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
Jill Capicchioni, MBA, AAP, CUA
Channel Manager
FIS
Wednesday,
June 6, 2012
Copyright 2012. Turningpoint Communications. Unauthorized Use is strictly prohibited
Laurel Egan Kenny, MCM, MBA
President
Turningpoint Communications
Agenda
 State of the Marketplace: Smaller Banks Competing and Winning
 How we got here: The depressed economy was good for survivors
 Smaller, 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 Sales
 Establishing a Sales Culture
 Future of TM in Smaller Banks
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2
Industry Overview:
It’s a new Era
 Large banks no longer have a stronghold on treasury
management products or clients
 As large banks “right-size” their target client base and service
model, smaller banks are winning market share
 Highly 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
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3
It’s a New Era
Economic Shakedown
Economic Collapse
Recession
2008
2010
2009
•Banks Failing
• Flight to safety
•Massive Layoffs
• Interest Rates
•Credit Scarcity
• Middle Market and
Small Biz left out
•Little product
innovation
2011
•TARP and Scrutiny
•Regulatory Reform
•No Loans
•No new investments
in business
•Business on hold
•Displaced Workers
•Divorced Customers
• Only generating
more fees
• Doing more
with less
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Economic Recovery
2012
2013
2014
•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
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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.
2.
3.
4.
Banks are looking for fee income.
Retail deposits have been ... flowing into banks ...
Consumers are lagging corporations in the recovery.
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
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5
Market Size & Potential
Number of Businesses
Current TMS Spend
11%
15%
19%
28%
27%
5.8M companies
99.7% of U.S. employers
Large Corporate
Middle Market
Financial Institution
Large Corporate
Upper Middle Market
Small Business
Middle Market
Small Business
Government
Phoenix-Hecht Pricing Monitor
Ernst & Young 26th Annual Cash Management Survey, 2011
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Services Usage by Company Size
Small Business
 Online banking
– Acct info
– Images
Middle Market
• Positive pay
• Account recon
– Transfers
• Expanded ACH/EDI
– ACH/wire
• Cash vault services
– Tax payments
• Wholesale lockbox
 Zero balance accounts
 Sweeps
 Account analysis
Emphasis on basic tracking
and money movement
Corporate
• Multi-bank data exchange
• Most advanced ACH/EDI
services
• International cash
management
• Consolidated, electronic
payables and receivables
• Controlled disbursing
• Payment cards
Emphasis on functionality
Emphasis on real-time
straight-thru processing,
multi-user, high security
Small Business Product Checklist
Services adopted by >50% of small businesses
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 = 2,058
Source: FIS Enterprise Strategy, November 2010
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But, Are They Willing to Pay?
International wires
22%
Domestic wires
20%
Wire w/remittance
19%
Positive pay
15%
Expedited bill pay
15%
External transfers
14%
Payroll/direct deposit
14%
Online tax payments
13%
Entitlement capabilities
11%
Check & deposit slip images
Alerts
Pay bills online
10%
8%
7%
Products
they’re
willing
to pay for
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But, Are They Willing to Pay?
Saves $$
55%
Saves Time
49%
Increases convenience
46%
More secure
31%
Increases automation
19%
More 'tech savvy'
19%
Enables out of office productivity
Extends DSO
16%
12%
Critical factors
in businesses’
considering to
pay for TM
services
AITE: Building the Case for Migrating Small Businesses onto Business Online Banking Platforms, December 2012
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When is “enough” enough?
Small Business:
Reason for Changing Bank
… 9% changed banks in 2009
Service Issues
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Middle Market/Large Corporate
Critical Factors: Which Banks to Keep/Drop
… 22.8% middle market changed banks in 2009
… 5.6% large corporate changed banks in 2009
The Bank’s
$40-$100
MM
$100$500M
>
$500M
Not enough
personal
attention
Better rates or
fees
Willingness to
provide credit
19.9%
17.2%
28.7%
Commitment
to our account
44.3%
40.9%
28.7%
Bank solvency
concerns
Service quality
15.1%
23.5%
24.1%
Unwilling to
extend credit
Specific
product
features
5.8%
6.2%
5.3%
Other
Competitive
pricing
14.9%
12.1%
13.2%
Source: Barlow Research/Economic Pulse Survey, Q1, 2009
Source: Phoenix Hecht, 2009
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11
Clients Have High Expectations
Most significant
declines in Small
Business
Satisfaction
How likely are you to enter into a new
banking relationship?
Disappointed
Temperate
Delighted
Total
31
7
• Customer service
ratings
7
13
0%
20%
40%
60%
80%
100%
Definitely/Probably WILL
Maybe
Definitely/Probably Will NOT
• Online banking
ease-of-use
• Ability to understand
specific customer
needs
Source: AITE Declining Satisfaction Levels Among Small Business Customers, February 2010
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12
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.
