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Bank-Owned Peer Group DiscussionTabb Evans, BB&TMike Miroballi, HuntingtonWayne Cutler, Novantas, Inc.

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1. Aligning the retail transformation with the Wealth Business (digitization, branch consolidations, etc)

• Still need bricks and mortar branches for initial client and milestone meetings but need to adopt to

a thin-branch network – potentially stand alone wealth offices

•Align with the generational changes with channel usage (eg, ‘tabletize’ the branch experience,

video, etc)

•While branch transactions are declining, many still occur in the branch – ensure branch staff are

armed with wealth offers and lead strategies. Need to figure out how to manage high turnover in

branches as part of the educational and awareness methods and advisor coaching

•More packaged products – bank + wealth, esp. with onboarding new customers

•Work with retail on getting “shelf-space” for wealth products and customer conversations

•Advisors need to be more proactive (eg, leverage data such as IXI to drive outreach)

• Leverage license bankers to support outbound customer calling for wealth (no existing book), then

promote best performers to the Private Bank

Key Discussion Points

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2. Integrating Wealth Management with the bank to serve the mass affluent and business banking segments

• Leverage data to drive advisor business development, don’t just rely on bank balances, there are

other key indicators, especially for off-us balances

•Work with bank partners to discuss, resolve, and clarify channel conflicts – brokers, advisors, trust,

retail, and commercial

• Position advisors to be the quarterback/gate-keeper for all investment referrals from the bank

• Introduce insurance solutions for business banking customers

• Referrals must be bi-directional; build one-on-one personal relationships with business partners,

spend the time on-site, one person at a time, be disciplined about this

•Need to align value propositions, planning, management, and compensation within Wealth and

between business partners. Try cross-business assigned teams that meet every 2 weeks to go over

opportunities

• Test dedicating wealth advisors to business banking; leverage scorecards and align w/ branch

scorecard

Key Discussion Points

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3. Robo-Advisors – Challenges and Opportunities

• Leverage Robo’s to upgrade the broker/dealer technology platform

• Robo’s haven’t been able to produce positive ROI yet, but overtime this is a good entry point for

customers that can expand their services to advisors and Trust and Estate Management

• Supports serving the mass market where advisors have shied away from, especially since DOL

•Data aggregation will become a huge benefit for the Robo platform – consolidating information

about off-us assets in one place

•Need to integrate the Robo platform w/ the online bank platforms

• Robo users are not just self-directed customers but those that enjoy the investment category and

are the highest users of other channels, such as Advisors

• Potentially use Robo as a “sleeve” within UMAs

Key Discussion Points

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SUPPORTING SLIDES

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National banks are winning share in the deposits worth fighting over

ORGANIC RETAIL DEPOSIT GROWTH BY BANK TYPE COMM. ECR DDA SHARE BY BANK RANK

Definitions: National are Chase, Wells, and Bank of America, superregional >300 branches, regional 75-300, Community <75

Source: FDIC, Novantas BranchScape database – June 2015

The largest five banks represent nearly 60% total U.S. ECR DDA balances (but only about 30% of commercial loans)

4.0

%

2.8

%

3.7

%

4.6

%

7.7

%

3.5

%

2.9

%

3.9

%

RE

TA

IL D

EP

OS

IT G

RO

WT

H C

AG

R

2003-2011 CAGR 2011-2016 CAGR

#1, 20%

#2, 16%

#3, 15%#4, 5%

#5, 3%

#6-10, 11%

Remainder, 30%

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Nationals have leveraged scale, harnessing shifting consumer preferences

Source: Novantas analytics and other industry & case study insights

Old World New WorldLocal branch network scale and sales execution drives growth, allowing local regionals to compete with large national banks

‘Perceived convenience’ drives growth, driven by brand and digital capabilities,offering advantage to large national players

Branch visibilityMarketing was

primarily branch visibility and word-of-

mouth

Local Sales ExecutionCustomers shopped

based on which banks were in proximity and sales were originated

in the branch

Branch ScaleDistribution

dominance remains an important buying

factor, although “Perceived

Convenience” becoming even more

important

Focus on Deepening Core Relationships:Driven by LCR

requirements and other factors,

national banks are motivated to grow

deposits

Marketing and Brand: Wells

Fargo, BAC and Chase combined represent ~$650 MM of marketing

spend

Distinctive Omni-Channel Experience:

National banks investing heavily in

digital capabilities and marketing; effectively

creating the perception of leading

online/mobile capabilities despite

some regional banks nearing parity

Analytic Scale: Greater focus and capacity to utilize data (e.g., Chase launched a global think-tank to read the US Economy)

Perceived Convenience: Is becoming

increasingly the most important consideration

for all customers,

regardless of age or income

Attracting Talent: High competition

for top-notch customer facing and analytical digital talent

Drivers of Purchase

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More than 70% of the US population is either in the Thin-Branch Ready or Channel Mixer segments, indicating declining branch dependence

39%

29%

15%10%

7%

45%

27%

12%9% 7%

Thin-branch Ready Channel Mixer Branch Traditionalist Innovation Seeker Internet Ready

2014

2017

Source: Novantas Research | US Multi-Channel Survey2017 N=4,351, 2014 N=4,125

USA CHANNEL SEGMENTATION TRENDS

BRANCH DEPENDENCE

AND ATTACHMENT

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Decreased dependency on the store is leading to changes in the drivers of primary checking purchase

*Brand – composed of various attributes (e.g, “friendly and helpful”, “helps you plan”) from the Novantas Shopper Survey

Source: Novantas Analysis of Primary Checking Purchasers; Novantas 2016/2015 US Shopper Survey, Novantas BranchScape, MasterCard ATM Data, Kantar Media, CompereMedia

PRIMARY CHECKING PURCHASE DRIVERS

59%

45%

6%

13%

12%

19%27%

5%10%

4%

2016

100%

2015

100%

Branding Branch ShareATM ShareLeading DigitalMarketing

Metric Definition

Marketing is a composite score of a bank’s brand direct mail (volume and incentive), and weighted marketing share of voice

Branding* is a representation of the bank’s distinctiveness, which is composed of various attributes

Leading Digital measures a bank’s perceived online and mobile capabilities

ATM Share is a bank’s share of a market’s total off-site ATM sites

Store Share is a bank’s share of a market’s store count

+8%

+6%

+1%

-14%

-1%