Evaluation Information. 1 Confidential Each capability is rated to provide an indication of how the current platform enables or supports the desired functional

Evaluation Information

2Confidential

Each capability is rated to provide an indication of how the current platform enables or supports the desired functional business capability

Functional AssessmentEvaluation Key

Rating Detail

4 Capability exists and is functionally operating today

3 Capability exists, but is not functionally operating today; level of effort to enable the capability would be low / medium

2 Capability exists, but is not functionally operating today; level of effort to enable the capability would be medium / high

1 Capability does not exist and could not be supported by the platform

Implication Considerations

Business Differentiation (BD)

Business Differentiation (BD)

Highlights the degree to which differentiating capabilities or objectives could be supported based on the Bank’s platform maturity

Process Alignment(PA)

Process Alignment(PA)

Highlights the impact the maturity of the platforms have on supporting efficient and effective processes (e.g., through automated workflow and proper controls)

Customer Experience (CE)

Customer Experience (CE)

Highlights the impact which a customer or Bank associate may experience based on the Bank’s platform maturity

Functional Assessment Findings

A. Consumer Deposits

B. Small Business Deposits

C. Commercial Deposits (including Treasury)

D. National Direct Bank

E. Deposit Operations

F. Consumer Lending

G. Small Business Lending

H. Commercial Lending

Product Considerations

5Confidential

Functional AssessmentProduct Detailed Findings – Consumer Deposits

Custom

er E

xperience

Process

Alignm

ent

Business

Differentiation

Product Desired Features / Description TimingClient X Rating

Company Y Rating

Comments / Implications

Rewards Checking

Ability to support Rewards Checking to include passing the transaction data by transaction type as appropriate for Rewards System use, posting ‘customer miles available’ on bank platform sales system, statements, and online banking

Day 1 4 3

PA: Potential for a significant amount of redevelopment work with respect to launching the Rewards Checking product on a new platform

CE: Linkage to Rewards platform must be established

Save More

Ability to support planned Save More bundle to include the ability to add incremental transfers as assigned by the customer with each debit card and/or bill pay transaction; and to be able to offer ‘bonuses’ for the first of defined transaction types

Day 1 3 3

BD: Functionality could be logically supported with the proper configuration in Company Y

Note: scheduled to rollout at Client X summer 2009

Rate Builder

Ability to support RateBuilder (receive rate increases on “linked” savings account based on depth of relationship; could be balance level, debit usage, online bill pay, direct deposit, etc. in “linked” checking account)

Post Day 1

2 2 BD: Functionality could be logically

supported with the proper configuration in Company Y

PassbookAbility to support Passbook Savings product in the NY/NJ footprint only (no new markets)

Day 1 4 2

PA: Functionality exists in Company Y to support Passbooks but will require work effort to enhance Company Y/RDS integration, RDS functionality and teller hardware

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

Note: The assessment of the Company Y platform is based on the current as-is integrated state. Future support for specific capabilities may differ from this assessment depending on specific integration decisions.

Capability Considerations

7Confidential

2. Develop Products &

Services

2.1 Ideate

2.2 Perform Feasibility

2.3 Prioritize Initiatives

2.4 Develop and Deliver Functionality

2.5 Launch

High Level Capability

Description TimingClient X Rating

Company Y Rating


Support Non-Vanilla Products

Ability to support advanced products beyond the current suite

Day 1 4 3 BD / PA: RDS / Company Y is table-

driven; rules can be changed, although complexity depends on the offering

Support Product Rate Changes / Tiers

Ability to change rates quickly (including customization of tiers at the region / market level

Day 1 4 4

BD: Major profitability driver that would need to be supported

PA: Requires simple table change in Company Y

Regionalize Product

Ability to roll out and configure products by branch / region / bank

Day 1 4 2


PA: Not configured; would need configuration at Company Y to implement

Perform Exception Pricing

Ability to perform exception pricing Day 1 4 3


CE: Potential negative impact to the customer if exception pricing changes

Perform Relationship Pricing

Ability to relationship price (rate or fee depends on criteria such as balance level, use of services like direct deposit or bill pay)

Day 1 3 3


PA: Company Y has built in relationship pricing features; would need to build the appropriate table with business rules

CE: Supports an improved customer experience

High Level Capabilities

In Scope L0

Process

L1 Process Performed

L1 Process Not Performed

Process Key

Functional AssessmentCapability Detailed Findings – Consumer Deposits

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


8Confidential


Services

2.1 Ideate




2.5 Launch



Company Y Rating



Ability to have unique SWEEP pricing schemes

Day 1 3 3

BD: Both could support multiple sweep products

PA: Sweep service charge pricing is handled by Weiland Account Analysis. Interest rates are balance tiered and table driven by Company Y sub-product type

CE: Company Y can exception price these accordingly

Support Product Bundling

Ability to support bundling of products (tie products together and modify rates, fees, and other features based on a la carte or bundle)

Day 1 3 4 BD / CE: Bundling is a core part of

Company Y product tables with flexibility to define different bundles easily

Support Product Release

Ability to quickly change incentives for new product rollouts or other major changes

Day 1 3 3 PA: Company Y has flexibility, but

incentives are typically set at the beginning of the year

Ability to differentiate incentives / products by region potentially even branch

Post Day 1 2 2

PA: Company Y tables can be configured by region to support this functionality; current set up does not utilize regionalization

Ability to test incentives strategies by differing incentives in test branches vs. other baseline branches

Post Day 1 2 2

New ProductsAbility to roll out new products at a rate of several per year (e.g., on a quarterly basis)

Day 1 4 3 PA: Could support depending on the

complexity of the product (would need to configure and test)

Converting Accounts with New Products

Supports converting accounts to new product type without impacting account numbers, OLB, debit, etc.

Day 1 4 3

PA: Can potentially be done without affecting the smart account number at Company Y

CE: Supports minimal impact to the customer


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


9Confidential


Services

2.1 Ideate




2.5 Launch



Company Y Rating


Debit CardsAbility to support 1-step instant issuance & permanent card order with same day PIN & Sig usage

Day 1 4 3 CE: Real-time process in conducive to an

enhanced CE at Company Y

‘Pretty Plastics’Ability to maintain “pretty plastics” capabilities that exist within the current footprint

Day 1 4 3 Note: would likely use vendor (same as

credit card)

Personalize DebitAbility to personalize debit plastic (like Card Lab)

Post Day 1 3 3 Note: would likely use vendor (same as

credit card)


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


10Confidential



Company Y Rating


Overdraft Functionality

Support overdraft protection functionality that can link to multiple account types

Day 1 3 4 BD: Sophisticated overdraft functionality

at Company Y; can tie to DDA or HELOC

Segment Based Marketing

Ability to differentiate multiple marketing offers and themes on a single product (example: offer Bank at Work customer $100 to sign up for a new DDA and offer a student $50 to open the same account)

Day 1 4 2

PA / CE: Company Y can define customer segments

PA: May be able to tie a marketing campaign for a particular product to a defined segment

Promotional Codes

Ability to use promotional codes and have codes tied to automated benefits incenting direct deposit, debit usage, online bill pay, etc.

Day 1 4 3

PA: Company Y uses package codes stored in Company Y

PA: May be some gaps in the way Company Y is able to deliver this functionality

Ability to use promotional codes to identify customers taking advantage of an offer and/or for use in establishing that accounts eligible for direct mail bonuses

Day 1 4 2


PA: Company Y has limited ability to track where an app came from

Offer / Promotion Tracking

Ability to see what offers or promotions have been marketed or a customer has received

Post Day 1 3 3

PA: Company Y can review outstanding offers or applications through RDS

PA: Need to ensure branch staff is appropriately trained

CE: Associates aren’t aware of offers customer has received and may duplicate offers

Statement Messaging

Ability to customize statement messaging

Day 1 3 4

BD: Can perform conditional searches and design messages

CE: Company Y can customize at the Customer level


In Scope L0

Process



Process Key


3. Market Products

3.1 Plan Marketing

3.2 Develop Creatives and Execute Marketing

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


11Confidential



Company Y Rating


Channel Account Opening

Ability to open accounts online, in the call center, or in the branch

Day 1 3 3

PA: Need to understand complexities at both banks with respect to automating the account creation process

PA: Online applications at Company Y are manually keyed by back-office

CE: Cannot fund via call center at Company Y

Sales Page

Sales pages that support account opening are displayed to ensure that the CSR offers correct rates and products associated with the promotional offer given to the customer

Day 1 4 3

BD: Company Y doesn’t use Next Best Offer functionality

BD: Associate can query RDS for pending offers

ProfilingAbility to capture profiling information for subsequent analysis

Day 1 2 3

BD: Done thru salesforce.com – no integration to RDS

PA: Used for notes; not driving relationships or offers

Account TakeawayAbility to print or email a summary of what was purchased, what to expect next, contact info, etc. for the customer to take with him / her

Post Day 1 3 3 CE: Can support this process at Company

Y but not in place today

ChannelAbility to start in one channel and end in another

Post Day 1 2 3 CE: Unless an application is submitted,

customer can not work across channels

Single Sign-onSingle sign-on to a single system that interfaces with others as necessary

Day 1 2 4 PA: Company Y check and debit systems

have SSO; ASP applications require additional sign-on

Duplicate Date Entry

Supports the ability to not enter similar data into multiple systems at the time of new customer account opening

Day 1 2 4

PA: Client X rekeys data from Touchpoint to other systems

PA: Company Y enters data into Company Y – CIS first, CIS populates necessary account opening forms


In Scope L0

Process



Process Key


4. Acquire Customers

4.1 Perform Consultative Selling

4.2 Open Account via Banker

4.3 Open Account via Call Center

4.4 Open Account via Online

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


12Confidential



Company Y Rating


Existing Customer Information Population

Ability to pre-fill customer info if the customer already has another Client X product (including national businesses like Card / Auto)

Post Day 1 2 3

BD: If a customer exists in the CIS, can pre-populate information into application

PA: Provides for a quicker, more efficient process

CE: If application is started, but not finished online, data not saved

Product LinkAbility to link card to DDA as overdraft protection

Post Day 1 2 2

BD: Sophisticated overdraft functionality at Company Y; can tie to DDA or HELOC

PA: Complexity lies within the interface that may need to be built with the card organization

Pulling CreditAbility to pull credit at the time of account opening

Day 1 2 4 PA / CE: Company Y pull 19 credit

elements for scoring at the time of account opening

Pre-approvalAbility to see if a customer is pre-approved for other Client X products (like a card)

Day 1 2 3 PA: Not sophisticated; Teller receives

prompts

FulfillmentAbility to track fulfillment (ordered debit card, checks, other fulfillment items)

Post Day 1 2 3 PA / CE: Capability exists within RDS for

tracking


In Scope L0

Process



Process Key







3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


13Confidential



Company Y Rating


Customer Channel Preference

Ability to specify which channel a customer prefers and then primarily manage communication through that channel

Post Day 1 3 3

PA: No push-messaging capabilities between online and contact center

CE: Company Y customers can set preferences online and for ATM

Sales Management

Service to sales capabilities in the call centers Day 1 3 3 BD / CE: No current external offer

management system in place at Company Y

Channel ServicingAbility to service accounts through all channels (including most national product transactions / changes)

Day 1 3 3 CE: Company Y can service all products

through all channels – card servicing handled by JPMC

Issue Management (Follow-Up)

Issue management system would have the capability to generate a tickler to remind banker to call the customer (possibly upload to bankers’ calendar)

Post Day 1 2 2

CE: Supportforce.com is not integrated with RDS

BD / CE: Issue management handled through Contact Center

StatementsAbility to provide combined statements (all Client X products) with customized inserts / messaging

Day 1 (national

products Post Day 1)

2 4

CE: Company Y statements are fully integrated and provide the customer with a view of their entire product portfolio

CE: Potential for Company Y customers to lose statement options / functionality

ReportingAbility to support reporting and query access to debit maintenance & transaction history

Day 1 4 4 PA: Can view 120 day transaction history

online in Company Y; older history via IBM Content Manager (.pdf)


In Scope L0

Process



Process Key


4. Acquire Customers5. Service Customers

5.1 Process Customer Request

5.2 Process Bank Initiated Transactions

5.3 Manage Content

5.4 Add Ancillary Products to Existing Account

5.5 Manage Banking Operations

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


14Confidential



Company Y Rating


Real-time ATM / Debit

Ability to view in real-time, all ATM / debit transactions (including OLB)

Post Day 1 1 4 BD / CE: Customer is able to view deposit

real-time with Company Y

Transactional DataAbility to view ACH data including: who it was from, origination, ability to gain additional transactional data (where purchase was made)

TBD 3 2

CE: Company Y truncates some ACH data (e.g., merchant number gets cut off after 15 characters)

CE: Company Y can define reports as file feeds through OBS (new file type) direct from Pep+

Data Retention (Viewing)

Increase transaction data retention, with ability to see 10 months (history online, currently have to manually pull statements)

Post Day 1 2 3

PA: Current ability to view only 120 days of transaction data online via Company Y

PA: 16 months storage online for e-statements

Deposit PostingProvide the ability for “same day” posting of deposits

Post Day 1 1 4

BD: Company Y does real-time online deposit posting

CE: Improved CE with the ability to realize transactions real-time

Waive FeesSupport the ability to waive fees and capture the details of the decision to do so (e.g., NSF Fee)

Day 1 3 3

BD / PA / CE: RDS provides ability to waive fees (with ceiling set for approvals)

Follow-up on ability to waive particular fees would be necessary


In Scope L0

Process



Process Key


5. Service Customers



5.3 Manage Content



3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


15Confidential



Company Y Rating


Prompts

Ability to provide pop-ups or other prompts to customer-facing associates based on a rules engine with business logic (includes CTI screen flash, Mindshare Survey)

Post Day 1 2 3 BD / CE: Current capability is not

sophisticated; Teller receives prompts; cross-selling is more manual

Customer Relationships

Ability to see full customer relationship (including national products like Card and Auto)

Day 1 3 4 BD / PA / CE: Fully integrated customer

view bolsters servicing experience

Transaction / Contact Viewing

Ability to see recent transactions and contacts (calls to the call center, complaints, etc.)

