integrating six sigma with an enterprise-wide process improvement strategy

SunTrust Enterprise Business Process Services Confidential

Integrating Six Sigma with an Enterprise-Wide Process Improvement Strategy

Global Lean, Six Sigma and Business Improvement SummitOctober 15, 2008

Presented by:

Enterprise Business Process Services Jerry L. Calvert, SVP

Lean Six Sigma Master black Belt

2SunTrust Enterprise Business Process Services Confidential

You Really Do Need Six Sigma!


Contents

• SunTrust Corporate Overview

• Enterprise Business Process Services Overview

• EBPS Process Improvement Methodology

• Project Overview

• Current State Assessment

• Future State Design

• Business Case

OverviewOverview


Lines of Business:

Primary Market Areas

Mid-Atlantic

Carolinas

Central

Florida

Mid-Atlantic

Carolinas

Central

Florida

• Five Business Lines– Retail– Commercial – Mortgage– Corporate and Investment Banking – Wealth and Investment Management

(1) Source: SNL Financial. Growth projections are based on the weighted average of MSAs and counties not in any MSA in which the bank is located. Based on current footprint.

12.9%

6.7%

SunTrust National Average

2006-2011 Projected Weighted Average

Population Growth (1)

SunTrust enjoys a strong market position in some of the highest-growth markets in the United States.

OverviewOverview

• Total Assets $177 Billion• Total Deposits $119 Billion• Banking Locations1699• ATMs 2506• Employees 31,602


Five Major Lines of Business

• Retail BankingSunTrust’s retail line of business provides financial solutions to five million client households as well as

businesses with annual sales of up to $5 million.

• Commercial BankingSunTrust’s commercial banking line of business serves companies, government, and nonprofit entities withannual sales or budgets from $5 million to $250 million, delivering financing, treasury management, and access to the capital markets to more than 50,000 clients

• Corporate and Investment BankingSunTrust’s Corporate and Investment Banking line of business (CIB) provides capital raising, treasury management, and other tailored financial solutions.

• MortgageJanuary 2007, SunTrust’s mortgage servicing portfolio was $130 billion. SunTrust Mortgage, Inc. originates loans at more than 180 locations in SunTrust markets and adjacent states, maintains correspondent and broker relationships in 48 states.

• Wealth and Investment ManagementAs of Jan 2007, SunTrust had total assets under advisement of approximately $245.8 billion, including

approximately $207.1 billion in trust assets, and approximately $38.7 billion in retail brokerage assets

OverviewOverview


Contents


• Enterprise Business Process Services Overview– Mission

– Organization

– Objectives





• Business Case

OverviewOverview


Enterprise Business Process Services Mission

SunTrust Mission Help people and institutions prosper

Enterprise Business Process Services Mission

Help SunTrust and our clients prosper by improving business processes to create a

more efficient enterprise and make it easier for clients to do business with us

OverviewOverview


Build EBPS Organization

2008 staffing plan

– 39 FTE to be reached by year-end

– Mix of more senior seasoned consultants with low to entry-level consultants

• Recruiting focus

– Remains on building strength across skill-sets.

– Continue to target mix of consulting/IE/financial services experience

• Consulting support

– 2008 plan assumes no use of external consultants to augment EBPS staff

– Any consulting funding would have to come from sponsoring LOB/Function

• Training & Development

– 95% Certified in Six Sigma (70% Green Belts, 25% Black Belts or MBB. Goal is to move to 100% BB by year-end.

– 95% Certified as Lean Practitioners

SVPSenior Mgr

GVPSenior Mgr

GVPSenior Mgr

• Project Managers• Consultant• Consultant• Consultant• Consultant• Consultant• Consultant TBD• Consultant TBD• Consultant TBD• Consultant TBD



• Core Bank Delivery Efficiency

• HR Process Transformation

• Deposit Account Opening

• W&IM/STIS Account Opening

• Line Renewal

• Treasury Mgt Implementations Process Improvement

• Commercial Loan Originations

• Georgia Oglethorpe

SVPEBPS Manager

OverviewOverview


Key EBPS Objectives

Finalize SunTrusts Process-Improvement Methodology•Complete all training (GB, BB, Lean, BPI and Champion) by year end•Roll out elements of process improvement methodologies into pockets within LOBs and

Functions•Integrate Lean and Six Sigma methodologies into all projects going forward

Identify and assess process improvement opportunities and drive

measurable value•Improved client experience (measured by revenue lift and non-financial metrics)•Increased efficiency (measured by cost savings and non-financial metrics)•Fully support and enable corporate-wide efficiency improvement initiative

Drive transition to a paperless and more automated bank (non-

check)•Define enterprise non-check image capture strategy and work with Content

Management COE to support execution•Identify and evaluate potential applications of FileNet imaging and workflow (+ other

potential BPM solutions)

OverviewOverview


EBPS Service Offerings

Process Assessment and ImprovementCurrent State Analysis & Issue IdentificationFuture State DesignImplementation RoadmapProject Management for Execution (as needed)

Rapid Improvement Process (RIP)Fast-paced approach to drive process improvements

FacilitationRoot Cause AnalysisRequirements IdentificationStrategy Development

EBPS partners with LOBS and Functions on a wide variety of opportunities ranging from large scale transformational initiatives to small-scale process problem resolution.

Roles

ServicesMetrics Development

Metrics IdentificationMetrics Development and Deployment

Process Improvement Training Business Process ImprovementLeanSix Sigma

Survey Development DesignImplementationResult Summarization

AdvisorData AnalystLiaison/Coordinator

Project ManagerProcess Analyst/ConsultantFacilitatorProcess Lead

EBPS staff can be

called upon to play any

of these roles.

OverviewOverview


The Current Environment has Forced us to Re-Focus our Approaches

• The past three years have been unprecedented in the amount of change in the banking industry. The mortgage industry collapse along with the tightening of credit in general has put extreme pressure on banks to become more efficient, expand delivery channels and stem customer attrition.

• This sense of urgency has forced us to look at projects that are more “quick wins” and that require little to no technology spend. Projects that will increase deposits, reduce losses and measurably increase customer satisfaction are the top priority.

OverviewOverview


Contents

• SunTrust Overview

• EBPS Overview

• EBPS Process Improvement Methodology– Overview

– Tools & Techniques

– Metrics and Balanced Scorecards

– Training

• Project Overview– Objectives and Scope

– Team Structure

– Approach



• Business Case

OverviewOverview


We Utilize a Variety of Improvement Programs

The 3 primary improvement

Methodologies. But there are more!

We don’t want to be perceived as just a “One Trick Pony”

Tools & Tools & TechniquesTechniques

We did not want to limit ourselves to just one approach!

• Six Sigma• Lean• TOC• Rapid Improvement Process (RIP)• Facilitated Workshops• BPM• Quality Teams and Councils• Surveys

All this includes a heavy dose of Change Management”!


Problem Solving Process:1. Define the problem2. Analyze for potential causes of problem3. Identify possible solutions4. Analyze possible solutions5. Select the best solution6. Plan implementation7. Implement8. Verify that problem is resolved

Methodical, Structured Problem Solving – Let the Problem Dictate the Approach

Though we frequently need a more radical deconstruct/reconstruct process to identify root-causes using Six Sigma, there are times we just need to refine and make small improvements as with Lean. At times it may be a technological overhaul using imaging and automated workflow as with BPM

What is the problem?That’s where the techniques begin...

The various process improvement techniques all have the same aim and similarities:

They are methodical ways of addressing issues

They are used to identify and solve problems


You can have many tools in a tool box, let the project determine which tool you will use.


BPI Methodology Built on the DMAIC FrameworkTools & Tools &

TechniquesTechniques


Robust BPI Methodology Built on Share-PointTools & Tools &



Project ApproachK

ey

De

liv

era

ble

s

EBPS Process Improvement Methodology

Ke

y A

cti

vit

ies

Tim

ing

Assess Current State

Design Optimized Future State

Develop Business Case & Roadmap

• Understand key account opening processes

• Document existing practices for resolving problems

• Interviews with key stakeholders for input and feedback

• Map current-state processes including tasks, technologies, people, channels, etc.

• Identify root causes for most common service problems

• Meet with Stakeholders and establish scope of project

• Develop working teams and roles and responsibilities

• Define key elements of account opening and service issues

• Identify critical touch points• Understand key employee

touch points

• Project team structure and timelines

• Target customer experience around account opening

• Defined scope document and revised timeline

• Project Charter & Project Plan• Key employee linkages

Weeks 1-3

• Preliminary understanding of current state

• Baseline of most common issues/problems

• Process metrics• End-to-End process

models/SIPOC• Process Narratives describing

tasks, inputs/outputs, etc.• Assess Value vs. Non Value

Weeks 2-9

Weeks 7-14 Weeks 14-18

• Gaps and Issues• Future-state process flows

with “best practices”• Service level assessment• Future state SLA’s• Future-state technology• Future-state organization• Quick-win opportunities

• Detailed improvement opportunities

• Business case summary outlining costs and benefits

• Additional quick-win opportunities

• Final improvement results• High level roadmap

• Identify reasons for gaps including, but not limited to: products, technology, processes, training

• Develop strawman of future-state processes for key functional areas

• Provide final metrics results showing performance improvement opportunities

• Assess impact on current service levels.

• Identify opportunities to create the desired experience, including improvements in service and delivery requirements

• Evaluate technology improvement opportunities

• Provide technology solutions for optimizing the Account Opening process

Plan and Launch the Project

ControlImprove & ImplementAnalyzeMeasureDefine



RIP’s (Kaizens) are Structured Events with Deliverables and Tools Sequenced at each Stage



Rapid Improvement Process One-Week ScheduleTools & Tools &



Facilitated Work Shops Accelerate Speed and Ownership

A facilitated workshop is a team-based information gathering and decision making technique to accelerate business planning and problem

solving.

Benefits are:

•Speed

•Ownership

•Productivity

•Consensus

•Quality of Decision Making

•Enables the rapid exchange of information

•Involves key individuals

This approach has had tremendous success



Metrics are Presented in a Cascading Fashion Based OnAppropriate Level of Detail and Need

1

2

3Detail:

Data presented in great deal for use by area in question, often shown over time and used after initial review for research, etc. Presented often as large numbers of data points which have to be followed visually to determine trends, etc.

Dashboard:

Data turned into visual information through use of charts and trend lines presented over time which demonstrate trends, spikes, seasonal movement, etc. Accompanying detail of data in charts is presented if preferred

Scorecard:

Monthly snapshots presenting high-level performance indicators and ratings along with limited data points

Need Fulfilled:

Performance Tracking

Rankings

Need Fulfilled:

Information

Trends

Details

Need Fulfilled:

Data

Details

Metrics Cascade

Metrics & Metrics & MeasurementsMeasurements


Training is Critical to Sustaining Successful Change

Basic BPI, Six Sigma Green Belt and Lean Practitioner Training and Certification have been very Successful!

Facilitation Skills and Black Belt CertificationAre in development now.

TrainingTraining


23

We are Leveraging Imaging & BPM Technology

Benefits• Flexible framework that can be leveraged across multiple processes

– New account opening– Exceptions management– Case management– Business rules engine for front line applications

• Potential for process-driven methodology to improve service delivery

– Reengineer before, during, and after development– Capture better metrics, enabling cyclical

(continuous improvement) reengineering– Potential to improve pace of delivery

Concerns• New and different – generated internal noise• Iterative and not waterfall – “breaking the rules”• Lack internal skill sets – contractors required for development• First implementation can be expensive – success will breed more

implementations

Configuration-driven development and pre-built frameworks promise accelerated deployment and reusability

W&IM STIS General Account Setup

2.1 Receive and Log Documents 2.2 Verify Docs and Prepare for Imaging 2.3 Scan & Index Docs, then Disburse or Shred

Ric

hm

on

d O

ps

Ne

w A

cct

Se

tUp

Syste

ms

No

tes

Ric

hm

on

d O

ps

Fro

nt

Off

ice

Yes

No

Yes

Yes

No

Yes

No

InterofficeEnvelope

‘To BeProcessed’Interoffice

Envelope“ImageOnly”

LooseDocuments

(usually directfrom Client)

Acct# must be on 1st page of each doc. (or SS# for Annuities)

No

New Acct Opening Docs

‘Image Only’Docs

‘To Be Processed’Docs

Docs Rcvd Via Overnight

Docs Rcvd via USMail

From Front Office

1.3

Place Documents in Doc Prep Bins

W&IM Mail Processor

2.1.2

Log receipt and log documents

in envelope

Mail Processor

2.1.12

To 2.2.4

Verify/IGO/SetUp Account,

etc

NewAcct SetUp

2.2.12

All Docs Received (per Log)?

Contact FA to obtain info

Doc Prep 2.2.9

PrincipalReview

Log receipt of envelop in

Access

Mail Processor

2.1.8


Access

Mail Processor

2.1.5

Specific Dept

Log receipt of envelope

Doc Prep 2.1.4

Info Rcvd By EOD?

Time stamp envelope

W&IM Mail Processor

2.1.1

Note Account # on documents

Doc Prep 2.2.7

Access FBSI system to determine

acct#

Doc Prep 2.2.6

TOA

StockCage

Review documentation

& initial log

Doc Prep 2.2.3

Place into “New Accounts

PickUp Tray”

Mail Processor

2.1.13

Scan documents(by Batch)

Scanner 2.3.1

Prep Doc for Scanning

(insert Sep. Sheets & Sort)

Doc Prep 2.2.4

Distribute into Work Stream

Doc Prep 2.2.15

Record Batch# and Number of

Items in Notebook

Indexer 2.3.3

Close Each Batch When

Complete

Scanner 2.3.2

Update Log Sheet: Acct #

Not Found

Doc Prep 2.2.8

TOA Paperwork

Index Docs

Indexer 2.3.4

Resolve Account

Number Issue

FA/SA

Return Document back

to FA

Doc Prep 2.2.10

Type of Doc/ Processing?

Verify Envelope Contents & Log

Sheet; Initial Log Sheet

Doc Prep 2.1.10

2.0 Imaging

Hold Until Next Day

Doc Prep 2.2.14

Acct # on FBSI?

From x.xxManaged

Accts


Doc Prep 2.1.3

Return to DocPrep and

Sign In Packet

NewAcct SetUp

2.2.13



Doc Prep 2.1.7

Update Log Sheet &

Resolve via tel/email / fax

Doc Prep 2.2.1

Via InterOffice Mail, USPS, or Overnight (FedEx, DHL, etc)

End

Docs Placed in Dept Specific

Bins or in Shred Bin

Scanner 2.3.6

Break Batches Down by Account Number

Scanner 2.3.5

Verify Docs & the List and

Sign Out

NewAcct SetUp

2.2.14

Acct # on docs? (or SS# for Annuities)

Resolve Missing Info or Documents via

tel/fax/email

FA/SA 2.2.2

Batch by Doc Type and

Prepare Cover Sheet

Doc Prep 2.2.5

Brokerage/IRA Acct Paperwork

Log - Interoffice Env # - FedEx # - Sender Name/Tel# - Date/Time If FedEx Write InterOfc Env# and hold FedEx envelope 30 days

To Shredder

Indicate:- how envelope arrived- clients name- contents / log sheet verif.- Initial the log sheet

Index includes the Acct# and the Doc Type

From 3.3BAnnuities

From 3.3EStock Cage

Any docs not marked w/RED “Processed” Stamp

Stock Certificates

End

Managed Accts Dept

Managed Accts

· Access· Imagio· Access· FBSI· Email, Telephone & Fax

· Imagio· Log Sheet in Notebook

Time stamp Log

Doc Prep 2.1.6

Time stamp Log, & Initial

Log sheet

Doc Prep 2.1.9


Access

Mail Processor

2.1.11

Type of Document?

