turning informa4on into ac4on … and growth · 2017-01-10 · growth isn’t easy 5 challenges •...
TRANSCRIPT
Proprietary/Confiden0al
OpportunityAnalysisTurningInforma4onIntoAc4on…andGrowth
©2016HarlandClarkeCorp.Allrightsreserved.
Today’sPresenters
Photo Here
StephenNikitasSeniorStrategyDirectorHarlandClarke• 30yearsexperience,includingseniorexecu0veatfinancialins0tu0onsinNewYork,CaliforniaandMassachuseKs
• LoanporMolioandaccountholderreten0onspecialist
2
AndrewHuberProductManagerMarke0ngServices,HarlandClarke• 10yearsoffinancialindustryexperiencewithextensiveknowledgeinproductmanagement/development,businessdevelopment,anddataandanaly0cs
YourModerator:
WhatWeWillTalkAboutToday
• FinancialTrends
• OpportunityAnalysis:GainingKnowledgeandInsights
• BuildingthePlan:PuXngDataToWork
3
> > > FinancialTrends
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GrowthIsn’tEasy
5
Challenges• Reducedpersonaldebt;delayedpurchasing• Changingconsumerbehavior• Cau0ouseconomy,crazystockmarket• Increasedcompe00on(P2P,Fintech)• PorMoliochanges• Mortgagepurchasevs.refinance• Autoleasing
Opportuni4es• Homesales/prices• Autosales• Personalloans• Lowunemployment• Deposits/reloca0ons
Solu4on:Minimizethedownturns,maximizetheupswings
©2016HarlandClarkeCorp.Allothermarksarethepropertyoftheirrespec0veowners.Allrightsreserved.
®
®
NetInterestMargins
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
5.50%
Q119
84
Q119
85
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86
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Q120
00
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HistoricalNetInterestMargins
Source:FederalFinancialIns0tu0onsExamina0onCouncil6
NIMsfallbelow3%
EfficiencyRa4os
64.62
61.16
61.8 61.45
62.8862.26
60.94
59.75
60.7860.27 60.06
57.95
54
56
58
60
62
64
66
Q32013 Q42013 Q12014 Q22014 Q32014 Q42014 Q12015 Q22015 Q32015 Q42015 Q12016 Q22016
HistoricalEfficiencyRa4os
Source:BankRegData.com7
> > > OpportunityAnalysis:GainingKnowledgeandInsights
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Preven4ng“AnalysisParalysis”
• Provideskeyinsightandinforma0ononclient’sporMolio
• Iden0fiesopportuni0esandrisks
• Includesproductanalysisandindustrybenchmarking
• Providesac0onablerecommenda0onsandperformancemeasurement
9 Stratics is a registered trademark of Harland Clarke. ©2016HarlandClarkeCorp.Allrightsreserved.
ProductBenchmark:LoansandE-Services
7.326%
1.60%
6.5%
0.9%
4.5%
1.5%
4.3% 4.0%
2.0%2.8%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
Auto Mortgage EquityLine EquityLoan ConsumerLoan
PercentofClientswithLoanProducts
YourFI
Industry
Illustra0veproposesonly.10
44.9%
13.9%
58.3%
37.6%
12.7%
51.3%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
OnlineBanking BillPayer DebitCard
PercentofClientsw/E-Services
YourFI
Industry
19.6%
16.0%
14.7%14.3%
15.3%
9.2%
4.8%
18.6%
12.6%
11.2% 10.2%
10.0%
7.3%
4.3%
0%
5%
10%
15%
20%
25%
Iyr 2yr 3yr 4yr 5yr 6-10yrs 10+yrs
AKri0
onRate
AKri0onbyLengthofRela0onship
YourFI Industry
Acri4onBenchmarks:Rela4onship
Illustra0veproposesonly.11
AccountHolderOverview
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ABCBankNewCustomers IndustryQ3NewCustomers
Size/Scope Size/Scope numberofhouseholds 26,100 percentageofallhouseholds 13% percentageofallhouseholds 8%percentageofalldeposits 14% percentageofalldeposits 5%percentageofallloans 5% percentageofallloans 5%averagebankingrela0onship $30,800 averagebankingrela0onship $18,200averagedepositrela0onship $32,900 averagedepositrela0onship $14,700averageloanrela0onship $7,500 averageloanrela0onship $26,800averagenumberofacctsperhhld 2.3 averagenumberofacctsperhhld 2.2 Demographics Demographics AverageAge 47 AverageAge 43AverageHouseholdIncome $64,400 AverageHouseholdIncome $60,200HomeOwnership 67% HomeOwnership 41% ProductUsage
