bank-owned peer group discussion€¦ · bank-owned peer group discussion tabb evans, bb&t mike...
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1Proprietary and Confidential 1
Bank-Owned Peer Group DiscussionTabb Evans, BB&TMike Miroballi, HuntingtonWayne Cutler, Novantas, Inc.
2Proprietary and Confidential 2
1. Aligning the retail transformation with the Wealth Business (digitization, branch consolidations, etc)
• Still need bricks and mortar branches for initial client and milestone meetings but need to adopt to
a thin-branch network – potentially stand alone wealth offices
•Align with the generational changes with channel usage (eg, ‘tabletize’ the branch experience,
video, etc)
•While branch transactions are declining, many still occur in the branch – ensure branch staff are
armed with wealth offers and lead strategies. Need to figure out how to manage high turnover in
branches as part of the educational and awareness methods and advisor coaching
•More packaged products – bank + wealth, esp. with onboarding new customers
•Work with retail on getting “shelf-space” for wealth products and customer conversations
•Advisors need to be more proactive (eg, leverage data such as IXI to drive outreach)
• Leverage license bankers to support outbound customer calling for wealth (no existing book), then
promote best performers to the Private Bank
Key Discussion Points
3Proprietary and Confidential 3
2. Integrating Wealth Management with the bank to serve the mass affluent and business banking segments
• Leverage data to drive advisor business development, don’t just rely on bank balances, there are
other key indicators, especially for off-us balances
•Work with bank partners to discuss, resolve, and clarify channel conflicts – brokers, advisors, trust,
retail, and commercial
• Position advisors to be the quarterback/gate-keeper for all investment referrals from the bank
• Introduce insurance solutions for business banking customers
• Referrals must be bi-directional; build one-on-one personal relationships with business partners,
spend the time on-site, one person at a time, be disciplined about this
•Need to align value propositions, planning, management, and compensation within Wealth and
between business partners. Try cross-business assigned teams that meet every 2 weeks to go over
opportunities
• Test dedicating wealth advisors to business banking; leverage scorecards and align w/ branch
scorecard
Key Discussion Points
4Proprietary and Confidential 4
3. Robo-Advisors – Challenges and Opportunities
• Leverage Robo’s to upgrade the broker/dealer technology platform
• Robo’s haven’t been able to produce positive ROI yet, but overtime this is a good entry point for
customers that can expand their services to advisors and Trust and Estate Management
• Supports serving the mass market where advisors have shied away from, especially since DOL
•Data aggregation will become a huge benefit for the Robo platform – consolidating information
about off-us assets in one place
•Need to integrate the Robo platform w/ the online bank platforms
• Robo users are not just self-directed customers but those that enjoy the investment category and
are the highest users of other channels, such as Advisors
• Potentially use Robo as a “sleeve” within UMAs
Key Discussion Points
5Proprietary and Confidential 5
SUPPORTING SLIDES
6Proprietary and Confidential 6
National banks are winning share in the deposits worth fighting over
ORGANIC RETAIL DEPOSIT GROWTH BY BANK TYPE COMM. ECR DDA SHARE BY BANK RANK
Definitions: National are Chase, Wells, and Bank of America, superregional >300 branches, regional 75-300, Community <75
Source: FDIC, Novantas BranchScape database – June 2015
The largest five banks represent nearly 60% total U.S. ECR DDA balances (but only about 30% of commercial loans)
4.0
%
2.8
%
3.7
%
4.6
%
7.7
%
3.5
%
2.9
%
3.9
%
RE
TA
IL D
EP
OS
IT G
RO
WT
H C
AG
R
2003-2011 CAGR 2011-2016 CAGR
#1, 20%
#2, 16%
#3, 15%#4, 5%
#5, 3%
#6-10, 11%
Remainder, 30%
7Proprietary and Confidential 7
Nationals have leveraged scale, harnessing shifting consumer preferences
Source: Novantas analytics and other industry & case study insights
Old World New WorldLocal branch network scale and sales execution drives growth, allowing local regionals to compete with large national banks
‘Perceived convenience’ drives growth, driven by brand and digital capabilities,offering advantage to large national players
Branch visibilityMarketing was
primarily branch visibility and word-of-
mouth
Local Sales ExecutionCustomers shopped
based on which banks were in proximity and sales were originated
in the branch
Branch ScaleDistribution
dominance remains an important buying
factor, although “Perceived
Convenience” becoming even more
important
Focus on Deepening Core Relationships:Driven by LCR
requirements and other factors,
national banks are motivated to grow
deposits
Marketing and Brand: Wells
Fargo, BAC and Chase combined represent ~$650 MM of marketing
spend
Distinctive Omni-Channel Experience:
National banks investing heavily in
digital capabilities and marketing; effectively
creating the perception of leading
online/mobile capabilities despite
some regional banks nearing parity
Analytic Scale: Greater focus and capacity to utilize data (e.g., Chase launched a global think-tank to read the US Economy)
Perceived Convenience: Is becoming
increasingly the most important consideration
for all customers,
regardless of age or income
Attracting Talent: High competition
for top-notch customer facing and analytical digital talent
Drivers of Purchase
8Proprietary and Confidential 8
More than 70% of the US population is either in the Thin-Branch Ready or Channel Mixer segments, indicating declining branch dependence
39%
29%
15%10%
7%
45%
27%
12%9% 7%
Thin-branch Ready Channel Mixer Branch Traditionalist Innovation Seeker Internet Ready
2014
2017
Source: Novantas Research | US Multi-Channel Survey2017 N=4,351, 2014 N=4,125
USA CHANNEL SEGMENTATION TRENDS
BRANCH DEPENDENCE
AND ATTACHMENT
9Proprietary and Confidential 9
Decreased dependency on the store is leading to changes in the drivers of primary checking purchase
*Brand – composed of various attributes (e.g, “friendly and helpful”, “helps you plan”) from the Novantas Shopper Survey
Source: Novantas Analysis of Primary Checking Purchasers; Novantas 2016/2015 US Shopper Survey, Novantas BranchScape, MasterCard ATM Data, Kantar Media, CompereMedia
PRIMARY CHECKING PURCHASE DRIVERS
59%
45%
6%
13%
12%
19%27%
5%10%
4%
2016
100%
2015
100%
Branding Branch ShareATM ShareLeading DigitalMarketing
Metric Definition
Marketing is a composite score of a bank’s brand direct mail (volume and incentive), and weighted marketing share of voice
Branding* is a representation of the bank’s distinctiveness, which is composed of various attributes
Leading Digital measures a bank’s perceived online and mobile capabilities
ATM Share is a bank’s share of a market’s total off-site ATM sites
Store Share is a bank’s share of a market’s store count
+8%
+6%
+1%
-14%
-1%
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