Customers Bancorp, Inc · NYSE:CUBI
Customers Bancorp — Investor Day (January 2015)
103 slides from Customers Bancorp's investor day presentation, Jan 7, 2015
Slide 1: Highly Focused, Low Risk, Above Average Growth
Highly Focused, Low Risk, Above Average Growth Bank Holding Company Analyst Day Presentation January 7, 2015 NYSE: CUBI
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation as well as other written or oral communications made from time to time by us, may contain certain forward-looking information within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. These statemen
Slide 3: Forward-Looking Statements
Forward-Looking Statements • continued volatility in the credit and equity markets and its effect on the general economy; • the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financia
Slide 4: Forward-Looking Statements
Forward-Looking Statements This presentation also includes estimated guidance regarding our fully diluted earnings per share for the years 2014 and 2015, which we have previously disclosed and is subject to the assumptions and qualifications included in that previous disclosure. The guidance consist
Slide 5: Agenda
Agenda 1. Business Strategy • Banking Industry Overview • Customers Bancorp, Inc. - It’s Strategy • Customers Bank - High Touch Supported with High Tech for Businesses • BankMobile - High Tech with High Touch like features for Consumers 2. Shareholder Value Creation Model 3. Our Performance over the
Slide 6: Current Banking Environment and How We are Positioned
Current Banking Environment and How We are Positioned
Slide 7: What We See as The Role of CEO and Board
What We See as The Role of CEO and Board … Especially in this Environment 1. Absolute clarity of your vision , strategy , goals and tactics ; there must be absolute alignment between board and management 2. Become a master of your internal environment § Our authentic internal assessment of strengths
Slide 8: Banking Industry Trends
Impediments to Growth External Forces Business Issues Shareholder Expectations Issues facing Boards & CEO’s Banking Industry Trends…… How Do We Deal with These Issues • Role of traditional bank branches changing very rapidly • Mobile banking fastest growing channel • Banks of all sizes revisiting th
Slide 9: Our Approach to Developing a Winning Business Model
Our Approach to Developing a Winning Business Model 1. Must focus on both “Relationship” or “High Touch” banking combined with “Highly Efficient” or “High Tech”. Strategy should be unique as to not be copied easily 2. Attract and retain best high quality talent. Business Bankers / Relationship Banke
Slide 10: Our Model
Our Model • A business bank with a unique strategy • Attraction and retention of top quality talent • Unique Model • “Very Branch Lite” business model with “High Touch Supported with High Tech” • Highly Efficient • Focuses only on high quality, growth oriented, although somewhat lower margin busines
Slide 11: Our Thesis on Current U.S. Banking Environment
Credit Improving - Though Banks Face a Number of Operational Headwinds Critical to Have a Winning Business Model Traditional Banks Fee Income Leaders Relationship & Innovative Banks § Innovator / disruptor / not branch dependent § Differentiated / Unique model § Technology savvy Our Thesis on Curren
Slide 12: Customers Bank
Customers Bank Executing On Our Unique High Performing Banking Model Top Line Growth in 2013 & 2012
Slide 13: Our Competitive Advantage: A Highly Experienced Management Team
Our Competitive Advantage: A Highly Experienced Management Team
Slide 14: Disciplined Model for Increasing Shareholder Value
Disciplined Model for Increasing Shareholder Value § Strong organic revenue growth + scalable infrastructure = sustainable double digit EPS growth and increased shareholder value § A very robust risk management driven business strategy § Build tangible book value per share each quarter via earnings
Slide 15: Branches and Loan Production Offices
Branches and Loan Production Offices Current Company Overview Source: SNL Financial and Company data. Note: Branch proposed in northeastern Philadelphia ~$6.5 bn Business Bank with 19 sales offices with target market from Boston to Philadelphia Operating in key Mid-Atlantic and Northeast markets § G