Day 1 3 3

PA: Transaction activity on RDS is available for up to120 days; 16 months online

CE: Branch associate can not see all customer activity (e.g., complaints)

Differentiated Serving

Differentiated servicing in the call centers and branches based on the customer value / segment

Post Day 1 3 3

PA: Doesn’t aesthetically treat the customers any differently; Platinum go to separate line

CE: Differentiated service levels based on customers core

CE: Stored at the account level and used for defined benefits

Householding Ability to household customers Day 1 4 3

CE: Company Y house-holding defined at the customer level

CE: Limitation - can be changed in branch or over the phone; not online

Maintain Notes / Event History

Support the maintenance of system generated and associate notes on a customer's account

Day 1 4 3 PA: Customer notepad provided through

salesforce.com, but not integrated with RDS


In Scope L0

Process



Process Key


6. Manage Customer Relationships

6.1 Manage Portfolio

6.2 Execute Customer Management Strategy

6.3 Retain Customers

6.4 Solicit Customer Feedback

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


16Confidential



Company Y Rating


Fee Waivers

Systematized fee waiver authority where the system dictates who has the ability to waiver certain fees under certain circumstances (e.g., Call Center Associate can waive NSF fees for 1st time offenders, but only State Heads can waive TM service charges)

Post Day 1 2 3 BD / CE: Can perform refunds and may

support true fee waivers, but functionality is not currently being utilized

Engagement

Need to be able to easily identify use of sticky services and Treasury Management services (e.g., branch knows that Client-A has a debit card, uses Treasury Optimizer, and has Merchant Services)

Day 1 4 4 BD / CE: Done via reporting

Consumer Complaints

Require one interface for front end system to see customer complaints and know all relationships with customer and all interactions

Post Day 1 2 2

CE: Salesforce records notes on the customer - not integrated with RDS

CE / PA: Banker can only see complaints if they have been typed in notes (in RDS)

Overdraft VisibilityAbility to show returns and trail of returns (post what was returned to customer if chose ‘not to pay’)

Day 1 3 4 PA / CE: Feature is available thru RDS for

the branch associate and call center agent

Rewards

Provide automated enrollment and updates to Rewards Money Market Accounts and Branch Rewards Checking accounts on the vendor Rewards platform

TBD TBD 2 BD / CE: Reward functionality at

Company Y is less robust than at Client X Deeper dive is required

Ability to update the existing Rewards Credit Card number on a Rewards Money Market account




In Scope L0

Process



Process Key







3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key








F. Consumer Lending




19Confidential

Functional AssessmentProduct Detailed Findings – Small Business Deposits

Custom

er E

xperience

Process

Alignm

ent

Business

Differentiation


Company Y Rating


Rewards Checking

Ability to support Rewards Checking to include passing the transaction data by transaction type as appropriate for Rewards System use, posting ‘customer miles available’ on bank platform sales system, statements, and online banking

Day 1 4 3

PA: Potential for a significant amount of redevelopment work with respect to launching the Rewards Checking product on a new platform

CE: Linkage to Rewards platform must be established

Save More

Ability to support planned Save More bundle to include the ability to add incremental transfers as assigned by the customer with each debit card and/or bill pay transaction; and to be able to offer ‘bonuses’ for the first of defined transaction types

Day 1 3 3

BD: Functionality could be logically supported with the proper configuration in Company Y

Note: scheduled to rollout at Client X summer 2009

Rate Builder

Ability to support RateBuilder (receive rate increases on “linked” savings account based on depth of relationship; could be balance level, debit usage, online bill pay, direct deposit, etc. in “linked” checking account)

Post Day 1

2 2 BD: Functionality could be logically

supported with the proper configuration in Company Y

Public Checking, Savings, and Money Market

Continue to support all Public Product types Day 1 4 3

BD: Company Y currently has Business and Public Checking, Savings, and Money market Accounts

BD: Additional product functionality could be logically supported with the proper configuration in Company Y

Business Money Markets (Small Business Prime)

Continue to support Business Money Markets (both SB Prime and Tiered)

Day 1 4 TBD Currently verifying Money Markets can be

tiered with Person B (Company Y Cash Mgmt Services)

Commercial Savings

Continue to support Commercial Savings Day 1 4 4 BD / CE: Commercial Savings product

available at Company Y

Commercial CDs Continue to support Commercial CDs Day 1 4 4 BD / CE: Company Y currently supports

Commercial CDs

Check Management Ability to search for check over date range Day 1 4 3 BD / CE: Ability to search transaction over

date range but not images which have the ability for point search

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

20Confidential


Custom

er E

xperience

Process

Alignm

ent

Business

Differentiation


Company Y Rating


Escrow Management

Continue to support escrow, including sub accounts, in all states

Day 1 4 2

PA / BD: Supporting parent /child relationship for escrow and tenant accounts are possible via Company Y

Note: Any escrow and tenant functionality has not been utilized by Company Y and additional research is required to identify the degree of any enhancements required to support (e.g., new modules)

Note: Company Y recommended mainframe service (to perform full multi-tier ZBA, Escrow Management and Sweep functionality), Agiletics, scoped and scheduled for installation this year prior to the purchase announcement

Support 1031 Escrow Management Accounts including split interest between ‘master’ and ‘sub accounts’

Day 1 4 2

Require flexible pricing capabilities at the sub account level

Day 1 4 2

Data needed to feed into CIS; view all relationships Day 1 1 3

Automate split interest calculation or need to work with manual split interest procedures

Day 1 3 2

Perform dual reporting (master earned and sub account earned)

Day 1 3 2

Automated control over open and closing within the branch (real time)

Post Day 1 2 2

Overdraft protection


Day 1 3 4 BD: Sophisticated overdraft functionality at

Company Y; can tie to DDA or HELOC

Controlled Disbursement

Continue to support controlled disbursements Day 1 4 4 BD: Support disbursements with check only

(no ACH)

ZBA/Target Balance Accounts

Continue to support zero balance and target balance accounts

Day 1 4 4

BD: Company Y utilizes Company Y based sweep functionality to provide Zero Balance Accounts

CE: Multi-tiered ZBAs are available, but are discouraged due to the processing balance not reporting balances in all tiers (recommended Agiletics mainframe)

CD Rom Check Service

Ability to flag for CD-Rom on host and index to check/item

Day 1 4 4 PA / BD: Image administrator passes to CD

Rom which gets flagged on Company Y and recon file gets downloaded to process

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

21Confidential


Custom

er E

xperience

Process

Alignm

ent

Business

Differentiation


Company Y Rating


Sweeps

Support for Euro, Repo, and Loan sweeps Day 1 4 2 BD: Company Y could support multiple

sweep products (investment sweep connected to ZBA sub account) with exception pricing

BD: Company Y currently performing Investment and Repo sweeps (not Euro; Loan dependent upon image exchange functionality)

PA: Sweep pricing would tie in the entire Company Y suite with need for proper feeds from other external places

Note: Sweep service charge pricing is handled by Weiland Account Analysis; interest rates are balance tiered and table driven by Company Y sub-product type

Ability to have unique sweep pricing schemes Day 1 4 3

Require built in pricing flexibility (market level pricing) Day 1 4 2

Loan to DDA sweeps with ability to group deposits as a loan accounting requirement

Day 1 3 2

Account Analysis

Ability to flag accounts for account analysis Day 1 4 4 PA: Account analysis is driven by sub

product code in Company Y

Ability to suppress hard charges and hard charge from DDA system

Day 1 4 4 PA: Once account is switched to account

analysis in Company Y, all hard charges are suppressed and no longer hit account

Ability for analysis statement illustrating earnings credit rate and service charges (calculation of excess)

Day 1 4 4

PA / BD: Any earnings credit rate and service charges on Weiland; Company Y will also do basics of service charges (earnings credit for balances to off set)


Ability to deliver same day check detail report to customers

Day 1 4 2

BD: Do not deliver same day check detail or images

BD: Given the limited number of Company Y customers on disbursement and current needs based process, this warrants further analysis of the ability

Ability to issue summary report includes fed items, on us (internal processing), ACH, same day

Day 1 4 3 BD / CE: Any items sent to the fed return

the next morning of which summary could be issued

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

22Confidential


Custom

er E

xperience

Process

Alignm

ent

Business

Differentiation


Company Y Rating


Data Exchange

Ability to flag accounts for outgoing data exchange Day 1 4 4 PA: Company Y supports a corporate

banking code to flag for outgoing data exchange

Ability to send account to multiple BAI2 Destinations Day 1 4 4 PA: Company Y can deliver to multiple end

points, although, requires separate corporate banking code

Ability to selectively send transactions and balance outbound (BAI2)

Day 1 4 1 PA: Do not have the option to selectively

send, and have not pursued other options

Balance Reporting

BAI2 - host transaction codes need to be translated to BAI2 codes

Day 1 4 4

PA: Company Y stores a translation table, therefore, when balance reporting files are created, reporting in BAI2 codes that service

BAI2 - host information balances and transaction needs to be transferred to BAI2 format

Day 1 4 4 BD: Transfer able to be completed in BAI2

format

BAI2 – ability to flag accounts to identify as an information reporting account

Day 1 4 4 PA: Company Y supports a corporate

banking exchange code

Book Transfers

Ability to transfer between different banks and generate due settlement for bank transfers

Day 1 4 2

BD: Internal transfers performed real time Note: This was noted as a follow-up item

for the Company Y deposits team, although initially perceived as doable

Ability to select book transfers based on balance availability or Not

Day 1 4 4 PA: Company Y default availability is ZBA

limit system, with ACH risk limit, daily overdraft limit, next day availability limit

Bank Reporting

Ability to generate sweep reports, cycle statements, daily stats

Day 1 4 4

PA / BD: All commercial accounts month end (although able to have special requests)

BD: Statements following business day have archive with .pdf

Ability to generate account analysis reports Day 1 4 2 CE / BD: Hard copy statements mailed out

after tenth business day; current manual entries post items off of Weiland

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


24Confidential



Company Y Rating







Ability to change rates quickly (including customization of tiers at the region / market level

Day 1 4 4



Regionalize Products


Day 1 4 2


PA: Not configured; would need configuration at Company Y to implement


Ability to perform exception pricing Day 1 4 3


CE: Potential negative impact to the customer if exception pricing changes



Day 1 3 3





Day 1 3 3

BD: Both could support multiple sweep products

PA: Sweep service charge pricing is handled by Weiland Account Analysis. Interest rates are balance tiered and table driven by Company Y sub-product type



In Scope L0

Process



Process Key

Functional AssessmentCapability Detailed Findings – Small Business Deposits

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


Services

2.1 Ideate




2.5 Launch

25Confidential



Company Y Rating











Post Day 1 2 2


Ability to test incentives strategies by differing incentives in test branches vs. other baseline branches

Post Day 1 2 2




Converting Accounts with New Products

Supports converting accounts to new product type without impacting account numbers, OLB, debit, etc.

Day 1 4 3



Debit CardsAbility to support 1-step instant issuance & permanent card order with same day PIN & Sig usage

Day 1 4 3 CE: Real-time process in conducive to an

enhanced CE at Company Y

Rate TiersCustomize interest rate tiers at a regional or market level

Day 1 4 4 PA: Requires simple table change in

Company Y


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


Services

2.1 Ideate




2.5 Launch

26Confidential



Company Y Rating







Post Day 1 2 2






In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


Services

2.1 Ideate




2.5 Launch

27Confidential



Company Y Rating


Overdraft Functionality


Day 1 3 4 BD: Sophisticated overdraft functionality

at Company Y; can tie to DDA or HELOC



Day 1 4 2



Promotional Codes


Day 1 4 3



Ability to use promotional codes to identify customers taking advantage of an offer and/or for use in establishing that accounts eligible for direct mail bonuses

Day 1 4 2


PA: Company Y has limited ability to track where an app came from



Post Day 1 3 3


PA: Need to ensure branch staff is appropriately trained


Statement Messaging


Day 1 3 4




In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

3. Market Products

3.1 Plan Marketing


28Confidential



Company Y Rating


Channel Account Opening

Ability to open accounts online, in the call center, or in the branch

Day 1 3 3

PA: Need to understand complexities at both banks with respect to automating the account creation process

PA: Online applications at Company Y are manually keyed by back-office

CE: Cannot fund via call center at Company Y

Sales Page


Day 1 4 3



ProfilingAbility to capture profiling information for subsequent analysis

Day 1 2 3

BD: Done thru salesforce.com – no integration to RDS

PA: Used for notes; not driving relationships or offers

Account TakeawayAbility to print or email a summary of what was purchased, what to expect next, contact info, etc. for the customer to take with him / her

Post Day 1 3 3 CE: Can support this process at Company

Y but not in place today

ChannelAbility to start in one channel and end in another

Post Day 1 2 3 CE: Unless an application is submitted,

customer can not work across channels






Day 1 2 4




In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






29Confidential



Company Y Rating




Post Day 1 2 3




Product LinkAbility to link card to DDA as overdraft protection

Post Day 1 2 2

BD: Sophisticated overdraft functionality at Company Y; can tie to DDA or HELOC

PA: Complexity lies within the interface that may need to be built with the card organization

Pulling CreditAbility to pull credit at the time of account opening

Day 1 2 4 PA / CE: Company Y pull 19 credit

elements for scoring at the time of account opening

Pre-approvalAbility to see if a customer is pre-approved for other Client X products (like a card)

Day 1 2 3 PA: Not sophisticated; Teller receives

prompts



tracking

Remote Sales

Private Bankers should have access to their own set of new account numbers (vs. needing to call the branches to get an account number in order to open a new market)

Day 1 2 TBD PA / CE: Unique account numbers exists

outside of branch for SB; accessed through banker support group

CIP and Borrower Type

Ability to recognize borrower type to prompt the relevant CIP questions

Post Day 1 1 2

BD / PA: Circumventing CIP based on account type and how customers are related to the accounts

Note: Any CIP updates integrate real-time to CIS


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






30Confidential



Company Y Rating


Account Numbers

Ability to convert customers from one product to another while maintaining the same account numbers.