Write Account Number on Log

(Paper)

NewAcct SetUp

2.2.13

- Stocks- Checks- Annuities- Managed Accts

- Brok/IRA- TOA- Image Only

Annuities Annuity Dept

Note: Managed Accounts, TOAs, and New Account Setups must be logged out by person picking up docs, and will be logged back in



24

Online Account Opening Project: Utilizing BPM Technology

Challenges

• SunTrust, like other financial institutions, focused on deposit growth

• Cannibalization and acquisition expense have impacted traditional deposit growth strategies

• SunTrust online channel was not an effective vehicle for driving deposits

Opportunities

• Online marketing potential due to high volume website traffic from potential and existing customers – www.suntrust.com

• Lots of technology companies touting account opening expertise

• Quick implementation

• Lots of process waste and non-value activities – Call center and Online

• Reduction in cycle times – 15 days to 15 minutes



In Conclusion

Research still supports the claim that over 50% of process improvements initiatives are not successful. By understanding the problem and selecting the right approach we will greatly enhance our probability of being successful.

The Six Sigma methodology is the foundation of our improvement program but only one of several approaches we take to solve a problem.

“If the only tool you have is a hammer, you tend to see every problem as a nail”.

Abraham Maslow

Six Sigma

TOCTOCLeanLean

BPMBPM

RIP


Contents

• SunTrust Overview

• EBPS Overview


• Project Overview– Objectives and Scope

– Team Structure

– Approach



• Business Case

OverviewOverview

SunTrust Enterprise Business Process Services Confidential

Wealth and Investment Management Group SunTrust Investment ServicesClient Account Opening

Using Lean & Six Sigma to Drive Straight-Through Processing

Enterprise Business Process Services Jerry L. Calvert , SVP

Lean Six Sigma Master Black Belt


Project Focus

Focus is the end-to-end SunTrust Investment Services Account Opening Process with emphasis on streamlining the account opening process in order to process a straight-through transaction automatically from beginning to end with minimal manual intervention. We must also improve the client experience by reducing errors and process inefficiencies by eliminating non-value-added steps and therefore making it easier to do business with SunTrust.

OverviewOverview


Project Objectives and Scope

Project Objectives Gain a thorough understanding and

document the current environment: (People, Processes, Systems, organization, quality)

Analyze business processes, policies and procedures, key metrics and enabling systems and data

Using Lean and Six Sigma principles, design a future-state that will enable straight-through processing and significantly improve the client experience

Reduce unit costs, reduce cycle times, improve quality

Benchmark future state against best practices

Project Scope In Scope for Evaluation:

– Client Experience• Understanding client needs

– Organization• Front Office, Operations

– Products/Processes• Brokerage/IRAs, Annuities,

Cashiering, • Stock Cage, Managed Accounts,

etc. – Technology

• Imagio, Streetscape, Ncentive, etc.

Out of Scope:– Desktop Stabilization and

Performance– Post-Account Opening Activities

• Trading, Statements, etc.

OverviewOverview


Team Structure and Resources

Corporate EVP W&IMExecutive Sponsor

Working Steering Committee

Jerry L. CalvertProject Manager

W&IM Leads

Core Project Team· Project Manager: - Jerry Calvert· EBPS Process Consultants: EBPS Process Specialists: Corporate Quality Consultant: Additional Resources· 15-20 W&IM SME (Part time)· External SMEs (as needed)

Skills Recommended

Project Manager

· Validation of documentation

· Introduce facilitation sessions

· Co-analysis and planning

· SME best practices

Process Consultants \ Specialists

· Facilitate current state assessment and future state design

· Provide methodology

· Drive documentation

· Provide analysis and planning

· Access to information/people

Subject Matter Experts

· Deep functional expertise

· Deep knowledge of the sales and on-boarding process with respect to sales and operations

· Critical thinking

SME/Lead Responsibilities

· Work with EBPS process consultants and specialists to gather information and document current state Interpret account set-up, opening and funding processes

· Review current state process maps for accuracy

· Identify and work with other SMEs within the defined teams

· Provide input to future state design

Cross-functional teams from across W&IM and EBPS will work together to identify and streamline the end-to-end Account Opening process

Regional Offices

We Take an End-to-End Cross-Functional View

ClientFrontOffice

Richmond/Atlanta

OperationsNFS

DataSystemsQualityStrategyMarketingEtc.

OverviewOverview


Various Lean and Six Sigma improvement approaches were utilized on this initiative to reach it’s strategic goals:

• VOC and VOB (Customer and Business surveys and interviews)

• DMAIC (Define-Measure-Analyze-Improve-Control)

• CPQ (Cost of Poor Quality) We were experiencing >20% error rates on incoming applications

• Value-Stream mapping, Process mapping, SIPOC

• Root Cause Analysis (Cause & Effect, Pareto, Brainstorming, 5 Why’s, etc)

• Benchmarking (what are the best-in-class companies doing)

• Small Kaizen Events (fix the problem at the source by getting everyone involved)

• Streamlining via Straight-Through-Processing

• Poko-Yoke (mistake proofing the application process)

• Unit Costing (faster, cheaper, better)

• Cycle Time Analysis (>75% reduction)

OverviewOverviewProject Approach


Contents




• Current State Assessment– Initial Findings

– Gaps and Opportunities

– Associate Survey Feedback

– Metrics Analysis

• The Future State Design

• Business Case

Current StateCurrent State


Current State - Initial Findings Current StateCurrent State



Ric

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d O

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ew A

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Se

tUp

Sys

tem

sN

otes

Ric

hmon

d O

psF

ront

Offi

ce

Yes

No

Yes

Yes

No

Yes

No

InterofficeEnvelope



LooseDocuments



No






From Front Office

1.3


W&IM Mail Processor

2.1.2


in envelope

Mail Processor

2.1.12

To 2.2.4


etc

NewAcct SetUp

2.2.12



Doc Prep 2.2.9

PrincipalReview


Access

Mail Processor

2.1.8


Access

Mail Processor

2.1.5

Specific Dept


Doc Prep 2.1.4

Info Rcvd By EOD?

Time stamp envelope

W&IM Mail Processor

2.1.1


Doc Prep 2.2.7


acct#

Doc Prep 2.2.6

TOA

StockCage


& initial log

Doc Prep 2.2.3


PickUp Tray”

Mail Processor

2.1.13


Scanner 2.3.1



Doc Prep 2.2.4


Doc Prep 2.2.15


Items in Notebook

Indexer 2.3.3


Complete

Scanner 2.3.2


Not Found

Doc Prep 2.2.8

TOA Paperwork

Index Docs

Indexer 2.3.4

Resolve Account

Number Issue

FA/SA


to FA

Doc Prep 2.2.10




Doc Prep 2.1.10

2.0 Imaging

Hold Until Next Day

Doc Prep 2.2.14

Acct # on FBSI?

From x.xxManaged

Accts


Doc Prep 2.1.3


Sign In Packet

NewAcct SetUp

2.2.13



Doc Prep 2.1.7

Update Log Sheet &


Doc Prep 2.2.1


End



Scanner 2.3.6


Scanner 2.3.5


Sign Out

NewAcct SetUp

2.2.14



tel/fax/email

FA/SA 2.2.2


Prepare Cover Sheet

Doc Prep 2.2.5



To Shredder



From 3.3BAnnuities

From 3.3EStock Cage


Stock Certificates

End

Managed Accts Dept

Managed Accts



Time stamp Log

Doc Prep 2.1.6


Log sheet

Doc Prep 2.1.9


Access

Mail Processor

2.1.11

Type of Document?


(Paper)

NewAcct SetUp

2.2.13



Annuities Annuity Dept


Onsite Assessments • Review organization / business models• Interview stakeholders• Document existing practices

End-to-end Process Mapping • Conduct work sessions with each functional area• Map current state processes• Conduct follow-up validation sessions

Document Key Findings • Baseline gaps and issues • Identify root causes• Conduct metrics analysis

Policies and procedures are not always clearly communicated and are not standardized across the business

Lack of imaging capabilities have greatly diminished branch capacity

Account opening process is paper based which results in incomplete or incorrect data collection

Too much paperwork – Can be overwhelming to client during acquisition process

Client account setup process is fragmented and lacks the appropriate technology integration

Team Findings

• Determine imaging/workflow/document management strategy that would allow for remote document capture and a workflow process that can be initiated in real-time

• Explore indexing at the branch – Ownership

• A number of sub process have been instituted to track paperwork from the branch to Operations

• Extended cycle times - mail time can add several days to the process

• Implement more effective communication strategy

• User friendly online reference that aligns closely with how the field thinks – solicit input from user groups

• Hard to find online – easier to contact operations

• System is not user-friendly

• Lack of understanding results in exceptions to process and extends cycle times

• Over communication from home office

• NFS is rolling out a new account opening application that will address most of the issues through their front end system

• Address how accounts get set up away from the office

• Many of the applications that are submitted are not properly completed, may require additional customer interface(s)

• Additional staffing considerations to manage the exception process

• Examine current regulatory requirements and determine if current policies align with internal and external compliance – i.e. Wet Signature v. eSignature, signature card v. entire application

• Engage vendors (NFS and AdvisorPort) to determine if they have the ability to incorporate multiple strategies into the same account

• Administrative processes can take sales personnel away from primary responsibilities

• Multiple sets of paperwork required for same account registration

• Time consuming process between the sales team and representatives

• Explore opportunities to integrate CIP, prospecting and account opening to better align with the typical sales life cycle seen within STIS

• Contact Management System that provides our sales personnel with the tools to more efficiently manage the customer on-boarding process

• Time consuming process filled with many redundant activities

• Client information is being captured in several different autonomous applications

• Difficult to determine client’s total relationship or potential to STIS and STI

Potential OpportunitiesImpact






Team Findings


























• Redundant process handoffs• Technology challenges• Inconsistent training process• Tedious manual processing

• Quality inefficiencies (up to 20% NIGO) • Lack of end-to-end visibility and metrics • Complex policies and procedures

Based on initial findings, the following gaps were identified:

A detailed Current State assessment was conducted for the STIS Account Opening process focusing on organizational structure, processes and procedures, technology, and quality.


Current State - Gaps and Opportunities

• Front Office

– Client account setup process is fragmented and lacks the appropriate technology integration

– Too much paperwork – can be overwhelming to client during acquisitions process

– Account Opening process is paper-based which results in incomplete or incorrect data collection

– Lack of imaging capabilities have greatly diminished branch capacity

– Policies and procedures are not always clearly communicated across the business

• Operations

– Imaging process lacks efficient document capture and integrated workflow

– Lack of system integration which results in many hard to manage manual processes

– New account applications are often incomplete or wrong

– Lack of case management capabilities

– Lack of end-to-end metrics

• Technology

– System and application capabilities should support the needs and requirements of the business

– Ambiguity regarding roles and responsibilities for technology contacts

– Lack of robust reporting capabilities

– Imagio, contact manager, and other applications are not standardized across the organization

– Slow network performance and bandwidth issues within the branches

Further research of issues in the current state led to the identification of the following gaps and opportunities in the Front Office, Operations, and Technology:



Current State – Associate Survey Feedback

A thirteen question survey was conducted to solicit feedback from our client facing Sales Professionals:

– Eleven participants– Private Wealth Advisors, Private Financial Advisors, Investment Consultants and Investment Associates– Florida, Georgia and Tennessee– Questions focused on account opening and funding

• “When a client opens multiple accounts – it takes forever when opening through Streetscape because you have to reenter all of their information…”

• With an integrated contact management solution, “…every account entered would automatically merge into the contact system.”

• We need to “…improve the systems and consolidate the paperwork. The name, address, birthdate, SSN, etc., should only have to be recorded once.”

• An automated workflow system would “…track pipeline, marketing activities, reviews and opportunities all from one site.”

• “…we do not embrace technology to the point that it would make a significant increase in production. I am concerned that this will become a retention issue for reps and clients.”



*Based on Quality Sampling 8/15/06 - 8/28/06 (10 business days) for Annuities, Brokerage/IRA, Managed Accounts, and TOA.

Current State - Metrics Analysis A two-week in-depth quality assessment was conducted within Richmond Operations for incoming documents and applications*. The results illustrate…

76%

2%

22%

IGO

Reject to Sales Office

Call-Back/Email

TOA

82%

4%14%

IGO


Call-Back/Email

9%

14%

39%

38%

8%

28%

33%

27%

4%

39%

22%

39%

15%

31%

32%

3%

19%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Annuities Brokerage/IRA ManagedAccounts

TOA

Securities

Mid Atlantic

Int'l Wealth Mgmt

Florida

Central

Carolinas

13%

87%

15%

85%

15%

85%

18%

82%

16%

84%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Carolinas 180 Appl.

Central570 Appl.

Florida649 Appl.

Mid Atlantic461 Appl.

Securities81 Appl.

IGO %

NIGO %

NIGOs by Product


…and NIGOs by both Product and Region

Annuities Transfer of Assets (TOA)

Brokerage/ / IRANIGO Ratio by Applications

Total NIGOs by Region and Process Area

For this two-week period, 3,553 applications were received Not In Good Order (NIGO), representing an 20% error rate and a process sigma of 2.4. This error rate has a negative implication on the client’s experience with SunTrust.

Year-to-date only 41% of new accounts were opened via Streetscape.


Current State - Metrics Analysis Current StateCurrent State

Count

Perc

ent

Error

Count13.6 14.1 11.5 1.6 1.0

Cum % 58.1 71.7 85.9 97.4

111

99.0 100.0

26 27 22 3 2Percent 58.1

Missing

Disc

losur

e

Missing C

lient S

igna

ture

Tran

sfers

Missing

Req

uired

Form

Other

Missing

Req

uired

Inform

ation

200

150

100

50

0

9080706050403020100

Pareto Chart of Errors for Annuity Transactions

Using discrete data sets, Pareto Chart analysis was used to determine the most common error types by transactions. This was one of the indicators for areas of focus and improvement opportunities.


Current State - Metrics Analysis

Sample

Pro

port

ion

10987654321

0.028

0.026

0.024

0.022

0.020

0.018

0.016

0.014

0.012

0.010

_P=0.01768

UCL=0.02431

LCL=0.01104

11

Control ChartP-Chart of Transactions Not In Good Order

401918/28/0610

399598/25/069

326538/24/068

477728/23/067

405938/22/066

331548/21/065

258428/18/064

373538/17/063

369678/16/062

214448/15/061

TotalNIGODateSample

The P-Chart was utilized to determine if the proportion of NIGOs for each day sampled is in control. Factors contributing to process variation are causing data points to fall outside of the process control limits.