Slide 16: Investment Proposition
Investment Proposition Strong Organic Growth, Well Capitalized, Branch Lite Bank in Attractive Markets § $6.5 billion asset bank with only 14 branches and 5 sales offices § Well capitalized at 11.2% total risk based capital, 7.1% tier 1 leverage, and 6.5% tangible equity to tangible assets § Target
Slide 17: Execution Timeline
Execution Timeline § We invested in and took control of a $270 million asset Customers Bank (FKA New Century Bank) § Identified existing credit problems, adequately reserved and recapitalized the bank § Actively worked out very extensive loan problems § Recruited experienced management team § Enhanc
Slide 18: Banking Strategy
All Consumer Products All Business Products All Non-Credit Products Client Makes One Call Client Private / Personal Bankers Concierge Bankers Banking Strategy Business Banking Focus - ~95% of revenues come from business • Loan and deposit business through these segments: • Banking Privately Held Bus
Slide 19: Deposit Strategy - High Touch, High Tech
Cost of Funds + Branch Operating Expense - Fees = ALL-IN-Cost < Competitors Technology Pricing Sales Force Concierge Banking Deposit Strategy - High Touch, High Tech § Implementation of technology suite allows for unique product offerings: § Remote account opening & deposit capture § Internet/mobile
Slide 20: Results of Deposit Growth
Total Deposit Growth ($mm) Average DDA Growth ($mm) Results of Deposit Growth: Organic Growth with Controlled Costs Source: Company data. Customers strategies of single point of contact and recruiting known teams in target markets produce rapid deposit growth with low total cost
Slide 21: Loan Portfolio Mix
Loan Portfolio Mix ($mm) Customers Bank Advantage High Growth with Strong Credit Quality § Continuous recruitment of high quality teams § Centralized credit committee approval for all loans § Loans are stress tested for higher rates and a slower economy § No losses on loans originated since new mana
Slide 22: Banking Privately Held Business
Banking Privately Held Business C&I & Owner Occupied CRE Banking Strategy Private & Commercial Banking § Target companies with up to $100 million annual revenues § Very experienced teams § Single point of contact § NE, NY, PA & NJ markets Small Business § Target companies with less than $5.0 million
Slide 23: Banking High Net Worth Families
Banking High Net Worth Families Multi-Family Loan and Deposit Growth ($mm) Multi-Family Banking Strategy § Focus on families that have income producing real estate in their portfolios § Private banking approach § Focus Markets: New York & Philadelphia MSAs § Average Loan Size: $4.0 - $7.0 million §
Slide 24: Banking Mortgage Companies
Banking Mortgage Companies Mortgage Warehouse Banking Strategy § Private banking focused on mortgage companies with $5 to $10 million equity § Very strong credit quality relationship business with good fee income and deposits § ~75 strong warehouse clients § All outstanding loans are variable rate a
Slide 25: Disciplined & Profitable Growth
Core Revenue ($mm) Core Net Income ($mm) (1) Net Interest Income ($mm) These Deposit and Lending Strategies Results in Disciplined & Profitable Growth Source: SNL Financial and Company data. (1) Core income is net income before extraordinary items. (2) CAGR calculated from Dec-09 to Sep-14 (annualiz
Slide 26: Customers Bancorp; A Stronger Performer
Return on Average Equity Efficiency Ratio NPAs / Total Assets Return on Average Assets Source: SNL Financial on an LTM basis as of 4Q2013 Note: NPA’s include FDIC covered loans Customers Bancorp; A Stronger Performer
Slide 27: Building Customers Bank, to Provide Superior Returns
Tangible BV per Share Recent Performance Results Financial Performance Targets Earnings per Share Guidance Source: We are Building Customers Bank, to Provide Superior Returns to Investors. Source: Company documents.
Slide 28: Risk Management
Customers Bank Risk Management
Slide 29: Elements of an Effective Risk Management Program
Elements of an Effective Risk Management Program
Slide 30: ERM Framework at Customers Bancorp, Inc.
