jill capicchioni, mba, aap, cua channel manager fis laurel egan kenny, mcm, mba president...

Jill Capicchioni, MBA, AAP, CUAChannel Manager

FIS

Laurel Egan Kenny, MCM, MBAPresident

Turningpoint Communications

From Farm Team to Major Leagues: Smaller Banks Leveling the Playing Field with

Seasoned Players, Superior Technology, a Winning Sales Culture, Education and other Best Practices

Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited

Wednesday,June 6, 2012

AgendaState of the Marketplace: Smaller Banks Competing and Winning

How we got here: The depressed economy was good for survivorsSmaller, community banks are the choice of empowered clients

Strategic Planning, Evolution, Growth of a TM Division Investment in

Seasoned professionals Best of Breed Technology Education Best practices

Empowering a TM Sales Organization with SalesEstablishing a Sales Culture

Future of TM in Smaller Banks

2Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited

Industry Overview:

It’s a new EraLarge banks no longer have a stronghold on treasury

management products or clientsAs large banks “right-size” their target client base and service

model, smaller banks are winning market shareHighly seasoned, treasury management professionals bring

strategy, proactivity and best practices to lead TM organizations at smaller banks.

Solutions providers have helped banks level the playing field, through access to Best of Breed Technology, Industry standard products and services, best practices, thought leadership promotion, education


It’s a New Era

Economic Shakedown2008 2009

Economic Collapse

2010

E c o n o m i c R e c o v e r y

2011

•Banks Failing• Flight to safety•Massive Layoffs• Interest Rates•Credit Scarcity•Middle Market and

Small Biz left out•Little product innovation• Only generating more

fees • Doing more

with less

•TARP and Scrutiny•Regulatory Reform•No Loans•No new investments in business•Business on hold•Displaced Workers•Divorced Customers

•Rise in Treasury Mngt• Enhanced / Expanded Role

of the Treasurer• TM importance to Bank goals• Technology Companies tiering

products for Banks, END USERS• Clients focused on banks,

products, services of ‘value’•Banks implement FINReg•Banks focused on who/ what they serve/do best• Providing expertise, solutions• Enjoying annuity TM business

4Copyright 2012. Turningpoint Communications.

20132012 2014

R e c e s s i o n

Now is the “Time to Sell Value in Cash Management Services”

“Banks are striving to increase their cash management or ‘treasury services’ business as a new source of revenue growth. However, selling these services is

much different than how commercial bankers sell credit services, and banks need to better understand their buyer to succeed. ”

Santiago Patiño, Gonzobanker, February 1, 2010

“Banks are spending money on the commercial side of the house, and limiting investments on the retail side …

1. Banks are looking for fee income. 2. Retail deposits have been ... flowing into banks ... 3. Consumers are lagging corporations in the recovery. 4. Consumer lending is losing money.

… So we find ourselves in an environment in which the majority of new projects are commercially focused” Bart Narter, Celent ,11/09


Market Size & Potential

6

Number of Businesses

Large Corporate Upper Middle MarketMiddle Market Small Business

28%

27%19%

15% 11%

Current TMS Spend

Large Corporate Middle Market

Small Business Financial Institution

Government

Ernst & Young 26th Annual Cash Management Survey, 2011Phoenix-Hecht Pricing Monitor

5.8M companies99.7% of U.S. employers

Services Usage by Company Size

Online banking– Acct info– Images– Transfers– ACH/wire– Tax payments

Zero balance accountsSweepsAccount analysis

Emphasis on basic tracking

and money movement

• Positive pay

• Account recon

• Expanded ACH/EDI

• Cash vault services

• Wholesale lockbox

• Controlled disbursing

• Payment cards

Emphasis on functionality

• Multi-bank data exchange• Most advanced ACH/EDI

services• International cash

management• Consolidated, electronic

payables and receivables

Emphasis on real-time straight-thru processing, multi-user, high security

Small Business Middle Market Corporate

Small Business Product ChecklistServices adopted by >50% of small businesses

8

LT $500K $500K – $1M $1 – $2M $2 – $5M $5 – $10M $10 – $20M

1. Checking account

2. Debit card

3. Online bill payment

4. Overdraft protection

5. Personal credit card(s)

6. Business credit card(s)

7. Business savings or MMA

8. Merchant credit card processing

9. Outsource payroll

10. Retirement or profit sharing plan

11. Wire transfer services

12. Secured credit line

13. ACH services

14. Equipment lease

n = 2,058Source: FIS Enterprise Strategy, November 2010

But, Are They Willing to Pay?

