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
3Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited
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
5Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited
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
11Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited
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
12Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited
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
14Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited
Industry Overview:
Bankers’ Priorities
15Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited
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
16Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited
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
17Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited
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
18Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited
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
19Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited
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.
20Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited
Trade in your ‘Old’ Model for ‘New’ Move to a Winning Sales Culture
21Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited
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
22Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited
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????
23Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited
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
24Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited
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
25Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited
Questions
26Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited
Play Ball!
or, at the very least, enjoy ‘The Cheap Seats’ by Alabama
27Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited
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.
28
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
Top Related