Day 1 3 3



Account AnalysisAuto add account to analysis vs. completing a form (manually required Day 1; automated required Post Day 1)

Post Day 1 1 2

PA: Ability to change sub product code in Company Y to redefine account for account analysis, however, requires manual Weiland entry

CE: Company Y can perform some account analysis, “Commercial Analyze Checking” for basic check and deposit items, within limits (e.g., not tiered)


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






31Confidential



Company Y Rating




Post Day 1 3 3



Sales Management

Service to sales capabilities in the call centers Day 1 3 3 BD / CE: No current external offer

management system in place at Company Y

Channel ServicingAbility to service accounts through all channels (including most national product transactions / changes)

Day 1 3 3 CE: Company Y can service all products

through all channels – card servicing handled by JPMC



Post Day 1 2 2



Ability to enter in type of maintenance being performed to inform the customer (for tracking purposes)

Post Day 1 1 2



Statements

Ability to provide combined statements (all Client X products) with customized inserts / messaging

Day 1 4 4

CE: Company Y statements are fully integrated and provide the customer with a view of their entire product portfolio

CE: Potential for Company Y customers to lose statement options / functionality

Ability to suppress statements, duplicate statements, boxing statements (RE clients), combine statements

Day 1 4 TBD CE: Follow-up with Joe Matusek

(Company Y Treasury Mgmt Services / Deposit Operations) in progress





In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key




5.3 Manage Content



32Confidential



Company Y Rating







Post Day 1 1 2





Post Day 1 2 3



Deposit PostingProvide the ability for “same day” posting of deposits

Post Day 1 1 4

BD: Company Y does real-time online deposit posting

CE: Improved CE with the ability to realize transactions real-time

Multiple Payment Options

Support multiple payment options TBD TBD TBD BD: PA: CE:

Waive FeesSupport the ability to waive fees and capture the details of the decision to do so

Day 1 3 3 BD / PA / CE: RDS provides ability to

waive fees (with ceiling set for approvals)

Multiple User Profiles

Support multiple user profiles with different security access

TBD TBD TBD BD: PA: CE:


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key




5.3 Manage Content



33Confidential



Company Y Rating


FloatsSupport float application (including float removals and custom floats)

Day 1 4 4

PA / CE: Ability to vary float at customer level thru customer scoring and database solution

PA: RDS identifies what the float should be based on item or thru an exception table

Debit ResearchAbility to pull debit research quickly for customer inquiries

Post Day 1 2 2

PA: RDS performs query and research and also ability to search within imaging (have flexibility here); CCOA search capabilities require additional interfaces to perform search functionality (e.g., miscellaneous debits)


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key




5.3 Manage Content



34Confidential



Company Y Rating


Prompts










Day 1 3 3





Post Day 1 3 4







Fee Waivers

Systematized fee waiver authority where the system dictates who has the ability to waiver certain fees under certain circumstances (e.g., Call Center Associate can waive NSF fees for 1st time offenders, but only State Heads can waive TM service charges)




In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






35Confidential



Company Y Rating


Engagement



Consumer Complaints


Post Day 1 2 2










Rewards

Provide automated enrollment and updates to Rewards Money Market Accounts and Branch Rewards Checking accounts on the vendor Rewards platform







In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






36Confidential



Company Y Rating


Industry CodesAbility to classify an account / client as belonging to a specific SIC/NAICS industry code

Post Day 1 3 4

PA: Company Y can accept a variety of inputs related to code

PA: Ability to add to flag a SBB / Commercial customer


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






37Confidential



Company Y Rating


N/A BD: PA: CE:


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

7. Sell Loans

7.1 Sell Loans to Investors

7.2 Manage Distributions

38Confidential



Company Y Rating


Charge OffsPerform charge off, reverse charge–offs, and recovers

Day 1 3 4 PA / CE: Company Y currently performs

(although, different group does for lending vs. deposit)

FraudAbility to support leading edge Fraud Management tools

Day 1 2 3

PA: Performed by Company Y Fraud operations group with ability to instantly update / maintain alerts on the fly

PA: Company Y has online real-time access to accounts, which allows for immediate changes

Note: Fraud / Security identified as a follow up area in the 2/23 session with Company Y

PA: Use EPA – ACH filters and blocks on PEP+ with various levels: Company ID (first level), Amount (fixed or threshold); both block-all and selective blocks set up on PEP+

NSFAbility to charge NSF fees directly to sub-account vs. direct to master account

Day 1 3 2 PA: Sub accounts in Company Y hard charged NSF or Weiland, bundle NSF


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

8. Manage Recoveries and Collections

8.1 Manage Collections

8.2 Manage Recoveries

8.3 Detect and Prevent

39Confidential



Company Y Rating






In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

9. Manage Risk

9.1 Manage Credit Risk

9.2 Manage Credit Risk Assurance

9.3 Manage Regulatory Affairs & Compliance

9.4 Manage Enterprise Risk, Operational Risk, and Dept Admin







F. Consumer Lending




42Confidential

Functional AssessmentProduct Detailed Findings – Commercial Deposits


Company Y Rating


Public Checking, Savings, and Money Market

Continue to support all Public Product types Day 1 4 3

BD: Company Y currently has Business and Public Checking, Savings, and Money market Accounts

BD: Additional product functionality could be logically supported with the proper configuration in Company Y

Business Money Markets

Continue to support Business Money Markets (including Tiered)

Day 1 4 4 BD: Company Y supports Business Money

Market accounts including interest tiering

Automatically transfer money form MMA to cover insufficient positions for like / same accounts

Added 3/5/09 – Analysis to be completed

IOLTA / TRUST / IOLA

Ability to view accounts fro IOLA cross referenced to the attorney’s office in control over the deposits

Add / delete attorneys as needed

Continue to support IOLTA / TRUST / IOLA Day 1 4 4

BD: Company Y supports IOLTA / TRUST / IOLA accounts ; driven with sub product code designed to deal with interest

Note: Company Y has a significant # of these accounts in the private banking group

Commercial Savings

Continue to support Commercial Savings Day 1 4 4 BD / CE: Commercial Savings product

available at Company Y

Commercial CDs Continue to support Commercial CDs Day 1 4 4 BD / CE: Company Y currently supports

Commercial CDs

Non-interest income tracking

Able to clearly identify gross and net sources of non interest income and why any fees were waived (e.g., NSF/OD/Treasury Management gross charges, detailed fee waivers, reasons for waiver and net fee income)

Day 1 3 2 PA: Do not perform today, although could if interactivity existed between Weiland and other systems (today – only net service charge is put into Company Y via Weiland)Non-interest income

trackingTrack to account level and assign to relationship manager

Post Day 1 2 2

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

43Confidential



Company Y Rating


Escrow Management

Continue to support escrow, including sub accounts, in all states

Day 1 4 2

PA / BD: Supporting parent /child relationship for escrow and tenant accounts are possible via Company Y

Note: Any escrow and tenant functionality has not been utilized by Company Y and additional research is required to identify the degree of any enhancements required to support (e.g., new modules)

Note: Company Y recommended mainframe service (to perform full multi-tier ZBA, Escrow Management and Sweep functionality), Agiletics, scoped and scheduled for installation this year prior to the purchase announcement

Support 1031 Escrow Management Accounts including split interest between ‘master’ and ‘sub accounts’

Day 1 4 2

Require flexible pricing capabilities at the sub account level

Day 1 4 2

Automate split interest calculation or need to work with manual split interest procedures

Day 1 3 2

Perform dual reporting (master earned and sub account earned)

Day 1 3 2

Ability to reopen an account if closing is delayed Post Day 1 2 2

Automated control over open and closing within the branch (real time)

Post Day 1 2 3

Tenant Securities

Ability for sub-accounts to be opened/closed in the branches and online with all data occurring real-time

Day 1 3 2

View sub accounts and maintain across branches (including seeing master with all the sub accounts that belong)

Day 1 3 2

Once sub-accounts opened, they are added to the client’s online platform real time

Post Day 1 3 2

Separates customers with accelerated mailing requests (Fed Ex) - flag on deposit system Added 3/5/09 – Analysis to be completed

Produce special reports for accounts on deposit system (IM & ST)

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

44Confidential



Company Y Rating


Across Products Ability to view and track relationships Day 1 4 4 Company Y CIS has built in relationships

Across Products Ability to view and track households Post Day 1 3 3 Company Y CIS would need to be

configured to exhibit houesholds

Across ProductsAbility for the branch to transfer between accounts with different Tax ID numbers as long as signors on the account are the same

Post Day 1 1 2 PA: Manually established account

ownership, and therefore, could set up tax ID and provide unlimited movement

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

45Confidential



Company Y Rating


Overdraft protection


Day 1 3 4 BD: Sophisticated overdraft functionality at

Company Y; can tie to DDA or HELOC

Sweeps

Support for Euro, Repo, and Loan sweeps Day 1 4 2 BD: Company Y could support multiple

sweep products (investment sweep connected to ZBA sub account) with exception pricing

BD: Company Y currently performing Investment and Repo sweeps (not Euro)

PA: Sweep pricing would tie in the entire Company Y suite with need for proper feeds from other external places

Note: Loan sweeps going into production for ACBS Sprint 2009

Note: Sweep service charge pricing is handled by Weiland Account Analysis; interest rates are balance tiered and table driven by Company Y sub-product type

Ability to have unique sweep pricing schemes Day 1 4 3

Require built in pricing flexibility (market level pricing) Day 1 4 2

Loan to DDA sweeps with ability to group deposits as a loan accounting requirement

Day 1 3 2

Sweeps

Product types for ghost accts and coding of accounts as part of the sweep process


Ability to interface with Mimics (Fidelity system)


Continue to support controlled disbursements Day 1 4 4 BD: Support disbursements with check only

(no ACH)

ZBA/Target Balance Accounts

New system must support functionality Day 1 4 4

BD: Company Y utilizes Company Y based sweep functionality to provide Zero Balance Accounts

CE: Multi-tiered ZBAs are available, but are discouraged due to the processing balance not reporting balances in all tiers (recommended Agiletics mainframe)

Ability for parent / child account typeAdded 3/5/09 – Analysis to be completed

Funds moved automatically based on balance

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

46Confidential



Company Y Rating


Account Analysis

Ability to flag accounts for account analysis Day 1 4 4 PA: Account analysis is driven by sub

product code in Company Y

Ability to suppress hard charges and hard charge from DDA system

Day 1 4 4 PA: Once account is switched to account

analysis in Company Y, all hard charges are suppressed and no longer hit account

Ability for analysis statement illustrating earnings credit rate and service charges (calculation of excess)

Day 1 4 4

PA / BD: Any earnings credit rate and service charges on Weiland; Company Y will also do basics of service charges (earnings credit for balances to off set)

CD Rom Check Service

Ability to flag for CD-Rom on host and index to check/item

Day 1 4 4 PA / BD: Image administrator passes to CD

Rom which gets flagged on Company Y and recon file gets downloaded to process


Ability to deliver same day check detail report to customers

Day 1 4 2

BD: Do not deliver same day check detail or images

BD: Given the limited number of Company Y customers on disbursement and current needs based process, this warrants further analysis of the ability

PA: No auto funding or auto transfer capability; all settled via zero balance transfer (concentration account)

Ability to issue summary report includes fed items, on us (internal processing), ACH, same day

Day 1 4 3 BD / CE: Any items sent to the fed return

the next morning of which summary could be issued

Check Management Ability to search for check over date range Day 1 4 3 BD / CE: Ability to search transaction over

date range but not images which have the ability for point search

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

47Confidential



Company Y Rating


Data Exchange

Ability to flag accounts for outgoing data exchange Day 1 4 4 PA: Company Y supports a corporate

banking code to flag for outgoing data exchange

Ability to send account to multiple BAI2 Destinations Day 1 4 4 PA: Company Y can deliver to multiple end

points, although, requires separate corporate banking code

Ability to selectively send transactions and balance outbound (BAI2)

Day 1 4 2 PA: Do not have the option to selectively

send, options to customize would likely exist

Balance Reporting

BAI2 - host transaction codes need to be translated to BAI2 codes

Day 1 4 4

PA: Company Y stores a translation table, therefore, when balance reporting files are created, reporting in BAI2 codes that service

BAI2 - host information balances and transaction needs to be transferred to BAI2 format

Day 1 4 4 BD: Transfer able to be completed in BAI2

format

BAI2 – ability to flag accounts to identify as an information reporting account

Day 1 4 4 PA: Company Y supports a corporate

banking exchange code

Book Transfers

Ability to transfer between different banks and generate due settlement for bank transfers

Day 1 4 2

BD: Internal transfers performed real time Note: This was noted as a follow-up item

for the Company Y deposits team, although initially perceived as doable

Ability to select book transfers based on balance availability or Not

Day 1 4 4 PA: Company Y default availability is ZBA

limit system, with ACH risk limit, daily overdraft limit, next day availability limit

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

48Confidential



Company Y Rating


Bank Reporting

Ability to generate sweep reports, cycle statements, daily stats

Day 1 4 4

PA / BD: All commercial accounts month end (although able to have special requests)

BD: Statements following business day have archive with .pdf

Flexible statement issuing Day 1 4 3

BD: Daily statements only supported on an exception basis

BD: No ability to specify number of images per page

Ability to generate account analysis reports Day 1 4 2 CE / BD: Hard copy statements mailed out

after tenth business day; current manual entries post items off of Weiland

Virtual Vault Inbound Files from Loomis that are coded Post Transaction to DDA


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

49Confidential



Company Y Rating


International Trade Services and Wire Transfers

Ability to posses profitability file and account analysis file

Added 3/5/09 – Analysis to be completedLockbox Uniquely identify the lockbox deposit

Tabbsfaxx/Fax Balance Reporting

BAI2 file produced from information on deposit system

BAI2 production tied to ACI/OBS/etc.

