Consultant Report

1
Consultant Report

• Presented to the Board of Directors
• of Fifth Third Bank

2
Report Overview

• Industry Introduction
• Fifth Third Core Competencies
• Recommendations
• Conclusion

3
Industry Introduction

• Industry deregulation
• The economy is moving more towards a global
  environment, and the financial service industry
  must follow
• Technological advancements have led to greater
  convenience and cost effectiveness

4
Core Competencies

• Low Cost Structure
• increase revenues at a faster rate than competing
  banks (strong stock price)
• Strong Sales Culture
• Strong Credit Quality
• avoid issuing high-risk loans
• hard work, aggressive selling, teamwork,
  disciplined expense control and strong credit
  quality -George Schaefer Jr.

5
Recommendations

• Our recommendations focus on the following issues
• Temptation to Consolidate
• Data Mining
• Diversity
• P.A.T.

6
Consolidation?

• Defined
• The decrease in number of firms, but increase in
  the average size, results in fewer, bigger banks
• Myths of Consolidation
• greater efficiency
• decreased rate of bank failures

7
Consolidation?

• Reasons not to consolidate
• Inability to react to small opportunity, causing
  many businesses to divest to core competencies
  (merger-divestiture trend)
• scale economies
• anti-competitive forces
• You should resist the temptation to consolidate

8
Data Mining

• What is Data Mining?
• It is an information system that mines
  information about clients that will help you meet
  the clients needs.
• How this applies to banking
• recommends applicable services to client
• promotes cross-selling

9
Fifth Third and Data Mining

• Numerous services are offered
• Implementing an extensive system will increase
  cross-sales and customer retention

10
Diversity

• Fifth Third Bank is an Equal Opportunity
  Employment corporation, however as the industry
  moves towards a more global environment, you need
  to diversify in order to compete in todays
  international market
• Training Programs
• Recruitment

11
Diversity

• Training Programs
• for managers and supervisors to help staff
  members develop the skills to manage a diverse
  work force
• Hand out diversity manuals/handbooks
• Conduct briefings on the progress and issues of
  women and minorities

12
Diversity

• Recruitment
• implement a recruiting program to attract a more
  diverse work force and client base
• work with organizations to promote diversity
  (NAACP, NOW)
• advertise in womens and minority magazines
  (Black Enterprise, Financial Women International)
• A diverse atmosphere contributes to numerous
  opportunities both here and abroad, adding value
  to the corporation

13
P.A.T.

• What is it?
• Personal Automated Teller
• Machine that offers all the services that a
  teller would provide and more
• standard deposit and withdraw transactions and
  merchant transactions
• access to online accounts

14
P.A.T. vs A.T.M.

• Gives the client more control over individual
  accounts
• Can view total account info in real-time
• Savings, Checking, Online, debit/credit card
  accounts
• Ability to withdraw money from Internet Accounts
• May increase your banks online activity

15
P.A.T. vs A.T.M.

• P.A.T. will be the ATM of the future
• Something new and improved
• Usage fees compensated by advanced services
• The new system will attract more customers
• Compact Disc vs Cassette
• P.A.T. will give you a competitive advantage

16
Conclusion

• Fifth Third has managed to remain competitive in
  the past
• However, our team feels that the following
  recommendations will aid in competing and
  surviving in todays deregulated, global
  marketplace.

17
Recommendations

• Avoid Consolidation
• Implement Extensive Data Mining
• Put into practice Diversity Programs
• Employ P.A.T.