ERM Framework at Customers Bancorp, Inc. Well Defined ERM Plan - ERM Integration into CAMELS +++++
Slide 31: Elements of Risk Management
Elements of Risk Management • Active Board & Senior Management oversight – Monthly Board, Risk, Audit, Compliance, Risk Management, ALCO, BUR meetings & special meetings when needed—to Identify, Measure, Monitor and Control All Risks • Adequate and appropriate policies, procedures and limits – Revie
Slide 32: Credit Risk Management
Credit Risk Management Customers Bank manages “Credit Risk” through the following fundamental principles: Ø Ongoing maintenance of a comprehensive Loan Policy, that is fully assessed annually Ø Dual approval authority required on any relationship with > $5.0MM in aggregate exposure Ø Intra-Function
Slide 33: Customers Credit Risk Management Results
NPL Charge Offs Source: SNL Financial, Company documents. Peer data consists of Northeast, Southeast, and Mid-Atlantic banks and thrifts with assets between $3.0 billion and $8.0 billion. Industry data includes all FDIC insured banks. Customers Credit Risk Management Results Customers non-performing
Slide 34: CRA and Fair and Responsible Lending
CRA and Fair and Responsible Lending Ø Customers’ spring 2013 CRA examination resulted in an overall “needs to improve” rating principally due to Federal Reserve referral to Department of Justice Ø In August 2014 Department of Justice returned the referral to the Federal Reserve for their dispositio
Slide 35: Financial Performance Model For Creating Shareholder Value
Customers Bank Financial Performance Model For Creating Shareholder Value
Slide 36: Creating Shareholder Value
Creating Shareholder Value Customers’ objective is to create value for our shareholders § YTD through September 2014 Net Income up 26.8% and EPS up 12% over the same period last year § Book value has increased 80% to $15.93 since July 2009, a CAGR of 15% § Since going public in May 2013, the per sha
Slide 37: Build a Strong Asset Quality Loan Portfolio
NPL Charge Offs Source: SNL Financial, Company documents. Peer data consists of Northeast, Southeast, and Mid-Atlantic banks and thrifts with assets between $3.0 billion and $8.0 billion. Industry data includes all FDIC insured banks. Build a Strong Asset Quality Loan Portfolio Customers non-perform
Slide 38: Accept a Little Less Yield from Strong Credit Quality Customers
Accept a Little Less Yield from Strong Credit Quality Customers Loan Product Mix, Duration and Collateral Influences Yield Source: SNL Financial, Company documents. Peer data consists of Northeast, Southeast, and Mid-Atlantic banks and thrifts with assets between $3.0 billion and $8.0 billion. Peer:
Slide 39: Pay a Little More for Core Deposits
Deposit Rates Deposit and Borrowing Mix as of September 2014 Pay a Little More for Core Deposits, Requiring DDA’s from All Customers Liability Mix and Duration Influences Interest Expense Source: SNL Financial, Company documents. Peer data consists of Northeast, Southeast, and Mid-Atlantic banks and
Slide 40: Interest Rate Risk - Balance Sheet Re-pricing
Deposit and Borrowing Maturities/Avg Lives ($mm) Loan Maturity/Repricing ($mm) Interest Rate Risk - Balance Sheet Re-pricing Source: SNL Financial, Company documents. Peer data consists of Northeast, Southeast, and Mid-Atlantic banks and thrifts with assets between $3.0 billion and $8.0 billion.
Slide 41: Lower NIM Offset by Operating Efficiencies
NIM Efficiency Ratio Deposits Per Branch Non-Interest DDA Growth Lower NIM from Superior Credit Quality Niches is Offset by Operating Efficiencies Source: SNL Financial, Company documents. Peer data consists of Northeast, Southeast, and Mid-Atlantic banks and thrifts with assets between $3.0 billion
Slide 42: Staff Expense Ratio
Staff Expense Ratio Building Efficient Operations Will Achieve a 40’s Efficiency Ratio Source: SNL Financial, Company documents. Peer data consists of Northeast, Southeast, and Mid-Atlantic banks and thrifts with assets between $3.0 billion and $8.0 billion. Industry data includes all FDIC insured b
Slide 43: Occupancy Expense Ratio
Occupancy Expense Ratio Building Efficient Operations Will Achieve a 40’s Efficiency Ratio Source: SNL Financial, Company documents. Peer data consists of Northeast, Southeast, and Mid-Atlantic banks and thrifts with assets between $3.0 billion and $8.0 billion. Industry data includes all FDIC insur
Slide 44: All-Other Expense Ratio
