Assessment of DTCC Customer Satisfaction

Prepared for:BDUG

October 24, 2005

Agenda

• Background

• Key Findings

• Recommendations

• Current Activities

• Relationship Management Realignment

Research Approach

• 2 key segments - senior & daily contacts• 2 methodologies - telephone & web

(n=720)

Phone seniors

7%Web seniors

4%

Web daily contacts

89%

Key Findings

Overall Satisfaction

• For the second year in a row, DTCC customers express an outstanding level of satisfaction . . .

Extremely satisfied

18%

Satisfied

71%

Extremely dissatisfied

0%Neutral

8%

Dissatisfied

3%

Total satisfied

89%

Overall Satisfaction

“DTCC is extremely accurate and responsive with respect to processing.”

“I believe DTCC is very responsive to industry needs. They take a proactive approach to trying to offer services that are most beneficial to participants.”

Overall Satisfaction

• DTCC compares well to Melior’s Database

0%

20%

40%

60%

80%

100%

Overall Satisfaction

Melior Average

80%

DTCC 89%

Overall Satisfaction

• Customers saw a change in their level of satisfaction. . .

Significantly Improved

5%

Improved32%

Remained the Same

54%

Declined/ Significantly

Declined9%

TotalImproved

37%

Key Drivers of Satisfaction

• DTCC understands what impacts customer satisfaction

Driver Weight

Driver 2005

25% Commitment to quality 85%

22 Customer service 72

20 Communication with customer 75

17 Sense of urgency 65

16 Ability to increase operational efficiencies 69

Product Satisfaction

• Most customers (83%) are satisfied with the breadth of DTCC’s product/service line

• At the individual product level, satisfaction ranged from moderate to high

– 8 of 14 products evaluated met/surpassed DTCC’s goal of 80% satisfaction

– 2 others are within the margin of error

Product Satisfaction• Traditional products/services (79%) rank at or near “world

class” (80%+)

Traditional Products/Services 2005

Settlement-Related Services 92%

Continuous Net Settlement (CNS) 89

Corporate Actions Processing Services (Reorg, Dividend/Interest)

85

Securities Processing Services 85

Corporate, Municipal, UIT (Unit Investment Trust) 83

Automated Customer Account Transfer Service (ACATS)

80

Government Securities 80

Equity Trade Capture and Reporting Services 79

Mortgage-Backed Securities 77

ETF Creation/Redemption Processing Services 75

Product Satisfaction

• Some scored lower

Traditional Products/Services 2005

Underwriting Services 62%

Tax Services 62

Non-Cede & Co. Custody Services 57

SMART Network & Internet Services 56

Product Satisfaction:Distribution Services

Distribution Services 2005

Mutual Fund Services 81%

Insurance Processing Services (IPS) 62

• Average rating (weighted): 75%

Product Satisfaction:New Products

Product/Service 2005 Deriv/SERV 68%

Global Corporate Actions Validation Service 65

Problem Incidence

• Problem resolution continues to be an issue, though some improvements in satisfaction were noted

Yes, had problems

35%

No Problems65%

33%

30%

37%

47%

28%

25%

Satisfied

Neutral

Dissatisfied

SignificantProblems

ModerateProblems

Customer Experience

• Customers saw a change in their level of satisfaction…

Relationship Management Customer Service

Declined4%

Remained the Same

60%

Improved36%

Declined5%

Remained the Same

60%

Improved35%

Melior Recommendations

• To improve customer satisfaction levels going forward…– Improve quality and consistency of the customer

service experience

– Strengthening our relationship management efforts

– Improving the problem resolution process

– Enhance technology

– Strengthen positioning as an industry leader

“DTCC is top notch—an excellent organization. They continue to be an

outstanding company with great leadership.”

Realignment of

DTCC’ s Relationship Management Group

Structure of the Group

Two Levels of Support

• A dedicated Account Executive who will be your primary interface with DTCC

• A Relationship Services team that will provide transactional support to your firm. Be more responsive and accountable

Role of the Account Executive

Your Account Executive will:

• Be your advocate and your voice at DTCC.

• Meet regularly with your organization to ensure that DTCC's performance meets expectations and that our efforts are aligned to help achieve your business objectives.

• Work closely with the Relationship Services personnel and others to ensure that DTCC is providing the best service possible.

• Coordinate activities with the relationship management areas that remain in place for DerivSERV, Insurance and Mutual Fund Services.

Role of Relationship Services Team

The Relationship Services Team will: • Take ownership for the resolution of transactional requests

that are critical to support your day-to-day relationship with DTCC.

• Will be available from 8:30 a.m. – 5:30 p.m. EST (business days) and will also provide back up and support for your Account Executive.

• You may contact the Relationship Services team at 1-800-422-0582 or via e-mail at rmsupport@dtcc.com.