1. www.ppcgroup.com Peak Performance Consulting Group Welcome to Todays Webinar: Turning Tellers Into Sellers Hosted by: Ric Carey, Director Ric.Carey@ppcgroup.com 512-607-6332

2. www.ppcgroup.com Industry challenge: starved for revenue, burdened by expenses The challenge: Need for growth, but fewer opportunities: less fee income, low interest rates Higher costs, largely due to increased regulation, have made it tough for banks to significantly improve profits Significant opportunity to improve branch efficiency/reduce cost Redefine the model: the right branch configuration to efficiently meet customer needs Enable more efficient service through improved technology Shift branch staffing toward more flexible, Universal Banker model and grow revenue Tilt branch staff skills and focus away from declining transactions and toward sales growth Create cost savings Page 2

3. www.ppcgroup.com Serving customers tomorrow requires change in strategy Primary role of the retail branch: drive customer acquisition and support consultative sales Drive new customer acquisition and provide sales and for existing customers Support business customers, who are more dependent on branch services Build and reinforce banks brand Customers still value branch presence 64% identify branch convenience is primary reason for choosing their bank 61% still visit a bank branch at least once per quarter Channel preferences are changing Transactions conducted in bank branches are declining 6-7% per year Transaction behavior and routine servicing shifting to other channels Shrinking branch traffic leaves fewer sales opportunities New accounts opened per branch FTE declined 23% since 1997 Source: American Bankers Assn. Consumer Survey, 2011 Source: Gordon Smith, Consumer & Community Banking 2/26/13, J.P. Morgan & Chase, SNL Financial Page 3 % of Consumer Deposits Through Tellers(1)

4. www.ppcgroup.com Turning Tellers Into Sellers The teller role is evolving With transaction volumes declining, tellers must contribute to increased sales volume. Technology advancements continue to automate customer transactions Self service allows customers to conduct their own transactions and ATMs can take deposits, analyze the customer profile for next product need and promptly explain the benefit Cash Recyclers are eliminating or reducing cash counting/balancing Its more than merely changing a job description as it requires fundamentally changing their jobs and compensation Tellers must be trained to focus more on the needs of the customer Tellers must do more than transact, they must also sell Tellers see more customers than anyone in the bank Teller transactions give off obvious indicators of sales opportunities The feasibility to have specialized teller rolls within the branch is declining Page 4

5. www.ppcgroup.com Turning Tellers Into Sellers Making the move from Tellers to Sellers takes a commitment to training - but it also requires banks to focus on four areas: Strategy Organizational Structure Branch Efficiency Sales Process Page 5 It is more than providing a script and an incentive It must be a significant strategic initiative This means providing new skills to enhance customer and product knowledge More than just sales skills

6. www.ppcgroup.com Turning Tellers Into Sellers Your focus should be on four main areas: Strategy How will this change alter the customer experience? Competitive risks? Can our Information Technology support this initiative? Which products should we focus on? Organizational Structure Altering the teller job description clearly has implications for the retail structure. How does this impact other functions, such as new accounts? Do we institute the Universal Associate? Take the time to organize well and reconsider your staffing model Communicate changes thoroughly in advance Page 6

7. www.ppcgroup.com Turning Tellers Into Sellers Branch efficiency Previous staffing model was calibrated on teller transactions How will you measure change? The staffing model must recalibrate based on a new sales process Sales Process How will the sales process for tellers differ from the traditional sales process around qualifying prospects, making the offer, overcoming objections, closing, etc..? What new technology will be needed to support this change? What will the customer think? Training on selling and communication skills will be essential Page 7

8. www.ppcgroup.com Turning Tellers Into Sellers In summary: Creating a trained and effective Teller sales force appears compelling and potentially lucrative Sales improve, when combined with the right marketing paradigm and disciplined sales/service process Technology advances will continue to support customer unassisted transactions We will need to provide new skills through extensive training to support needs based sales activities Require a new staffing model to create an environment that supports the customer experience Behavioral change comes from planning for conscientious and comprehensive strategic change. Page 8

9. www.ppcgroup.com Page 9 Peak Performance Consulting Group We hoped you enjoyed todays webinar presentation! To see this and other Peak Performance Consulting Group webinar presentations please visit our website www.ppcgroup.com Join our LinkedIn group, the Retail Banking Network Follow us on Twitter @retailbanking Peak Performance Consulting Group 700 Lavaca St. | 14th Floor | Austin, Texas | 78701 W: 512-607-6362 | W: 512-607-6332