Executive Roundtable 29-30 June 2011 Hotel Intercontinental Chicago Chicago, Illinois Table of Contents Agenda .............................................................................................................................. 2 Participant List ................................................................................................................ 3 Presentations ................................................................................................................... 9 Discussion Leaders .......................................................................................................53 LinkedIn Groups ............................................................................................................ 61 About Treasury Strategies ..........................................................................................67 1 Agenda 8:30am Registration & Breakfast 8:45am Welcome & Introductions 9:15am Industry Overview 9:30am “Delivering the Customer Experience” 10:45am Break 11:15am “Differentiation Through Sales and Relationship Management 12:15pm Lunch 1:15pm “Finding Growth in a Crowded Market” 2:15pm Break 2:45pm “Optimizing Profit and Value in the New Regulatory Environment” 3:45pm Wrap Up 4:00pm Adjourn 2 Participant List 3 Greg Kavanaugh Bank of America SVP - Senior Product Management Executive [email protected] (312) 904-8123 Joseph Watkins BB&T Senior Vice President [email protected] (704) 954-1920 Bob Reitz BBVA/Compass EVP & Managing Director [email protected] (205) 297-4041 Tony Brady BNY Mellon Managing Director, Treasury Services Delivery [email protected] (412) 234-8886 Dave Cruikshank BNY Mellon Executive Vice President [email protected] (212) 635-8274 Martin Grayson BNY Mellon Managing Director, Strategic Development [email protected] (412) 234-6259 4 Colleen Taylor Capital One Executive Vice President [email protected] (212) 834-1462 Bridgit Chayt Comerica Bank Executive Vice President [email protected] (734) 632-4982 Art Brieske Deutsche Director, Head of Global Payments Strategy [email protected] (212) 250-1132 Jeff Ficke Fifth Third Bank SVP, Director of Treasury Management [email protected] (513) 534-1845 Vanja St. Clair Fifth Third Bank Senior Vice President [email protected] (312) 704-4056 Steve Rogers Harris Bank Managing Director [email protected] (312) 461-2242 5 Doug Hartsema Huntington National Bank Director, Treasury Management [email protected] (614) 480-3235 Jay Pitroff Huntington National Bank Treasury Management Commercial Card Program Director [email protected] (614) 480-5468 Pat Thelen J.P. Morgan Chase Managing Director [email protected] (913) 219-7485 Pam Carson KeyBank Group Executive, EVP [email protected] (216) 689-3723 Don Berk Northern Trust Senior Vice President [email protected] (312) 444-2440 Bob Edwards PNC Executive Vice President [email protected] (412) 762-2858 6 Jim Graham PNC EVP, Head of Treasury Management [email protected] (412) 762-4847 Marie Lynne Desrochers RBC Head Business Accounts & Global Transaction Solutions [email protected] (416) 955-2397 Michael Bellardine RBS SVP, Global Product Head [email protected] (312) 906-5566 Matthew Richardson RBS Head of Product Solutions [email protected] (617) 725-5646 Patricia Tripar RBS Global Head Commercial Services & Emerging Channels [email protected] (312) 906-5572 James Hicks Regions Executive Vice President, Treasury Management [email protected] (205) 264-5538 7 Alice Eastman Scotiabank Senior Vice President [email protected] (416) 866-5672 Nick Alex SunTrust Bank SVP, Director Product Management and Development [email protected] (404) 813-8142 Don Gilmore Union Bank SVP, Director of Product Management [email protected] (213) 236-6803 Audrey Gopez Union Bank Senior Vice President [email protected] (213) 236-4031 Jacob Heugly Zions Bancorporation SVP, Manager Corporate Services [email protected] (801) 809-0346 Sam Olson Zions Bancorporation Director of Sales, Tresury Management [email protected] (801) 844-8225 8 Presentations 9 10 5th Annual Executive Roundtable June 29 – 30, 2011 © 2011 Treasury Strategies, Inc. All rights reserved. Welcome 11 12 Industry Overview Discussion Leader: Dave Robertson © 2011 Treasury Strategies, Inc. All rights reserved. Only Moderate CM Revenue Growth Fee-equivalent Cash Management Growth 8.0% 6.50% 7.0% 6.00% 6.00% 6.0% 5.50% 5.0% 4.00% 4.0% 3.00% 3.0% 2.00% 2.0% 1.50% 1.0% 0.50% -0.50% 0.00% 0.0% -1.