Today, many bankers are failing to meet their performance and productivity goals. Here is how this reality can be changed.

1. Financial Institutions Consulting
Improving Results with
Business Performance Accelerator (BPA)
May 2014
www.ficinc.com

2. 1
Business Process Accelerator (BPA):
Market Opportunity
BPA brings the power of Big Data combined with FIC’s
expertise to business banking
Today, many bankers are failing to meet their performance and
productivity goals:
• Cost pressures continue at banks
• 20-25% of business households at many banks are single product
• Despite investments in sales management and training, bankers continue to call on
the wrong prospect with the wrong offer
• Women and minority businesses remain elusive targets
• Many banks fail at finding customers that meet risk quality and rate requirements
• Business owner opportunities, key to customer “stickiness”, are missed
• A sizeable number of customers categorized as consumers are in fact businesses;
banks failing to identify these targets miss cross-sell and pricing opportunities
• A recent McKinsey report states that banks using Big Data generated 11% revenue
growth versus 6% for others

3. 2
Business Process Accelerator (BPA):
Its Focus
BPA allows senior management to better target sales activities and
achieve productivity improvements as branch and business bankers
aim at the right customers and prospects with optimal offers
BPA’s focus can include:
• Uncovering businesses currently operating with consumer DDAs
• Identifying consumers who are also business owners with accounts at other banks
• Highlighting and quantifying business wallet share opportunities
• Setting priorities for marketing based upon client specified criteria
• Directing calling activity on a branch specific basis, providing top priority customer
and prospect names
• Providing lending and wealth management opportunities aimed at business owners
• Uncovering specific customers and prospects that “look-a-like” the bank’s most
profitable customers
• Recommending changes to marketing strategies, products, sales practices,
organization, and other areas impeding success

4. 3
Business Process Accelerator (BPA):
Unique Information Characteristics
• Offers access to over 35 million risk-rated, geo-coded businesses in the
U.S. and Canada; over 30% more than credit bureaus
• Only source for bank branch data that includes estimates of small
business and deposits at the branch level
• Provides wealth and wallet share information on over 20 million owners
and executives, twice other sources
• Identifies ethnicity/gender of executives, over 600K Hispanic and
1.1 million women-owned or managed businesses
• Data attributes include:
– Customer life cycle– historic and future growth rates
– Financial product use propensity and share of wallet penetration

5. 4
Business Process Accelerator (BPA):
Demonstrated Benefits
“I reduced my marketing costs by almost 30% by no longer sending out thousands
of direct mail pieces. Our response rates went from 1.2% to well over 4%.
… At Umpqua Bank, we reduced our marketing expenditure, but, more importantly,
we were able to get our external sales force focused on the right prospects while
focusing on the right ‘next’ products for our existing customers… I would not take on
a marketing job for a bank without this analysis to drive my marketing efforts.” – Ric
Carey
BPA Examples:
• Identified close to 10% of client business deposits in “high risk” area and
recommended specific action steps.
• Quantified the extent of another client’s concentration risk and suggested
required action steps
• Determined the best small and midsize candidates for equipment financing
on a risk-adjusted basis

6. 5
Business Process Accelerator (BPA):
Information Requirements
In order to complete this analysis, ideally, the bank will provide the
following data concerning the current customer set:
• Name, address, and telephone of current customers
• For both deposits and loans, average monthly/quarterly/annual balances
outstanding by product
• Ideally, deposit balances broken out by major type, e.g., DDA, Money
Market, Time Deposits, CDs
• Loans broken out by CRE, C&I, and equipment finance
• Fees paid and source of payment, e.g., cash management
• Relationship duration, that is, years being a customer
• SIC or NAICES code
• Internal credit rating (with explanation of rating system)
• Any available customer profitability analysis