Billing - hard charge based on IMCM flag

Treasury Key

Continue to support Treasury Key Day 1 4 1 BD: No Treasury Key ‘like’ services

currently at Company Y

Tie child accounts to master (99999) automatically - history is on parent, not on child


Parent Account # is always 5 digits plus 99999

Master/Sub account relationship - deposit moved from sub to master with store location information

Last 5 digits of sub accounts populated deposit location field when item moved to master

Must be part of the new system or built within to support assignment and use of the master/sub acct process and reporting

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


51Confidential


Services

2.1 Ideate




2.5 Launch



Company Y Rating






Regionalize Product


Day 1 4 2 PA: Not configured; would need

configuration at Company Y to implement


Ability to perform exception pricing Day 1 4 3 CE: Potential negative impact to the

customer if exception pricing changes



Post Day 1 3 3




Day 1 3 3

BD: Company Y could support multiple sweep products




Post Day 1 3 4 BD / CE: Bundling is a core part of


Rate TiersCustomize interest rate tiers at a regional or market level

Day 1 4 4 PA: Requires simple table change in

Company Y


In Scope L0

Process



Process Key

Functional AssessmentCapability Detailed Findings – Commercial Deposits

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

52Confidential


Services

2.1 Ideate




2.5 Launch



Company Y Rating







Post Day 1 2 2






In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

53Confidential



Company Y Rating


N/A


In Scope L0

Process



Process Key


3. Market Products

3.1 Plan Marketing


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

54Confidential



Company Y Rating







Day 1 2 4





Day 1 3 3



Remote Sales

Private Bankers should have access to their own set of new account numbers (vs. needing to call the branches to get an account number in order to open a new market)

Day 1 3 4 PA / CE: Unique account numbers exists

outside of branch; accessed through banker support group

Account AnalysisAuto add account to analysis vs. completing a form (manually required Day 1; automated required Post Day 1)

Post Day 1 3 2

PA: Ability to change sub product code in Company Y to redefine account for account analysis, however, requires manual Weiland entry

CE: Company Y can perform some account analysis, “Commercial Analyze Checking” for basic check and deposit items, within limits (e.g., not tiered)

CIP and Borrower Type

Ability to recognize borrower type to prompt the relevant CIP questions

Post Day 1 3 3

BD / PA: Circumventing CIP based on account type and how customers are related to the accounts

Note: Any CIP updates integrate real-time to CIS


In Scope L0

Process



Process Key







3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

55Confidential



Company Y Rating


CIP and Sub Account Opening

Ability to open sub accounts (not considered customer accounts) and bypass CIP portion (applies to all channels that needs to apply and includes tenant security)

Day 1 3 3 BD / PA: Circumventing CIP based on

account type and how customers are related to the accounts

Account Numbers

Ability to convert customers from one product to another while maintaining the same account numbers.

Day 1 3 3




In Scope L0

Process



Process Key







3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

56Confidential



Company Y Rating





Deposit Posting Ability for real time posting of deposits Post Day 1 1 4 BD: Company Y does real-time online

deposit posting






Post Day 1 2 2





Post Day 1 2 3





Post Day 1 2 2




In Scope L0

Process



Process Key





5.3 Manage Content



3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

57Confidential



Company Y Rating


Debit ResearchAbility to pull debit research quickly for customer inquiries

Post Day 1 2 2 PA: RDS performs query and research

and also ability to search within imaging (have flexibility here)

Statements

Ability to provide combined statements (all Client X products) with customized inserts / messaging

Post Day 1 2 4 CE: Company Y statements are fully

integrated and provide the customer with a view of their entire product portfolio

Ability to suppress statements, duplicate statements, boxing statements (RE clients), combine statements

Day 1 4 TBD CE: Follow-up with Joe Matusek

(Company Y Treasury Mgmt Services / Deposit Operations) in progress

Tenant Securities Ability to view tenant securities online Post Day 1 3 2

BD / CE: Nothing is booked outside of Company Y, therefore, can view all accounts, including tenant securities online (as long as deemed owner of account)

FloatsSupport float application (including float removals and custom floats)

Day 1 4 4

PA / CE: Ability to vary float at customer level thru customer scoring and database solution

PA: RDS identifies what the float should be based on item or thru an exception table

Returned Item Processing

Support returned item processing including the extraction, qualification and return of drafts

Day 1 4 3 PA: Return items process is manual CE: No electronic notification or reporting

exists


In Scope L0

Process



Process Key





5.3 Manage Content



3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

58Confidential



Company Y Rating


Industry CodesAbility to classify an account / client as belonging to a specific SIC/NAICS industry code

Post Day 1 3 4

PA: Company Y can accept a variety of inputs related to code

PA: Ability to add to flag a SBB / Commercial customer


Banker Ability to see full customer relationship (including national products like Card and Auto)







Engagement






Fee Waivers

Systematized fee waiver authority where the system dictates who has the ability to waiver certain fees under certain circumstances



Fees can be split to master and sub functionality for DDA, Escrow and Tenant sub accounts


Expedited FundsAbility to offer expedited funds availability on an account or on a relationship regardless of how a check gets deposited


In Scope L0

Process



Process Key







3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

59Confidential



Company Y Rating


Charge OffsPerform charge off, reverse charge–offs, and recoveries


FraudAbility to support leading edge Fraud capabilities

Day 1 3 3

PA: Performed by Company Y Fraud operations group with ability to instantly update / maintain alerts on the fly

PA: Company Y has online real-time access to accounts, which allows for immediate changes

Note: Fraud / Security identified as a follow up area in the 2/23 session with Company Y

PA: Use EPA – ACH filters and blocks on PEP+ with various levels: Company ID (first level), Amount (fixed or threshold); both block-all and selective blocks set up on PEP+

NSFAbility to charge NSF fees directly to sub-account vs. direct to master account

Day 1 3 3 PA: Sub accounts in Company Y hard

charged NSF or Weiland, bundle NSF


In Scope L0

Process



Process Key






3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key







F. Consumer Lending




62Confidential

Functional AssessmentProduct Detailed Findings – National Direct Bank

Custom

er E

xperience

Process

Alignm

ent

Business

Differentiation


Company Y Rating


Online Savings

Account (OSA)

Variable rate with higher rates for account balances of $10,000 or more

Free online transfers to and from existing non-Client X One accounts

Only available through online channel FDIC Insured; no minimum balance Fund via check, wire, internal transfer, or external

transfer / ACH (online only)

Day 1 4 3

BD: National footprint allows Client X to have competitive rate without having to re-price the entire portfolio

PA: Specialized workflow and centralized print / mail functionality required to adhere to compliance requirements and manage fraud risk

CE: Company Y has not enabled regionalization functionality within Company Y

High Yield Money

Market (HYMM)

Variable rate; updated weekly Free online transfers to and from existing non-Client X

One accounts Checks and ATM card included No fees; $1 minimum initial deposit FDIC Insured; no minimum balance Apply online, by phone, or by mail Fund via check, wire, internal transfer, or external


Day 1 4 3




Rewards Money

Market

Variable rate; updated weekly Free online transfers to and from existing non-Client X

One accounts Checks and ATM card included 1 mile for every $20 of average balance for the month No fees; $1 minimum initial deposit FDIC Insured; no minimum balance Apply online, by phone, or by mail Fund via check, wire, internal transfer, or external


Day 1 4 2


PA: Specialized workflow and linkages required to enable and manage rewards functionality

CE: Rewards linkages add to overall customer experience

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

63Confidential

Functional AssessmentProduct Detailed Findings – National Direct Bank

Custom

er E

xperience

Process

Alignm

ent

Business

Differentiation


Company Y Rating


Traditional CD

Minimum deposit = $5k for Standard / $100k for Jumbo

Maximum deposit = $3M for Retail / $1M for Commercial

Available terms are from 6 months to 10 years Apply online, by phone, or by mail Fund via check, wire, internal transfer, or external

transfer / ACH (online only) FDIC Insured

Day 1 4 3




Business Money

Market

Variable rate No fees; $1 minimum initial deposit No minimum balance Access via checks (allowed 6 transfers/withdrawals per

statement cycle, 3 of which may be checks to 3rd parties)

Account info available online or by phone Fund via check, wire, internal transfer, or external

transfer / ACH (online only) FDIC Insured

Day 1 4 3




Costco Relationship

(HYMM, OSA, CD)

Additional characteristics: No 6 or 12 month terms for CDs Initial bonus of $20 or $60 depending on Costco

membership level for CDs “Exclusive” rates – (higher than a non-Costco deposit

product) Minimum deposit of $5,000 to open OSA Apply online (Costco website) or by phone

Day 1 4 2

BD: Affiliate programs allow NDB to expand customer base

PA: Specialized workflow and linkages required to enable and manage affiliate relationship functionality

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


65Confidential



Company Y Rating




Day 1 4 2

BD / PA: RDS / Company Y is table-driven; rules can be changed, although complexity depends on the offering with NDB requirements being the most complex


Ability to change rates quickly (including customization of tiers at the region / market level)

Day 1 4 4

BD: Company Y changes rates at the product level. Currently rates are not variable by region




Day 1 3 3


CE: Supports providing an improved customer experience






Day 1 4 3

PA: Could support depending on the complexity of the product (would need to configure and test) Generally takes ~1 week if new product code is not required

Converting Accounts to New Products

Support converting accounts to new product type without impacting account numbers, OLB, debit, etc.

Day 1 4 3




In Scope L0

Process



Process Key

Functional AssessmentCapability Detailed Findings – National Direct Bank

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


Services

2.1 Ideate




2.5 Launch

66Confidential



Company Y Rating




Day 1 4 2



Promotional Codes


Day 1 4 2


PA: May be some gaps in the way Company Y is able to deliver this functionality, specifically for NDB

Ability to use promotional codes to identify customers taking advantage of an offer and/or for use in establishing that account is eligible for direct mail bonuses

Day 1 4 2


PA: Company Y has limited ability to track where an app came from; NDB will be the most impacted



Post Day 1 2 3



Statement Messaging


Day 1 3 4



Sales Brochure Request

Ability to request and send sales brochures to customers specific to a particular type of product. Brochures include an application for the customer to return for opening of an account

Day 1 3 3

BD / CE: Company Y has real time PDF messaging capabilities; NDB only sends paper copies to customers (PDF capabilities on “to do” list for Client X)


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

3. Market Products

3.1 Plan Marketing


67Confidential



Company Y Rating


Pending Account Application

Ability to support a pending application until the funds have been resolved

Day 1 4 2

BD: NDB has completely automated boarding process

PA: Boarding of an account and funding is separate at Company Y

Account Opening and Funding

Ability to open an account with a zero balance

Day 1 4 3 PA: Company Y can open an account with

a zero balance; need to understand automation from end-to-end

Ability to close out account with no penalty if funds are not received with in required timeframe

Day 1 4 3 PA: Company Y can close an account

without penalty if not funded

Funding Flexibility

Ability to direct new accounts and money in either of two legal entities - CONA or Client XUSNA as needed

Day 1 4 2

BD: Company Y does not have multibank functionality active in Company Y

PA: Extensive development will be required to enable RDS and Company Y

Sales Page


Day 1 4 3





tracking



Post Day 1 2 3




Customer Authentication

Ability to authenticate requirements for NDB; consists of VRU pin and or VERID (web based 3rd party authentication tool) for transactions

Day 1 4 2 PA: Will require alignment with NDB

processes to provide necessary fraud and compliance controls


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






68Confidential



Company Y Rating


Required Disclosures

Support the required disclosures that must be delivered to the customer over the phone or via the Web at the time the account is opened

Day 1 4 3 PA: Company Y disclosure tracking will

need to be updated to account for disclosures required for NDB

DocumentsMonitor the status of the documentation to ensure compliance requirements are met

Day 1 4 3

BD: Document workflow for NDB will have to be developed for RDS / Company Y

PA: Company Y statement data Is stored as PDFs in IBM’s content management


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






69Confidential



Company Y Rating




Post Day 1 3 3




Allow users to complete a workflow process for which a specific Case notebook is not currently provided