%ofhhldsinsegment
averagehousehold
balance
ProductUsage%of
hhldsinsegment
averagehousehold
balanceDeposits DepositsChecking 66% $5,300 Checking 59% $4,100onlinebanking 0% onlinebanking 36%BillPayer 10% BillPayer 9%DebitCard 60% DebitCard 52%Savings 27% $2,100 Savings 23% $8,000MoneyMarket 12% $64,300 MoneyMarket 4.5% $58,500CD 13% $109,600 CD 3.9% $78,800IRA 1.6% $65,100 IRA 0.7% $40,800Investments 1.9% $0 Investments 1.8% $78,100
Loans Loans CreditCard 13% $4,300 CreditCard 3.8% $1,800ConsumerLoan 0.18% $15,200 ConsumerLoan 5.6% $22,500Autoloan:Direct 0.07% $15,200 Autoloan:Direct 0.7% $16,100Autoloan:Indirect 0% n/a Autoloan:Indirect 11.3% $17,800HomeEquityproducts 0.9% $44,800 HomeEquityproducts 1.7% $53,500HomeEquityLoan 0% $6,900 HomeEquityLoan 0.5% $59,300HomeEquityLOC 0.9% $45,800 HomeEquityLOC 1.2% $51,000Mortgage 1.7% $235,400 Mortgage 4.1% $202,800 Illustra0veproposesonly.
MakingDecisionsBasedonActualBehavior
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Proprietarysuiteofsta0s0calmodels
Truepredic4veintelligencebasedonmorethan600actualaccountholderbehaviors
ProductandaKri0onmodelsforretailbanking,smallbusinessandcreditunions
RefiningSegmentsforYourNextCampaign
14
Includesnearly50modelsandservices
RetailPurchasePoten0alModels
Checking,Savings,CreditCard,ConsumerLoan,CD,MoneyMarket,HomeEquity,IRA,DebitCard,OnlineBanking,BillPay,Mortgage,Brokerage,Annui0es,P&CInsurance,AD&DInsurance,TermLifeInsurance,CreditLifeInsuranceandMutualFunds
NextMostLikelyProduct 1st,2ndand3rdproductsinsequenceofcustomer’slikelihoodtobuy
AKri0onPredictorModels TotalHHDeposit,LiquidDeposits&RevolvingCreditBalances
PurchasePoten0alIndex Aggregatedviewofpurchasepropensity
AKri0onIndex AggregatedviewofaKri0onpropensity
CustomerValueSegmenta0on Cross-sellbyaKri0onsegmenta0on
SmallBusinessSmallBusinessPurchasePoten0alModels Non-FreeChecking,SmallBusinessLoan,CreditCard,CD,MM,
Savings,MerchantServices,LineofCredit
SmallBusinessNextMostLikelyProduct 1st,2ndand3rdproductsinsequenceofcustomerslikelihoodtobuy
SmallBusinessAKri0onPredictorModels TotalSBHHDeposit,LiquidDeposits&RevolvingCreditBalances
PurchasePoten0alIndex Aggregatedviewofpurchasepropensity
AKri0onIndex AggregatedviewofaKri0onpropensity
SmallBusinessValueSegmenta0on Cross-sellbyaKri0onsegmenta0on
Ultra-Segmen4ngatWork
15
AGGRESSIVECROSS-SELL HIGHTOUCH
LOYALTY RELATIONSHIP
(LOWRISK/HIGHPOTENTIAL)
(HIGHRISK/HIGHPOTENTIAL)
(LOWRISK/LOWPOTENTIAL)
(HIGHRISK/LOWPOTENTIAL)
AGGRESSIVECROSS-SELL
ELITE
HIGHTOUCHELITE
LOYALTYELITE
HIGH
LOW
PURCHASEPOTENTIAL
ATTRITIONPROPENSITY
25%
HIGH
SummaryGiventhisisthebank’slargestsegment,successwiththesecustomersiscri0cal.Youmaybeleavingalotofbusinessuntappedwiththissegment.Typicallythisisariskysegment.Thesegmentcertainlyhasfinancialneeds,butitslowaccountsperhouseholdra0o(thesecondlowestofallsegments)isindica0vethatcustomerswithinthissegmenthavefinancialproductselsewhere.Thisisapricefocusedsegmentthathasthesecondshortesttenurewiththebankandalargepercentageofcustomerswhoini0allycametothebankforlowcostchecking.Thesecustomersarepricefocusedandpoten0allyspinners.Thatsaid,giventheirage,manycanbeveryprofitablecustomerstothebankover0meifsufficientlydeveloped.