All-Other Expense Ratio Building Efficient Operations Will Achieve a 40’s Efficiency Ratio Source: SNL Financial, Company documents. Peer data consists of Northeast, Southeast, and Mid-Atlantic banks and thrifts with assets between $3.0 billion and $8.0 billion. Industry data includes all FDIC insur
Slide 45: Total Costs as a % of Assets
Total Costs as a % of Assets Building Efficient Operations Will Achieve a 40’s Efficiency Ratio Source: SNL Financial, Company documents. Peer data consists of Northeast, Southeast, and Mid-Atlantic banks and thrifts with assets between $3.0 billion and $8.0 billion. Industry data includes all FDIC
Slide 46: Total Revenue per Employee
Total Revenue per Employee ($000s) Building Efficient Operations Will Achieve a 40’s Efficiency Ratio Source: SNL Financial, Company documents. Peer data consists of Northeast, Southeast, and Mid-Atlantic banks and thrifts with assets between $3.0 billion and $8.0 billion. Industry data includes all
Slide 47: Assets per Employee
Assets per Employee ($mm) Building Efficient Operations Will Achieve a 40’s Efficiency Ratio Source: SNL Financial, Company documents. Peer data consists of Northeast, Southeast, and Mid-Atlantic banks and thrifts with assets between $3.0 billion and $8.0 billion. Industry data includes all FDIC ins
Slide 48: Remarkable Loan, Deposit and Profitability Growth
Loan Growth ($mm) Income Growth ($mm) Deposit Growth ($mm) Operating Strategy has Resulted in Remarkable Loan, Deposit and Profitability Growth Source: SNL Financial, Company documents. Peer data consists of Northeast, Southeast, and Mid-Atlantic banks and thrifts with assets between $3.0 billion an
Slide 49: Capital Strategy Enables the Organic Growth
Source: Capital Strategy Enables the Organic Growth Elements of Customers’ Capital Allocation & Management Strategy § Protection and growth of shareholder value – Disciplined capital raises – Strong earnings § Targeted capital levels sufficient to absorb unexpected losses but leverage enough to opti
Slide 50: 2015 Guidance vs. 2014 Results
Business Driver 2015 Guidance vs. 2014 Guidance - EPS Up about 30% Investments Unchanged Average Loans (including Loans Held for Sale and Loans Held for Investment) Growth slowed to 10 - 15% over year end 2014 Deposits Steady growth at 20 - 25% over year end 2014 Net Interest Income Growth in the mi
Slide 51: Combined, We have Built Customers Bank
Tangible BV per Share Recent Performance Results Financial Performance Targets Earnings per Share Guidance Source: Combined, We have Built Customers Bank, a Bank We Believe will Provide Superior Returns to Investors. Source: Company documents.
Slide 52: Summary
Summary § Strong high performing $6.5 billion bank with significant growth opportunities § Very experienced management team delivers strong results § Ranked #1 overall by Bank Director Magazine in the 2012 and 2013 Growth Leader Rankings § “High touch, high tech” processes and technologies result in
Slide 53: Customers Bancorp, Inc. BankMobile
Customers Bancorp, Inc. barkmeblle TIONARY bankmobile A Division Of Customers Bank
Slide 54: Startling Facts about Banks
Startling Facts about Banks § Banks each year charge $32 billion in overdraft fees - that’s allowing or creating over 1 billion overdrafts each year….Why?? § Payday lenders charge consumers another $7 billion in fees § That’s more than 3x what America spends on Breast Cancer and Lung Cancer combined
Slide 55: Creating a Virtual Bank for the Future
§ New no fee banking, 25 bps higher interest savings, line of credit, 55,000 ATM’s, Personal Banker and more, all in the palm of your hand § Marketing Strategy § Target technology dependent younger customers; including underserved/underbanked now and later larger depositors generally >50 years old s
Slide 56: High Performance Regional Banks
High Performance Regional Banks Regional Bank Comparison Source: SNL Financial, Company documents. Market data as of 9/30/2014. Consists of Northeast and Mid-Atlantic banks and thrifts with assets between $3.0 billion and $8.0 billion and most recent quarter core ROAA greater than 90 bps. Excludes m
Slide 57: Contacts
Contacts Company: Robert Wahlman, CFO Tel: 610-743-8074 rwahlman@customersbank.com www.customersbank.com Jay Sidhu Chairman & CEO Tel: 610-301-6476 jsidhu@customersbank.com www.customersbank.com Investor Relations: Ted Haberfield President, MZ North America Tel: 760-755-2716 thaberfield@mzgroup.us w
Slide 58: Customers Bancorp, Inc.
Customers 2. Bancorp, Inc.