Day 1 4 3 PA: Case management is not integrated

with RDS

StatementsAbility to provide combined statements (all Client X products) with customized inserts / messaging

Day 1 2 4

BD: Company Y has fully integrated statements that include all products

CE: Customer has ability to define relationships

Deposit PostingAbility to send deposit receipts to customers via email and mail

Day 1 1 4

BD: Company Y does real-time online posting

CE: Real time account posting enhances customer experience

Interest CreditAllow the user to enter a whole dollar amount credit and reason

Day 1 4 3 PA: Company Y can be configured to

apply interest credit

Unique Product Servicing

Ability to capture and maintain information for servicing unique products (e.g., membership number for the Costco MMA/CD products and the credit card number for the Cross Sell Rewards MMA product)

Day 1 4 2

BD: Affiliate relationships expand customer base

PA: Affiliate capabilities require development

Funds Access Limitations

Ability to support the process in which customers will receive checks and ATM cards only after we have received all completed required documentation

Day 1 4 2 PA: Workflow and centralized print, and

fulfillment operations would have to be updated

Incomplete Documentation

Display an alert to the CSR if there is incomplete documentation for one or more of a customer’s new accounts

Day 1 4 3

BD: Enables CSR to finalize customers accounts

PA: Screen prompt would have to be built into RDS


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key




5.3 Manage Content

5.4 Add Ancillary Product to Existing Account


70Confidential



Company Y Rating


Add Stop / Holds Special Instructions

NDB has specific hold rules for deposits. Certain windows permissions added; default information for NDB and enabling/disabling logic updates

Day 1 4 3 PA: Logic would have to be developed to

add capabilities to Company Y and RDS

Document Imaging

Support a robust imaging system and process

Day 1 3 4 BD: Company Y has PDF capabilities and

online document distribution

Costco Maintenance

Allow CSR to update the existing Costco Membership Information on a Costco MMA or CD

Day 1 4 3 PA: Update to RDS required


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key




5.3 Manage Content

5.4 Add Ancillary Product to Existing Account


71Confidential



Company Y Rating


Prompts




Update Customer / Prospect

Provides the ability to update or create a customer and/or a prospect and to verify a customer’s profile information

Day 1 4 3 PA: Salesforce.com has the capability to

perform prospecting but is not currently enabled / set up







Day 1 3 3





Post Day 1 3 3







Consumer Complaints


Post Day 1 2 2




In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






72Confidential



Company Y Rating






Rewards

Provide automated enrollment and updates to Rewards Money Market Accounts on the vendor Rewards platform

Day 1 4 2 BD / CE: Reward functionality at



Day 1 4 2 BD / CE: Reward functionality at



In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






73Confidential



Company Y Rating


N/A N/A N/A N/A N/A BD: PA: CE:


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

7. Sell Loans



74Confidential



Company Y Rating


Charge OffsPerform charge off, reverse charge–offs, and recovers


(although, different group does for lending vs. deposit)

Centralized Print

Support unique NDB print process due to the additional fraud controls Account servicing performed in the back office only, since there are NDB specific letters that branches do not need to provide.

Day 1 4 3

BD: Client X has robust automate print and mail functionality to sale and service accounts

CE: Company Y can enhance customer experience through real time delivery using PDF functionality

Fraud Controls / Alert

Support the Fraud Alert Maintenance function that allows a CSR to enter, update or delete a fraud alert message for a customer

Day 1 4 3

BD: Company Y has ability to update controls real time and apply restraints, flags, or remarks

PA: Will require complete understanding of current capabilities to tap into external fraud monitoring services


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key





75Confidential



Company Y Rating


Deposit Hold Policy

Support unique hold requirements that are required to manage the risk based channel in which NDB generates new accounts

Day 1 4 3 BD / PA: Policy and logic for extended

hold requires development


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

9. Manage Risk











F. Consumer Lending



77Confidential

Deposit Operations Gap Client X / Company Y Gap Assessment Intent & Approach

Functional Capability Comparison Map Current State Company Y &

Client X Compare Performed Services

Evaluate and identify significant gaps between Chevy Chase Bank and Client X One Back Office Operations to serve as input into Deposit Operations integration planning & significant integration decisions.

Overlay Potential Considerations/ Assumptions (Products Remain, Company Y Core Systems)

Use Client X processes as scope boundaries Assign Weighting to Close ID Potential Day 1 and Day 1-30 Requirements

Validate Due Diligence Finding ID Potential New Synergies

Synergy Assessment

Gap Assessment

Blue P

rinting

78Confidential

Deposit Operations Functions

Chevy Chase Bank Client X One Bank

Research and AdjustmentsException ProcessingDay Shift Check Processing / Commercial ARPNight Shift Check ProcessingRetail / Wholesale Lockbox OpsACH ServicesCIS ServicesMail and Distribution ServicesDomestic Wire TransferATM OperationsRemote ATM Operations

Research and AdjustmentsException Processing / Return ItemsNational Check Processing / ARPCheck Image ArchiveLockbox Wholesale and RetailACH / Wire OperationsCIS Maintenance and Time SupportStatement Rendering / Mail / Transportation ServicesDomestic Wire TransferATM / Debit Card Dispute SettlementATM Hardware Deployment

79Confidential

Process / Function Intersection

Chevy Chase Bank Client X One Bank

Check Support ServicesItems Processing OperationsTreasury Management and ACHGeneral Document ServicesFinanceElectronic Banking Operations

National Direct BankPassbooksLockbox *Account Analysis *Escrow Mgmt AccountsJersey Escrow Mgmt AccountsTenant Security AccountsSurrogate Court AccountsKey AccountsInvestment Sweep *Float Management *ACH Origination *Controlled Disbursement *Consolidated ReturnsPayment Acceptance *Regional PricingLoan to DDA Sweeps *

** Indicates Company Y has some version of this product, but CONA’s version is more customized

80Confidential

Summary of Identified Gaps for Deposit Operations

People Process Technology DataNational Direct Bank CONA supports a highly customized deposit gathering and

servicing platform for non-branch based accounts. Customization exists in many systems such as TouchPoint Sales and Service, Lockbox, IMPACS, CIS, item processing and, ACH.

Moderate High Extreme High NDB is a separately chartered financial institution. CCB has multi-bank capabilities, but this has not been enabled and must be developed.

Tenant Security Accounts

Unique lead / sub-account product where the lead account is held by the landlord/management company. Individual sub-accounts are savings accounts held in the name of the tenant as well as the landlord. Special interest sharing logic in employed to pay the tenant a state mandated share of the earnings annually. A suite of reports is offered with this product. Product differs by state.

Moderate High Extreme Extreme This is not a product that CCB currently offers, thus a significant requirements / analysis phase would be required in order to build out the necessary functions.

Passbooks CONA’s deposit servicing platform supports passbook accounts. Traditional passbooks are offered in the branches of the northern market. The system utilizes history files and transaction flags to synchronize the information reflected on the customer’s passbook with that of the bank’s records.

Low Low Moderate Low While CCB does not currently offer Passbooks, CCB's Hogan system has a Passbook module and the code has been located. CCB has confirmed that RDS system can support the required Passbook printers.

Surrogate Court Accounts

Master / sub account relationship offering where the courts of New Jersey own the master account. The sub accounts are held in the name of a minor whose funds are being held in escrow. Accounts are awarded to a bank on an 1, 2 or 3 year term. The product includes a suite of reports such as monthly trial balance, accounts with balances greater than $95,000, activity statements, etc.

Moderate Moderate Moderate Moderate While this would be a new CCB product, there are no significant concerns about the ability to implement.

Returned Item Automation

Utilizing an advanced return item processing system called TRIPS, CONA provides a suite of services for high volume depositing clients as well as consolidated return services for non-depositors.

Low Moderate High Moderate CCB currently does not support returned deposited item automation. In fact, additional enhancements to the existing CCB operational environment (RDS and Hogan) will be necessary to support an all-items capability. CONA's existing TRIPS return item system.

Integration Complexity Assessment

Sub-Function Description Complexity RatingComments

81Confidential


People Process Technology DataACH Origination CONA has a deep ACH processing capability and product

offering. These capabilities support unique product offerings sold by Treasury Management. Products include: Electronic Debit Protection, SEC Monitoring, automated pre-funding, EDI statements. CONA’s ACH operating platform runs on an optimized DB2 logical partition that also supports the ACH servicing for Capital One corporate.

Moderate Moderate Moderate Moderate An assumption is made that CONA's existing PEP+ platform will be redirected to interface with CCB's core deposit systems. As CCB's systems do not currently support DB2, other hosting solutions must be explored.

Loan to DDA Sweeps CONA systems support automated advances from commercial lines of credit as well as automated pay down.

Low Moderate Moderate Moderate CCB is currently working on a similar product initiative. Development and testing is underway. Further analysis may be necessary to determine if this meets CONA's product needs.

Regional Pricing CONA systems are enabled and support regional product pricing and rate management giving flexibility to price deposits according to local market conditions.

Low Moderate High Moderate CCB does not currently support regionalized pricing. The Hogan platform supports it. The functionality must be implemented to support the desired end state.

Risk Mitigation CONA employs a number of fraud preventative measures that are not supported by CCB systems. ACH account funding review, outbound wire transfer, kiting suspect, data warehouse tools.

Moderate Moderate Moderate Low While CONA and CCB share a number of back office systems to effectively manage fraud risk, there are other capabilities that CONA brings to the table that must be solved for.

Statement Mailing CONA out sources statement print and rendering to First Data Resources (FDR). CCB performs all statement print and rendering in house.

Low Moderate Moderate Moderate Statement composition and image integration into the printed statement would have to be re-engineered in a move to the CCB platform.

Overdraft Management

CONA utilizes a customer scoring model to actively manage overdraft line and service charge values. Account scores are loaded into the core banking system to maximize revenue from overdrafts while minimizing charge off risk. Calculated overdraft line amounts are included when authorizing transactions at the teller line, point of sale and ATM.

Low Moderate Moderate Moderate While CCB employs a scoring model for overdraft automation, it does not optimize fee income.



82Confidential


People Process Technology DataReg E Claim Management

Service delivery associates in the front office and call centers use an automated Regulation E tool for claim submission, aging, resolution and reporting. The Clear Claims system receives daily feeds from core banking systems to provide a paperless claim submission work flow.

Moderate Low Moderate Moderate CCB employs a manual paper based Reg E claim process. CONA employs an automated workflow tool which could be redeployed to the CCB platform.

Lockbox CONA’s lockbox platform is highly customized to support multiple product offerings such as MasterCard RPPS, online deposit acceptance decisioning, invoice imaging, online retrieval of invoices, deposited items, etc. Retail lockbox is outsourced to Remitco.

Low Low Moderate Low CONA and CCB will continue to use their own existing lockbox solutions, though CONA must disengage their solution from the Fidelity platform and re-attach to Hogan.

Escrow Management Accounts

Special account offered where master and interest bearing sub accounts are linked. Special reporting is offered to these clients. Month end trial balance, activity statements and quarterly name and address registers are produced for these accounts.

Low Low Moderate Low While CCB considers this a low complexity item given the relative visibility of the client group this product supports, further analysis must be considered.

Jersey Escrow Management Accounts

Special account offered where a zero balance master account is linked to interest bearing sub accounts. Automated funding from sub accounts to master account is performed within the Item Processing area using feeds from the core deposit system. A suite of special reports is provided for this product.

Low Low Moderate Low While CCB considers this a low complexity item given the relative visibility of the client group this product supports, further analysis must be considered.

Key Accounts Specialized depository account used to consolidate multiple locations into a single account. This is a replacement to a serialized deposit reconciliation account in that the depositing location is provided a unique account in which to make their deposits. During nightly processing, transactions are posted to a single master account with the location account number used as the transaction identifier.

Low Low Moderate Low While this would be a new CCB product, there are no significant concerns about the ability to implement.



83Confidential


People Process Technology DataInvestment Sweep Overnight sweep product where deposits are swept into a

unique liability account on the general ledger and are not subject to reserve requirements or FDIC insurance premiums. Deposits are held as a liability of Capital One Bank of the Cayman Islands.

Low Low Moderate Low CCB has an existing sweep product however the maturing investment does not mature into the operating account at the opening of business.

Float Management Capital One actively manages check availability schedules by market and client utilizing a system called FPS (Float Pricing System). Reducing availability allows CONA to manage fraud risk and generate negative float thereby increasing free balances. Accelerated availability is also offered to selected float sensitive clients.

Low Low Moderate Low Capital One utilizes an active float management system (FPS). It is assumed that this system would be integrated into CCB's check processing environment. The relevance of this system over time may be marginalized as Check 21 technology continues to mature.


While CCB offers a controlled disbursement product, it lacks an automated funding capability as well as ACH payment integration. CONA offers the ability to sweep funds from investments, lines of credit, or other deposit accounts for funding controlled disbursement checks and ACH.

Low Low Moderate Low The expectation is that Capital One would move over the existing solution and implement at CCB. It remains to be determined if Capital One owns that code, however.

Payment Acceptance CONA supports the acceptance of Capital One credit card and auto finance payments in its branches. Payment information is validated and transmitted to the appropriate servicing platform. Payments are settled and funds consolidated into the appropriate business unit. Returned items are handled in an automated manner.

Low Low Low Moderate CCB offers a variety of third party payment acceptance channels. Leveraging this existing infrastructure for Card and Auto Finance should not be a significant challenge.