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010* Source: Ernst & Young 2010 Annual Cash Management Services Survey *Estimated w w w . T r e a s u r y S t r a t e g i e s . c o m 4 13 14 Modest Expectations for Revenue Growth Will Some Achieve 5 - 15 %? Expectations Among Banks For Growth In TM Revenues in 2011 70% 60% 50% 40% 30% 20% Percent of Respondents 10% 0% 0-5% 5%-10% 10%-15% Estimated Growth in Revenues Source: Treasury Strategies 2011 Growth Study of 11 Top 50 Banks w w w . T r e a s u r y S t r a t e g i e s . c o m 5 Concentrated Revenues: New Entrants Corporate spend on Bank Provider Share of working capital and liquidity Fee-equivalent Revenue (2009) Other Top 5 10% Spend 12.5% Providers Bank Fee Revenue Next 15 Providers 24% 63.5% 90% All Other Providers Source: Ernst & Young 2010 Annual Cash Management Services Survey = Foreign entrants into market: BTMU, BBVA, BNP Paribas, Santander, BMO = Non-bank competitors: Fiserv, FIS, Amex, Western Union, McKesson, PayPal w w w . T r e a s u r y S t r a t e g i e s . c o m 6 15 16 So What’s the Attraction to CM? Treasury Strategies' Transaction Banking Index 120 110 100 90 80 70 60 50 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Transaction Banking Index Global GDP (Current Prices) Global Mkt. Cap Global Trade Capital Profitable Stable Efficient w w w . T r e a s u r y S t r a t e g i e s . c o m 7 Delivering the Customer Experience Discussion Leader: Chrystal Pozin © 2011 Treasury Strategies, Inc. All rights reserved. 17 18 Customer Experience? Historical Evolution D Channel siloes D Multi-dimensional and integrated D Primary focus on responsive service across customer activities, channels via people and the look/feel of and elements branches (physical, manual) D Any interaction with customer D Proactive, not just reactive D Automation of low value-added activities Customer Service Branch Activities Web Banking w w w . T r e a s u r y S t r a t e g i e s . c o m Channels 2 Customer Experience. So, I really wanted to like [A TRENDY RESTAURANT]I arrived 25 minutes late, so the very snotty hostesses gave away our table. Then we have to sit at the "communal table.” Has anyone sat at this table? Talk about the absolute worst stools in the entire world. I seriously wonder if anyone actually sat on them before picking them. They were about 8 inches wide with no foot rest area. Anyway, once our server came she redeemed this review by adding 2 stars, I probably would have given zero if it was possible. She was very nice and made some great recommendations. The duck salad was awesome as well as the firecracker roll!. I loved the rock shrimp and I am not even a shrimp lover. The ox tail with crispy rice was seriously so good. Oh and they had some really good drinks! Overall, I just don't think that I would go back to a place like this. The food was really good, but the attitude was just not needed. The chairs and tables were uncomfortable, the hostesses were snotty and the place was super loud. Good food, lousy customer service! w w w . T r e a s u r y S t r a t e g i e s . c o m 3 19 20 Customer Experience! Channels Activities D Branch D Daily business D Web D Customer service call/ D Mobile Device problem D Telephone (person) D Sale (new) D In-person Meeting D Sale (existing) D Relationship call D Implementation (new) D Implementation (existing) D Billing/payment D Advice Elements D People D Timeliness D Process D Ease/ D Look/Feel Convenience D Expertise D Price w w w . T r e a s u r y S t r a t e g i e s . c o m 4 So Many Questions D How do we migrate from a vague "we differentiate on service" to a clearly differentiated experience? D Do we have to choose one area – channel, activities, elements – where we excel? If so, how do we decide? D In what ways can we differentiate the customer experience outside of “customer service”? – e.g., implementation, daily business/transactions, etc. D How do we migrate away from a heavy reliance on individual employees to deliver an exceptional customer experience? Should we? D How can we demonstrate a differentiated experience to a prospect? D What role do and should traditional customer service groups play? D How should we be measuring differentiated service? Is there room for new types of metrics (e.g., moving away from just client satisfaction scores)? w w w . T r e a s u r y S t r a t e g i e s . c o m 5 21 22 Differentiation through Sales and Relationship Management Discussion Leader: Dave Wexler © 2011 Treasury Strategies, Inc. All rights reserved. Agenda Charm vs. capability? Can one have them both? 2. 3. 1. 4. Sales & The Ideal Client Internal Support Sales Experience Alignment Models Force Partners?? w w w . T r e a s u r y S t r a t e g i e s . c o m 2 23 24 Client View What Makes the client experience? Positive Negative ? My bank is a catalyst for change across ? What new sales person is going to call the enterprise.