Slide 59: Consolidated Balance Sheet - Unaudited
Customers Bancorp, Inc. ‘CONSOLIDATED BALANCE SHEET - UNAUDITED (oles in thousands) September30, December 3, September30, 2014 2013 2013 ASSETS ‘cashand due from banks Sms $s wm sams Interestearing deposits aes 13s __s67114 ash andcash equivalents 334,306 233.068 255,653 Investment securities avaiab
Slide 60: Consolidated Statements of Operations - Three Months Ended
‘CONSOUDATED STATEMENTS OF OPERATIONS FOR TE THREE MONTHS ENDED - UNAUDITED {bots towns, excep per shoredta) nersterpnse= Depots Trainer expense Provan torlaan aes Netitrest income ater rosin fran tosses orange warehouse Yanan ees Morte lon an anting come ‘Sains on se a ons ‘oinemsle otivestment sei
Slide 61: Consolidated Statements of Operations - Nine Months Ended
ICONSOUDATED STATEMENTS OF OPERATIONS FOR THE NINE MONTHS ENDED - UNAUDTED {Dotorsn thowond, expt pe sare dota) Netinterstncome ater provision orton losses Monza waraise rnsaconl tes Moraes toon nding ce ‘inom af are Depot tes other ‘Staves andemploye benefits FOV sessment tas, ad elton fees pany ‘t
Slide 62: Average Balance Sheet / Net Interest Margin - Three Months
Customers Bancorp, Inc. ‘Average Balance Sheet / Net interest Margin (Unaudited) (Dollars in thousands) ‘Three Months Ended September 30, 2014 2013 ‘Average yield ‘Average yield ‘Average Balance or cost (% ‘Average Balance or cost (% Assets Interest earning deposits $ 244013 0.25% 0.26% Investment s
Slide 63: Average Balance Sheet / Net Interest Margin - Nine Months
Customers Bancorp, Inc. ‘Average Balance Sheet / Net interest Margin (Unaudited) (Dollars in thousands) Nine Months Ended September 30, 2014 2013 ‘Average yield ‘Average yield ‘Average Balance __or cost (% ‘Average Balance _or cost (%) Assets Interest earning deposits $ 214215 0.25% $ 194.903 0.25%
Slide 64: Asset Quality as of September 30, 2014
Customers Bancorp, Inc. ‘Asset Quality as of September 30, 2014 (Unaudited) (Dollars in thousands) Non Other Real Performing Allowance Total Total Non Accrual Estate Assets. forloan Cash Credit’ _—NPL's)—-Resorvesto Loan Type Total Loans INPL's __Owned__(NPAs)_losses_ Reserve _Reserves_Total Loans T
Slide 65: Why BankMobile?
>> >> >> WHY BANKMOBILE? JANUARY 7, 2015 WARREN TAYLOR PRESIDENT - BANKMOBILE
Slide 66: Agenda
>> AGENDA 1. Retail Branch Banking - A Broken Model? 1. BRANCH OVERHEAD IMPLICATIONS 2. BRANCH EFFICIENCY 2. Our Solution - BankMobile .
Slide 67: A New Branch Model
>> A NEW BRANCH MODEL • Overhead + COD - Fees = All-In Cost • $1 million OH / $55.7 M deposits* = 1.79% • $1 million OH / $170 M deposits = 0.59% • OD fees in 2013 were $32 billion – A $35 FEE ON A $100 OVERDRAFT FOR 1 WEEK = 1820% APR – WILL THE CFPB ALLOW THIS “USURY” TO CONTINUE? * The 2014 Corne
Slide 68: Is the Branch Dead?
>> IS THE BRANCH DEAD? • # of branches in 1970 = 45,337* • # of branches in 2014 = 94,725* • Peak in 2009 # of branches = 99,550* • Consumers preferred delivery channel:** 1. INTERNET BANKING 31% 2. BRANCH BANKING 21% 3. ATMS 14% 4. MOBILE BANKING 10% * Richard Brown, Chief Economist, FDIC ** Americ
Slide 69: Average transaction cost doubles while monthly branch volume is halved
Average transaction cost doubles while monthly branch volume is halved. Average monthly transactions per branch uonoesues} 49/}9} 49d yS09 aFesaAY Source: FMSI © May 2013 The Financial Brand bankmobile
Slide 70: Efficiency
>> EFFICIENCY* • Deposits open/close ratio = 1.07 • Total retail checking accounts per branch = 1,488 • Monthly new checking accounts opened per branch = • Deposit accounts serviced per platform FTE = 2,627 – ACTIVE INTERNET BANKING USERS PER INTERNET BANKING FTE = 15,235 • The old retail branch mod
Slide 71: Mobile users are looking for checking, savings accounts and credit cards