Current State - Metrics Analysis

• Most lost business occurs in the first 180 days for DDA clients, and 18 months for Investment Management and Trust clients.

• Wealthy clients often “try out” an organization before committing a significant portion of their assets.

• The best time to cross sell additional services to clients is when they are newly on board.

• A dissatisfied client will tell 19 people about their poor experience.

• New clients can often be the most vocal referral sources when they are “wowed” by their early experiences.

• New Brokerage Accounts

– Missing client signature

– Missing Risk Assessment Form

– Missing source of income

• Annuity Accounts


– Missing disclosures

– Missing required paperwork

• Managed Accounts

– Missing representative signature

– Missing Principal signature

– Incomplete paperwork

– Missing required paperwork

– Not input into Advisor Port

• Transfer of Assets (TOAs)


– Account mismatch

– Incomplete instructions

– Missing or incomplete statement

– Non-transferable funds

• Degradation of the Client Experience

– Repeated unnecessary contacts

– Delays in set-up or transfer of funds

– Unexpected restrictions of account functionality

• Financial Implications

– Cost or rework

– Loss of current business

– Missed opportunity for additional business and cross-sells

– Delays in bringing funds to SunTrust

• Degradation of SunTrust as a Whole

– Poor reputation as a Wealth Services provider

– Client may question our ability to deliver this service and others

*Client behaviors were extracted from the Strategies Group On-Boarding presentation 9/28/06.


Common Reasons for NIGOs Client Behavior* NIGO Implications


Contents





• The Future State Design– Approach Model

– Process Blueprint

– Benefit Analysis

• Business Case

Future StateFuture State


Value AnalysisAlignmentLimitationsBest Practices

Technology

A Closer Look – Approach ModelA Closer Look – Approach Model

Current State AssessmentIntegrated ViewBest PracticesFuture State Blueprint

Process Organization

Quality

Culture and

Behavior

Strategyand

Structure

Process

OrganizationDesign

HumanCapital

Aligns

Enables Drives

Inspires

Drives Enables and Limits

Supports Facilitates

Inspires Inspires

Shapes

Technology

Approach Model

FrameworkMetric Definition AnalysisManagement Process

AssessmentCultureAlignmentSkillsSizing

Provides a shared vision for the organization and serves as a critical

foundation for the transition and future improvements

Future State Approach Model Future StateFuture State

A comprehensive approach model utilizing Lean and Six Sigma techniques was utilized to ensure improvement efforts are aligned, integrated and balanced to enable optimal business performance.


Future State Approach Model

Evaluate Current State Findings • Prioritize gaps and issues• Further drill down of key metrics• Initiate future state brainstorm discussions

Design Integrated End-to-end Future State Processes• Conduct future state work sessions with each functional area• Research financial services and banking industry best practices• Highlight potential non-value-added process steps• Review related technology projects and business initiatives

Complete Future State Design • Develop future state process blueprint• Document improvement opportunities• Calculate metrics benefits• Identify quick win opportunities• Initiate roadmap development







Team Findings































Team Findings


























Future Future StateState

Future Future StateState

· Risk-mitigation tasks will be incorporated into the workflow design and directed to the appropriate resources.

· Risk assessment activities will be more automated and centralized, ensuring greater policy compliance.

· Risk-mitigation tasks and controls are decentralized, manual, and not well managed.

Risk Assessment and Approval

· There will be an initiative to minimize the data that must be manually collected to complete an implementation or maintenance request, and to re-design associated form(s).

· The form(s) will be dynamically generated by IMTS; only the necessary fields for the situation need to be completed.

· Data that has already been captured in another system will populate the setup form(s) as much as possible, reducing the need to perform manual, non-value added data entry.

· TIPs must manually select the blank implementation setup documents that are relevant for the situation. The forms are not pre-populated with data already captured in other systems.

Agreements and Setup Documents

· Improvements in the sales process (e.g., use of Product Configurator) reduce client/product mis-match.

· Automated data quality verifications prevent requests with missing or incorrect data from proceeding.

· Personnel will have greater confidence in the data, focusing more on value-added tasks instead of data scrubbing.

· TIPs must perform a detailed review of the implementation request to validate the information and confirm that the appropriate product has been sold to the client.

Data Quality

· Only implementations meeting certain criteria will be directed to a TIP for project management. Other implementations will be managed by CSS personnel. There will be different levels/specializations within the TIP and CSS organizations, to better match resources with tasks.

· All new/maintenance implementation requests are promoted to the Implementation (TIP) queue (with some product-specific and maintenance exceptions). There is no segregation of tasks based on complexity.

Implementation Management

· IMTS will notify the appropriate role or person of an open task that needs to be completed, based on workflow logic and level of TIP knowledge/experience required.

· Tasks may be automatically re-assigned based on an employee’s absence, workload or other considerations.

· TIPs monitor a general queue and “check-out” an implementation to work on it.

· TIPs are required to have broad product and process knowledge.

Queue Management

Unit Unit CostCost

Client Client ExperExper..

LoSLoSQualityQuality

Strategic AlignmentStrategic AlignmentFuture State Future State (Desired State)(Desired State)Current StateCurrent StateImprovement Improvement AreaArea

· Risk-mitigation tasks will be incorporated into the workflow design and directed to the appropriate resources.

· Risk assessment activities will be more automated and centralized, ensuring greater policy compliance.

· Risk-mitigation tasks and controls are decentralized, manual, and not well managed.

Risk Assessment and Approval

· There will be an initiative to minimize the data that must be manually collected to complete an implementation or maintenance request, and to re-design associated form(s).

· The form(s) will be dynamically generated by IMTS; only the necessary fields for the situation need to be completed.

· Data that has already been captured in another system will populate the setup form(s) as much as possible, reducing the need to perform manual, non-value added data entry.

· TIPs must manually select the blank implementation setup documents that are relevant for the situation. The forms are not pre-populated with data already captured in other systems.

Agreements and Setup Documents

· Improvements in the sales process (e.g., use of Product Configurator) reduce client/product mis-match.

· Automated data quality verifications prevent requests with missing or incorrect data from proceeding.

· Personnel will have greater confidence in the data, focusing more on value-added tasks instead of data scrubbing.

· TIPs must perform a detailed review of the implementation request to validate the information and confirm that the appropriate product has been sold to the client.

Data Quality

· Only implementations meeting certain criteria will be directed to a TIP for project management. Other implementations will be managed by CSS personnel. There will be different levels/specializations within the TIP and CSS organizations, to better match resources with tasks.

· All new/maintenance implementation requests are promoted to the Implementation (TIP) queue (with some product-specific and maintenance exceptions). There is no segregation of tasks based on complexity.

Implementation Management

· IMTS will notify the appropriate role or person of an open task that needs to be completed, based on workflow logic and level of TIP knowledge/experience required.

· Tasks may be automatically re-assigned based on an employee’s absence, workload or other considerations.

· TIPs monitor a general queue and “check-out” an implementation to work on it.

· TIPs are required to have broad product and process knowledge.

Queue Management

Unit Unit CostCost

Client Client ExperExper..

LoSLoSQualityQuality

Strategic AlignmentStrategic AlignmentFuture State Future State (Desired State)(Desired State)Current StateCurrent StateImprovement Improvement AreaArea

Improvement Opportunities

IGOs by Product

…and NIGOs by both Product and Region

13%

87%

15%

85%

15%

85%

18%

82%

16%

84%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Carolinas 180 Appl.

Central570 Appl.

Florida649 Appl.

Mid Atlantic461 Appl.

Securities81 Appl.

Brokerage / IRA NIGO Ratio by Applications

IGO %

NIGO %

9%

14%

39%

38%

8%

28%

33%

27%

4%

39%

22%

39%

15%

31%

32%

3%

19%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Annuities Brokerage/IRA M anaged

Accounts

TOA

Total NIGOs By Region and Process Area

Securities

M id Atlantic

Int'l Wealth M gm t

Florida

Central

Carolinas

TOA

82%

4%14%

IGO


Call-Back/Email

Annuities

76%

2%

22%

IGO


Call-Back/Em ail

In addition, a 2-week quality study was completed within Richmond Operations for incoming documents and applications*. The results illustrate…



Ric

hm

on

d O

ps

Ne

w A

cct

SetU

pS

yste

ms

No

tes

Ric

hm

ond

Op

sF

ront

Offic

e

Yes

No

Yes

Yes

No

Yes

No

InterofficeEnvelope



LooseDocuments



No






From Front Office

1.3


W&IM Mail Processor

2.1.2


in envelope

Mail Processor

2.1.12

To 2.2.4


etc

NewAcct SetUp

2.2.12



Doc Prep 2.2.9

PrincipalReview


Access

Mail Processor

2.1.8


Access

Mail Processor

2.1.5

Specific Dept


Doc Prep 2.1.4

Info Rcvd By EOD?

Time stamp envelope

W&IM Mail Processor

2.1.1


Doc Prep 2.2.7


acct#

Doc Prep 2.2.6

TOA

StockCage


& initial log

Doc Prep 2.2.3


PickUp Tray”

Mail Processor

2.1.13


Scanner 2.3.1



Doc Prep 2.2.4


Doc Prep 2.2.15


Items in Notebook

Indexer 2.3.3


Complete

Scanner 2.3.2


Not Found

Doc Prep 2.2.8

TOA Paperwork

Index Docs

Indexer 2.3.4

Resolve Account

Number Issue

FA/SA


to FA

Doc Prep 2.2.10




Doc Prep 2.1.10

2.0 Imaging

Hold Until Next Day

Doc Prep 2.2.14

Acct # on FBSI?

From x.xxManaged

Accts


Doc Prep 2.1.3


Sign In Packet

NewAcct SetUp

2.2.13



Doc Prep 2.1.7

Update Log Sheet &


Doc Prep 2.2.1


End



Scanner 2.3.6


Scanner 2.3.5


Sign Out

NewAcct SetUp

2.2.14



tel/fax/email

FA/SA 2.2.2


Prepare Cover Sheet

Doc Prep 2.2.5



To Shredder



From 3.3BAnnuities

From 3.3EStock Cage


Stock Certificates

End

Managed Accts Dept

Managed Accts



Time stamp Log

Doc Prep 2.1.6


Log sheet

Doc Prep 2.1.9


Access

Mail Processor

2.1.11

Type of Document?


(Paper)

NewAcct SetUp

2.2.13



AnnuitiesAnnuity

Dept


1 Benefits:

– Common systems and tools, LOB-wide

– Single point of access for STIS client data and client financials, with 360 degree view

– Elimination of redundant tedious data entry, thus saving time, reducing errors, and increasing efficiency

– Ability to save and later reference work in regards to a client or a prospect

– Free up Financial Advisor’s time to better focus on Client and prospecting

Integrated Systems Future Future StateState

Design of the STIS Account Opening Future State was aniterative process that incorporated SunTrust internal discussion feedback, detailed metrics analysis, and banking industry best practices.

As with Current State, primary focus centered on organizational structure, processes and procedures, technology, and quality.

Start

Review Financial Plan

with Client

FA 1.5

Accept Recommenda-

tions

Client 1.6

Client Expresses Interest in

W&IM Product

Client 1.1

Collect Client Information

FA 1.3

Complete Financial Plan

FA 1.4

System Integration of:- STIS Contact Manager- CIS- Financial Planning Tool

§ The Contact Manager will retrieve Client data from CIS

§ The Financial Planning Tool will retrieve SunTrust Account data from CIS

§ The Account Opening Workflow System will retrieve data from the Contact Manager, the Financial Planning Tool , and NFS, and will subsequently feed data to NFS via Streetscape for account opening and funding

Initiate Account

Opening Work Flow

FA 1.2

Acct Opening WorkflowSystem § Contact Manager

§ CIS§ Financial Planning Tool§ FBSI (NFS)

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - INTEGRATED CASE MANAGER (WORKFLOW), DOCUMENT MANAGER, AND MONITORING/REPORTING TOOLS THROUGHOUT ACCOUNT SET-UP AND FUNDING - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

FAs and SAs will monitor the account set-up via a dashboard and alerts

xxx

SunTrust W&IM STIS Account Opening P rocess Flow - Future State

Mailroom / Imaging

Fidelity

Client

Clie

nts

Process Flow

Atla

nta

O

ps Compliance

Officers

1.0 Open Account and Secure Documents and Funding2.0 Mail Process and

Imaging

Syste

ms

Op

era

tio

ns

Advisor Port

3.0 Verify Paperwork and Funding, Process, and Finalize Account Set-Up

Exte

rna

l V

en

dors

Start

Fin.AdvisorsInvestm.Couns.

PrivateWealthAdvSales Assoc.

Fro

nt

Off

ice

Brokerage / IRA

Annuities

Managed Accounts

Stock Cage

TOAs

Cash Office


with Client

FA 1.5

Accept Recommenda-

tions

Client 1.6


W&IM Product

Client 1.1


FA 1.3


FA 1.4

Collect Supporting

Documentation

FA/SA 1.8

Provide Supoorting

Documentation

Client 1.9

Yes

Type of Account SetUp?

Brokerage / IRAAccount

Set Up New Brokerage/IRA

Acct Online

FA/SA 1.11

AnnuityAccount

Certificates

TOA

Determine Funding

FA 1.19

Ensure Registrations

Match

FA/SA 1.23

Collect Supporting

Documents (if applicable)

FA/SA 1.25

Check

Write Account Number On

Check

FA/SA 1.24

Gather Statements,

etc

FA/SA 1.20

Obtain Client Signature or

Complete Stock Power

FA/SA 1.26Type of

Funding?

Review Statements

FA/SA 1.21

Review Annuity Application

Atl Compliance

1.28

Approved?

Obtain Client Signature

FA/SA 1.22

Sign Fund Deposit /

Transfer Docs

Client 1.32

Enter Account Number on

Certificate(s)

FA/SA 1.27

Promote Account Setup and Funding

FA/SA 1.29

Separate Incoming Mail for Stocks and

ChecksW&IM Mail Processor

2.1

Type of Document? To

3.0C

Review Brokerage/IRA

Paperwork

NFS 3.19A

End

No

IGO? Yes

Code in FBSI, Update

“In Transit” to “On File”

NFS 3.21A

Monthly Exception and Reporting Process

Source of Funds?

Debit DDA using PEP+ using SNAP

Annuity Proc.

3.4A

Print Reporting Sheet

Annuity Proc.

3.5A

Check

Internal

Brokerage

Credit settlement account (the DDA Acct on Platform)

Annuity Proc.

3.6A

Client data electronically fed to CAPS

System 3.1A

Initial or Addition

Deposit Checks into SunTrust

Services Settlement Acct

Annuity Proc.

3.3A

Electronically Sign Transfer

Paperwork

Annuity Proc.