Automated Charge Offs

CONA systems provide for an automated account charge off capability. Accounts that are overdrawn with no activity are automatically closed and charged off at a predetermined interval with records forwarded to a recovery unit for collection.

Low Low Low Low CCB has an automated charge off process that requires some manual intervention, however closing the gap would not require significant effort.



84Confidential


People Process Technology DataAccount Analysis CONA provides balance house holding for commercial

clients via a robust account analysis system from Hamilton and Sullivan. This system receives automated feeds from core banking systems as well as servicing and delivery systems. Relationship managers have an interactive reporting tool available to perform trending, “pro-forma” analysis, prospecting, and historical reporting.

Low Low Low Low CONA and CCB would retain both systems, running in parallel. A roadmap would need to be developed post-integration to consolidate into one platform.

CIP Exception Management

CONA systems provide an automated Customer Identification Program (CIP) exception management tool. CIP data is validated and scored against required CIP information. Exception reports are generated and worked in the back office in conjunction with the branches.

Low Low Low Low CCB has a customer identification program process that requires some manual intervention, however closing the gap would not require significant effort.









F. Consumer Lending




87Confidential

Functional AssessmentProduct Detailed Findings – Consumer Lending (CL) / National Lending (NL)

Custom

er E

xperience

Process

Alignm

ent

Business

Differentiation

CL NL Product Desired Features / Description Timing

Client X RatingCompan

y Y Rating

Comments / ImplicationsCL NL

X Overdraft Protection

Ability to support overdraft protection product

Ability to link to a DDA (similar to Company Y)

Support the ability to tie the product to Home Equity Line of Credit (HELOC)

Day 1 2 N/A 4

BD / CE: Sophisticated overdraft functionality at Company Y; can tie to DDA or HELOC

Company Y does not currently link to card (business decision)

X Home Equity Line of Credit Continue to support HELOC product Day 1 4 N/A 4 CE: Would maintain experience

X Home Equity Loan Continue to support Home Equity Loan

productDay 1 4 N/A 4 CE: Would maintain experience

X Personal Line of Credit

Continue to support PLOC product Ability to support linking the PLOC to

deposit account Support PLOC for consumers who do not

qualify for a card

Day 1 4 2 4 CE: Would maintain experience

X Other Line of Credit Continue to support other lines of credit

(e.g., Student Line of Credit)Day 1 4 2 4 CE: Would maintain experience

X Automobile Loans Continue to support the direct automobile

loan productsDay 1 4 N/A 4 CE: Would maintain experience

X Savings Secured Loans Continue to support Savings Secured

loansDay 1 4 N/A 4 CE: Would maintain experience

X X Same As Cash Continue to support the Same as Cash

loansDay 1 N/A 4 2

BD / CE: Development and configuration work necessary to support the product and functionality at scale

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

88Confidential

Functional AssessmentProduct Detailed Findings – Consumer Lending (CL) / National Lending (NL)

Custom

er E

xperience

Process

Alignm

ent

Business

Differentiation

CL NL Product Desired Features / Description Timing

Client X RatingCompan

y Y Rating

Comments / ImplicationsCL NL

X Installment Loans

Ability to support the following product features:

- Fixed and Variable Rate- Simple and ADB Interest- Single and Joint Applicants- 36 – 84 Month Terms- Fulfillment via check- Unsecured Only- Reloads (Refinances)

Day 1 4 4 3

PA: Not using installment feature in Company Y Loans, but feature is available

CE: Company Y does support installment loans through RDS

X Point of Sale Loans


- Fix Rate Only- Simple and ADB Interest- Single Applicants Only- 84 - 96 Month Terms- Unsecured Only- Deferred interest- Reloads (Refinances)

Day 1 N/A 4 2

No current support for POS loans at Company Y. Core functionality is represented by Company Y as existing, but significant development/ configuration would be required to support at scale

X Small Business Loans


- Fix and Variable Rate- Simple and ADB Interest- Single and Joint Applicants- 24 – 72 Month Terms- Secured and Unsecured- Reloads (Refinances)

Day 1 3 3 3

Company Y splits SB loans between ACBS and Company Y Loans. Expect some degree of development required to support Client X book

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


90Confidential


Services

2.1 Ideate




2.5 Launch

CL NLHigh Level Capability

Description Timing

Client X Rating Compa

ny Y Rating


CL NL

XNew Product Roll-out

Ability to roll out new products at a rate of several per year per LOB

Day 1 3 3 3

PA: Company Y new product launches follow their SDLC process and are on bi-annual release

PA: Company Y can roll-out new product model within ~ 30 – 90 days; complex may take longer

XPerform Relationship Pricing

Ability to relationship price (rate or fee depends on criteria such as balance level, use of services)

Post Day 1

2 2 3

PA: RDS integration with core deposits provides ready access to relationship information

PA / CE: Can perform relationship packaging / pricing – rate or fee can depend on different criteria

XSupport Product Bundling

Ability to support bundling of products (tie products together and modify rates, fees, and other features)

Post Day 1

2 N/A 3

BD / CE: Company Y has pre-defined bundles that operate today. Moderate degree of effort needed to define new bundles based on Client X business decisions

X

Support Account Linking between Deposit and Lending Products

Ability to link accounts to transfer funds (e.g., Checking account to HELOC)

Post Day 1

4 N/A 4

PA / CE: Lending and deposit products can be linked via RDS/ACAPS/Company Y Loans

X Rate AdjustmentProvide the ability to cap rates on variable products and modify rates for particular promotions

Post Day 1

4 4 3 CE: Rates can be adjusted

based on balance tiers the customer is in


In Scope L0

Process



Process Key

Functional AssessmentCapability Detailed Findings – Consumer Lending / National Lending

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

91Confidential


Description Timing


ny Y Rating


CL NL

XProduct Offer Repository

Ability to access information relating to the product offers that have been extended to a customer

Post Day 1

3 4 2

PA: Limited ability to track where an application came from (RDS tracks walk-in / online)

CE: Company Y has ability to know when to not offer a product to somebody (if customer didn’t qualify for a product, product isn’t available for offer)

XPredefined Marketing Offers

Ability to setup and manage a predefined list of marketing offers to a predefined list of prospects or customers

Post Day 1

3 4 2

BD / PA / CE: Company Y does not currently utilize true pre-defined marketing offers at specific segments

CE: Company Y Campaigns are currently directed at the entire customer base


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

3. Market Products

3.1 Plan Marketing


92Confidential


Description Timing


ny Y Rating


CL NL

X

Application Capture (Origination)

Provide the ability for customers to apply for loans through the online, Branch, Mail and phone channels

Day 1 3 3 2

PA / CE: Customers can apply from Loans through online, branch, and phone – not direct mail at Company Y

CE: Company Y lacks automations in app capture processes

XAbility to make all products available and originate through the online, branch, and call center channels

Day 1 3 3 3

PA: Client X doesn’t originate through web today except through national lending

PA: Company Y online takes apps and routes to contact center for underwriting

XSolicitation (Origination)

Support SOL Setup, Change and Update Solicitation

Day 1 N/A 4 2

PA: Company Y does not currently have campaign management capabilities for direct marketing

X

Decisioning (Origination)

Ability to support real-time decisioningPost

Day 13 4 3

PA / CE: Real-time suggested decisioning through Strata only at Branch– all loans go through manual underwriting

PA: Decisioning process is not fully automated; decision is not approved until it is manually reviewed

XProvide automated decisioning models and tools (e.g., credit modeling)

Post Day 1

3 4 3

BD / PA: Credit modeling available through ACAPS / Strata; need review of decisioning models / tools

BD / PA: ACAPS/STRATA has variable coding functionality to enable more flexibility when modeling


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






93Confidential


Description Timing


ny Y Rating


CL NL

X XFulfillment (Origination)

Ability to approve loans , fund loans, disburse checks and socialize disclosures with customers

Day 1 4 4 4

PA / CE: Approval, funding, a check disbursement managed through ACAPS; checks cut in branches

X X

Fulfillment (Origination)

Ability to decline and initiate adverse action correspondence

Day 1 4 4 4

PA: Adverse action letter is generated and mailed to customer

CE: Customer has ability to call to question and correct issue

CE: Upon correction, can quickly redecision application

X X Support gathering and tracking documentation Day 1 4 4 4 PA: ACAPS workflow

managed document tracking

X

Ability to support the customer on-boarding process to assist a customer prior to their check being cashed and their loan boarded onto ALS

Day 1 N/A 4 3

PA: Process does not exist today, but could with limited effort

CE: Check is currently part of welcome package at Client X and number appears on disclosure forms

XAbility to support the issuance of checks, checkbooks, and electronic funds transfer

Day 1 4 N/A 4 CE: Available in the branch,

real-time today

X XMulti-Channel Originations

Ability for customers to originate products across all channels (e.g., start on the web and finish in the branch)

Post Day 1

3 2 2

PA / CE: Company Y process does not allow for this unless an application is saved

PA; Online apps at Company Y must be rekeyed into ACAPS after submission


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






94Confidential


Description Timing


ny Y Rating


CL NL

X XPre-populate Demographic Information


Post Day 1

2 3 4

PA / CE: Can pull data from CIS if customer exists

CE: Process is to enter customer data into CIS prior to account application if customer does not exist

XOverdraft Linkage

Ability to link card to DDA as overdraft protection

Post Day 1

4 N/A 3

PA: Not currently being utilized by either entity in full today

CE: Company Y has more sophisticated overdraft functionality mainly due to deposit and lending system integration

X XAutomated Underwriting

Provide automated underwriting functionalityPost

Day 13 4 2

PA: Provides automated decision suggestion, but still a manual underwriting process

X XAutomated Process Workflow

Provide automated workflow capabilities throughout the lifecycle of the account opening process

Post Day 1

3 3 2

PA: Manual, paper-based processing between core systems; lack of online to ACAPS workflow

PA: Manually enter code to queue application to next function

X

Provide Customer Information to Auto Dealers

Ability for auto dealers to acknowledge Client X One customers during the lending process (need to define how)

Post Day 1

1 N/A 1 CE: Does not exist in either

entity today


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






95Confidential


Description Timing


ny Y Rating


CL NL

XApplication Processing

Ability to support single and joint application processing

Day 1 4 4 4 CE: RDS supports single or

joint applications

XCustomer Needs Assessment

Ability for customer to enter data and have a product recommendation delivered real-time

Post Day 1

2 2 2

BD / PA / CE: Company Y does a profile with DDA opening

CE: Not available via online channel

X Pre-ApprovalAbility to see if a customer is pre-approved for other Client X products (like a card) real-time

Post Day 1

2 2 2 PA / CE: RDS has integration

for pre-approval options with Chase

XOnline Qualification Process

Ability for a customer to receive real-time product qualification information online

Post Day 1

2 2 2 CE: Does not exist in either

environment today

X XCustomer Credit Check

Ability to pull credit at the time of account opening

Post Day 1

4 4 3 BD / PA: Company Y can pull

data from all 3 bureaus but only use 1 per application

XProduct Information

Provide Banker or sales professional with detailed product information to drive conversation

Post Day 1

3 3 4 PA: RDS Sales agreement

window provides eligible and current products to customer

X X Single Sign-OnSingle sign-on to a single system that interfaces with others as necessary; no duplicate entry

Post Day 1

2 2 3

BD / CE: Single sign on through RDS

PA: No ASP interfaces for consumer lending


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






96Confidential


Description Timing


ny Y Rating


CL NL

X XApplication Requirements

Ability to provide customer expectations in terms of what s/he needs to complete the lending process (e.g., checklist)

Post Day 1

3 3 3 PA: Process does not exist

today, but could with limited effort

X XBundle Decisioning

Ability to decision entire product bundle (not just product by product)

Post Day 1

2 2 2 Not done for either bank

X XComprehensive Application View

Provide a comprehensive view of simultaneous applications

Post Day 1

3 N/A 3

BD / PA: RDS provides information relative to the applications of a specific customer


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






97Confidential


Description Timing


ny Y Rating


CL NL

X XVendor Integration

Maintain vendor licenses and relationships (e.g., flood certifications)

Day 1 4 4 3 PA: Potential to link 3rd party

vendors to RDS

X3rd Party Reporting

Ability to interface with and receive reports from various 3rd parties (e.g., Dunn and Bradstreet)

Day 1 4 4 2 PA; Company Y does not

currently report to credit agencies

X

Account Maintenance Processing (i.e., Global 360)

Ability to access account maintenance / change requests that are queued through a change request system (e.g., address change, credit loan files)

Day 1 3 3 2

PA: Account service requests queued thru G360 at Client X

PA: Company Y utilizes supportforce to track and manage customer request; not utilizing breadth of functionality

X X

Case Management

Process and track customer requests Day 1 3 3 2


PA: Company Y does not have workflow case tracking

X XProcess and track customer complaints and disputes

Day 1 3 3 2


PA: Company Y does not have workflow case tracking

X XAbility to view, manage and escalate customer complaints / disputes across channels and the Bank

Post Day 1

3 3 3

PA: Company Y has an escalation process within the contact center; is not entirely automated

CE: Can speak to supervisor in the event rep can not handle issue


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key




5.3 Manage Content



98Confidential


Description Timing


ny Y Rating


CL NL

X XManage Correspondence

Ability to manage tasks and correspondence (including file transfer) relative to servicing the loan (e.g., Process Inbound Correspondence, Process Outbound Correspondence, Issue Statements, Recurring ACH)