Mobile users are looking for checking, savings accounts and credit cards 93% "90% 56% 48% 20% 22% 15% 13% Checking and Credit cards Mortgages Investment savings accounts and loans products @ Smartphone users @ Tablet users bankmobile
Slide 72: Percentage of Facebook comments that are negative on bank pages
Percentage of Facebook comments that are negative on bank and CU pages 20% a = Top 10 Banks 15% 10% . $100M Eis Less than $100M eaoom par st Financial Institution Size Based on FDIC and NCUA data (September 2013) 0D Social Assurance bankmobile
Slide 73: Consumers' most important online/mobile banking activities
What are consumers’ most important online/mobile banking activities? Check balances 37% Deposit funds 21% Transfer funds 17% Pay bills 15% F: yA Open accounts 2% Research Source: Maxymiser © October 2013 The Financial Brand bankmobile
Slide 74: Factors likely to cause consumers to switch
What factors do consumers say are most likely to cause them to switch? Closure of a convenient New or branch raised fee Abad customer experience Source: Bank bankmobile
Slide 75: Financials
. >> FINANCIALS • Revenue – INTERCHANGE INCOME – INTEREST ON LOANS (MINUS RESERVES) • Expenses – PHOTO ACCOUNT OPENING – SECURITY DATABASES – PHOTO BILL PAY – PHOTO CHECK DEPOSIT – PLASTICS – ATM NETWORK – FRAUD LOSSES – MARKETING – APP DESIGN / MAINTENANCE – SALARIES / OPS – VENDOR COSTS • $5 milli
Slide 76: BankMobile Overview
>> BANKMOBILE OVERVIEW . We are creating a banking revolution - on a path to becoming a disruptive player. Why BankMobile? 1. Leverage our Higher One relationship 2. Improve efficiency, growth and profitability 3. Create a customer base for our future Bankmobile Pillars • NO Fees; Guaranteed ¼% High
Slide 77: A Revolutionary Bank
>> >> >> A REVOLUTIONARY BANK JANUARY 7, 2015 LUVLEEN SIDHU CHIEF STRATEGY & MARKETING OFFICER
Slide 78: The Time for Disruption Is Now
>> THE TIME FOR DISRUPTION IS NOW Mobile banking increased 40 percent in 2013, Bankrate says — that’s 40,000 new customers a day. Handling a transaction at a branch can cost 50 times the same transaction on a mobile phone, or 20 times its cost on an online platform This year, for the first time, U.S
Slide 79: The Time for Disruption Is Now
>> THE TIME FOR DISRUPTION IS NOW
Slide 80: How Are We Different: Competitive Landscape
TRADITIONAL BANKS INTERNET BANKS NEO BANKS • Defensive: Mobile apps are not used to attract new customers; Only to respond to demand for mobile with a costly & large branch network still there • Mobile banking is only an add on service adding costs • Low rates & High fees • Product offering/pricing
Slide 81: Who Are We?
>> WHO ARE WE? A Revolutionary New Way to Bank – NO FEES – BRANCH IN THE PALM OF YOUR HAND - MOBILE 1 ST STRATEGY – CHECKING, SAVINGS, LINE OF CREDIT, JOINT ACCOUNTS – HIGHER SAVINGS RATES THAN THE LARGEST 4 BANKS (AT LEAST 0.25% APY HIGHER RATE GUARANTEED) – 55,000 FEE FREE ATMS (3X MORE THAN BOFA)
Slide 82: App Features at Launch
>> APP FEATURES AT LAUNCH • Photo bill pay • P2P payments • Remote check deposit • Debit card on/off • Account balance quick access • 4 digit password • ATM Locator • Part of Apple Pay PHASE 1
Slide 83: App Screenshots
>> APP SCREENSHOTS WELCOME SCREEN & ONBOARDING
Slide 84: App Screenshots
>> APP SCREENSHOTS SOME FEATURES/FUNCTIONALITIES
Slide 85: Website
>> WEBSITE YOUNG, FUN FEEL!
Slide 86: What Is Phase 1?
>> WHAT IS PHASE 1? – FOCUS GROUPS – SOCIAL MEDIA – EMAIL – CONTESTS • Gradually grow customer base at first – ENSURE OPERATIONS, CALL CENTER, AND TECHNOLOGY ARE WELL INTEGRATED AND PREPARED FOR GROWTH BUILDING A STRONG FOUNDATION
Slide 87: Millennial Strategy
Who are they? Why are they attractive? How will we do it? >> MILLENNIAL STRATEGY HIGHER ONE § Ages 18-35; Largest generation at around 84 million § Not just future customers, but influencers § Millennials rank the four largest banks among the 10 least loved brands in America § Tech savvy, tech depen
Slide 88: What Do Millennials Want From Their Bank?
