Chief Retail Officer, Chief Financial Officer, and Business Plan Functional Lecture
Mike Allen
Executive Banking School Objectives
Retail Strategy
Financial Strategy
• Customer acquisition
• Branding & marketing
• Product & pricing
• Delivery optimization
• Financial analysis
• Key performance
drivers
• Earnings power
• Risk considerations
Bank Management
Strategy
• Economic value & risk
• Capital considerations
• Analyst influences
• 360° executive
management
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
Analyze
Review
Plan
Retail Bank
MarketSim
Process Flow
Execute
Forecast
7
Analysis
8
Balanced Scorecard Index
9
Competitive Report
10
Current Decisions
11
CRA Report
12
Balance Sheet
13
Income Statement
14
Call Report I
15
Call Report II
16
ROE Decomposition and Key Ratios
17
Planning & Forecasting
18
CRA Reporting Status
19
Management Direction Consensus
20
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
26
MarketSim Business Plan VII
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MarketSim Strategic Planning I
28
MarketSim Strategic Planning II
29
MarketSim Strategic Plan III
30
Retail Bank Condition Consensus
31
Risk Assessment of Direction
32
BSI Analysis
33
Planning & Forecasting
34
Finance Report Forecast I
35
Finance Report Forecast II
36
LLP Forecast Analysis I
37
LLP Forecast Analysis II
38
NIM Forecast Analysis
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Product NII & Expense Forecast
40
Product NII & Expense Worksheet II
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Product NII & Expense Worksheet III
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Execute
On
Strategy
On Task
On
Time
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
45
Today’s Assignment
• Build the Business Plan!
46
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
47
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