Day 1 4 4 2

PA: Maintain logs of customer correspondence via an Access DB

PA: Physical mail from custom is placed in loan file

X Payment Options

Ability to support multiple payment options (e.g., branch payments, electronic payments (eBox), Lockbox Paper payments, Recurring ACH Payments, Payment Exceptions/Returns/Rejects, Payment Investigations, OnLine Banking Payments)

Day 1 4 4 3

BD / PA / CE: Supports all forms of payment options listed, which can be initiated thru all channels and processed directly into Company Y Loans

PA: ACH set-up manual at Company Y; automated at Client X

XOnline Payments Processing

Maintain availability of online banking features and payments processing through various channels (new features – must have) (includes recurring ACH)

Day 1 4 4 3

BD / PA / CE: Supports online payment processing

BD: Client X supports debit card payments

X ReconciliationSupport the reconciliations of various monetary activities

Day 1 4 4 3

PA: Mostly manual process; data compiled from multiple sources and reconciled accordingly

X Early Loan Payoff Maintain customer early loan payoff process Day 1 4 4 4 PA: Supports early loan payoff

and corresponding activities

X Loan Re-Loads Ability to re-load an existing loan Day 1 N/A 4 3

BD: Company Y does not flag or identify loans that may be re-loaded

PA; Does support re-load in the same fashion as refinancing


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key




5.3 Manage Content



99Confidential


Description Timing


ny Y Rating


CL NL

X

Service Entire Product Suite In the Branch and Call Center

Ability to service the entire product suite in the branch and over the phone (call center)

Post Day 1

4 2 3

BD / PA: Is not nationally scaled at Company Y, but does support servicing thru RDS in branch and contact center

X Service to SalesEnable service to sales functionality to assist in cross-selling products to consumers at the point of service

Post Day 1

3 2 3 BD / CE: No current external

offer management system in place at Company Y

XCustomer Stratification

Ability to provide differentiated servicing in the call centers and branches based on the customer value / segment

Post Day 1

3 2 4


PA / CE: Does segment the servicing based on the package at Company Y; can perform analytics

X

Feedback Mechanism between Bank Parties

Provide a feedback loop or access point between the various parties handling the opening / servicing process

Post Day 1

3 3 3 PA: Verbal feedback loop

between parties; can enter notes in RDS, supportforce

X

Interest Rate Management

Ability to perform multiple interest rate calculations (daily simple interest and average daily balance)

Day 1 4 4 3

BD: Average daily balance capability not being utilized

PA: Utilizes rate based loan balance and tier processing; rate tiering tied to balance

X Ability to manage variable interest rates Day 1 4 4 3

BD: Utilizes a variety of indices maintained manually across platform tables

PA: Lots of flexibility in managing variable rate loans (both closed and open ended)


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key




5.3 Manage Content



100Confidential


Description Timing


ny Y Rating


CL NL

XFinancial Reporting

Ability to access and reconcile financial reports Day 1 4 4 3

PA; Can integrate with the appropriate parties and reconcile accordingly; much a manual reconciliation process

XInquiry Backdating

Ability to reconstructs the loan back to the date entered so that an associate can review what a loan looked like at any day in the past

Day 1 4 4

XTransaction Backdating

Ability to systematically backdate a transaction to "unpost" inappropriate late charges, adjust payment splits to principal and interest, recalculate the days past due indicators and downstream to the credit bureaus, if daily reporting is done

Day 1 4 4

XPost / Repost Automation

Ability to take off all the transactions that happened after the effective date and repost them with the transaction in it's appropriate position

Day 1 4 4

XEffective Dating Inquiry

Day 1 4 4

XPayment Restructure

Day 1 4 4


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key




5.3 Manage Content



101Confidential


Description Timing


ny Y Rating


CL NL

XPayment Posting Priority

Ability to organize payment splits vertically (by balance - pay all interest due, then fees, then principal) or horizontally (pay all current due across balances, then past due, etc or vice versa) by process or loan type (i.e. charge off, bankrupt, current status, etc)

Day 1 4 4

XShadow Loan Accounting

Ability to house charge off loans in a shadow bank, customize accounting, and interface to the GL according to shadow accounting parameters

Day 1 44

XEscrow Processing for Loans

Ability to support depository accounting Day 1 4 4


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key




5.3 Manage Content



102Confidential


Description Timing


ny Y Rating


CL NL

XMaintain Relationship

Support the execution of tasks required to maintain customer relationship (e.g., Execute Payment Drop )

Day 1 4 4 4

PA / CE: Able to manage functionality that allows a drop payment for a particular period of time

X Product PromptsAbility to provide pop-ups or other prompts to customer-facing associates based on a rules engine with business logic

Post Day 1

3 2 3


BD / CE: Current capability is not sophisticated; Teller receives prompts; cross-selling is more manual

XHolistic View of the Customer

Ability to comprehensively view the customer profile across all channels including existing products, past offers, pre-qualifications, needs assessment

Post Day 1

3 3 3

BD / CE: Can view prequalified offers

PA: Can view existing products

PA: Can view past offers up to a certain period of time

XCustomer Communication Management

Ability to manage and document communication activity among customers

Post Day 1

3 3 3

PA / CE: Company Y utilizes supportforce to track and manage customer communication activity for tier 2 and tier 3 items; not utilizing breadth of functionality

CE: Customer Needs Guide within salesforce is updated for each new account or as necessary


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






103Confidential


Description Timing


ny Y Rating


CL NL

X Sell Debt Ability to sell debt to 3rd party brokers Day 1 4 4 2

PA: Company Y manages recoveries using CACS; their instance of RMS is dated and needs replacement

PA: Would need to upgrade to Client X RMS version to support flow debt sale functionality Client X employs today

PA: Bank does have some post-charge off work on indirect auto side

X Securitization Ability to securitize loans for sale to investors Day 1 N/A 4


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

7. Sell Loans



104Confidential


Description Timing


ny Y Rating


CL NL

XCollections Processes

Support collections processes executed to recover payments from delinquent customers

Day 1 4 4 `

BD: Company Y has an Auto dialer – Novel System – integrated with CACS

PA: RMS is integrated with CACS, but would need to be upgraded to support functionality Client X employs today

PA: Does not use 3rd party vendors for early stage collections – done in house, but has been used in the past

PA: Automatic Line Management is not being used at Company Y

XSpecialty Collections Processes

Support various specialty collections processes for exception situations

Day 1 4 4 3

PA: CACS can hold multiple promises

PA: CACS is capable of queuing and reporting by site or geography

X Charge Offs Ability to support charge off processing Day 1 4 4 3

PA: System has the capability of charging automatically, can be an automated charge off process

PA: Right now Company Y charges off manually on a monthly basis


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key





105Confidential


Description Timing


ny Y Rating


CL NL

XCompliance and Reporting Requirements

Support the management of compliance and reporting requirements (e.g., Manage Credit Bureau Reporting, Manage 1502 Reporting (SBL Only))

Day 1 4 4 TBD TBD – need input from

Compliance workstream

XCredit Risk Splitting Sophistication

Ability to support credit risk splitting (credit policy, bureau connectivity, data usage capability, interaction with credit policy)

Day 1 3 4 2

PA: Sophistication of NIL business is much more able to handle the local banking credit policy

XApplication Fraud Processes

Ability to perform fraud review, notify appropriate persons, and decision issue accordingly during the application capture process

Day 1 4 4 4

PA: Utilizes credit bureau flags that run against CIS flag (some nightly, some weekly)

PA: Flag alerts within ACAPS, this is the situation, this is what is needed from an investigative standpoint

PA: Utilizes VerID


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

9. Manage Risk











F. Consumer Lending




108Confidential

Functional AssessmentProduct Detailed Findings – Small Business Lending

Custom

er E

xperience

Process

Alignm

ent

Business

Differentiation

Product Desired Features / Description TimingClient X Rating *

Company Y Rating

Comments / ImplicationsCompa

ny YACBS

Overdraft Protection

Ability to support overdraft protection product Ability to link to a DDA / Card (similar to Company Y) Support the ability to tie the product to Home Equity

Line of Credit (HELOC)

Day 1 3 4 TBD

BD / CE: Sophisticated overdraft functionality at Company Y; can tie to DDA or HELOC

Company Y does not currently link to card (business decision)

Installment Loans

Ability to support the following product features: - Fixed and Variable Rate- Simple and ADB Interest- Single and Joint Applicants- 36 – 84 Month Terms- Fulfillment via check- Unsecured Only- Reloads (Refinances)

Day 1 4 4 TBD CE: Company Y does support installment

loans through RDS

Point of Sale Loans

Ability to support the following product features: - Fix Rate Only- Simple and ADB Interest- Single Applicants Only- 84 - 96 Month Terms- Unsecured Only- Deferred interest- Reloads (Refinances)

Day 1 4 2 TBD

No current support for POS loans at Company Y. Core functionality is represented by Company Y as existing, but significant development/ configuration would be required to support at scale

Small Business Loans

Ability to support the following product features: - Fix and Variable Rate- Simple and ADB Interest- Single and Joint Applicants- 24 – 72 Month Terms- Secured and Unsecured- Reloads (Refinances)

Day 1 3 3 TBD

Company Y splits SB loans between ACBS and Company Y Loans. Expect some degree of development required to support Client X book

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key* Multiple platforms used for originations and servicing (i.e. Shaw, ALS, CBS)

109Confidential


Custom

er E

xperience

Process

Alignm

ent

Business

Differentiation


Company Y Rating


ny YACBS

All Products

Ability to adjust amortization schedule when payment is made out of schedule, “re-amortization”

Day 1 3 TBD 4 PA: ACBS supports amortization without

limits on the number of billing schedules

“Re-amortize” payment when rate changes Day 1 3 TBD 4

PA: ACBS offers the ability to ‘auto amortize’ on every payment in one click with various options for re-amortization to kick in

Capture various accrual bases (maintain flexibility) Day 1 4 TBD 4 PA: This is native functionality within ACBS

Ability to track parent-child relationships (sub-commitments)

Day 1 3 TBD 4 PA: ACBS supports parent and child

capabilities

Ability to track legal v. non-legal commitments (for performance tracking)

Day 1 3 TBD 4 PA: ACBS supports this and has the ability

to can set these up in one or two facilities

Ability to calculate unused amount of commitment (exposure)

Day 1 3 TBD 4 PA: ACBS will take to an additional level by

auto withholding amounts

Ability to book reduction of unused commitment Day 1 4 TBD 4 PA: This is native functionality within ACBS

Ability to track all products within total relationship Day 1 4 TBD 4

PA: All loan products are tracked within ACBS data mart

PA: All loan and deposit relationships held within Company Y CIS

Ability to add an additional amount beyond the payment amount (without adjusting the original payment structure)

Day 1 3 TBD 4 PA: This is native functionality within ACBS

Construction

Automation related to tracking against original budget and plan for disbursements

Day 1 1 TBD 4 PA: CLCS has the ability to capture budget

for disbursements, which can be multiple types (house level, project level)

Automation related to ability to capture state lien laws and other state-specific data

Post Day 1 2 TBD 4 PA: CLCS has the ability to capture state

lien laws

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational


110Confidential


Custom

er E

xperience

Process

Alignm

ent

Business

Differentiation


Company Y Rating


ny YACBS

Commercial Mortgage

Escrow: availability to pay multiple diff taxes at multiple times of the year

Day 1 4 TBD 2 PA / BD: Require building an interface and

tax payment due reporting

Capture additional documentation with defined user fields for number of units, vacancies (multi-family real estate)

Day 1 3 TBD 4

PA: Able to capture additional documentation depending on fields

ACBS will open up additional screens for Real Estate

Escrow processing to include interest on some loans and not on others

Day 1 3 TBD 3 PA / BD: ACBS possesses escrow functionality, although warrants further analysis of functionalityPerform escrow analysis Day 1 4 TBD 3

Asset-Based Lending

Automated ability to track A/R and Inventory from borrowers to generate accounting base for accounting inputs (and in turn, a borrowing base)

Day 1 4 TBD 4

PA: Currently brought in electronically with interface, however, could set up criteria to enter receivables and borrowing base to calculate

International Lending

Continue to support International Export Related Lending Day 1 4 TBD 2

BD: Would require an interface to perform documentary credits, currently outsourced to M&T as processor; exposures captured on ACBS

BD: Able to perform Non-documentary credits

Note: ACBS is a multi currency system

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational



112Confidential



Company Y Rating


New Product Roll-out

Ability to roll out new products at a rate of several per year per LOB

Day 1 3 3

PA: Company Y new product launches follow their SDLC process and are on bi-annual release

PA: Company Y can roll-out new product model within ~ 30 – 90 days; complex may take longer


Ability to relationship price (rate or fee depends on criteria such as balance level, use of services)

Post Day 1 2 3

PA: RDS integration with core deposits provides ready access to relationship information

PA / CE: Can perform relationship packaging / pricing – rate or fee can depend on different criteria


Ability to support bundling of products (tie products together and modify rates, fees, and other features)

Post Day 1 2 3

BD / CE: Company Y has pre-defined bundles that operate today. Moderate degree of effort needed to define new bundles based on Client X business decisions

Support Account Linking between Deposit and Lending Products

Ability to link accounts to transfer funds (e.g., Checking account to HELOC)

Post Day 1 2 4 PA / CE: Lending and deposit products

can be linked via RDS/ACAPS/Company Y Loans

Rate AdjustmentProvide the ability to cap rates on variable products and modify rates for particular promotions

Post Day 1 3 3 CE: Rates can be adjusted based on

balance tiers the customer is in


In Scope L0

Process



Process Key

Functional AssessmentCapability Detailed Findings – Small Business Lending

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


Services

2.1 Ideate




2.5 Launch

113Confidential



Company Y Rating


Pricing ModelSupport a loan pricing model which considers deposit based relationships, also based on profitability and risk rating

