48
Chief Retail Officer, Chief Financial Officer, and Business Plan Functional Lecture Mike Allen
Chief Retail Officer, Chief Financial Officer, and Business Plan Functional Lecture
Mike Allen
Executive Banking School Objectives
Retail Strategy• Customer acquisition• Branding & marketing• Product & pricing• Delivery optimization
Bank Management Strategy• Economic value & risk• Capital considerations• Analyst influences• 360° executive
management
Financial Strategy• Financial analysis• Key performance
drivers• Earnings power• Risk considerations
2
MarketSim Objectives
3
Functional Lecture Objectives
To focus on areas of responsibility To review decision responsibilities To review the tool kit of worksheets To discuss common issues To answer common questions
4
The Role
Chief Retail Officer
Sets policy, provides direction Coordinates the efforts of the group, and interacts
with senior management and regulatory authorities Manages the decision-making process and balances
the work load of team members Ensures assignments and decisions are submitted
on time.
5
The Role
Chief Financial Officer
Develops plans and forecasts for the retail area as a whole Evaluates cost data on retail activities Works with other officers to coordinate balanced
scorecard and financial results Prepares other financial analyses as directed by the bank’s
Chief Retail Officer.
Reminder: Many expectations that you may have for ratios like Efficiency Ratio are quite different when only exploring the Retail Division versus the entire bank. Using the Efficiency Ratio example, a reasonable goal for an entire bank may be 50%. That ratio may be unattainable in a retail division with its heavy reliance on fixed assets and FTE.
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MarketSim Process
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Analyze
Plan
ForecastExecute
ReviewRetail Bank
MarketSimProcess Flow
Analysis
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Balanced Scorecard Index
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Competitive Report
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Current Decisions
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CRA Report
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Balance Sheet
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Income Statement
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Call Report I
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Call Report II
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ROE Decomposition and Key Ratios
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Planning & Forecasting
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CRA Reporting Status
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Management Direction Consensus
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MarketSim Business Plan I
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MarketSim Business Plan II
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MarketSim Business Plan III
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MarketSim Business Plan IV
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MarketSim Business Plan V
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MarketSim Business Plan VI
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MarketSim Business Plan VII
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MarketSim Strategic Planning I
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MarketSim Strategic Planning II
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MarketSim Strategic Plan III
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Retail Bank Condition Consensus
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Risk Assessment of Direction
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BSI Analysis
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Planning & Forecasting
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Finance Report Forecast I
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Finance Report Forecast II
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LLP Forecast Analysis I
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LLP Forecast Analysis II
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NIM Forecast Analysis
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Product NII & Expense Forecast
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Product NII & Expense Worksheet II
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Product NII & Expense Worksheet III
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Execute
On Task
On Time
On Strategy
On Budget
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Review Results
44
Best Practices
Be inclusive Develop consensus
Strategy first, detail second
Fast and proximate
versus to the penny and late
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Today’s Assignment
• Build the Business Plan!
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Review Course Objectives
To focus on areas of responsibility To review decision responsibilities To review the tool kit of worksheets To discuss common issues To answer common questions
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