National Banking Executive Steering Committee
Agenda Agenda: Meeting Logistics Introduction 10 minutes Date: Thursday, June 20, 20xx - New Steering Committee - Purpose and Goals Time: 2:00pm – 4:00pm CST - Additional membership? Location: Chicago – 1BOP, 13 th floor, SW Conf. Room National Banking Vision 60 minutes Columbus – Polaris Conf. Room #3B0544 - Discuss initial concepts - Industry Comparison - Reviews completed to date / remaining - Feedback to date - Refining the vision and guiding principles Meeting - Administrative Contact: Near-term Roadmap 30 minutes - Tactical Activities - Strategic Planning Organizational Construct 10 minutes - Additional Steering Committee members? Attendees: - Work team structure - Budget/funding Others TBD Wrap Up 10 minutes - Meeting dates going forward - July Meeting Topics: - Retail National Credit Acceptance - Calendar of events / timeline 2 : FOR INTERNAL BANK ONE DISCUSSION PURPOSES ONLY
National Banking Vision 3 : FOR INTERNAL BANK ONE DISCUSSION PURPOSES ONLY
Discussion Topics Discussion Topics What is National Banking? Why National Banking? Where are we today? How do we get there from here? Closing Points 4 : FOR INTERNAL BANK ONE DISCUSSION PURPOSES ONLY
What is National Banking? “National Banking” is a label for the next set of business initiatives which move us from our current organization to a unified set of customer-centric products and services that is consistent across channels and geographies for the enterprise. National Banking is a key enabler to the success of one person working with one customer one at a time. Creating the specific goals of National Banking will require Bank One to a unified vision of the core elements of its business and the fundamental approach to interacting with customers. In the end, National Banking goals should be an extension of the primary Bank One brand vision. 5 : FOR INTERNAL BANK ONE DISCUSSION PURPOSES ONLY
What is National Banking: National Banking Capability Framework National Banking is a collection of business capabilities that is centered around customer interactions and transaction management. Channel Mail/e-Mail/Fax Web Wireless Face-to-Face ATM/Kiosk Phone Retail Consistent, Ubiquitous Customer Interactions Customer Sales & View Customer Relationship Manage Customer Relationship Servicing Customer Level Customer Products Customer Relationship Pricing Decisioning/Scoring (Stmts, Info Reporting) Enterprise Transaction Processing Transaction Transaction Enterprise Transaction Transaction Recognition Transaction Formatting Transaction Valuation (capture, Routing Initiation (translation) Settlement (For Exch) authentication Integrated Technology Architecture Electronic National Customer Common Data EAI/ Output Transaction Capture Application Electronification/ Channel Middleware Engines Technology Workflow tools Capability Technology Interfaces Note: Customer and Transaction capabilities provide the foundation for servicing customer inquiry, issues and problems on an enterprise level. Strategies for providing and optimizing that service as well as gaining customer Insight from those interactions are the points at which National Banking and Customer Relationship Management Capabilities meet. 6 : FOR INTERNAL BANK ONE DISCUSSION PURPOSES ONLY
What is National Banking? Bank One actually has many activities underway that are a prerequisite to, impact or actually deliver National Banking business capabilities: Direct Activities Teller Platform Upgrade Enterprise CIS Deposit Applications re-architecture Common Systems deployments (B1B) Infrastructure Activities Enterprise Messaging Layer Organizational Activities Enterprise Release Planning Enterprise Testing Enterprise Associate Adoption/Training 7 : FOR INTERNAL BANK ONE DISCUSSION PURPOSES ONLY
Why National Banking? For our customers, National Banking will mean….. Recognition of the individual and his relationship with the bank at any point of contact Consistent banking experience regardless of geography or channel Ability for a customer to relocate across geographies and retain Bank One financial relationships (without closing and reopening an account) New products and services Convenience …and more 8 : FOR INTERNAL BANK ONE DISCUSSION PURPOSES ONLY
Why National Banking? To a shareholder, National Banking can add value in many areas. Example Sample Metrics Value Levers Market & Customer Share • New Relationship Products - Increased share of Retail wallet Revenue • New Commercial Deposit Services -10% increase in middle market fee income Product Mix Streams • Increased Commercial Profitability -25% increase in profitability of customers Margins & Fees consolidating accounts across states and increasing services • Decreased Teller turn-over -2-5% decrease in turn over FTE & Overhead Costs • Increased Productivity in item processing -15% Productivity lift Operating Economies of Scale Efficiency • Decreased Fraud loss -20% decrease in fraud loss • Decreased research/adjustment cases -10% case decrease Bad Debts • Operations Consolidation -Fewer sites Shareholder Value Funding Mix Capital • Reduction of excess capacity -Ability to “load level” functions across Risk Profile Management enterprise Investment Management • Customer Retention -60% increase Customer retention due to Business Mix ability to retain relocating customers Growth -15% increase due to convenience Performance & Innovation Potential • New customer acquisition -Ability to attract new Large Corporate Strategy & Execution customers due to “fluidity of transactions” across geographies 9 : FOR INTERNAL BANK ONE DISCUSSION PURPOSES ONLY
Why National Banking?: Before and After A a more specific level, National Banking capabilities bring unique benefits to customers and business processes, but enables consistency at the customer level. Capability Before After Business Processes Business Processes • Customer calls Bank to notify about relocation/new address • Customer calls Bank to notify about relocation/new address • Associate informs customer that account must be close in • Associate assists customer with address change and informs current state and a new account reopened in new state customer of new branch/officer. Customer Relocates • Associate assists with close process and initiation of new ***No action from customer required, no account closure open. Business Impacts • MAJORITY of time, customer does not reopen account in • Retention (+) new state. • Revenue (+) Business Impacts • Decreased Operational Costs (+) • Retention (-) • Loss of revenue (-) Business Processes Business Processes • Customer presents deposit outside of region • Customer presents deposit • Associate manually looks up customer account • Associate enters customer account number • Associate manually places 1-2 day hold • Application returns customer hold recommendation • Customer transaction posts 1-2 days later • Transaction posts same business day Retail & Commercial • Manual Operations procedures • Integrated Operations procedures Banking Transactions: Business Impacts Business Impacts • Longer Teller Servicing time (-) • Common Customer transaction posting experience (+) Out of State Deposits • Delayed Customer transaction posting (-) • Funds availability appropriate to customer (+) • Delayed Customer funds availability (-) • Managed Bank Risk (+) • Increased Bank Risk (-) • Efficient Operations (+) • Increased Operational Costs (-) • More integration between applications (+/-) Business Processes Business Processes • Customer requests consistent, nationwide pricing • Customer requests consistent, nationwide pricing • RMs in each individual state manually set up pricing (not • Primary RM negotiates nationwide pricing and service charges consistent) • Customer transactions priced at customer level, not account level • Each state RM manages the customer;s accounts housed in • Customer receives consolidated statement with nationwide service Commercial Banking: their state charges applied based on aggregate account transactions • Customer receives multiple statements, service charges and Business Impacts Commercial Customer- pricing discounts by state • Consistent, customer-driven pricing at national customer level (+) Level Pricing Business Impacts • Primary RM manages customer relationship • No consistent pricing (-) • Flexible statement options, info reporting, etc (+) • Multiple RMs managing same customer relationship (-) • Minimal customer flexibility (-) 10 : FOR INTERNAL BANK ONE DISCUSSION PURPOSES ONLY
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