9

Pay bills online

Alerts

Check & deposit slip images

Entitlement capabilities

Online tax payments

Payroll/direct deposit

External transfers

Expedited bill pay

Positive pay

Wire w/remittance

Domestic wires

International wires

7%

8%

10%

11%

13%

14%

14%

15%

15%

19%

20%

22%

Products they’re willing to pay for

But, Are They Willing to Pay?

10

Extends DSO

Enables out of office productivity

More 'tech savvy'

Increases automation

More secure

Increases convenience

Saves Time

Saves $$

12%

16%

19%

19%

31%

46%

49%

55%

AITE: Building the Case for Migrating Small Businesses onto Business Online Banking Platforms, December 2012

Critical factors in businesses’ considering to pay for TM services

When is “enough” enough?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Small Business:Reason for Changing Bank

… 9% changed banks in 2009

Service Issues

Not enough personal atten-tion

Better rates or fees

Bank solvency concerns

Unwilling to ex-tend credit

Other

The Bank’s $40-$100 MM

$100-$500M

> $500M

Willingness to provide credit

19.9% 17.2% 28.7%

Commitment to our account

44.3% 40.9% 28.7%

Service quality 15.1% 23.5% 24.1%

Specific product features

5.8% 6.2% 5.3%

Competitive pricing

14.9% 12.1% 13.2%

Source: Phoenix Hecht, 2009Source: Barlow Research/Economic Pulse Survey, Q1, 2009

Middle Market/Large CorporateCritical Factors: Which Banks to Keep/Drop

… 22.8% middle market changed banks in 2009… 5.6% large corporate changed banks in 2009


Clients Have High Expectations

Total

Delighted

Temperate

Disappointed

0%10%

20%30%

40%50%

60%70%

80%90%

100%

13

7

7

31

How likely are you to enter into a new banking relationship?

Definitely/Probably WILLMaybeDefinitely/Probably Will NOT

Source: AITE Declining Satisfaction Levels Among Small Business Customers, February 2010

Most significant declines in Small

Business Satisfaction

• Customer service ratings

• Online banking ease-of-use

• Ability to understand specific customer needs


Smaller Banks / Smaller Clients: A great match

Smaller, Community Banks High-touch client service Relationship pricing philosophy:

Knowledge of vendor costs allows pricing by client vs. cost center

Fixed fee vs. variable = savings Product offerings are similar to large

banks’ and tiered to end-client needs Holistic Bank solution Experienced sales people know their

clients, industry, market, how to customize the sale, how to win clients

Flexibility to respond quickly to industry mandates and evolving client needs

Serve small to mid-sized companies well.

Large Financial Services Companies High-touch client service for VICs Relationship pricing philosophy based on

profitability (PxV, Cross Sell opportunity) Sophisticated solutions Well-oiled machines or Siloed, Overly

Complex, Hierarchical Deep bench strength and experience

Sales Relationship Management Product Dev. / Management Implementation Client Service Senior / Executive Management

Serve large, global enterprises well.Copyright 2012 Turningpoint Communications. Not for Unauthorized Use, Duplication or Distribution.

with Seasoned Players, Superior Technology, Education and other Best Practices

Leveling the Playing Field

National League 3American League 3


Industry Overview:

Bankers’ Priorities


Source: Aité Group survey of Treasury Services representatives at Top 100 North American Banks, Jan 2009

#5 Grow Revenues

#4 Focus internally through cost-cutting and integration (tied with #3)

#3 Enhance and differentiate products (tied with #4)

#2 Deepen customer relationships

#1 Tighten focus on deposit and liquidity services

Grow balances, emphasize strong reputation, demonstrate clear vision and offer new liquidity management services. Diversify offerings wherever possible.