1 Looktoincreaseoverallwalletshare.AtindustryporMolioparity,ABCBankwouldgenerateanaddi0onal$448.5millioninincrementaldepositsandloans.
2 Checkingpenetra0onishigh,butensurecurrentcheckingrela0onshipsareengagedtosolidifytheirrela0onshipwiththebank.
3 Thissegmentisatastagewheresignificantlifeeventscreatenumerousopportuni0es.Thissegmenthaslowpercentagepenetra0onforcreditcards,consumerloans,homeequityloans,mortgages,savingsaccountsandIRAs.Forexample,atbenchmarkpenetra0onparity,another2,875creditcardsrepresen0ng$11.2millioninoutstandingbalancesandanother4,082homeequityloansrepresen0ng$299.6millioninoutstandingbalancesmaybeaKainable.
HighTouchSize/Scope numberofhouseholds 57,500 (largest)percentageofbank'shouseholds 33% (largest)percentageofalldepositsandloans 28% averagerela0onship $22,500 averagedepositrela0onship $21,600 averageloanrela0onship $14,400 numberofyearswithbank 5.9 averagenumberofacctsperhhld 2.6 Demographics Age 44 Income $62,400 HomeOwnership 72.5%
ProductUsage%of
hhldsinsegment
averagehousehold
balance
Deposits Checking 83% $7,500 onlinebanking 0% billpayer 9.0% debitcard 65% Savings 28% $4,000 MoneyMarket 9.6% $86,400 CD 4.6% $111,000 IRA 0.5% $48,100 Investments 1.2% n/a
Loans CreditCard 10% $3,900 ConsumerLoan 0.4% $18,900 Autoloan:Direct 0.2% $6,300 Autoloan:Indirect 0.002% $2,600 HomeEquityproduct 1.9% $73,400 HomeEquityLoan 0.3% $34,200 HomeEquityLOC 1.6% $80,100 Mortgage 0.3% $274,000
Illustra0veproposesonly.
December2015
ScoringLeadsWithPrecision
16
SampleofHouseholdIDfromUltraSegmen4ng
Illustra0veproposesonly.
> > > BuildingthePlan:PukngDatatoWork
17
BuildingthePlanUsingKeyLearnings
Learning Recommenda4on Ac4on
18
BuildingthePlanUsingKeyLearnings
Learning Recommenda4on Ac4on
Highacri4onrate Significantnumberofaccountclosingswithinoneyear
Costoffunds CDpenetra0on&balancesarehigh
Lowloanpenetra4on Belowmarketaverage
Largenumberofhouseholdsineliteaccountholdervaluesegments
Strongproductpenetra0onandbalances
StrongHELOCpenetra4on 30–50%ofHELOCsareunder-u0lizedorneverac0vated
19
BuildingthePlanUsingKeyLearnings
Learning Recommenda4on Ac4on
Highacri4onrate Significantnumberofaccountclosingswithinoneyear
Comprehensiveonboarding
Costoffunds CDpenetra0on&balancesarehigh
CDmaturitycampaign
Lowloanpenetra4on Belowmarketaverage Recapturecampaign
Largenumberofhouseholdsineliteaccountholdervaluesegments
Strongproductpenetra0onandbalances
Reten0oncampaigns
StrongHELOCpenetra4on 30–50%ofHELOCsareunder-u0lizedorneverac0vated
HELOCac0va0onandu0liza0oncampaigns
20
BuildingthePlanUsingKeyLearnings
Learning Recommenda4on Ac4on
Highacri4onrate Significantnumberofaccountclosingswithinoneyear
Comprehensiveonboarding
Createmul0pletouchpointsearlyintherela0onshiptocapturedirectdepositandotherkeyproducts/services
Costoffunds CDpenetra0on&balancesarehigh
CDmaturitycampaign Targetaccountholderstoopenmoneymarketaccountand/orestablishrela0onshipswithinvestmentadvisors
Lowloanpenetra4on Belowmarketaverage Recapturecampaign Targetaccountholderswithloansatotherfinancialins0tu0onstoencouragerefinancing
Largenumberofhouseholdsineliteaccountholdervaluesegments
Strongproductpenetra0onandbalances
Reten0oncampaigns Engagetocapturefutureproduct/serviceneeds
StrongHELOCpenetra4on 30–50%ofHELOCsareunder-u0lizedorneverac0vated
HELOCac0va0onandu0liza0oncampaigns
Useomnichannel,personalizedmessagingtoencourageac0va0onandu0liza0on
21
Illustra(vepurposesonly.22
Learning Recommenda4on Ac4on
Highacri4onrate/lowcross-sellra4o
Significantnumberofaccountclosingswithinoneyear
Comprehensiveonboardingtodeepenrela0onships
Createmul0pletouchpointsearlyintherela0onshiptocapturedirectdepositandotherkeyproducts/services
HighAcri4onRate
DirectMarke4ngCalendar Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 Totals
