Schedule

Methodology	8:00 a.m. - 8:45 a.m.
Board Report	9:00 a.m. - 11:30 a.m.
Branch Analysis	11:30 a.m. - 12:00 p.m.
Network Lunch	12:00 p.m. - 1:00 p.m.
Customer Segmentation	1:00 p.m. - 2:00 p.m.
Product Management	2:00 p.m. - 3:00 p.m.

Discussion Topics

Many critical issues face the financial services industry. The CEO Strategies Group workshops will serve as a forum to discuss these and many other topics related to improving performance.

• How well is the industry doing in leveraging the checking base? Has your institution been able to effectively deepen relationships with checking account customers?
   

• RFG’s latest research explores consumers’ preferences between local financial institutions and internet-only banks. How many basis points of additional interest rate does it take to attract the “mass-market”?
   

• Which emerging fee income ideas have the potential to be as lucrative as the more established courtesy pay programs?
   

• Are rewards checking accounts gaining acceptance or do consumers view this product as a “bait-and-switch”? What are the alternatives to these accounts?
   

• B of A has a renewed focus on their “keep-the-change” debit card program. Is this is a winning strategy? What other strategies are being implemented to build transaction volume?
   

• What deposit and loan product design and pricing strategies are being implemented to improve margins and profitability?

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?

1. 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?
    

2. 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?
    

3. Non-Interest Income Management –Are there new opportunities for increasing non-interest income?
    

4. 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:

1. Are you providing sufficient branch-based convenience?

2. What aspects of the customer relationship are most significantly impacted by the level of convenience you provide?

3. 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:

1. New Account Detail – New account generation over the previous six months is analyzed.
   •  What is your new account growth in each product area?
    

2. 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?
    

3. Tactical Actions – What are the specific product design, pricing, and promotional actions that should be taken in the key product areas.