3.9A

Send request/application

electronically to Annuity Carrier

Annuity Proc.

3.10A

NFS AND SunTrust Can Sign?

Yes

No


Annuity Proc.

3.12A

Transaction data

electronically fed to CAPSAnnuity

Proc.3.13A


Annuity Proc.

3.7A

Transaction data

electronically fed to CAPSAnnuity

Proc.3.8A

1035Transfer

Process Transfer

NFS 3.2.18

Run summary report

Annuity Proc.

3.15A

Net the Business for Each Carrier

Annuity Proc.

3.14A

Reconcile Wire Transfer

Against CAPS for each Carrier

Annuity Proc.

3.16A

After 2pm

Wire funds to Carrier

Annuity Proc.

3.21A

Wire funds to Atlanta

Annuity Proc.

3.20A

Wire report will indicate totals for

each carrier/Atlanta

Annuity EOD Process(only for Carriers not processed through Annuity Net)

Send Originals to Appropriate

Carrier via overnight mailAnnuity Proc.

3.17A

Send Checks to Proof

Annuity Proc.

3.18A

Paperwork is by Carrier

Reconcile entire business

for the day

Annuity Proc.

3.19A

One of the Annuity Processors performs these EOD activities; They rotate on a monthly schedule

End

End

Update Brokerage Acct

to Managed

NFS 3.4M

IGO?

Final Review of Application

NFS 3.1M

Generate Alert for FA/SA

NFS 3.3M

Log into Advisor Port, Setup

Client, & Accept Proposal

FA/SA 1.13

Yes

Forward Rqst & Docs

Electronically to Money Manager via Advisor PortMgd Acct

Spec.3.5M

Review Faxed Paperwork to

Determine IGO

Advisor Port 3.6M

IGO?

Forward to Money

Manager

Advisor Port 3.8M

Money Manager Sets

up Account

Money Mgr 3.9M

Yes

No

Reject back to Mgd Acct

Specialist (via email & Daily Log)

Advisor Port 3.7M

Receive Email & Daily Log from Advisor Port; Initiate Resolution

Mgd Acct Spec.

3.10M

System Monitors Acct & Generates Email

to Money Mgr when Acct is

funded

System 3.21M

Send Email to Money Manager – Acct is Setup and Release

Funds

Advisor Port 3.17M

Send Email to Mgd Acct Spec:

Acct was Released to Money Mgr

Advisor Port 3.18M

End

Type of Transfer?

IGO?No

Review Signatures (All Owners must

sign)

Processor 3.2T

Review Holdings on

FBSI

Processor 3.3T

Update Case (which will

update FBSI electronicaly)

Processor 3.4T

FA Response is applied to Case

System 3.6T

FA Response?

Yes

No

Yes

Populate ACAT info into FBSI

System 3.7T

Transmit Request &

Imaged docs to NFS

Processor 3.11T

B

B

Non-ACATs

End

Send notification to FA/SA that

TOA submitted

System 3.8T

System Memos FBSI - Acct

Transfer Complete

Processor 3.12T

End

- TOA is being processed- System Monitors Acct for Deposit

ACATs Notify FA/SA that Transfer

Received

System 3.10T

Load TOA into ACATs System

NFS 3.16T

Enter Request to ACATs

NFS 3.17T Send paperwork to contra broker

NFS 3.48T

Image Paperwork on NFS System

NFS 3.14T

B

End

ACAT?

Yes

No

Receive Fax (or Overnight Pkg

if PWA & NonACAT)

NFS 3.13T

Followup with Contra Broker on Exception Process if funds are not received

IGO?Yes

Email Richmond Ops-TOA to Resolve

NFS 3.15T

No

Yes

No

No

Yes

No

Yes

Store in Fireproof File

Processor 3.14S

Negotiable?

Deposit Into Non-Negotiable

Location

Processor 3.13S

IGO?

Deposit Certif. in FBSI Designate

Type 1 or 4(BBDS Screen)

Processor 3.9S

FedEx Stock Certificates

to Depository Trust Co (DTC)

Processor 3.11S

Send Letter to Client Request

Missing Documentation

Processor 3.5S

Process Stock Certificate

Processor 3.12S


to DTC

Processor 3.8S

Update Case to Notify FA

Processor 3.4S

Search for Acct# on FBSI and Resolve

Processor 3.3S

“Receipt” to “Deposit” Status will be in about 3 days

Book into FBSI as a Legal Item

Processor 3.7S

Prepare Package for

DTC

Processor 3.10S

Legal Item Missing

Acct # Correct? Non-Negotiable

Instrument

Researching CUSIP#Verify Stock Certificate

against FBSI and Stock Rcpt

Processor 3.2S

Resolve Missing Stock

Receipt

Client 1.34S

DTC

Yes

NoYes

No

Update FBSI indicating Stock Cert Returned

to Client

DTC 3.17S

Update FBSI indicating what

is needed

DTC 3.20S

Receive Stock

DTC 3.18SSend Stocks back to Client using Addr on Record (FBSI)

DTC 3.16S

Forward to Appropriate

Transfer Agent

DTC 3.19S

Receive Stock

DTC 3.15S

IGO?Required Docs Rcvd?

Execute the Order

DTC 3.21S

End EndHold Stock for up to 45 Days,

waiting for Docs

Receive Email from Advisor Port / Verify

MoneyManagerMgd Acct

Spec.3.24M

Funding Option 1Transfer of Assets

Funding Option 3-Checks-Transfers

Funding Option 2Stock Certificates

Account Opening – Brokerage/IRA Accounts

Account Opening – Annuity Accounts

Account Opening – Managed Accounts

At this point:- the Financial Analyst has opened the account, imaged all necessary documents, and had the account opening Principaled in the front office by the RSS or Branch Manager. - the required documents are all included and the application has been verified by the system.

Next:The Account Opening Paperwork will be routed for final review & release to:- Brokerage / IRA Principals OR - Annuity Processors

At this point:The funding paperwork will be routed to:- TOA Dept and/or- Stock Cage and/or- Cash Office

From Mail

Proc.

· Case Manager (Workflow System)· Document Management System· Contact Manager· Financial Planning Tool· CIS· Account Setup/Funding Workflow System· Streetscape / FBSI· AMC (Asset Management Consulting) Group· SNAP· Telephone and Fax· Email · InterOffice Mail, USPS, DHL, and FedEx (Stocks and Checks only)

· Case Manager (Workflow System)· Document Management System· FBSI

· Case Manager (Workflow System)· Document Management System· FBSI· CAPs· DTC· PEP+ (ACH)· Advisor Port· ACAT System (NFS)· Wire System (accessed via FBSI)· SNAP

Track:$ SunTrust Official$ Drawn on SunTrust$ Drawn on another bank

Put Checks & Deposit Slip in Envelope for

NFS

Cashier 3.3C

Key check Info Into FBSI

Cashier 3.2C

Log info into Excel

spreadsheet

Cashier 3.1C

Send Checks to Proofing Dept via InterOfc

Mail

Cashier 3.4C

Note : Checks have been imaged in Front Office

Wait 1 Day

End

Reconcile Open Items

Using Report31 from NFS

Cashier 3.8C

Process checks

Proof. Dept 3.5C

Process Checks & Credit

Appropriate Accounts

NFS 3.6C

Create Report-31 &

Print at Richmond Ops

NFS 3.7C

SunTrust - Other

Su

nT

rust

- O

ther

Monitor SNAP for Wire

Requests

Cashier 3.9C

Verify signed LOA (Received

via FAX

Cashier 3.10C

Submit Wire Request in

CACTUS (NFS System)

Cashier 3.13C

LOA Rcvd?

Yes

Verify Funds Available in

Account

Cashier 3.12C

No

IGO?Yes

No

Email FA to Resolve

Cashier 3.11C

From Front Office

Process the Wire Request

NFS 3.16C

Wire Request

IGO?

Yes

NoEmail

Cash Office re Issue

NFS 3.14C

Resolve Issue as Applicable

Cashier 3.15C

· Exception Process:· Email and Telephone· InterOffice Mail, USPS, DHL, and FedEx (Stocks

and Checks Only)

The Annuity Processing would be executed by Annuity Net. The issues/resolutions that are now occurring in the back office, on a delayed timeframe, would be greatly decreased, and issue resolution would occur immediately in the front office


Launch Account Setup and Account Funding- Image Documents at time of Receipt- Implement Work Flow system, integrating with the information from: - CIS - STIS Contact Manager - Financial Planning Tools - NFS

Initiate Annuity Account

Opening via ANNUITY NET

FA/SA 1.16

Mail Stock Certificates and

Checks to Richmond Ops

FA/SA 1.30

Update Account to be

‘Managed Account’

FA/SA 1.12

YesManaged Account

Promote Account Setup to be Reviewed

FA/SA/System

1.14

To3.0S

Stock Certif icates

Checks

Annuity Approved?

No Remediate Issue; Respond by Email/Fax

FA / SA 1.18

Remediate Issue

(as applicable)

Client 3.2.17



§ The Account Opening Workflow System will retrieve data from the Contact Manager, the Financial Planning Tool, and NFS, and will subsequently feed data to NFS via Streetscape for account opening and funding

Review Paperwork

Compliance Officer

1.17

No

Less than $500K

No

Yes

Yes

No

Launch Account Setup and Funding

FA/SA 1.7

Scan Documents

FA/SA 1.10

Scan and Index

Documents

FA/SA 1.28To 1.4

ANNUITY NET will be implemented to provide front-end audits of data, and will route the Annuity Application directly to the Carriers through Streetscape (NFS)

Documents will be scanned and indexed

at the time of receipt, allowing the Front Office

to be responsible for their required documents

Documents will be

scanned and indexed at the time of receipt

Initiate Account

Opening Work Flow

FA 1.2



Workflow will promote the Annuity to the OSJ for online review/approval

Note: Stock Certificates and Checks were imaged and indexed at time of receipt

Volume of Incoming Documents will greatly reduced for new account openings due to receiving only Stock Certificates and Checks

The Account Setup and Funding can not be promoted to Operations until

the document and data requirements are satisfied . Thus improving the

subsequent processing and reducing NIGOs

Verify Registration Matches Contra Broker Stmt via Imaged Docs

Processor 3.1T

If no response from the FA in 72 hours, the system will demote the TOA back to the FA

Demote to FA/SA

System 3.5T

Create notifications for FA if pending time exceeded

ØCreate Process with NFS that any accounts greater than 30 days that have missing documents , be Restricted

ØGenerate Missing Document Reports for FAs 7 days prior to EOM (including aging)

ØGenerate Missing Document Reports for FAs at EOM , representing penalty charges for excessive aging

ØCreate feed to Commission system to charge FAs a penalty fee for Restricted

ØNote: This will save approximately one and a half days of manual and tedious processing by one of the Richmond Ops Principals

To3.1S

Scan and Index Stock

Certificate

Processor 3.1S

Mail From

(Client)


NFS 3.19A

From Workflow

9.9

From Workflow

No

Receive Email from STIS

Advisor Port 3.16M

To3.0C

To3.0T

TOAs

Cash Office

To3.0S

Stock Cage

To FA9.9

Update error in FBSI

NFS 3.22S

Note: LOA was Imaged in Front Office

New Accounts will be Principaled in Front Office

System indicates required documents, required data, and provides online help

Principal Review of Application

RSS /BranchMgr

1.15

Interfacing to FBSI

Update Case; Alert generated

to FA/SA

Mgd Acct Spec.

3.11M

Update Case

Mgd Acct Spec.

3.24M

Transaction data

electronically fed to CAPS

System 3.2A

Move money to Carrier

Annuity Proc.

3.11A

Note: Not all Carriers can be processed electronically ; others will be processed manually

System Allows 72 hours


Transfer Complete

System 3.9T


System Notifies FA/SA/Internal

Wholesale: Acct is opened and

funded

System 3.24M

Final Review of Application for Completeness

Principal 3.1BBrokerage

IRAFinal Review of Application for Completeness

Principal 3.6B

IGO?

IGO? No

No

NIGO Notification

sent to FA/SA

Principal 3.3B

Resolve Issue (as applicable)

Client 1.32

Update Case

Principal 3.2B

Update FBSI - Change


Principal 3.5B

End

Yes

Yes

Transmit Application to

NFS Electronically

Principal 3.8B

End

Brokerage

IRA

Work-flow

Brokerage or IRA?

Update Case

Principal 3.4B

Update Case

Principal 3.7B

Receive Notification of

Issue or Advice

FA / SA 1.31

Resolve Issue and Update

Case

FA / SA 1.33

End

Image and Index

Documents from Client

Processor 3.6S

From A

ToA

ToA

ToA

From Workflow

From Workflow

From Mail Proc.

ToA

System Monitors Status in FBSI and Generates

Alert to Case Mgr

System 3.23S

Case Manager Generates Alert to

FA/SA

System 3.24S

ToA


to FA/SA

Mgd Acct Spec.

3.2M

ToA

The Case Manager provides a single point of notification to the FA/SA on any outstanding

issues, and allows the FA/SA one point where the response is entered . The

response will then be routed to the proper Richmond Ops Group.

In the Current State, FA/SA’s can receive notification from any of 14 different areas of

the process.To

3.0M

To3.0A

To3.0B

Brokerage/IRA

Annuity

Managed Accts

Return to Wolrkflow

Activity

System

Activity

Who

Legend:

Activity by an individual

Automated Activity by the System

Work-flow

Work-flow

Work-flow

End

ToA


to FA/SA

Mgd Acct Spec.

3.18T

ToA


The Future State Design will provide a practical blueprint for addressing the key improvement opportunities identified from the Current State Assessment.

Operational InefficienciesOperational Inefficiencies

• Redundant process handoffs • Quality inefficiencies (up to 20% NIGO)• Tedious manual processes resulting in higher costs• Too much paperwork

Missed Front Office OpportunitiesMissed Front Office Opportunities

Future State Approach Model

• Tools and technologies that do not fully promote stronger client relationships

• Increased processing time that results in fewer client referrals, reduced client trust, and higher costs


Current State

(Broken processes & silos of work)

We need to all be pulling together on this!




xxx

SunTrust W&IM STIS Account Opening Process Flow - Future State

Mailroom / Imaging

Fidelity

Client

Clie

nts

Process Flow

Atla

nta

O

ps Compliance

Officers


Imaging

Sys

tem

sO

pera

tion

s

Advisor Port


Ext

ern

al V

end

ors

Start



Fro

nt O

ffic

e

Brokerage / IRA

Annuities

Managed Accounts

Stock Cage

TOAs

Cash Office


with Client

FA 1.5

Accept Recommenda-

tions

Client 1.6


W&IM Product

Client 1.1


FA 1.3


FA 1.4

Collect Supporting

Documentation

FA/SA 1.8

Provide Supoorting

Documentation

Client 1.9

Yes




Acct Online

FA/SA 1.11

AnnuityAccount

Certificates

TOA

Determine Funding

FA 1.19


Match

FA/SA 1.23

Collect Supporting


FA/SA 1.25

Check


Check

FA/SA 1.24

Gather Statements,

etc

FA/SA 1.20



FA/SA 1.26Type of

Funding?