Focus more on effectively cross-selling, adopting new sales strategies, establishing better risk management and retaining and providing better support for treasury services’ largest customers

Enhance online offerings (i.e., electronic payments and international capabilities); greater focus on commercial cards, healthcare and new product innovation

Integrate acquired partners, consolidate suppliers, eliminate redundancies and cut overhead costs

Identify new revenue streams and better capitalize on existing ones

Your Game Plan:

Evolution, Growth of a TM Division Take stock of Target Market/Client Needs, Bank Goals, Current Banking Solutions

and desired growth projections Make a strategic plan that includes dedicated TM Sales Justify TM spend (for sales, service) to Bank/Business Partners/Senior Management Define Marketing / Business Development Strategy

Revisit market and strategy periodically Build / Customize TM Solutions / Partner with Technology Provider Sales discipline / culture

Document process, measure and herald your success Hire/Redeploy Experienced Talent with a following

Marketing/Sales Product Development / Vendor Management Customer Service / Implementation/Training

Train Your Staff


Study the Rule Book: Banks Benefit by Investing in Best PracticesChoose your Team carefully. Hire Brand “representatives”

Position your bank well by promoting YOUR PEOPLES’ Experience, Expertise, Education and Exceptional service (or have them do it!)

Ongoing Learning Training, Professional development, EducationIndustry, Functional, Organizational

Strategic Thought and Community LeadershipMaximize ROI with strategy and qualityEnsure community bank voice is heard in

industry dialogue and setting industry trendsIncent strong internal and external relationships

Incentive PlansGoal Alignment


Free Agents Finding a New TeamSeasoned TM Professionals Moving on and UP

Everyone wins when banks focus on clients they serve bestSmaller banks have new TM organizations and roles

Large migration of seasoned TM ProfessionalsMoving from Large to Small takes getting used to

Your opinion may travel in bigger circles Tread lightly – change is scary to many

A small team = you will be wearing a lot of ‘hats’!Setting and implement strategy = Quick change

Combining best practices from Small and Large = SuccessEstablish goals

Develop, share your near and long term plans with key constituents Track success to influence bank strategy


Training isn’t just for the Pre-Season!TM Education Benefits Banks, TM Sales and CLIENTS

Banks: Justify TM organization

capital investment, growth

Level set / increase employee knowledgebase

Build upon internal networks / relationships

Build upon sales cultureStandardize customer

experience and culture

TM Sales:TM best practices Increase individual,

team, org. knowledgeBring useful

information and tools directly back to job, team, clients

Work/ Build personal relationships with/ train business partners

Sell value proposition

Clients:Holistic bank approachProactive, highly

knowledgeable trusted advisor, who listens and educates vs. sells.

Justification for TM capital outlay, ROI

Best Products (service models) for my clients

Internal/external promotion


You’ve got the right stuff

Don’t be afraid to lead off the inningStand up and be proud

TM can drive new revenue and / or build upon existing businessDone well and consistently, TM brings annuity streams As an expert, the TM sales officer is the one to ask the questions.

Get a seat at the table with your RMBuild strong relationships and trust with your RM now.

Communicate early and often. Give and receive — What’s in his pipeline? What is in yours? Showcase your expertise and the value (ROI) you can bring. Track and report success. Help him to be successful.


Trade in your ‘Old’ Model for ‘New’ Move to a Winning Sales Culture


No Sales Culture Winning Sales CultureStrategy• No goals, measurement,

accountability

Strategy• Senior Management Championship• Strategic Business Development Plan• Individual performance goals map to Bank goals and align directly

with client goalsProspecting

• No defined Target market / free-for-all!

• Industry generalists

Prospecting

• Strictly defined Target market (the industry, geography, segment, clients we serve best)

• Industry Specialists

Trade in your ‘Old’ Model for ‘New’ Move to a Winning Sales Culture


No Sales Culture Winning Sales CultureSales Process

• No defined Sales Process• RM defines TMs destiny• “Order-taking” or reactive sales• Competing only on price / rates• Sales = “Free” • Intra-bank or divisional In-fighting /

Silos/ conflicting goals/ incentives

Sales Process• Standardized Client Experience, Customizable Process• Take the Lead on Sales• Trusted Advisor Status• Close deals using compelling client value propositions• Create / contribute to active, actionable, reportable Pipeline• Business partners from many disciplines work together to provide

comprehensive, whole-Bank solutions in support of client goals

Service Delivery• By branches, untrained staff• Passive implementation• Single-dimensional product delivery• “One and Done” mentality

