Generating Revenue from Small Business Banking. Audio Access: Toll-free: Participant Code:

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1 Generating Revenue from Small Business Banking Audio Access: Toll-free: Participant Code:

2 Agenda Market Insight Challenges Business Cases Discernable Differences Valued Business Partner Questions 2

3 RDC Market Insight Significant revenue opportunity for financial institutions in the small business market Small businesses have limited capital to spend on financial services Financial institutions want to provide an affordable and cost effective solution for their business clients that will strengthen their overall business relationship Client penetration rates are lower than expected Financial institutions want a business partner that can help them successfully bring a product to market Ongoing FFIEC compliance concerns 3

4 Challenge #1: Unprofitable RDC Program Many financial institutions are using RDC as a loss leader to retain select business customers Cost prohibitive for financial institutions to give scanners to business customers, plus this is limited based on cost and overall value of relationship Purchasing scanners and providing a lease option to business customers through the financial institution can be costly and present administrative challenges Money is being left on the table with small business customers 27 million small businesses in the U.S. 2, and less than 5% utilize remote deposit capture 1 60% of small businesses deposit less than 200 items per month Small businesses have limited capital and typically do not want to purchase a scanner Business clients want their financial service provider to offer affordable and cost effective solutions CPS has created a cost effective RDC solution for financial institutions that includes: Low fixed monthly price Processing of up to 200 items Scanner and maintenance Product designed to be self-installed by the customer 2 1 Aite Group, October

5 Challenge #2: Low Penetration Rate Client penetration rates are lower than expected due to internal sales challenges Limited training resources Branch staff focused on selling traditional deposit services Branch employees are not comfortable selling technology Heavy branch traffic Customer service prioritized over sales Frequent turnover Product resources focused on larger business clients CPS partners with its customers to assist in successfully marketing its products by providing sales training materials, marketing materials and support for branch personnel 5

6 Challenge #3: Regulatory and Compliance Concerns Concerns complying with FFIEC risk guidelines due to limited financial and human resources CPS provides an automated program to monitor business customer compliance with FFIEC guidelines regarding RDC policies and procedures Reduce or eliminate the need for customer visits creating significant expense savings Fully customizable question and answer customer evaluations Assessments may be scheduled and customer selective Offer convenient customer refresher training on RDC processes, responsibilities, and guidance for correction Identify areas that may need emphasis at a customer level Create consolidated reports for auditors and regulators 6

7 Bank #1 Top 15 Financial Institution Approximately 10,000 RDC clients Business Cases Offer both a standard solution and a low volume solution RDC products are sold through both the branch and Treasury Management Over the last four years their low volume solution has surpassed their high volume solution in annual sales Bank #2 Regional Bank $15 Billion in Assets Approximately 600 RDC Clients -- 74% process under 200 checks per month Bank #3 Community Bank $750 Million in Assets Approximately 60 RDC Clients -- 87% process under 200 checks per month 7

8 Discernable Differences Provide a simple, easy to use solution with no upfront costs for business clients Very attractive and straightforward pricing that includes the scanner, maintenance and processing for a flat fee Four custom data input fields for item reference: i.e. policy #, invoice #, name, etc. Appends to all RDC reporting (2 years of online history) Data fields can be exported to an accounts receivable system Eliminates dual entry and reduces errors Dual review of all items for duplicate detection and image quality CPS makes any necessary deposit adjustments, minimizing the impact to the financial institution Administrative controls at both the FI and merchant level allow for varying levels of access and customer service Client billing controlled by the financial institution, with a monthly account analysis file from CPS that can be uploaded to your analysis system Integrated compliance tool that can be used within our application or with existing RDC programs 8

9 Valued Business Partner Consultative business partner that understands the needs of financial institutions and businesses and the limited resources available to implement them Web-based system that requires minimal integration and budget allocations Partner with you to build a successful program with customized branding of the RDC application and marketing materials as well as a detailed implementation and rollout strategy Assist with sales strategy providing presentation materials and merchant agreement Meet security concerns of both the financial institutions and business clients with multifactor authentication implementation (option of soft or hard token) Operational and technical customer service is available from 8:00am to 11:00pm ET to further assist your financial institution and your clients CPS meets all regulatory and risk compliance requirements, including Level 2 SSAE 16 (SAS70) certification Proven experience and expertise in the banking industry 9

10 For more information, and to request a detailed demonstration, contact: Tony Blackburn Julie Peckham or ahblackburn@ecpays.com jpeckham@ecpays.com Additional product offerings: Remote Deposit Capture Self-Assessment Remote Remittance Remote Branch Capture AR-Box Online Receivables Processing CheckTrack SM NSF Check Recovery Collection 10