Review Statements

FA/SA 1.21


Atl Compliance

1.28

Approved?


FA/SA 1.22

Sign Fund Deposit /

Transfer Docs

Client 1.32


Certificate(s)

FA/SA 1.27


FA/SA 1.29



2.1


3.0C


Paperwork

NFS 3.19A

End

No

IGO? Yes



NFS 3.21A


Source of Funds?


Annuity Proc.

3.4A


Annuity Proc.

3.5A

Check

Internal

Brokerage


Annuity Proc.

3.6A


System 3.1A

Initial or Addition Deposit Checks

into SunTrust Services

Settlement AcctAnnuity Proc.

3.3A


Paperwork

Annuity Proc.

3.9A



Annuity Proc.

3.10A

NFS AND SunTrust

Can Sign?Yes

No


Annuity Proc.

3.12A

Transaction data

electronically fed to CAPSAnnuity Proc.

3.13A


Annuity Proc.

3.7A

Transaction data


3.8A

1035Transfer

Process Transfer

NFS 3.2.18

Run summary report

Annuity Proc.

3.15A


Annuity Proc.

3.14A



Annuity Proc.

3.16A

After 2pm


Annuity Proc.

3.21A


Annuity Proc.

3.20A






3.17A


Annuity Proc.

3.18A



for the day

Annuity Proc.

3.19A


End

End


to Managed

NFS 3.4M

IGO?Final Review of Application

NFS 3.1M


NFS 3.3M



FA/SA 1.13

Yes

Forward Rqst & Docs


Spec.3.5M


Determine IGO

Advisor Port 3.6M

IGO?

Forward to Money

Manager

Advisor Port 3.8M

Money Manager Sets

up Account

Money Mgr 3.9M

Yes

No



Advisor Port 3.7M


Mgd Acct Spec.

3.10M



funded

System 3.21M


Funds

Advisor Port 3.17M



Advisor Port 3.18M

End

Type of Transfer?

IGO?No


sign)

Processor 3.2T

Review Holdings on

FBSI

Processor 3.3T



Processor 3.4T


System 3.6T

FA Response?

Yes

No

Yes


System 3.7T

Transmit Request &

Imaged docs to NFS

Processor 3.11T

B

B

Non-ACATs

End


TOA submitted

System 3.8T


Transfer Complete

Processor 3.12T

End



Received

System 3.10T


NFS 3.16T



NFS 3.48T


NFS 3.14T

B

End

ACAT?

Yes

No


if PWA & NonACAT)

NFS 3.13T


IGO?Yes


NFS 3.15T

No

Yes

No

No

Yes

No

Yes


Processor 3.14S

Negotiable?


Location

Processor 3.13S

IGO?



Processor 3.9S



Processor 3.11S



Processor 3.5S


Processor 3.12S


to DTC

Processor 3.8S


Processor 3.4S


Processor 3.3S



Processor 3.7S

Prepare Package for

DTC

Processor 3.10S

Legal Item Missing


Instrument



Processor 3.2S


Receipt

Client 1.34S

DTC

Yes

NoYes

NoUpdate FBSI

indicating Stock Cert Returned

to Client

DTC 3.17S


is needed

DTC 3.20S

Receive Stock


DTC 3.16S


Transfer Agent

DTC 3.19S

Receive Stock

DTC 3.15S


Execute the Order

DTC 3.21S


waiting for Docs



Spec.3.24M










From Mail Proc.






NFS

Cashier 3.3C


Cashier 3.2C

Log info into Excel

spreadsheet

Cashier 3.1C


Mail

Cashier 3.4C

Note: Checks have been imaged in Front Office

Wait 1 Day

End



Cashier 3.8C

Process checks

Proof. Dept 3.5C



NFS 3.6C

Create Report-31 &


NFS 3.7C

SunTrust - Other

Su

nT

rust

- O

the

r


Requests

Cashier 3.9C


via FAX

Cashier 3.10C


CACTUS (NFS System)

Cashier 3.13C

LOA Rcvd?

Yes


Account

Cashier 3.12C

No

IGO?Yes

No

Email FA to Resolve

Cashier 3.11C

From Front Office


NFS 3.16C

Wire Request

IGO?

Yes

NoEmail


NFS 3.14C


Cashier 3.15C


and Checks Only)

The Annuity Processing would be executed by Annuity Net. The issues/resolutions that are now occurring in the back office , on a delayed timeframe, would be greatly decreased, and issue resolution would occur immediately in the front office





FA/SA 1.16



FA/SA 1.30



FA/SA 1.12

YesManaged Account


FA/SA/System

1.14

To3.0S

Stock Certificates

Checks

Annuity Approved?

No Remediate Issue; Respond

by Email/Fax

FA / SA 1.18

Remediate Issue

(as applicable)

Client 3.2.17




Review Paperwork

Compliance Officer

1.17

No

Less than $500K

No

Yes

Yes

No


FA/SA 1.7

Scan Documents

FA/SA 1.10

Scan and Index

Documents

FA/SA 1.28To 1.4





Documents will be


Initiate Account

Opening Work Flow

FA 1.2







the document and data requirements are satisfied. Thus improving the



Processor 3.1T


Demote to FA/SA

System 3.5T


ØCreate Process with NFS that any accounts greater than 30 days that have missing documents, be Restricted


ØGenerate Missing Document Reports for FAs at EOM , representing penalty charges for excessive aging



To3.1S


Certificate

Processor 3.1S

Mail From

(Client)


NFS 3.19AFrom

Workflow 9.9

From Workflow

No


Advisor Port 3.16M

To3.0C

To3.0T

TOAs

Cash Office

To3.0S

Stock Cage

To FA9.9


NFS 3.22S





RSS /BranchMgr

1.15

Interfacing to FBSI


to FA/SA

Mgd Acct Spec.

3.11M

Update Case

Mgd Acct Spec.

3.24M

Transaction data


System 3.2A


Annuity Proc.

3.11A

Note: Not all Carriers can be processed electronically; others will be processed manually



Transfer Complete

System 3.9T




funded

System 3.24M



IRA Final Review of Application for Completeness

Principal 3.6B

IGO?

IGO? No

No

NIGO Notification

sent to FA/SA

Principal 3.3B


Client 1.32

Update Case

Principal 3.2B



Principal 3.5B

End

Yes

Yes


NFS Electronically

Principal 3.8B

End

Brokerage

IRA

Work-flow

Brokerage or IRA?

Update Case

Principal 3.4B

Update Case

Principal 3.7B


Issue or Advice

FA / SA 1.31


Case

FA / SA 1.33

End

Image and Index


Processor 3.6S

From A

ToA

ToA

ToA

From Workflow

From Workflow

From Mail Proc.

ToA


Alert to Case Mgr

System 3.23S


FA/SA

System 3.24S

ToA


to FA/SA

Mgd Acct Spec.

3.2M

ToA


issues, and allows the FA/SA one point where the response is entered . The



the process.To

3.0M

To3.0A

To3.0B

Brokerage/IRA

Annuity

Managed Accts

Return to Wolrkflow

Activity

System

Activity

Who

Legend:



Work-flow

Work-flow

Work-flow

End

ToA


to FA/SA

Mgd Acct Spec.

3.18T

ToA

Integrated Systems for client data and client financials

1

2 Streamlined Account Setup for opening new accounts

Document Imaging at point of receipt3

4 Automated Workflow with electronic routing of tasks and documents

5 Case Management with end-to-end view, alerts, and reporting

The Integrated Future State process illustrates the end-to-end, cross-department activities and highlights five key areas of improvement.

Future State Process Blueprint Future StateFuture State


Integrated Systems

Integrated systems for client data and client financials 1

• Key Attributes:– LOB-wide Contact Manager

– Contact Manager integrated with other front-end applications, CIS, Financial Planning Tool, and STIS Account Opening Process

• Benefits:– Common systems and tools, LOB-wide

– Single point of access for STIS client data and financials

– Elimination of redundant tedious data entry

– Increase efficiency and reduce errors

– Ability to save and later reference that information

– Free up Financial Advisor’s time to better focus on Client and prospecting

Start


with Client

FA 1.5

Accept Recommenda-

tions

Client 1.6


W&IM Product

Client 1.1


FA 1.3


FA 1.4





Initiate Account

Opening Work Flow

FA 1.2





Streamlined Account Setup

• Key Attributes: – Case Manager for Account Opening and

Funding

– Integrated applications

– Document Manager with front office document capture

Streamlined account setup for opening new accounts

• Benefits:– Improve efficiency by eliminating redundant information

– Online guidance and online help

– Required documents and data clearly identified

– Electronic work flow routing including control points and gates

– Document control throughout process, with Financial Advisor accountability

– Faster launch for account setup with reduced NIGOs

– Virtually eliminate transit time delay in Interoffice Mail

2


Collect Supporting

Documentation

FA/SA 1.8

Provide Supoorting

Documentation

Client 1.9

Yes




Acct Online

FA/SA 1.11

AnnuityAccount

Certificates

TOA

Determine Funding

FA 1.19


Match

FA/SA 1.23

Collect Supporting


FA/SA 1.25

Check


Check

FA/SA 1.24

Gather Statements,

etc

FA/SA 1.20



FA/SA 1.26Type of

Funding?

Review Statements

FA/SA 1.21


Atl Compliance

1.28

Approved?


FA/SA 1.22

Sign Fund Deposit /

Transfer Docs

Client 1.32


Certificate(s)

FA/SA 1.27


FA/SA 1.29



FA/SA 1.13




FA/SA 1.16



FA/SA 1.30



FA/SA 1.12

YesManaged Account


FA/SA/System

1.14

Annuity Approved?


by Email/Fax

FA / SA 1.18

Remediate Issue

(as applicable)

Client 3.2.17

Review Paperwork

Compliance Officer

1.17

No

Less than $500K

No

Yes

Yes

No


FA/SA 1.7

Scan Documents

FA/SA 1.10

Scan and Index

Documents

FA/SA 1.28To 1.4





Documents will be









RSS /BranchMgr

1.15

Interfacing to FBSI


Document Imaging / Automated Workflow

Collect Supporting

Documentation

FA/SA 1.6

Provide Supoorting

Documentation

Client 1.7

Scan Documents

FA/SA 1.8

Documents will be scanned and

indexed at the time of receipt

• Key Attributes:– Document Capture at point of receipt

– Case Manager (Workflow engine) including Rules Engine

– Interface Front Office, Atlanta Ops, Richmond Ops, NFS, Annuity Carriers, and Advisor Port

Automated workflow with electronic routing of tasks and documents

43 Document imaging at point of receipt

Scan and Index

Documents

FA/SA 1.8

Documents will be


• Benefits:– Front Office will own responsibility of document capture

– Improved efficiency

– Reduced errors and missing documents

– Reduce lag time due to Interoffice mail and communication delays

– End-to-end view with improved reporting and metrics

– Allow Financial Advisor to focus on building business and fostering client relationships

– Improved client experience



FA/SA 1.29



2.1


3.0C


Paperwork

NFS 3.19A

End

No

IGO? Yes



NFS 3.21A


Source of Funds?


Annuity Proc.

3.4A


Annuity Proc.

3.5A

Check

Internal

Brokerage


Annuity Proc.

3.6A


System 3.1A




3.3A


Paperwork

Annuity Proc.

3.9A



Annuity Proc.

3.10A

NFS AND SunTrust

Can Sign?Yes

No


Annuity Proc.

3.12A

Transaction data


3.13A


Annuity Proc.

3.7A

Transaction data


3.8A

1035Transfer

Process Transfer

NFS 3.2.18

Run summary report

Annuity Proc.

3.15A


Annuity Proc.

3.14A



Annuity Proc.

3.16A

After 2pm


Annuity Proc.

3.21A


Annuity Proc.

3.20A



Annuity EOD Process(only for Carriers not processed through Annuity Net )



3.17A


Annuity Proc.

3.18A



for the day

Annuity Proc.

3.19A


End

End


to Managed

NFS 3.4M

IGO?


NFS 3.1M


NFS 3.3M

Yes

Forward Rqst & Docs


Spec.3.5M


Determine IGO

Advisor Port 3.6M

IGO?

Forward to Money

Manager

Advisor Port 3.8M

Money Manager Sets

up Account

Money Mgr 3.9M

Yes

No



Advisor Port 3.7M


Mgd Acct Spec.

3.10M



funded

System 3.21M


Funds

Advisor Port 3.17M



Advisor Port 3.18M

End

Type of Transfer?

IGO?No


sign)

Processor 3.2T

Review Holdings on

FBSI

Processor 3.3T



Processor 3.4T


System 3.6T

FA Response?

Yes

No

Yes


System 3.7T

Transmit Request &

Imaged docs to NFS

Processor 3.11T

B

B

Non-ACATs

End


TOA submitted

System 3.8T


Transfer Complete

Processor 3.12T

End



Received

System 3.10T


NFS 3.16T



NFS 3.48T


NFS 3.14T

B

End

ACAT?

Yes

No


if PWA & NonACAT)

NFS 3.13T


IGO?Yes


NFS 3.15T

No

Yes

No

No

Yes

No

Yes


Processor 3.14S

Negotiable?


Location

Processor 3.13S

IGO?



Processor 3.9S



Processor 3.11S



Processor 3.5S


Processor 3.12S


to DTC

Processor 3.8S


Processor 3.4S


Processor 3.3S



Processor 3.7S

Prepare Package for

DTC

Processor 3.10S

Legal Item Missing


Instrument



Processor 3.2S


Receipt

Client 1.34S

Yes

NoYes

NoUpdate FBSI


to Client

DTC 3.17S


is needed

DTC 3.20S

Receive Stock


DTC 3.16S


Transfer Agent

DTC 3.19S

Receive Stock

DTC 3.15S


Execute the Order

DTC 3.21S


waiting for Docs



Spec.3.24M










From Mail Proc.



NFS

Cashier 3.3C


Cashier 3.2C

Log info into Excel

spreadsheet

Cashier 3.1C


Mail

Cashier 3.4C


Wait 1 Day

End



Cashier 3.8C

Process checks

Proof. Dept 3.5C



NFS 3.6C

Create Report-31 &


NFS 3.7C


Requests

Cashier 3.9C


via FAX

Cashier 3.10C


CACTUS (NFS System)

Cashier 3.13C

LOA Rcvd?

Yes


Account

Cashier 3.12C

No

IGO?Yes

No

Email FA to Resolve

Cashier 3.11C

From Front Office


NFS 3.16C

Wire Request

IGO?

Yes

NoEmail


NFS 3.14C


Cashier 3.15C

The Annuity Processing would be executed by Annuity Net . The issues/resolutions that are now occurring in the back office , on a delayed timeframe, would be greatly decreased , and issue resolution would occur immediately in the front office



FA/SA 1.30

To3.0S

Stock Certificates

Checks




Processor 3.1T


Demote to FA/SA

System 3.5T




ØGenerate Missing Document Reports for FAs at EOM, representing penalty charges for excessive aging



To3.1S


Certificate

Processor 3.1S

Mail From

(Client)


NFS 3.19A

From Workflow

9.9

From Workflow

No


Advisor Port 3.16M

To3.0C

To3.0T

TOAs

Cash Office

To3.0S

Stock Cage

To FA9.9


NFS 3.22S



to FA/SA

Mgd Acct Spec.