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Leveling the Playing Field
with Seasoned Players, Superior Technology,
Education and other Best Practices
National League 3
American League 3
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14
Industry Overview:
Bankers’ Priorities
#1 Tighten focus on deposit and
liquidity services
#2 Deepen customer relationships
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
#3 Enhance and differentiate
products (tied with #4)
Enhance online offerings (i.e., electronic payments and
international capabilities); greater focus on commercial cards,
healthcare and new product innovation
#4 Focus internally through costcutting and integration (tied with #3)
Integrate acquired partners, consolidate suppliers, eliminate
redundancies and cut overhead costs
#5 Grow Revenues
Identify new revenue streams and better capitalize on
existing ones
Source: Aité Group survey of Treasury Services representatives at Top 100 North American Banks, Jan 2009
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15
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
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16
Study the Rule Book:
Banks Benefit by Investing in Best Practices
 Choose 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, Education
 Industry, Functional, Organizational
 Strategic Thought and Community Leadership
 Maximize ROI with strategy and quality
 Ensure community bank voice is heard in
industry dialogue and setting industry trends
 Incent strong internal and external relationships
 Incentive Plans
 Goal Alignment
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Free Agents Finding a New Team
Seasoned TM Professionals Moving on and UP
 Everyone wins when banks focus on clients they serve best
 Smaller banks have new TM organizations and roles
 Large migration of seasoned TM Professionals
 Moving 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 = Success
 Establish goals
 Develop, share your near and long term plans with key constituents
 Track success to influence bank strategy
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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 culture
 Standardize customer
experience and culture
TM Sales:
 TM best practices
 Increase individual,
team, org. knowledge
 Bring useful
information and tools
directly back to job,
team, clients
 Work/ Build personal
relationships with/
train business partners
 Sell value proposition
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Clients:
 Holistic bank approach
 Proactive, 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
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You’ve got the right stuff
Don’t be afraid to lead off the inning
 Stand up and be proud
 TM can drive new revenue and / or build upon existing business
 Done 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 RM
 Build 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.
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20
Trade in your ‘Old’ Model for ‘New’
Move to a Winning Sales Culture
No Sales Culture
Winning Sales Culture
Strategy
• No goals, measurement,
accountability
Strategy
• Senior Management Championship
• Strategic Business Development Plan
• Individual performance goals map to Bank goals and align directly
with client goals
Prospecting
Prospecting
• No defined Target market /
free-for-all!
• Strictly defined Target market (the industry, geography, segment,
clients we serve best)
• Industry generalists
• Industry Specialists
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Trade in your ‘Old’ Model for ‘New’
Move to a Winning Sales Culture
No Sales Culture
Winning Sales Culture
Sales Process
Sales Process
• No defined Sales Process
• Standardized Client Experience, Customizable Process
• RM defines TMs destiny
• Take the Lead on Sales
• “Order-taking” or reactive sales
• Trusted Advisor Status
• Competing only on price / rates
• Close deals using compelling client value propositions
• Sales = “Free”
• Create / contribute to active, actionable, reportable Pipeline
• Intra-bank or divisional In-fighting /
• Business partners from many disciplines work together to provide
Silos/ conflicting goals/ incentives
comprehensive, whole-Bank solutions in support of client goals
Service Delivery
• By branches, untrained staff
Service Delivery
• Defined delivery model for TM in the bank
• Passive implementation
• More deeply penetrate clients — Schedule reviews to provide
• Single-dimensional product delivery
• “One and Done” mentality
Marketing
• Send ahead sales sheet/ brochure
proactive feedback, education, industry knowledge
• Directly aligned with Sales
Marketing
• Strategic Positioning. Differentiation. Messaging.
• Directly aligned with Sales
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22
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
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Treasury
Management
????
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Even the All-Star Team has an MVP
Be the Best YOU can be
 Set, record, measure against SMART Goals
 Develop yourself professionally
 Formal education, training
 Certifications
 Stay current
 Workshops
 Industry Events, meetings, webinars, conferences
 Become a thought leader. Your reputation will precede you
 Become a community player: There is no “i” in team
 Build and maintain your network
 Industry organizations
 Meet/communicate with colleagues
 Understand your core competencies
 Hire a complementary team
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24
Future of TM at Smaller Banks:
World Series Bound!
 Players
 Educated, Seasoned, Open to new ways of doing business
 Technology
 Best of Breed, Tiered according to end user needs
 Omnipresent 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
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25
Questions
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26
Play Ball!
or, at the very least, enjoy ‘The Cheap Seats’
by Alabama
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27
Jill Capicchioni, MBA, AAP, CUA
Jill 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.
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Laurel Egan Kenny, MBA, MCM
Laurel 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: laurel@turningpointcommunications.com, www.turningpointcommunications.com,
781-834-3308 (office), 339-793-3485 (mobile)
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