB/CompanyInformation/OurHis
tory/000213
CASE ANALYSIS
In 1998, R. Crosby Kemper Jr., then Chairman, told the officers
of UMB, “Some day we’ll be the 13
th
largest
bank in America, but there will only be 15 to 20 banks.” Given
the dramatic changes in the financial services
industry over the last 20 years and the information presented on
UMB, please develop a detailed case
analysis that sets a course for the future growth of UMB.
Use your personal knowledge of the banking and financial
services industry, combined with information you
have learned in the class to provide the following case analysis:

12. 1. A brief introduction and description of the organization and
the present situation or conditions. The
information for this section will come from the case in the text.
The purpose is to allow the reader to
gain an insight or understanding of how the person(s) presenting
the case perceives the
organization and the situation.
2. An analysis of the organization, the situation and
contributing factors and other variables. In doing
the analysis, one should consider the five functions that exist in
every organization: management;
technology; marketing; finance; and human resources. The
strengths, weaknesses, opportunities,
and threats should be identified along with an explanation as to
the basis for the respective
classification. Any products or services should be considered
from an on-going, strategic,
perspective.
3. Present the alternative solutions developed for consideration
to solve any identified or potential
problems. Each problem should be followed with an explanation
of possible threats or alternative
outcomes, and any risks associated with the use of the
respective alternative course of action.
4. The final section of the report identifies the selected
alternative solutions to be implemented and
describes the courses of action and order or sequence for their

13. adoption. This section is concluded
with an overall summary of the perceived position of the
organization and the future potential for
the products and services provided.
Use the blank case format as your guide; the case analysis
should show your knowledge of the
management functions and the concepts of organization
behavior relative to the diverse financial services
offering available from UMB for both businesses and
consumers.
https://www.umb.com/AboutUMB/CompanyInformation/OurHis
tory/000213