3.11M

Update Case

Mgd Acct Spec.

3.24M

Transaction data


System 3.2A


Annuity Proc.

3.11A

Note: Not all Carriers can be processed electronically ; others will be processed manually



Transfer Complete

System 3.9T




funded

System 3.24M




Principal 3.6B

IGO?

IGO? No

No

NIGO Notification

sent to FA/SA

Principal 3.3B


Client 1.32

Update Case

Principal 3.2B



Principal 3.5B

End

Yes

Yes


NFS Electronically

Principal 3.8B

End

Brokerage

IRA

Work-flow

Brokerage or IRA?

Update Case

Principal 3.4B

Update Case

Principal 3.7B


Issue or Advice

FA / SA 1.31


Case

FA / SA 1.33

End

Image and Index


Processor 3.6S

From A

ToA

ToA

ToA

From Workflow

From Workflow

From Mail Proc.

ToA


Alert to Case Mgr

System 3.23S


FA/SA

System 3.24S

ToA


to FA/SA

Mgd Acct Spec.

3.2M

ToA


issues, and allows the FA/SA one point where the response is entered. The



the process.To

3.0M

To3.0A

To3.0B

Brokerage/IRA

Annuity

Managed Accts

Return to Wolrkflow

Work-flow

Work-flow

Work-flow

End

ToA


to FA/SA

Mgd Acct Spec.

3.18T

ToA


Case Management

• Key Attributes:– Robust Case Management Tool for monitoring, tracking,

and escalating action items, tasks, and issues

– Alerts and Effective Reporting

– Integrated document management

• Benefits:– End-to-end view for Financial Advisors, Sales

Assistants, Management, Compliance, and Operations.

– Effective reporting and metrics, driving towards better business decisions, rewards, and coaching

– Allow Financial Advisor to focus on building business and fostering client relationships

– Increase efficiency of Financial Advisors and all support groups

5 Case management with end-to-end view, alerts, and reporting


End-to-end view


FA/SA 1.29



2.1


3.0C


Paperwork

NFS 3.19A

End

No

IGO? Yes



NFS 3.21A


Source of Funds?


Annuity Proc.

3.4A


Annuity Proc.

3.5A

Check

Internal

Brokerage


Annuity Proc.

3.6A


System 3.1A




3.3A


Paperwork

Annuity Proc. 3.9A



Annuity Proc. 3.10A

NFS AND SunTrust

Can Sign?Yes

No


Annuity Proc.

3.12A

Transaction data


3.13A


Annuity Proc. 3.7A

Transaction data

electronically fed to CAPSAnnuity Proc. 3.8A

1035Transfer

Process Transfer

NFS 3.2.18

Run summary report

Annuity Proc.

3.15A


Annuity Proc.

3.14A



Annuity Proc.

3.16A

After 2pm


Annuity Proc.

3.21A


Annuity Proc. 3.20A






3.17A


Annuity Proc.

3.18A



for the day

Annuity Proc.

3.19A


End

End


to Managed

NFS 3.4M

IGO?Final Review of Application

NFS 3.1M


NFS 3.3M

Yes

Forward Rqst & Docs


Spec.3.5M


Determine IGO

Advisor Port 3.6M

IGO?

Forward to Money

Manager

Advisor Port 3.8M

Money Manager Sets

up Account

Money Mgr 3.9M

Yes

No



Advisor Port 3.7M


Mgd Acct Spec.

3.10M



funded

System 3.21M


Funds

Advisor Port 3.17M



Advisor Port 3.18M

End

Type of Transfer?

IGO?No


sign)

Processor 3.2T

Review Holdings on

FBSI

Processor 3.3T



Processor 3.4T


System 3.6T

FA Response?

Yes

No

Yes


System 3.7T

Transmit Request &

Imaged docs to NFS

Processor 3.11T

B

B

Non-ACATs

End


TOA submitted

System 3.8T


Transfer Complete

Processor 3.12T

End



Received

System 3.10T


NFS 3.16T



NFS 3.48T


NFS 3.14T

B

End

ACAT?

Yes

No


if PWA & NonACAT)

NFS 3.13T


IGO?Yes


NFS 3.15T

No

Yes

No

No

Yes

No

Yes


Processor 3.14S

Negotiable?


Location

Processor 3.13S

IGO?



Processor 3.9S



Processor 3.11S



Processor 3.5S


Processor 3.12S


to DTC

Processor 3.8S


Processor 3.4S


Processor 3.3S



Processor 3.7S

Prepare Package for

DTC

Processor 3.10S

Legal Item Missing


Instrument


against FBSI and Stock RcptProcessor 3.2S


Receipt

Client 1.34S

Yes

NoYes

NoUpdate FBSI


to Client

DTC 3.17S


is needed

DTC 3.20S

Receive Stock


DTC 3.16S


Transfer Agent

DTC 3.19S

Receive Stock

DTC 3.15S


Execute the Order

DTC 3.21S


waiting for Docs



Spec.3.24M










From Mail Proc.



NFSCashier 3.3C


Cashier 3.2C

Log info into Excel

spreadsheet

Cashier 3.1C


MailCashier 3.4C


Wait 1 Day

End



Cashier 3.8C

Process checks

Proof. Dept 3.5C



NFS 3.6C

Create Report-31 &


NFS 3.7C


Requests

Cashier 3.9C


via FAX

Cashier 3.10C


CACTUS (NFS System)

Cashier 3.13C

LOA Rcvd?

Yes


Account

Cashier 3.12C

No

IGO?Yes

No

Email FA to Resolve

Cashier 3.11C

From Front Office


NFS 3.16C

Wire Request

IGO?

Yes

NoEmail


NFS 3.14C


Cashier 3.15C




FA/SA 1.30

To3.0S

Stock Certificates

Checks




Processor 3.1T


Demote to FA/SA

System 3.5T







To3.1S


Certificate

Processor 3.1S

Mail From

(Client)


NFS 3.19A

From Workflow

9.9

From Workflow

No


Advisor Port 3.16M

To3.0C

To3.0T

TOAs

Cash Office

To3.0S

Stock Cage

To FA9.9


NFS 3.22S



to FA/SA

Mgd Acct Spec.

3.11M

Update Case

Mgd Acct Spec.

3.24M

Transaction data


System 3.2A


Annuity Proc. 3.11A




Transfer Complete

System 3.9T




funded

System 3.24M




Principal 3.6B

IGO?

IGO? No

No

NIGO Notification

sent to FA/SA

Principal 3.3B


Client 1.32

Update Case

Principal 3.2B



Principal 3.5B

End

Yes

Yes


NFS Electronically

Principal 3.8B

End

Brokerage

IRA

Work-flow

Brokerage or IRA?

Update Case

Principal 3.4B

Update Case

Principal 3.7B


Issue or Advice

FA / SA 1.31


Case

FA / SA 1.33

End

Image and Index


Processor 3.6S

From A

ToA

ToA

ToA

From Workflow

From Workflow

From Mail Proc.

ToA


Alert to Case Mgr

System 3.23S


FA/SA

System 3.24S

ToA


to FA/SA

Mgd Acct Spec. 3.2M

ToA





the process.To

3.0M

To3.0A

To3.0B

Brokerage/IRA

Annuity

Managed Accts

Return to Wolrkflow

Work-flow

Work-flow

Work-flow

End

ToA


to FA/SA

Mgd Acct Spec.

3.18T

ToA


Future State Benefit Analysis

Brokerage/IRA Accounts with ACAT Funding

Future State:

Source of Benefits

Account Setup& Funding

-Integrated Contact Management System will require less manual client data entry and reduce Initial Client Setup time for account opening by up to 75%.

-Document and Data control will significantly reduce NIGOs, rework and delays.

-Accountability for documents is owned by front office.

Mailing

-Integrated Document Management and Imaging System will enable applications to be imaged and indexed at the point of capture and eliminate 2 days of interoffice mail transportation time and reduce overnight mail expense.

Imaging

-Having documents imaged at the point of entry, will significantly reduce labor costs in middle office for imaging purposes and delay in process.

Account Processing

-An integrated workflow system will provide document control thus reducing the NIGO rate and rework in Richmond Ops.

Potential 77% Reduction in Overall Processing Time


Note: This is actual processing time versus elapsed time for actual receipt of funding and assumes all paperwork is completed at the time of application.

1 Hour 1 Day

Total: 2 Days

Launch AccountSetup & Funding

Account Processing

Start Stop

NFS Processing

1 Day

Current State:

Account Processing

½ Day

Image AccountOpening Docs

Launch AcctSetup & Funding

½ Day Up to 2 Days

Total: Up to 9 Days

Mail Application

2 Days

Image FundingDocs

½ Day

Funding Processing

Up to 3 Days

NFS Processing

3 Days

Start Stop

Notes:

-Account setup usually involves more than one account per relationship.

-Imaging includes time spent in queue.

-Imaging capability will allow STIS to transmit images electronically to NFS thus eliminating mail time and reducing their SLA from 3 days to same day.

-Account processing time takes into account NIGO rework.

-Capacity in Front Office will increase significantly and free up staff to better support sales processes (Set appointments, service existing clients, etc.)


Future State Benefit Analysis

Annuities

Future State:

Current State:

Account Processing & Funding

½ day

Imaging

Start Stop

Launch AcctSetup & Funding

½ Day Up to 3 Days

Total: Up to 7 Days

Mail Application

2 Days

RSS SuitabilityReview

1 Day

Source of Benefits

Account Setup & Funding

-Integrated Contact Management System will require less manual client data entry and reduce Initial Client Setup time for account opening by up to 75%.

-Document and Data control will significantly reduce NIGOs, rework and delays.

-Accountability for documents is owned by front office.

Mailing

-Integrated Document Management and Imaging System will enable applications to be imaged and indexed at the point of capture and eliminate 2 days of interoffice mail processing time and reduce overnight mail expense.

Imaging

-Having documents imaged at the point of entry, will significantly reduce labor cost in middle office for imaging purposes and delay in process

Account Processing

-Annuity Net will eliminate the need for a manual review and an integrated workflow will automate the feed to each appropriate carrier thus eliminating labor cost for account setup in middle office.

Potential 85% Reduction in Overall Processing Time


Note: This is actual processing time versus elapsed time for actual receipt of funding and assumes all paperwork is completed at the time of application.

1-2 Hrs 1-2 Hrs

Total: Up to 1 Day

Launch AccountSetup & Funding

RSS SuitabilityReview

Start Stop

AccountProcessing

1-2 Hrs

Notes:

-Account setup usually involves more than one account per relationship.

-Imaging includes time spent in queue.

-Account processing time takes into account NIGO rework.

-Annuities over $500K require an additional step for compliance review.

-Capacity in Front Office will increase significantly and free up staff to better support sales processes (Set appointments, service existing clients, etc.)


Contents





• The Future State Design

• Business Case– Operational & Quality

– Streamlined Process

– Financial Benefits

– Summary

Business CaseBusiness Case


Operational & Quality Benefits

Overall Technology and Process Improvement Benefits Include:

Quality Improvements

Reduction of Labor Costs

Increase Revenue and Profit Potential

Optimize Labor Efficiency of Front and Back Office Support Staff by $0+ Million annually

Increase Projected Revenue and Profit through increased capacity of Financial Advisors by $0.0 Million to $0.0 Million annually

Decrease Market Exposure

Improve Client Experience

Improve Employee Job Satisfaction

Decrease Cycle Time (70%)

Reduce NIGO’s and Re-work by 40-60%

Significantly Reduce Number of Process Steps by 52% (from 282 to 146 steps)

0

20

40

60

80

100

120

# P

roc

ess

Ste

ps

Br/IRA C

urre

nt

Br/IRA F

utur

e

Annuit

y Cur

rent

Annuit

y Fut

ure

MA A

cct C

urre

nt

MA A

cct F

utur

e

Richmond Ops

Richmond Mailroom &Imaging

Front Office



A Streamlined Integrated Process

Current State End-to-End Process Flow:


Improvement Impact

• Estimated 52% reduction in process steps

(from roughly 282 steps to 146 steps)• Reduction in cross organizational hand-offs• Reduced number of error resolution contact points between Front Office and various Operations groups• Provides a single point of alert resolution to the Financial Advisors versus the 14 in the current state.

Future State End-to-End Process Flow:

The Future State Process Blueprint enables significant reductions in the number of manual efforts and hand-offs present in the existing process today.

xxx

SunTrust W&IM STIS Account Opening Process Flow - Current State

Mailroom / Imaging

Fidelity

Client

Clie

nts

Process Flow

Atla

nta

Ops

Signature Advantage

Processors and Compliance

Officers

1.0 Open Account and Secure Documents and Funding 2.0 Mail Process and Imaging

Syst

ems

Ope

ratio

ns

Advisor Port


Legend

Exte

rnal

Ven

dors

Start



Fron

t Offi

ce

Brokerage / IRA

Annuities

Managed Accounts

Stock Cage

TOAs

Cash Office


with Client

FA 1.4

Accept Recommenda-

tions

Client 1.5


W&IM Product

Client 1.1


FA 1.2


FA 1.3

Collect Supporting

Documentation

FA/SA 1.6

Provide Supoorting

Documentation

Client 1.7

Paper (10-12 Pgs)

Yes

No

Yes


Brokerage/ IRAAccount

Enter Account Number on Application/

Forms

FA/SA 1.10


Acct Online

FA/SA 1.8

Send to Atlanta Compliance

1.18

AnnuityAccount

> $500K

Managed Account?

Print and Ensure

Paperwork Complete

FA/SA 1.14

Mail Acct SetUp Request

to Richmond Ops

FA/SA 1.9

Review Paperwork

Compliance Officer

1.17

Send form & funds to Office

Supervisory Jurisdiction

(OSJ)FA/SA 1.15

Certificates

TOA

Determine Funding

FA 1.19


Match

FA/SA 1.23

Collect Supporting


FA/SA 1.25

Check


Check

FA/SA 1.24

Gather Statements,

etc

FA/SA 1.20



FA/SA 1.26

Type of Deposit(s)?

Review Statements

FA/SA 1.21

Yes

NoReview Annuity

Application

Atl Compliance

1.28

Approved?

