Commercial Treasury RoundtableBest Practices & Real Life Experiences

May 22, 2017Gail Angel, Division Executive, Corporate & Digital Solutions

Agenda

2

• Introductions & Objectives

– Provide forum for information exchange

– Facilitate networking & dialogue

– Address hot topics

• Break Out Discussions

– Faster payments

– Revenue management

– Security vs. fraud

– Measuring what matters

– Blockchain, anyone? APIs? Fintech for 100?

– Cross border payments

– Improving customer experience

– Customer retention

– Organizing for success

– Small business

– Other topics?)

• Feedback & Sharing

• Key Take Aways

… Learn best practices

in the commercial

treasury space from your

peers.

All pre-registered

attendees for this

session will be polled for

key topics for roundtable

discussions moderated

by FIS experts or client

executives.

Session ideas

3

Score (All/Attendees)

• Faster payments 1.50 *

• Revenue management 1.30 *

• Security vs. fraud 2.44

• Measuring what matters 2.00

• Blockchain, anyone? APIs? Fintech for 100? 2.70

• Cross border payments 3.50

• Improving customer experience 1.78 1

• Customer retention 1.90 1

• Organizing for success 2.10

• Small business 1.20

• Other topics? Managing Client Engagement

* No 4’s or 5’s

1 One 4, no 5’s

4

Faster payments

• How does your institution define faster payments?

– Same Day ACH?

– Real-time retail payments?

– Real-time B2B payments?

– Availability, as well as settlement?

• Who ‘owns’ it at your financial institution?

• What do you think will drive faster payments in the US?

• What do you believe are the biggest benefits associated with faster payments – for your customers, as well as for your organization?

• What do you see as the obstacles or impediments to widespread adoption of faster payments?

• Do you think that the payments pie is fixed and that faster payments will cannibalize existing payment types, or do you see it as expanding and faster payments will add additional volume to it?

• What strategies could be deployed to monetize faster payments?

Revenue management

5

• What impact do you expect the changing interest rate environment to have on pricing?

• How much revenue do you think is lost due to revenue leakage or slippage? Where do you think are the greatest opportunities to pick up additional revenue through improved revenue management?

• What are the biggest challenges to revenue management at your financial institution?

• With which of the ‘Seven Deadly Pricing Sins,’ do you wrestle?

– Marginal cost pricing (where incremental revenue from new customers covers only the marginal costs)

– Failure to segment customers (resulting in random pricing and discounting strategies)

– Bungled bundling (poorly structured or executed packaged pricing)

– One way street volume discounts (discounted pricing regardless of changes/declines in transaction volumes)

– Service creep: leakage (failure to bill for all service rendered) and slippage (failure to bill for all prices on the fee schedule)

– Pricing senility (failure to update pricing across all customers)

– Adverse sales incentives (inadequate governance or discipline to enforce pricing practices – exceptions, waivers, minimum price points)

• What strategies have worked to address these challenges?

Security vs. Fraud

6

• What changes have you seen in the fraud landscape?

• How important is security to your corporate clients,

compared to 2 years ago?

• How do you balance ease of use vs. providing appropriate

levels of security?

• What’s your financial institution doing to stay ahead of

cybercrime and payment fraud?

• What new initiatives are you considering to protect against

fraud, mitigate risk or ensure compliance?

Measuring what matters

7

• What are the metrics for success that your financial institution tracks?

• Who selects them, and how closely aligned are they with your bank’s overall objectives?

• Who’s responsible for tracking them, and how are they reported?

• How have they been rolled out …

… to Sales?

… to Implementations?

… to Customer Service?

… to Operations?

… to other parts of the organization?

• How frequently are they revised and/or updated?

• How do you think they compare to the industry overall?

22.4%

42.4%

14.1%

8.2%

8.2%

4.7%

0 20 40 60

Manually

Using an XL spreadsheet

With a stand-alone workflowtool

Via a component ofpipeline/customer service…

We don't trackimplementations

Other (please specify)

Q7: How do you track implementations?

% Response

Sharepoint

Workflow

Sales Mgt &

Outlook Tasks

Sharepoint List

Outlook inbox

Blockchain, anyone? APIs? Fintech for 100

8

Cross border payments

9

• How important are cross border payments to your clients?

• What percent of your clients operate internationally?

• How is your bank processing cross border payments today?

• What currency conversion strategies are other banks using? Some banks routinely convert US dollar international payments into local currency unless they have instructions not to which allows them to capture the F/X income rather than the foreign bank. Do you think this is a good idea or bad?

• What changes are you seeing in correspondent/respondent bank relationships?

• Which aspects of cross border payments provide the greatest pain point to your customers? And to the bank?

• Are you currently a member of SWIFT?

• How much demand is there from your clients for expanded SWIFT or cross border capabilities?

Improving customer experience

10

• Who is charged with improving customer experience at your

financial institution?

• How broadly do you define ‘customer experience?’

• One of four primary reasons SME clients leave a financial

institution is frustration with outdated processes and procedures;

what have you done to ensure that your business practices are

current and serve to improve the customer experience?

• Where do you think are the biggest hurdles to improving the ‘soup

to nuts’ customer experience?

• What lessons have you learned from personal experience with

firms who either provide a very, very satisfactory customer

experience or consistently disappoint you that you’d like to apply

at your financial institution?

5.8

5.2

6.5

13.2

11.2

9.4

0.0 5.0 10.0 15.0

Global Top 50 Banks

Regional Banks

Community Banks

Average Monthly Contacts with Bank

In-person and ATM Online and Digital

Customer retention

11

• According to the recent FIS SMB PACE Index study, 14% of SMB’s switched banks last year

and 18% are considering changing this year. Is this a concern at your financial institution or

are you treating this as an opportunity to go after new business?

• How does the bank track customer retention and/or sales win/loss ratios?

• What analysis has your financial institution done regarding the cost to replace a lost client,

and how has this altered pricing or product strategies?

• Why do you think customers really end up leaving their bank?

• What tactics have you seen that have successfully turned around relationships that were

going south?

• What customers would you just as soon not retain? (Or is the customer always right?)

Organizing for success

12

• How are products that are used by both businesses as well as

consumers managed?

• Where does responsibility for small business reside?

• How do you engage the branches?

• What’s the relationship between lenders and treasury

management?

• How do you handle cash management implementations,

customer service, product management and operations?

• What has your organization done to eliminate silos?

• How has your cash management organization evolved to

accommodate growth?

Q5: To which area of the bank do the

individuals who handle commercial/cash

management onboarding report?

Small business

13

• What’s top of mind for your small business clients and prospects these days?

• How are you currently marketing to them?

• What are the products they’re seeking?

• How do you think the value propositions for small businesses differ from those of your commercial clients?

• Do you put small businesses on a business or consumer digital platform?

• Do you put small businesses on analysis?

• How do you manage the cost of sales/cost of service?

• What’s their biggest complaint, and how are you addressing it?

-6

5

4

6

10

10

14

10

Ease of opening

Connected

Personal service

Self-service ease

PACE Score Variations: Do I stay or do I go now?

Stay with current bank Switched or likely to switch

Biggest Pain Points

• Startups – Making ‘fast’ digital payments, locating

trustworthy (non-FI) services, cash flow forecasting: can

I afford something? (40%)

• Established firms - getting a loan quick enough (11%)

Feedback & sharing

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Key takeaways

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… see next page!

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Financial Times, March 5, 2017

Gail Angel

Gail.Angel@fisglobal.com

773-907-2400

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