Service Delivery• Defined delivery model for TM in the bank• More deeply penetrate clients — Schedule reviews to provide

proactive feedback, education, industry knowledge• Directly aligned with Sales

Marketing

• Send ahead sales sheet/ brochureMarketing• Strategic Positioning. Differentiation. Messaging.• Directly aligned with Sales

Best of Breed TM Technology Solutions

Start with your primary provider Leverage existing relationship for price Easier to manage the relationship Talk with other customers/references Service Bureau Vs. In-House / Proprietary

What other value added services does the provider have Customizable Marketing Material Solutions Tiered to individual industries, segments Sales training/education on Treasury Management topics

that matter most Sample customer agreements Network / User group of treasury professionals Treasury

Management????


Even the All-Star Team has an MVP

Be the Best YOU can beSet, record, measure against SMART GoalsDevelop yourself professionally

Formal education, trainingCertifications

Stay currentWorkshopsIndustry Events, meetings, webinars, conferences

Become a thought leader. Your reputation will precede youBecome a community player: There is no “i” in teamBuild and maintain your network

Industry organizationsMeet/communicate with colleagues

Understand your core competenciesHire a complementary team


Future of TM at Smaller Banks: World Series Bound!Players

Educated, Seasoned, Open to new ways of doing businessTechnology

Best of Breed, Tiered according to end user needsOmnipresent Sales Culture

Strategic, thoughtfully implemented Business Development Plan Common trusted advisor culture, employing ‘standardized customization’ Relationship focus, based on bringing the whole bank to the customer

Best Practices Goals Setting Training Measurement Empowerment Aimed at High-Touch Customer Service


Questions


Play Ball!

or, at the very least, enjoy ‘The Cheap Seats’ by Alabama


Jill Capicchioni, MBA, AAP, CUAJill Capicchioni has over 15 years’ experience in the Banking & Cash Management arena. Ms. Capicchioni has held numerous positions in cash management including ACH Operations, Product Support, Implementation, Sales and Product Management and has spent time working for both Banks and Vendors including the former National Bank of Detroit and NationsBank (Bank of America).

Jill is currently the Small Business Channel Manager and Product Manager at FIS, and is responsible for several of FIS’s Account Recon & Positive Pay products and the development of products targeted to small businesses. Jill is a frequent speaker and panelist at banking and treasury management events across the country, and has previously spoken at the NACHA Payments Conference, Windy City Summit, and Treasury Management of New England conferences.

Ms. Capicchioni holds a BA from Eastern Michigan University in Urban Planning and has an MBA from Brenau University. Additionally, Ms. Capicchioni holds the AAP (Accredited ACH Professional) designation from NACHA (National Automated Clearing House Association) and a CUA (Certified Usability Analyst) designation from Human Factors International.

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Laurel Egan Kenny, MBA, MCMLaurel Egan Kenny, MBA, MCM, is founder, owner and president of Turningpoint Communications, a marketing communications and training firm focused exclusively on promoting the thought leadership and best practices of its treasury management focused clients — in communications, at strategic events, in the media and in the communities they serve. Among her clients are 4 of the 10 largest banking institutions in the United States.Before founding Turningpoint Communications, Laurel spent 15 years building and leading marketing teams for treasury, wealth management and foreign exchange divisions at two of the largest, Fortune 100 financial services firms, directly aligned with executive, business development and relationship managers, from whom she learned the best practices, strategy, and the trusted advisor approach she brings to bear for her clients today. In addition to running her business, Laurel presents nationally on a variety of strategic and industry topics and serves as Treasurer and Communications and Membership Chair of the Treasury Management Association of New England (TMANE), Advisor to the Association of Financial Professionals (AFP) and President of the Marshfield Massachusetts Chamber of Commerce. Together with her family, she is also an active volunteer at Sowing Seeds and the Eames Way Elementary School, in her hometown of Marshfield, Massachusetts.Laurel holds an M.B.A., an M.S. in Communications Management, and a B.A. in English and Communications, all from Simmons College, in Boston.

Laurel can be reached at: [email protected], www.turningpointcommunications.com, 781-834-3308 (office), 339-793-3485 (mobile) 29

jill capicchioni, mba, aap, cua channel manager fis laurel egan kenny, mcm, mba president...

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smaller banks

community banks

banks level

finreg banks

services of value banks

cash management services

new era large banks

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