7. 6
Business Process Accelerator: Analytic Work Flow
Technology Infrastructure: Information Processing & Delivery Engine
OXXFORD
DATA
BASES
OXXFORD
MODELS
Client Report
Generation
Survey
Proprietary
Private
Public
BPA
MODELS
BPA
DATA BASES
External Data Sources
Client Institution Data
Insurance
Loans
Mortgages
Credit lines
Benchmarks
Behavior
Competitor
Market
•Product Volumes
•Portfolios (optional)
•Tabular, graphical and
mapped display
•Several means of
information delivery
BPA
PROCESSING
RECOMMENDATIONS FOR ACTION

8. 7
Business Process Accelerator: Possible Timeline
BPA provides specific recommendations on priority targets and approaches for
success within a short timeframe
WEEK 0 WEEK 1 WEEK 2 WEEK 3 WEEK 4 WEEK 5 WEEK 6 WEEK 7 WEEK 8 WEEK 9 WEEK
10
WEEK
11
WEEK
12
Action Step
Determine project goals/ key
issues to resolve
Phase 1 – Profiling Current Customer/Quantifying Potential
Complete data request
Evaluate data/request
adds/changes
Begin data analysis
Develop segmentation analysis
by key drivers
Profile current customers vs.
market potential
Present
recommendations/implications
Phase 2 – Building Wallet Share Analysis
Complete profitability modeling
clusters, including industry,
regions, products
Develop predictive models
focusing on:
Likelihood to be approved for
credit
Likelihood to respond to product
offering
Present recommendations on
next product to sell and related
implications for priority action
Phase 3 – Growing the Business with Priority Look-a-Likes
Provide priority target names,
based on customer profitability
and other key characteristics
Note: Check-in calls take place during the following 3-, 6-, and 12- months

9. 8
Implementation and Tracking Progress
Good analytics are not sufficient for bottom line success. Banks need to ensure
that they are able to execute effectively to take advantage of the direction and
insights that BPA provides.
Current Status– Does the bank need to address product, organization, or
other areas?
Roadblocks– What needs to change to allow for effective implementation?
Tracking– Are the analytics being used to change behavior and generate
better results? How is the bank performing on a handful of key metrics after
3-,6-,12-months? What is working and what needs to be improved?
Rather than a formal consulting engagement, FIC emphasizes a number of ”light
touches” based largely upon analysis of existing internal plans and selected
phone interviews and targeted questions, allowing us to provide our clients with
experience-based insights and recommendations.
We also build follow-up review calls into the BPA process.

10. 9
Business Process Accelerator (BPA):
Value-Added to Client
Implementing BPA effectively will increase revenues, lower operating
costs, and improve customer relationships.
BPA can:
• Increase revenues by selling more products /services to existing customers and attracting new
customers
• Lower operating costs and improve efficiency in business generation: leads, underwriting,
marketing
• Improve sales force effectiveness through tighter customer evaluation and related targeting
• Enhance profile of overall customer portfolio: risk, geography, industry, profitability
• Broaden profit concentration away from a few major customers
• Encourage greater customer loyalty as a result of expanded relationship
• Provide specific and actionable recommendations to ensure successful implementation of
effective sales programs
BPA relies on the richness of the Big Data
analyses and critical practical recommendations
that FIC and Oxxford uniquely provide

11. 10
Business Process Accelerator (BPA): Key Personnel
For 20 years Financial Institutions Consulting (FIC), a New York-based
management consulting firm, has provided fact-based advice and counsel
on issues related to growth and profitability in commercial banking to
clients around the world.
• Charles Wendel, President of FIC, began his career with Citibank and worked with
Schroders and Bankers Trust. Prior to founding FIC, he was a consultant with
McKinsey and Co. and Mercer Management Consulting.
• Since its founding in 1980, Oxxford Information Technology, FIC’s partner for BPA,
has specialized in providing analysis on the business market to financial services
companies.
• Working with FIC, Oxxford focuses on using advanced information technology and
analytical techniques to turn data into actionable recommendations.
• Ray Greenhill, President of Oxxford, has extensive experience in market research and
strategic planning beginning with his work at Booz-Allen and his heading the corporate
planning group at a Fortune 500 company. He is considered an authority on advanced
technologies and databases for market segmentation and prospect analysis.