Send back to FA

Atl Compl. 1.30Send to Richmond Ops

Atl Compl. 1.29

Notify Client

FA/SA 1.31


FA/SA 1.22

Sign Fund Deposit /

Transfer Docs

Client 1.32

Resolve Annuity Issue

Resolve Annuity Issue(s)

Client 1.33

Yes

Enter Account Number on Paperwork

FA/SA 1.15


Certificate(s)

FA/SA 1.27

Complete Log Sheet for Packet

and put all in Spec. Envelope

for Richmond Ops

FA/SA 1.35

Log Tracking Number if FedEx or US Post Office

FA/SA 1.36

Send Packet to Richmond Ops via

InterOffice Mail, FedEx, or USPS

FA/SA 1.37

Make Copies of Paperwork

FA/SA 1.34

New Accts


in envelope

Mail Processor

2.5

INTEROFFICE MAIL

Time stamp envelope

W&IM Mail Processor

2.2


PickUp Tray”

Mail Processor

2.6

OVERNIGHT MAIL


Doc Prep 2.1


Sign Out

NewAcct SetUp

2.7


Access

Mail Processor

2.4


Access

Mail Processor

2.11

Time stamp Log, & Initial Log sheet

Doc Prep 2.12

Verify Envelope Contents & Log Sheet; Initial

Log Sheet

Doc Prep 2.13


W&IM Mail Processor

2.3

Verify all Documents

Received (per Log)

Doc Prep 2.14

Verify Acct Number on all

Docs

Doc Prep 2.17

.

All Docs Rcvd Per Log

Yes

No

Resolve via Fax/Email/Mail

2.16

Acct #s on Doc or Avail in FBSI?

Yes

No

Resolve via Fax/Email/Mail

FA/SA 2.20

Info Rcvd By EOD?


Doc Prep 2.21Distribute into Work Stream

Doc Prep 2.25


Not Found

Doc Prep 2.22


to FA via InterOffice Mail

Doc Prep 2.23

Update Missing Info on Log

Doc Prep 2.15

Update Missing Info on Log

Doc Prep 2.19Yes

No

Receive Document back

to FA

FA/SA


Scanner 2.28



Doc Prep 2.26


Items in Notebook

Indexer 2.30


Complete

Scanner 2.29

TOA Paperwork

Index Docs

Indexer 2.31



Scanner 2.33


Scanner 2.32


Prepare Cover Sheet

Doc Prep 2.27

Brokerage/IRA Paperwork

From 3.3BAnnuities

From 3.3EStock Cage

Other docs not marked w /RED “Processed” Stamp

Type of Document?



To Shredder

Stock Certificates

End

Managed Accts

Annuities

Contact FA re Missing Acct#

Doc Prep 2.18

To3.0B

To 3.0T

To3.0

To 3.0A

To3.0M

To3.0S

9.9.1 9.9.1

Receive Brokerage Bin & IRA Bin from

Mailroom

Principal 3.1B

Review Applications for Completeness

Principal 3.2B

Brokerage

IRAReview

Applications for Completeness

Principal 3.14B

IGO?

IGO?No

No

Notify Front Office of Issues

Principal 3.5B

Issue Resolved?

Resolve Issue

FA / SA 3.6B


Client 3.7B

Review latest info / docs rcvd (by fax / email /

tel / mail)

Principal 3.8B

Note into Excel Log as

‘Pending’

Principal 3.3B

Brokerage

IRA

To3.2.8

To 3.2.10

Yes

Note Imagio as ‘Pending’ and Missing Docs

Principal 3.4B

Verify application is

in Imagio

Principal 3.9B



Principal 3.12B

EndAnnotate

Approval on Imagio

Principal 3.10B

Check FBSI for Errors and

Resolve using Info on Appl.

Principal 3.11B

Send Docs to Shredder

Principal 3.13B

Yes

Yes

Mail Paper App to NFS

via Overnight

Principal 3.18B


Paperwork

NFS 3.19A

End

No

IGO? Yes



NFS 3.21A

Remediate Issue and

Resubmit to NFS

Principal 3.20A

Verify application is

in Imagio

Principal 3.16B

Key into Excel (or Update Log)

as “IGO”

Principal 3.15B

Annotate Approval on

Imagio

Principal 3.17B

Wait 2 days EndSend Docs to

Shredder

Principal 3.24BFrom3.2.6

Verify Appl on file in FBSI

Principal 3.22B

Update Excel, Log as

“Complete”

Principal 3.23B

If not on file, continue to check daily. After one week, re-send appl to NFS or send Work ID through Streetscape

Brokerage

IRA

From3.2.6

Post Monthly Report on

Website for ROS to pull/distribute

Reporting Group

3.28B

Charge FA $100 /

Account / Month

Principal 3.29B

At End of Month

Review Error Report from

Website

ROM/ROS 3.30B

Distribute appropriate

section of Error Report to FAs

ROM/ROS 3.31B

Receive Report and Review

FA 3.32B

Resolve Issue and Fax / Email Update to Princ

Review

FA 3.33B


Client 3.34B

To 3.1.2


Update FBSI to Restrict Account

Principal 3.27B

WasDocument Received?

No

To3.2.7

To3.2.10

Response via Fax or Mail?

Fax

InterofficeMail

To 2.1 (Imaging)

Review Preliminary Missing Doc

Report .

Principal 3.25B

Look for Document in

Imagio

Principal 3.26B

Yes

Brokerage

IRA

No

Review Paperwork for Completeness and Funds IGO

Annuity Proc.

3.4A

Time Stamp Annuity

Packages

Annuity Proc

3.1A

Hand Deliver to Appropriate Processor(s)

Annuity Proc.

3.3A

Sort Paperwork based on Carrier

Annuity Proc

3.2A

Yes

Atl Compl Response

Rcvd?

Yes

No

Request Annuity Fax Paperwork if Necessary

Atlanta Compliance

3.16A

Email Approval Determination

Atlanta Compliance

3.17A

ApprovedBy Atlanta

Compliance?

Email Atlanta Compliance to

Request Approval

Annuity Proc.

3.15A

Over $500K ? No

Email FA and ROS of

Denial

Annuity Proc

3.12A

Yes

No

Send entire Annuity Appl Package to

ROSAnnuity Proc.

3.13A

IGO?

NIGO;Minor Errors

YesIGO

NIGO;Major Errors

Receive Rejected Annuity

Application

FA / SA 3.14A

Contact FA / SA by

email to Resolve Issue

Annuity Proc.

3.5A

Remediate Issue; Respond

by Email/Fax

FA / SA 3.6A

Remediate Issue

(as applicable)

Client 3.7A

Send entire Annuity Appl Package to

ROSAnnuity Proc.

3.9A

Email FA and ROS of

Major Error and Return

Annuity Proc.

3.8A

Receive Annuity Package with Major NIGO

Errors

ROS 3.10A

Receive Rejected Annuity Package

from ROS

FA/SA 3.11A

End

Sort by Transaction

Type

Annuity Proc.

3.18A

Source of Funds? Debit DDA

using PEP+

Annuity Proc.

3.22A

Copy Reporting Sheet and

Highlight Info

Annuity Proc.

3.23A

Check

Internal

Brokerage


Annuity Proc.

3.24A

Input client data into CAPS

Annuity Proc.

3.19A

Input transaction

data into CAPS

Annuity Proc.

3.20A

Initial or Addition Deposit Check



3.21A

SunTrust Signs Transfer

Paperwork

Annuity Proc.

3.27A

Send Transfer Paperwork to NFS to exec

Movement of $Annuity Proc.

3.28A

NFS AND SunTrust Can Sign

Yes

No


Annuity Proc.

3.29A

Input transaction

data into CAPS

Annuity Proc.

3.30A


Annuity Proc.

3.25A

Input transaction

data into CAPS

Annuity Proc.

3.26A

1035Transfer

Process Transfer

NFS 3.2.18

Run summary report

Annuity Proc.

3.32A


Annuity Proc.

3.31A



Annuity Proc.

3.33A

After 2pm

Send Copies to Imaging

Annuity Proc.

3.38A


Annuity Proc.

3.40A


Annuity Proc.

3.39A



EOD ProcessSend Originals to Appropriate


3.35A

Copy all Paperwork and

Checks

Annuity Proc.

3.34A


Annuity Proc.

3.36A



for the day

Annuity Proc.

3.37A


End

End

Review Faxed Paperwork for Completeness

Mgd Acct Spec.

3.2M


to Managed

Mgd Acct Spec.

3.6M

Log into Advisor Port & Verify

Client was Set up by FA

Mgd Acct Spec.

3.7M

IGO?

Print and Fill Out Check List

Mgd Acct Spec.

3.5M

No

Determine if Paperwork is

IGO and Acct is Funded

Mgd Acct Spec.

3.3M

Resolve Issue Contact Client if

necessary

FA/SA 1.38M

Send Email or Fax Additional

Documents

FA/SA 1.40M

Review Fax/Email and

Determine if IGO

Mgd Acct Spec.

3.10M

Contact FA via Email / Tel to

Resolve

Mgd Acct Spec

3.9M

Resolve Paperwork

(as applicable)

Client 1.39M

Log Document Received into

Log Book

Mgd Acct Spec.

3.1M

Log into Excel Log

Mgd Acct Spec.

3.4M

Log Into Excel Log

Mgd Acct Spec.

3.8M

Call Managed Acct Specialist for Contact for

FAX

FA/SA 1.12

Fax Paperwork to Contact Person in

Managed Accts

FA/SA 1.13

Log into Advisor Port & Setup

Client

FA/SA 1.11

Yes

Fax Paperwork to Money

Manager via Advisor Port

Mgd Acct Spec.

3.11M

AMC Fund Select?

No

Yes

FA Accepted Proposal on

Client Profile? Yes

No


Determine IGO

Advisor Port 3.12M

IGO?

Forward to Money

Manager

Advisor Port 3.14M

Money Manager Sets

up Account

Money Mgr 3.15M

Yes

No



Advisor Port 3.13M


Mgd Acct Spec.

3.23M

To 3.2.12

Release Acct to Money Mgr by

Emailing a Form to

Adv. PortMgd Acct

Spec.3.21M

Update Excel Log with

Release Date

Mgd Acct Spec.

3.22M


Advisor Port 3.16M


FundsAdvisor Port 3.17M

Send Email to Mgd Acct Spec,

FA & Internal Wholesale: Acct was Released to

Money Mgr

Advisor Port 3.18M

Send Paperwork to Image Dept

Mgd Acct Spec.

3.26M

End

Add Cover Sheet and

Initial

Mgd Acct Spec.

3.25M

Verify Docs on Imagio

Mgd Acct Spec.

3.28M

Next Day

Pick Up Bins from Imaging

Mgd Acct Spec.

3.27M

Receive Email from Advisor

Port & Forward Email to FAInternal

Wholesale3.19M

Product Group Located in Atlanta; not part of Richmond Ops

Send Docs to Shredder

Mgd Acct Spec.

3.29M

PWA?

Verify Registration

Matches Contra Broker Stmt

Processor 3.3T

IGO?

Pick up TOA forms from

Imaging dept

Processor 3.1T

Verify Acct# and SSN on

FBSI vs. paperwork

Processor 3.2T

No

Every 2 hours


sign)

Processor 3.4T

Review Holdings on

FBSI

Processor 3.5T

Notify Key Contact; Memo

acct of NIGO reason on FBSI

Processor 3.6T

Authorize to Amend Request

Processor 3.7T

FA Response?

Yes

Image the Email/Fax with the TOA Docs

Processor 3.8TNo

Hold for 72 Hours

Processor 3.26T

Send Docs back to Key Contact with Reject Form

Processor 3.28T

Resolved w/in 72 hrs?

No

Yes

Memo FBSI of Reject Reason

Processor 3.27T

Yes

From 3.x.x

End

Follow up with Client and

Address Issues

FA 3.30T

Send Docs and Notification to

FA

Key Contact

3.29T

Resolve Issues with FA

Client 3.31T

Resolve NIGO issue

FA / SA 3.24T

Provide docs to resolve NIGO

issue (as applicable)

Client 3.25T

Type of Transfer?

Load ACAT Info into

Streetscape

Processor 3.9T

Overnight Mail Paperwork to

NFS

Processor 3.33T

Verify on FBSI that Assets

Came Through (BATS Screen)

Processor 3.35T

NextDay

A

ANon-ACATs End

Memo acct on FBSI that TOA

loaded (BNAME memo)

Processor 3.12T

Verify TOA loaded on FBSI (BCAT screen)

Processor 3.11T

Fax Paperwork to NFS

Processor 3.10T

Monitor FBSI until transfer

complete (BHIST screen)

Processor 3.14T

Put in Pending File Until All

Assets Received

Processor 3.13T

Memo acct that TOA complete

Processor 3.15T

Shred documents

Processor

3.17T

Memo on FBSI - Acct Transfer

Complete

Processor 3.36T

Memo Acct that Paperwork

Mailed to NFS

Processor 3.34T

5Days

End

NextDay

Yes ACATs

Enter info onto Log Sheet

Processor 3.32T

Note: Working off Log Sheet

Update Log Sheet

Processor

3.16T

End


NFS

Processor 3.18T

Verify TOA loaded on FBSI (BCAT screen)

Processor 3.20T

Memo Account TOA complete

Processor 3.22T

Type of Transfer?

Non ACATs


NFS

Processor 3.37T

Memo Acct that Paperwork

Sent to NFS

Processor 3.38T

NextDay

Verify TOA loaded on FBSI (BATS screen)

Processor 3.39T

NextDay

A

A

Wait 5 Days

Put in Pending File & Update

Excel Spreadsheet

Processor 3.40T

WaitApprox7 days

End

ACAT

Memo Acct that Paperwork was

Sent to NFS

Processor 3.19T

3Days

Check BHIST on FBSI until Transfer is Complete

Processor 3.41T

Memo Acct on FBSI when

TOA is complete

Processor 3.42T

Repeat Daily until Complete

Note: Streetscape has “Next Action Date”

Working off Logsheet (Each Principal has the own log sheet)

Monitor FBSI until transfer

complete (BHIST screen)

Processor 3.21T

Repeat Daily until Complete

Update Log Sheet

Processor

3.23T

No


NFS 3.46T



NFS 3.48T


NFS 3.44T

A

End

ACAT?

Yes

No


if PWA & NonACAT)

NFS 3.43T


IGO?Yes

Email TOA Manager to

Resolve

NFS 3.45T

NoTo

3.2.1

Yes

NoNo

Yes

No

Yes

No

Yes


Processor 3.16S

Negotiable?

Stock Receipt

Included? Deposit Into Non-Negotiable

Location

Processor 3.15S

Locate Log in Mailroom and

Research Sender

Processor 3.3S

IGO?

Contact FA to Resolve

Missing Stock Receipt

Processor 3.4S



Processor 3.17S

Pick up Bin from Imaging Dept

Processor 3.21S



Processor 3.23S



Processor 3.10S


Processor 3.14S


to DTC

Processor 3.13S

Put Paperwork in Bin and Carry to

the Imaging Dept for Imaging

Processor 3.18S

Notify FA/SA of Issue

via Tel or Email

Processor 3.6S


Processor 3.2S



Processor 3.12S

Image Stock Certificates

Imaging 3.19S

Prepare Package for

DTC

Processor 3.22S

LegalItem Missing

Acct # Correct?

