Many critical issues face
the financial services industry. The current economic
environment, government intervention, regulatory
changes, and industry consolidations have impacted the
industry in 2009. Despite the earnings squeeze, this
period also represents the single greatest opportunity
in financial services history. Institutions that have
survived the last year are now in a position to alter
their competitive position and focus on “where do we go
from here”. The CEO Strategies Group workshop will serve
as a forum to discuss these and many other topics
related to improving performance during this unique
period of time.
Changing Consumer Priorities
- Findings from our latest national consumer
research study show how consumers are changing their
financial behavior and the implications this has for
you in product design, pricing, and marketing. New
research on how consumers view and utilize their
cell phones, the internet, and social networking
websites; and what this means to your bank and the
way you do business with your customers.
Gaining Market Share
– We are in the midst of a rare opportunity to take
market share away from the large banks. RFG will
present strategies and tactics to take advantage of
the major vulnerabilities that exist in the large
banks, and what you can do to capitalize on their
current weaknesses.
New Operational Efficiency
Metrics - RFG has developed an entirely
new set of operational metrics that explores the
effectiveness of your people, your branches, and
your processes. These new metrics will be unveiled
for the first time at the upcoming workshop
The Generational Challenge
– Gen Y will have an impact on our economy in three
to five years similar to the Baby-boomer’s impact in
the 1980s. RFG will present research highlighting
what attributes are critical in your products and
services to attract this emerging generation. At the
other end of the spectrum, we will explore the
challenges that currently face the older
generations, and what your institution needs to do
to retain these customers.
Household Growth –
Now more the ever, the industry will continue to be
under significant pressure to maintain sufficient
levels of capital. What new initiatives are being
developed by banks to generate new household growth
in spite of these capital pressures? How are banks
balancing and leveraging the opportunities that
exist with the increased costs of stabilization and
regulation?
Technology – The
evolution of the internet has had a significant
impact on how banks deliver products and services to
customers. What does the future hold in this arena,
and what are consumers saying is critical to them?
How can financial institutions optimize their
investments in new delivery technologies such as
mobile banking?
Responding to the Margin
Challenge – Pricing efficiently and
effectively is critical in this current environment
to offset the earnings pressure caused by rising
delinquencies and charge-offs. RFG will present
strategies to help keep the cost of funds in check,
without limiting growth.
The key element of this part of the program is the
audience discussion. High performers are
identified and tactics to improve growth and performance
are discussed in an open forum. While discussion is
voluntary, these sessions tend to result in a high level
of interaction among participants and provide new
insights, strategies, and tactics that participants are
able to implement at their own institutions.
8:00 a.m. - 8:45 a.m.
Methodology Review
This session discusses the
methodology RFG employs to generate the results analyzed
throughout the day. The objective of this session is to
detail the sources of information used to calculate profit
at the account, individual and household level.
9:00 a.m. -
11:30 a.m.
Board
Report
This section of the day
examines the overall performance of the institution from the
perspective of the growth, earnings, efficiency, margin
management, non-interest income, and relationship
management. Performance ratios are reviewed, trended and
compared to other institutions in the CEO Strategies
program. The objectives of this session are to address the
following areas:
How successful have you
been in growing households, deposit balances, and loan
balances?
How Well Are You Managing
the Institution’s Performance?
Operational
Efficiency – Which business lines are critical
to improving operational efficiency? How does your
revenue and expense per household compare to other
institutions of similar asset size?
Net-Interest Margin
Management – Can you improve net interest
margins in the current flat yield curve environment?
What products and strategies should be the focus to
improve net interest margins?
Non-Interest Income
Management –Are there new opportunities for
increasing non-interest income?
Relationship
Management – What role does customer loyalty
play in relationship development? How do we best
measure and improve customer loyalty?
11:30
a.m. -
12:00 p.m.
Branch
Analysis
Continuing on with RFG’s
innovation in measuring branch performance, RFG will measure
the performance of your branches in regard to the
development of customer relationships. Branches will be
evaluated on the basis of the convenience they provide,
their ability to generate new growth and how well they
broaden relationships with customers. The following
questions will be analyzed in this analysis:
Are you providing
sufficient branch-based convenience?
What aspects of the
customer relationship are most significantly impacted by
the level of convenience you provide?
How well are individual
branches performing? This analysis provides a concise,
one-page analysis of each branch’s performance for you
to use with branch managers.
12:00 p.m. -
1:00 p.m.
Lunch
Lunch is provided. Networking
opportunities exist to discuss key issues with management
from other financial institutions.
1:00 p.m. -
2:00 p.m.
Customer Segmentation
A new analysis included in this
section will examine the relationships that are being
developed as a result of the sale of a checking account into
a household. In this section, we will examine the changes
that occur over time after a checking account is introduced
into a customer household. How does the services per
household ratio change? Do we see significant changes in
profitability? This section will illustrate the value of
selling checking and determine whether you are sufficiently
leveraging the checking relationships that you have
developed. We will then discuss the latest innovations that
we are seeing in the design and marketing of checking
accounts.
2:00 p.m. -
3:00 p.m.
Product
Management
The Product Management
discussion focuses on refining the institution’s product
offerings to best meet the demands of customers while
maintaining organizational profitability. Each participating
institution receives a detailed analysis for all deposit and
loan products they offer. Product strengths and weaknesses
are discussed and then evaluated. Some of the areas of
discussion will be:
New Account Detail –
New account generation over the previous six months
is analyzed. • What is your new account growth in each
product area?
Product Comparatives
– Each product line is examined for key strengths and
weaknesses.
• What is your penetration, average balances and
account profit? How do they compare with other
institutions?
Tactical Actions –
What are the specific product design, pricing, and
promotional actions that should be taken in the key
product areas.
RFG is
registered with the
National Association of State
Boards of Accountancy (NASBA)
as a sponsor of
continuing
professional education of the
National
Registry of CPE Sponsors.