OnboardingWelcomelecerw/email 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 12,300
30daylecerw/email 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 11,275
60daylecerw/email 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 10,250
90daylecerw/email 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 9,225
OnboardingTotals 1,025 2,050 3,075 4,100 4,100 4,100 4,100 4,100 4,100 4,100 4,100 4,100 43,050
CostofFunds
Illustra(vepurposesonly.23
Learning Recommenda4on Ac4on
Costoffunds CDpenetra0on&balancesarehigh
CDmaturitycampaign Targetaccountholderstoopenmoneymarketaccountand/orestablishrela0onshipswithinvestmentadvisors
DirectMarke4ngCalendar Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 Totals
CDMaturity
CDMaturity-4,700CDs 345 345 345 345 345 345 345 345 345 345 345 345 4,140
LowLoanPenetra4on
Illustra(vepurposesonly.24
Learning Recommenda4on Ac4on
Lowloanpenetra4on/lowcross-sellra4o
Belowindustrybenchmark
Recapturecampaign Targetaccountholderswithloansatotherfinancialins0tu0onstoencouragerefinancing
DirectMarke4ngCalendar Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 Totals
Cross-sell
Cross-sell-FourProducts/BasedonPropensity(3,000eachproduct)
12,000 12,000 12,000 12,000 12,000 12,000 72,000
LoanEngine
Recapture-25percentofaccountholderbase
30,550 30,550 30,550 30,550 122,200
ShopperAlert
ShopperAlert-5%ofaccountholderbase 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 62,400
EliteAccountHolders
Illustra(vepurposesonly.25
Learning Recommenda4on Ac4on
Largenumberofhouseholdsineliteaccountholdervaluesegments
Strongproductpenetra0onandbalances
Reten0oncampaigns Engagetocapturefutureproduct/serviceneeds
DirectMarke4ngCalendar Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 Totals
Reten4onReten4on-HighTouchElite,AggressiveCross-sellEliteand10%ofRela4onship 8,500 8,500 17,000
HELOC
Illustra(vepurposesonly.26
Learning Recommenda4on Ac4on
IncreaseHELOCbalances 30–50%ofHELOCsareunder-u0lizedorneverac0vated*
HELOCac0va0onandu0liza0oncampaigns
Personalizedmessagingtoencourageac0va0onandu0liza0on
DirectMarke4ngCalendar Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 Totals
HomeEquityAc4va4onandU4liza4onHELOCAc4va4on/U4liza4on-50%ofCallReporttotal-2,257 1,130 1,130 1,130 1,130 1,130 1,130 6,780
BalancingandMaintainingYourEngagements
27
DirectMarke4ngCalendar Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 Totals
OnboardingWelcomelecerw/email 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 12,300
30daylecerw/email 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 11,275
60daylecerw/email 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 10,250
90daylecerw/email 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 9,225
OnboardingTotals 1,025 2,050 3,075 4,100 4,100 4,100 4,100 4,100 4,100 4,100 4,100 4,100 43,050
Cross-sell
Cross-sell-FourProducts/BasedonPropensity(3,000eachproduct)
12,000 12,000 12,000 12,000 12,000 12,000 72,000
LoanEngine
Recapture-25percentofaccountholderbase
30,550 30,550 30,550 30,550 122,200
ShopperAlert
ShopperAlert-5%ofaccountholderbase 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 62,400
CDMaturity
CDMaturity-4,700CDs 345 345 345 345 345 345 345 345 345 345 345 345 4,140
Reten4onReten4on-HighTouchElite,AggressiveCross-sellEliteand10%ofRela4onship 8,500 8,500 17,000
HomeEquityAc4va4onandU4liza4onHELOCAc4va4on/U4liza4on-50%ofCallReporttotal-2,257 1,130 1,130 1,130 1,130 1,130 1,130 6,780
Illustrative purposes only.
Q&AWrapUp
28
Typeyourques4oninthechatpanel
StephenNikitasSeniorStrategyDirector,HarlandClarke
Presenta0onmaterialsandvideoreplaywillbeprovidedwithinoneweek.Visitharlandclarke.com/webcastsforthisandpreviousevents.
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