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Grow Smart from the Start

Planning for Profitable Growth Through Better Management of Core & IT Services

Grow Smart from the Start is a new thought leadership and research initiative by the Business Performance Innovation (BPI) Network that examines critical issues and best practices in structuring relationships and contracts with core and IT services vendors to ensure more profitable and valued business outcomes for community financial institutions. Grow Smart from the Start builds on past BPI Network research, developed in partnership with Paladin fs. That research shows that community banks and credit unions have a major opportunity to reduce non-interest expense and improve the accretive value of mergers and acquisitions by intelligently restructuring their contracts with core services and IT vendors.

As we embark on new research into this topic, we look for your insights into other issues related to managing contracts and relationships with vendors to increase profitable growth, reduce risks, and affordably advance the digital capabilities of community financial institutions. All survey participants will receive a complete report of aggregated insights and findings. All of your responses will be kept confidential and will greatly benefit the thought leadership efforts of the BPI Network and Paladin fs.

BUSINESS ENVIRONMENT

In what type of financial institution are you employed?

Regional Bank
Community Bank
Credit Union
Thrift

What is the size of your institution by assets?

Less than $100 million
$100 – $500 million
$500 million – $1 billion
$1 – $3 billion
Over $3 billion

How have business conditions changed for your institution in the past 12 months?

Significantly improved
Some improvement
Stayed the same
Some deterioration
Significant deterioration

What are your expectations for the next 12 months?

Significant improvement
Some improvement
Stay the same
Some deterioration
Significant deterioration

M&A ACTIVITY

How do you expect M&A activity among community banks to change over the next 24 months?

Increase
About the same
Decrease

How would your company most likely be involved in a merger or acquisition over the next 24 months?

As a buyer
As a seller
Either buyer or seller, if the opportunity presents itself
Not considering any plans for M&A; activity
Unsure/Don’t know

Have you taken any of the steps below in the past 18 months? (Select all that apply)

Board level discussions on possible M&A; strategies
Review of possible M&A; acquisition targets
Review of possible merger partners or buyers
Talks with M&A; strategy consultants, CPAs or legal advisors
Review of Core IT service (data processing) contracts to determine impact on shareholders’ equity
Review of Core IT service (data processing) contracts to determine impact on go-forward costs and profitability following an acquisition
Outside support in determining a valuation
Due diligence analysis

GOALS & CHALLENGES

Based on what you know, what is most important to your customers?

Security of client information
Interest rates
Convenience of ATM and branch locations
Speed of transactions / wait times
New online/mobile services
High-quality service / customer care
Other (Please describe)

CORE SERVICES

Which company provides your Core IT account and data processing services?

Fiserv
FIS
Jack Henry & Assoc.
CSI
D+H Harland
COCC
DCI
FSI
Other (Please name)

Overall, are you satisfied with the value offered by your Core services vendor?

5- Very Satisfied
4- Satisfied
3- Neutral
2- Dissatisfied
1- Very Dissatisfied

Are your current Core vendor contracts favorably structured to address changes to your business due to mergers or acquisitions?

Yes
Not Sure
No
Not applicable

Are you being charged fairly for Core and complementary IT services?

I believe I am paying more than fair market value
I do not have enough information to be sure either way
I think I am being fairly charged for these services
I believe I am paying less than fair market value

Approximately how much do you pay in total for all Core IT services monthly?

Less than $30,000 per month
$30,000 – $50,000 per month
$50,000 – $100,000 per month
$100,000 or more per month

When does your primary Core services contract expire?

Less than 1 year from now
About 1 year from now
About 2 years from now
About 3 years from now
About 4 years from now
About 5 years from now
About 6 years from now
About 7 years from now
Don’t know

Which company provides your Internet banking services today?

Service provided by my Core IT provider
Digital Insight (formerly Intuit)
Funds Express (First Data)
S1
Q2
ACI Worldwide
Other (Please name)

Are you using a separate vendor for EFT? If so, which one?

Yes
No

If you us more than one vendor, do you feel they are well integrated?

Yes
No
Not Sure

NEW TECHNOLOGY

What forces are driving your adoption of new technologies and technology services? (Select Top 3)

Demand and expectations of existing customers
Desire to appeal to younger customers
Need to improve efficiency
Desire to improve customer care
Data security and privacy concerns
Regulatory compliance
Competitive pressures in digital banking
Geographic expansion
Sunsetting of legacy technology

In what technologies have you invested over the past 3 years? (Select all that apply)

Online banking features/services
Mobile banking (Balance, remote capture, etc.)
Mobile payments
Data analytics
Social marketing
Core back office system improvements
Compliance related
Fraud detection / mitigation
Other (Please describe)

Which technology are priorities for the next 3 years? (Choose up to 3)

Improved Internet banking features/services
Mobile banking (balances, remote capture, etc.)
Mobile payments, e-wallets
Data analytics for better business development
Social marketing
Core back office systems improvements
Compliance related
Fraud detection / mitigation
Other (Please describe)

How concerned are you about the cost of keeping pace with the new technology requirements in your industry?

Very concerned
Somewhat concerned
Not concerned
Not sure

YOUR BACKGROUND

How long have you been in the banking industry?

Less than 5 years
5-10 years
More than 10 years

How long have you been affiliated with your institution?

Less than 2 years
2-5 years
More than 5 years

How would you describe your position?

Executive management
Senior manager
Manager
Board member

What role do you play in making decisions for Core IT services and vendors?

I contribute to the decision-making process
I make recommendations to senior management
I make the final decision, subject to board review
I have nothing to do with Core IT contract services or vendors

Would you like a free advance copy of our report based on this survey and on nationwide data about Core service and IT contracts?

Yes (provide email)
Yes (also send to)
No

Thank you for your insights! To submit, please click the arrow to the right.