>> WHAT DO MILLENNIALS WANT FROM THEIR BANK? VIDEO
Slide 89: Affinity Strategy
Objective Partnership Structure Examples >> AFFINITY STRATEGY § Create affinity relationships with not for profits as well as profit generating organizations § Members, followers, or customers must feel passionate about the organizations we partner with § Develop a win/win partnership - Enter into a
Slide 90: Affinity Marketing
>> >> >> AFFINITY MARKETING JONATHAN LEWIS CHIEF DEVELOPMENT OFFICER
Slide 91: Affinity Market
>> AFFINITY MARKET • Unions, Associations and Employees of Businesses with over 1000 employees – 17.7 MILLION MEMBERS OF UNIONS – 100 MILLION MEMBERS OF ASSOCIATIONS – 54 MILLION EMPLOYEES OF BUSINESSES WITH OVER 1000 EMPLOYEES WHO ARE OUR CUSTOMERS? HOW BIG IS THE MARKET?
Slide 92: Our Progress
>> OUR PROGRESS September of 2014 we set out to contact and build relations with groups that met our Market Criteria: • To date we have spoken with organizations having over 3 million members. • We have agreements from 7 organizations with over 400,000 combined members, and are going to begin the on
Slide 93: Goal
>> GOAL To Have 1% of All members of our Affinity groups use Bank Mobile as its Primary Bank in the first 12 months. • Active Targeted Marketing • Attending Meetings • Education of Members • Participation in Sponsored Events • Provide financial benefit for the members SUPPORT OUR MEMBERS, CREATE VAL
Slide 94: Marketing Strategy: Customer Acquisition
Channel Strategy Detail Email Campaign Target 1M+ Higher One students through emails. Conduct “experiments” to determine most effective messaging/campaigns Affinity Marketing Reaching out to affinity groups, market to members using emails, direct mail and newsletters, attending conferences Social Me
Slide 95: Examples of Marketing
>> EXAMPLES OF MARKETING EMAIL CAMPAIGNS AND PR BankMobile in the News
Slide 96: Social Media @BankMobile
>> SOCIAL MEDIA @BANKMOBILE MILLENNIALS & SOCIAL MEDIA • 56% more likely to find brand content on social networks than on search engines or other online news feeds • 91% would consider a product if a friend recommended it to them • 60% of Millennials are engaged in rating products and services • Mil
Slide 97: BankMobile's Blog
>> BANKMOBILE’S BLOG FINANCIAL EDUCATION, NEWS & UPDATES Purpose: To educate and inform prospects and customers while increasing awareness, consideration, loyalty and advocacy Blog Pillars & Topics • Research conducted to identify financial problems during target market’s life stages • Topics showca
Slide 98: Social Media Strategy
>> SOCIAL MEDIA @BANKMOBILE SOCIAL MEDIA STRATEGY • Provide Superior Customer Service • Answer questions quickly using our FAQ database, video tutorials & blog • Listen & Engage to Build Community • Find & engage those looking for a new bank • Amplify engagement from press and users • Create contest
Slide 99: Pre-Launch Earned Media Metrics
>> SOCIAL MEDIA @BANKMOBILE PRE-LAUNCH EARNED MEDIA METRICS Press Reach • 1.25 billion impressions from digital media • 2.54 billion potential impressions from digital media Website & Blog (Launched 12/18/14) • 10,012 pageviews on website • 534 visits to blog Social Media (Launched on 10/28/14) • 20
Slide 100: Phase 2 Innovations
FEATURES SERVICES (NEXT 60-90 DAYS) • Text Chat • PFM (transaction categorization, account aggregation, budgeting, goals) • Utilize data analytics for more personalized banking experience • Ability to search for and purchase cars in your area. We provide a pre approved auto loan • Becoming a marketp
Slide 101: Security Risk Mitigants
>> SECURITY RISK MITIGANTS • Retained security experts to provide advice and implement multi layer security • Experience in security due to HO relationship (1M+ students using HO mobile banking with no security breaches) • Educating the customer WE TAKE SECURITY VERY SERIOUSLY
Slide 102: Year Goals
>> 5 YEAR GOALS Over a 1 year period, acquire ~25,000 customers Over a 5 year period, acquire ~250,000 customers Make 20% plus ROE
Slide 103: Any Questions?
>> ANY QUESTIONS?