Verify Stock Certificate


Processor 3.5S

Non-Negotiable Instrument



Processor 3.1S

Index Stock Certificates

Processor 3.20S

Resolve Issue and Resubmit

Paperwork

FA/SA 3.7S


Receipt

FA/SA 3.11S


Paperwork

Client 3.8S

Send Paperwork to

Richmond Ops

FA/SA 3.9S

DTC

Yes

No Yes

No

Update FBSI indicating Stock Cert Returned

to Client

DTC


is needed

DTC 3.26S

Receive Stock


DTC


Transfer Agent

DTC 3.25S

Receive Stock

DTC


Post what is needed Online

NFS 3.27S

Execute the Order

DTC 3.31S

End EndHold Stock for up to 45 Days, waiting for Docs

Review Missing Report and

Resolve Daily

Processor 3.28S


Paperwork

FA/SA 3.29S


Paperwork

Client 3.30S



Spec.3.24M

Receive Email from Advisor

Port

FA 3.20M

End


etc

NewAcct SetUp

2.8


Sign-In Packet

NewAcct SetUp

2.10


(Paper)

NewAcct SetUp

2.9

SetUp New Acct in FBSI (Mail In Process)

HOLD1

Day

Hold Until Next Day

Doc Prep 2.24







At this point, the Financial Analyst has opened the account and submitted the paperwork, it has been mailed to Richmond Ops, Processed In, Imaged and Indexed

Next:The Account Opening Paperwork will be routed to:- Brokerage / IRA Principals OR - Annuity Processors(Note: If a Managed Acct is being opened, the paperwork would have been faxed in)


Note: Not Yet Imaged; Original Docs Received

From Imaging

From Imaging

From Imaging

From Imaging

From Imaging

· Various Contact Manager Tools· FBSI· Streetscape · AMC (Asset Management Consulting) Group· Various Financial Planning Applications including

Financial Profiles Plus· SNAP· Telephone and Fax· Email · Copy Machines· Excel· InterOffice Mail, USPS, DHL, and FedEx

· Access· Excel· Paper Log Sheets· FBSI· Imagio · Email, Telephone, and Fax

· FBSI· Streetscape· Excel· Access· CAPs· Imagio· DTC· PEP+ (ACH)· Advisor Port· ACAT System (NFS)· Wire System (accessed via FBSI)· SNAP


No

Yes



NFS

Cashier 3.9C

Account # on Check?

Index the Checks to the

Account #s

Indexer 3.7C


Cashier 3.4C

Log info into Excel

spreadsheet

Cashier 3.3C

Verify Info on NFS (FBSI)

Cashier 3.2C

Re-Verify $ Totals (Verify

All Checks Returned

Cashier 3.8C

Verify Totals on 10-Key Before

Submitting

Cashier 3.5C


Mail

Cashier 3.10C

Search by name/addr and

Resolve (using FBSI)

Cashier 3.1C

Image the Checks (in

Richmond Ops Imaging Area)

Cashier 3.6C

Note: Checks have not yet been imaged

Wait 1 Day

End

File Tape and Summary for 3 Year Retention

Cashier 3.15C



Cashier 3.14C

Process checks

Proof. Dept 3.11C



NFS 3.12C

Create Report-31 &


NFS 3.13C

SunTrust - Other

Sun

Trus

t- O

ther


Requests

Cashier 3.16C


via FAX

Cashier 3.17C


CACTUS (NFS System)

Cashier 3.20C

LOA Rcvd?

Yes

Send LOA with Acct# to

Imaging Dept to be Imaged

Cashier 3.23C


Account

Cashier 3.19C

No

IGO?Yes

No

Email FA to Resolve

Cashier 3.18C

From Front Office


NFS 3.3.1

Wire Request

IGO?

Yes

No

Email Cash Office

re Issue

NFS 3.21C


Cashier 3.22C

Image LOA(for Wires for Cash Office)

Imager 3.24C

Index LOA to Account (for

Wires for Cash Office)

Imager 3.25C

To2.0

To2.0

· Email, Telephone, and Fax· 10-Key Adding Machines· Copy Machine · InterOffice Mail, USPS, DHL, and FedEx

Signature Advantage

with Brokerage?

Collect Supporting

Documentation

FA/SA 1.6

Open Accts or Submit to AtlOps for

Open?

Open DDA Account

FA/SA 1.39

OpenAccts Wait

One day

Submit SNAP to Link

Accounts

FA/SA 1.40

OpenAccts

Receive Rqst to Open

Brokerage and Sign.Adv Accts

Atl Ops 1.41

Process FBSI and Sign Adv

Account Openings

Atl Ops 1.42

Convert Checking Account

Atl Ops 1.43

Link Summary Statement in

Platform

Atl Ops 1.44

Order Checks and Check

Card

Atl Ops 1.45

End



xxx

SunTrust W&IM STIS Account Opening Process Flow - Future State

Mailroom / Imaging

Fidelity

Client

Clie

nts

Process Flow

Atlan

ta

Op

s Compliance Officers


Imaging

Syste

ms

Op

era

tio

ns

Advisor Port


Exte

rna

l V

en

do

rs

Start



Fro

nt

Off

ice

Brokerage / IRA

Annuities

Managed Accounts

Stock Cage

TOAs

Cash Office


with Client

FA 1.5

Accept Recommenda-

tions

Client 1.6


W&IM Product

Client 1.1


FA 1.3


FA 1.4

Collect Supporting

Documentation

FA/SA 1.8

Provide Supoorting

Documentation

Client 1.9

Yes




Acct Online

FA/SA 1.11

AnnuityAccount

Certificates

TOA

Determine Funding

FA 1.19


Match

FA/SA 1.23

Collect Supporting


FA/SA 1.25

Check


Check

FA/SA 1.24

Gather Statements,

etc

FA/SA 1.20



FA/SA 1.26Type of

Funding?

Review Statements

FA/SA 1.21


Atl Compliance

1.28

Approved?


FA/SA 1.22

Sign Fund Deposit /

Transfer Docs

Client 1.32


Certificate(s)

FA/SA 1.27


FA/SA 1.29



2.1


3.0C


Paperwork

NFS 3.19A

End

No

IGO? Yes



NFS 3.21A


Source of Funds?


Annuity Proc.

3.4A


Annuity Proc.

3.5A

Check

Internal

Brokerage


Annuity Proc.

3.6A


System 3.1A




3.3A


Paperwork

Annuity Proc.

3.9A



Annuity Proc.

3.10A

NFS AND SunTrust

Can Sign?Yes

No


Annuity Proc.

3.12A

Transaction data


3.13A


Annuity Proc.

3.7A

Transaction data


3.8A

1035Transfer

Process Transfer

NFS 3.2.18

Run summary report

Annuity Proc.

3.15A


Annuity Proc.

3.14A



Annuity Proc.

3.16A

After 2pm


Annuity Proc.

3.21A


Annuity Proc.

3.20A






3.17A


Annuity Proc.

3.18A



for the day

Annuity Proc.

3.19A


End

End


to Managed

NFS 3.4M

IGO?


NFS 3.1M


NFS 3.3M



FA/SA 1.13

Yes

Forward Rqst & Docs


Spec.3.5M


Determine IGO

Advisor Port 3.6M

IGO?

Forward to Money

Manager

Advisor Port 3.8M

Money Manager Sets

up Account

Money Mgr 3.9M

Yes

No



Advisor Port 3.7M


Mgd Acct Spec.

3.10M



funded

System 3.21M


FundsAdvisor Port 3.17M



Advisor Port 3.18M

End

Type of Transfer?

IGO?No


sign)

Processor 3.2T

Review Holdings on

FBSI

Processor 3.3T



Processor 3.4T


System 3.6T

FA Response?

Yes

No

Yes


System 3.7T

Transmit Request &

Imaged docs to NFS

Processor 3.11T

B

B

Non-ACATs

End


TOA submitted

System 3.8T


Transfer Complete

Processor 3.12T

End



Received

System 3.10T


NFS 3.16T



NFS 3.48T


NFS 3.14T

B

End

ACAT?

Yes

No


if PWA & NonACAT)

NFS 3.13T


IGO?Yes


NFS 3.15T

No

Yes

No

No

Yes

No

Yes


Processor 3.14S

Negotiable?


Location

Processor 3.13S

IGO?



Processor 3.9S



Processor 3.11S



Processor 3.5S


Processor 3.12S


to DTC

Processor 3.8S


Processor 3.4S


Processor 3.3S



Processor 3.7S

Prepare Package for

DTC

Processor 3.10S

Legal Item Missing


Instrument



Processor 3.2S


Receipt

Client 1.34S

DTC

Yes

NoYes

NoUpdate FBSI


to Client

DTC 3.17S


is needed

DTC 3.20S

Receive Stock


DTC 3.16S


Transfer Agent

DTC 3.19S

Receive Stock

DTC 3.15S


Execute the Order

DTC 3.21S


waiting for Docs



Spec.3.24M










From Mail Proc.





Put Checks & Deposit Slip in

Envelope for NFS

Cashier 3.3C


Cashier 3.2C

Log info into Excel

spreadsheet

Cashier 3.1C


Mail

Cashier 3.4C


Wait 1 Day

End



Cashier 3.8C

Process checks

Proof. Dept 3.5C



NFS 3.6C

Create Report-31 &


NFS 3.7C

SunTrust - Other

Su

nT

rust

- O

ther


Requests

Cashier 3.9C


via FAX

Cashier 3.10C


CACTUS (NFS System)

Cashier 3.13C

LOA Rcvd?

Yes


Account

Cashier 3.12C

No

IGO?Yes

No

Email FA to Resolve

Cashier 3.11C

From Front Office


NFS 3.16C

Wire Request

IGO?

Yes

NoEmail


NFS 3.14C


Cashier 3.15C


and Checks Only)



Launch Account Setup and Account Funding- Image Documents at time of Receipt- Implement Work Flow system, integrating with the information from : - CIS - STIS Contact Manager - Financial Planning Tools - NFS



FA/SA 1.16



FA/SA 1.30



FA/SA 1.12

YesManaged Account


FA/SA/System

1.14

To3.0S

Stock Certificates

Checks

Annuity Approved?


by Email/Fax

FA / SA 1.18

Remediate Issue

(as applicable)

Client 3.2.17




Review Paperwork

Compliance Officer

1.17

No

Less than $500K

No

Yes

Yes

No


FA/SA 1.7

Scan Documents

FA/SA 1.10

Scan and Index

Documents

FA/SA 1.28To 1.4





Documents will be


Initiate Account

Opening Work Flow

FA 1.2










Processor 3.1T


Demote to FA/SA

System 3.5T







To3.1S


Certificate

Processor 3.1S

Mail From

(Client)


NFS 3.19A

From Workflow

9.9

From Workflow

No


Advisor Port 3.16M

To3.0C

To3.0T

TOAs

Cash Office

To3.0S

Stock Cage

To FA9.9


NFS 3.22S





RSS /BranchMgr

1.15

Interfacing to FBSI


to FA/SA

Mgd Acct Spec.

3.11M

Update Case

Mgd Acct Spec.

3.24M

Transaction data


System 3.2A


Annuity Proc.

3.11A




Transfer Complete

System 3.9T




funded

System 3.24M




Principal 3.6B

IGO?

IGO? No

No

NIGO Notification

sent to FA/SA

Principal 3.3B


Client 1.32

Update Case

Principal 3.2B



Principal 3.5B

End

Yes

Yes


NFS Electronically

Principal 3.8B

End

Brokerage

IRA

Work-flow

Brokerage or IRA?

Update Case

Principal 3.4B

Update Case

Principal 3.7B


Issue or Advice

FA / SA 1.31


Case

FA / SA 1.33

End

Image and Index


Processor 3.6S

From A

ToA

ToA

ToA

From Workflow

From Workflow

From Mail Proc.

ToA


Alert to Case Mgr

System 3.23S


FA/SA

System 3.24S

ToA


to FA/SA

Mgd Acct Spec.

3.2M

ToA





the process.To

3.0M

To3.0A

To3.0B

Brokerage/IRA

Annuity

Managed Accts

Return to Wolrkflow

Activity

System

Activity

Who

Legend:



Work-flow

Work-flow

Work-flow

End

ToA


to FA/SA

Mgd Acct Spec.

3.18T

ToA



• Future State process improvements are expected to reduce the current process from 283 steps to 146 steps.

Financial Benefits

There are quantitative, financial benefits associated with an improved account setup process:

• Total cost to implement technology improvement solutions is approx. $0 Million.

• The resulting annual financial benefit from reduced labor costs and increased sales revenue is $0.0 Million to $0.0 Million.

Increased Revenues, Expense Reductions Expanded Sales Capacity

Final SetupOperationsFront Office

282 StepsCurrent State:

Future State: 146 Steps

$

Projected 3-Year and 5-Year Financial Benefit

is significant:

• Resulting in an overall reduction in Account Setup time of up to 50%.

Implementing the Future State Design solution is critical to achieving the financial benefitsand process improvements identified for the STIS Account Setup Process.

Cumulative Projected Annual Financial BenefitsYear 1

Year 2 Year 3 Year 4 Year 5

*Financial benefits are cumulative and include expense reductions, revenue enhancements, and technology costs.



Integration of enhancements and recommendations identified in the Future State will result in a more optimized STIS Account Opening process that increases organizational productivity and improves the client experience.

Reduced cycle time up to 75% for Front Office account opening activities

Reduced NIGOs by 40 - 60% ( ) Lower labor costs Reduced paperwork

Significantly increase operational Significantly increase operational efficiency through:efficiency through:

Significantly increase Front Office capacity

More time to build client relationships Increased client referrals Increased business revenue Improved client trust and satisfaction

Allow Financial Advisors to better Allow Financial Advisors to better focus on clients, resulting in:focus on clients, resulting in:

Overall Benefit Summary Future StateFuture State

OperationalOperationalInefficienciesInefficiencies

Missed Missed Front Office Front Office OpportunitiesOpportunities

Future State Process

Improvements

Overall Overall STIS STIS

Account Account Opening Opening processprocesstime and time and

costs costs reducedreduced

by up to by up to 50%50%..

Goal is to eliminate NIGOs entirely



Conclusion

To be successful in achieving Process Excellence there must be a solid foundation to build on. This foundation must include:

• Leadership must both clearly understand and communicate the need for change (there is no substitute for good leadership and many projects fail due to a lack of leadership)

• There must be a compelling business case which includes increased revenue, lowered expenses and improved service (otherwise what’s the use in doing it?)

• The Vision, Goals and Objectives must be clearly communicated and adhered to

• Process Improvement experts cannot do it alone, the business as well as Information Technology must be involved (must be a team effort with a shared vision)

• A sound structured methodology must be followed with tools, techniques and training provided. There is no substitute for data. (There is no magic formula, we use a combination of in-house developed BPI methodology, Six Sigma and Lean thinking)

• Communicate your success and celebrate your achievements (everyone else in the company needs to know success is possible and they too will want to be a part of the success story)

integrating six sigma with an enterprise-wide process improvement strategy

Education

business improvement

business processes

overview total assets

suntrust mortgage

suntrust markets

investment management

investment banking wealth

ebps organization