Day 1 3 3 PA: Utilize Excel based modeling which

considers pricing, deposit relationship PA: Manual entry for Deposit relationship

Pricing / Products within Facility

Support multiple pricing and products under one facility

Day 1 4 4

PA / BD: ACBS supports multiple pricing and product schemes within a facility as well as flexibility related to setting up facilities by deal

Product ReportingAbility to pull in entire relationship and household

Day 1 4 3

PA: Pull all loan relationship data from ACBS data mart

PA: View of deposit relationships depending upon Company Y CIS (could feed Company Y CIS to data mart for full view)

Profitability Analysis

Detailed profitability analysis on customer and products at the relationship level

Post Day 1 3 3

PA: Excel pricing model maintains net revenue contribution rates and risk adjusted ROE

PA: Relationship could be manually entered into pricing model for profitability at relationship level


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


Services

2.1 Ideate




2.5 Launch

114Confidential



Company Y Rating







Day 1 4 4


Product ReportingAbility to pull in entire relationship and household

Day 1 4 3

PA: Pull all loan relationship data from ACBS data mart

PA: View of deposit relationships depending upon Company Y CIS (could feed Company Y CIS to data mart for full view)



Post Day 1 3 3




In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


Services

2.1 Ideate




2.5 Launch

115Confidential



Company Y Rating


Product Offer Repository

Ability to access information relating to the product offers that have been extended to a customer

Post Day 1 3 2 PA: Limited ability to track where an

application came from (RDS tracks walk-in / online)

Predefined Marketing Offers

Ability to setup and manage a predefined list of marketing offers to a predefined list of prospects or customers

Post Day 1 4 2

BD / PA / CE: Company Y does not currently utilize true pre-defined marketing offers at specific segments

CE: Company Y Campaigns are currently directed at the entire customer base

Sales Force Management

Pipeline Management: Front-end interface for bankers to manage their own pipeline including: entering new opportunities, advancing opportunities from stage to stage, query and sort by client, tier, size and stage of opportunity

Day 1 3 4

CE / PA: SalesForce.com manages leads and pipeline management as well as origination progress

Note: Not integrated to ACBS or Baker Hill

Through underwriting, query system to get prospecting updates; get input by RM, but also UW have their own notes and assessments

Day 1 3 4

CE: Company Y UW/Credit analysts view Salesforce.com for notes and interview and are able to enter data

Note: Security capabilities are available

Ability to identify and stratify by roles in lending process (e.g., Relationship Manager, Underwriter, Portfolio Manager, Account Executive, Credit Officer, Loan Administrator) as well as function, business unit, P&L

Post Day 1 3 4 PA: Company Y catalogs and identifies

activity as well as roles throughout the process

Central repository of prospects in footprint periodically updated from reliable external list providers (e.g. DnB)

Post Day 1 3 2 PA / BD: Require an interface to DnB to

upload external prospect lists

HouseholdingMultiple house holds for customer relationships and credit (Underwriting can view all interrelationships)

Day 1 3 3

PA: Company Y has the ability to see relationships and household in Company Y CIS, although no current feed into ACBS


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

3. Market Products

3.1 Plan Marketing


116Confidential



Company Y Rating


Application Capture (Origination)

Provide the ability for customers to apply for loans through the online, Branch, Mail and phone channels

RFP process on going to select new Small Business Originations Platform

Ability to make all products available and originate through the online, branch, and call center channels

Solicitation (Origination)

Support SOL Setup, Change and Update Solicitation

Decisioning (Origination)

Ability to support real-time decisioning

Provide automated decisioning models and tools (e.g., credit modeling)

Fulfillment (Origination)

Ability to approve loans , fund loans, disburse checks and socialize disclosures with customers

Ability to decline and initiate adverse action correspondence

Support gathering and tracking documentation

Ability to support the customer on-boarding process to assist a customer prior to their check being cashed and their loan boarded onto ALS

Ability to support the issuance of checks, checkbooks, and electronic funds transfer


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






117Confidential



Company Y Rating


Multi-Channel Originations

Ability for customers to originate products across all channels (e.g., start on the web and finish in the branch)


Application Processing

Ability to support single and joint application processing

Customer Needs Assessment

Ability for customer to enter data and have a product recommendation delivered real-time

Pre-ApprovalAbility to see if a customer is pre-approved for other Client X products (like a card) real-time

Customer Credit Check

Ability to pull credit at the time of account opening

Product Information

Provide Banker or sales professional with detailed product information to drive conversation

Single Sign-OnSingle sign-on to a single system that interfaces with others as necessary; no duplicate entry

Pre-populate Demographic Information


Overdraft Linkage

Ability to link card to DDA as overdraft protection

Automated Underwriting

Provide automated underwriting functionality

Automated Process Workflow

Provide automated workflow capabilities throughout the lifecycle of the account opening process


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






118Confidential



Company Y Rating


Application Requirements

Ability to provide customer expectations in terms of what s/he needs to complete the lending process (e.g., checklist)


Bundle Decisioning

Ability to decision entire product bundle (not just product by product)

Comprehensive Application View

Provide a comprehensive view of simultaneous applications

Credit AnalysisSupport standardized tools and procedures for the first pass loan analysis prior to formal decisioning (e.g., use of Moody's platform)

Statement Spreading

Ability to spread multiple statements, annuals and interims within a centralized spreading location

Statement Consolidation

Functionality of consolidation for two statements together – rolling 4th quarter statement, financial templates, accommodate different types of businesses

Credit / Risk Rating

Sophisticated risk rating (e.g., dual risk rating – (probability of default model)) and analysis capabilities

Loan MonitoringCapture initial loan monitoring including documentation and covenant tracking (define own ratios, calculate and store)

Credit BureausRetrieve FICO and credit reports (need both business and consumer bureaus)


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






119Confidential



Company Y Rating


Decision RulesEmbedded rules and escalations with audit trail of who made approval


Decision Tracking

Tracking of turn downs, policy exceptions of underwriting criteria and archiving

Decision Notification

Streamlined notification of decisions to internal and external stakeholders

Credit Decisioning

Ability to electronically review and approve or decline loan package including electronic attachments, routing, recording, and tracking of policy exceptions

Pricing TrackingTrack inputs/outputs in credit files used to produce rate, terms and conditions

End to End Pipeline

Pipeline from underwriting to documentation (tracking from documentation to receipt back from packages)

Terms & Conditions

Automation related to the ability to modify terms and conditions with notification to the appropriate parties

Pre-populateAbility to pre-populate documents with previously gathered customer information

Archiving FilesGenerate and archive versions as document / file changes prior to closing

Flood Verification

Verify that loans secured by real property are not in a flood plain and/or have appropriate flood insurance.

Document Generation

Automated document generation pre-close (e.g., negotiation documents, term sheets)


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






120Confidential



Company Y Rating


Document Formats

Ability for system to support document formats (i.e., PDF, Word, Excel)


Pre-close Checklist

System requires checklist pre-close and post close with exceptions issued pre-close


Provide automated workflow capabilities from originations to booking to handle SOX requirements

Document Review

Verification that all appropriate documentation has been gathered as part of booking the loan (i.e., document controls to ensure docs are tracked and received) based on factors and manageable doc rules

Loan Attribute Verification

Ability for auto data reconciliation between origination system and processing system verifies loan is booked in accordance with the front end documents

Compliance Related Workflow

Automation and workflow associated with loan compliance measures including (Know your Customer OFAC, CRA, CIP)


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






121Confidential


Description TimingClient

X Rating

Company Y Rating

Comments / ImplicationsCompany Y

ACBS

Multiple Payment Types

Ability to support different types of payment (interest only, % of payment, staggered due dates, drop dates for bill borrower)

Day 1 4 TBD 4 CE / BD: Native ACBS supports a multiple

types of payments

Reporting Ability for standard and ad hoc reporting Day 1 4 TBD 4

BD: Company Y maintains standard reports using business objects on data mart with ability to write a query

Note: All reporting off data mart is end of day yesterday

Guarantor

Ability to capture Guarantor information Day 1 4 TBD 4 PA: ACBS supports guarantor information

Ability for limited guarantee or non-limited guarantee

Day 1 4 TBD 4 PA: ACBS can add under loan, facility or

customer, can make limited or unlimited and can specify what they are limited too

Pulling Rates / Data

Have the capacity to differentiate business days from calendar days for the purposes of pull rates and data

Post Day 1 1 TBD 3

PA: Ability to set processing rules for holiday, last day of month or last day of year

Note: Flexible to count ahead or in the past; can set multiple calendars

Debit DDAAbility for automatic debit on DDA account (take payments from customer’s DDA accounts directly)

Day 1 4 TBD 4

CE: Automatic debit on DDA is overnight, not real time

Note: Ability to auto debit for additional funds to principle or escrow and auto two way sweep

Real time Transactions

Loan and deposit system transactions are real time

Day 1 1 TBD 4 CE: All loan systems are real time BD: Booking and servicing is real time

Monthly Statements

Produce monthly loan statements (including line of credit) also available on demand with breakdown of how payments were applied with interest and escrows

Post Day 1 3 TBD 4 BD / CE: Company Y built ACBS

statements report off data mart, which has ability to auto consolidate


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key




5.3 Manage Content



122Confidential



X Rating

Company Y Rating


ACBS

ACHAbility to perform incoming and outgoing ACH transactions

Day 1 3 TBD 3

PA / CE: ACH credits are manual, although could be automated with an interface

PA / CE: ACH debits are automated

Facility SearchAbility to look up facilities by collateral, address, etc. (enhanced search functionality)

Post Day 1 1 TBD 4 CE / PA: Search functionality within ACBS

data mart including approximately six types of searches (as of day prior)

Escrow

Ability to pay interest on escrow funds Day 1 4 TBD 3 PA: Currently not performed, although

could in ACBS by setting up parameters

Ability to track insurance cancellation with exception list

Day 1 4 TBD 3

PA: Currently not performed, although could do insurance premiums in ACBS

PA: Capability to feed external vendors, although not used currently

Payment Schedules

Support multiple payment scheduling types including principal only, interest only, principal and interest, fixed principal plus interest due, and interest plus a % of principal balance

Day 1 4 TBD 4 CE: Ability to create and attach own

payment schedule

Pending Transaction Processing

Ability to process a pending transaction Day 1 4 TBD 4

PA / CE: Able to see pending transactions and go in change and delete them

PA: Must have a primary but can have multiple secondary (within limits)

Line of Credit Reporting

Ability to report all used and unused credit lines in the form of a commitment report

Post Day 1 3 TBD 4 PA: ACBS supports reporting on unused

credit lines in the form of a commitment report

Online BankingAbility to integrate with online banking site to show all commercial customer relationships

Post Day 1 3 TBD 3

CE / BD: Customers can pull account balance and see transactions , however this is a view only

CE: Currently batch feed of information to OLB, however, ability to do real time


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key




5.3 Manage Content



123Confidential



X Rating

Company Y Rating


ACBS

Billing Schedule

Ability to set up large number of billing schedules (i.e. 5yr interest only, 20yr amortized schedule, unique monthly billings for life of loan)

Day 1 3 TBD 4 BD: ACBS has no limit on the number of

billing schedules

Ability to capture pending rate change, pending P&I change (to move into payment schedule)

Day 1 4 TBD 4 BD: ACBS supports pending rate changes

and P&I changes

Ability to support staggered due dates and drop dates for billing

Day 1 4 TBD 4 BD: ACBS supports staggered due dates

and drop dates

ThresholdsSupport thresholds in loan process, for example, loan floors, min balances, LIBOR floors (also should include portfolio limits)

Day 1 3 TBD 3 BD: ACBS supports thresholds, although

portfolio limits are not a core capability

PaymentsAllow for payment of taxes in multiple jurisdictions

Day 1 4 TBD 4 PA: ACBS supports payment of taxes in

multiple jurisdictions

Track Index Pricing

Ability to review, maintain (e.g., add / remove) and track various indexes and historic view of indexes

Day 1 4 TBD 4

PA: No limits on index pricing within ACBS

Note: Ability to look at history on any one index and search in either past or future

Note: Manually input index, ability to upload is there, and could get from treasury operation


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key




5.3 Manage Content



124Confidential



Company Y Rating


NotificationsAutomated ability to generate loan review notifications of approaching and past due requirements

Day 1 3 4

PA: Native ACBS possesses loan notification built in with ability for user to sign in and have notices

PA: Ability to tie to email system to send notifications

Document Receipt Status

Tracking whether required loan review documentation has been received

Day 1 3 4 PA: Company Y’s Baker Hill, the system

of record, tracks core collateral and review documentation

Automatic Transactions

Ability to make advance on payment and credit to customers account

Post Day 1 1 4

PA / CE: ACBS able to make advances on loans or payments

PA: Ability to debit account and complete online transaction against loan or advance against loan without live tickets

Covenant Tracking

Automation related to maintaining covenant requirements established during underwriting or credit review

Post Day 1 3 3 PA: Baker Hill Advisor will automate

covenant requirements monitoring

Collateral Monitoring

Automation related to monitoring and maintaining collateral (including marketable securities)

Post Day 1 4 4

PA: Baker Hill, the system of record, tracks core collateral

Note: expected increased automation with Baker Hill Advisor implementation

Note: Able to be done in ACBS (which feeds Baker Hill with basic facility information)


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






125Confidential



Company Y Rating


DelinquencyAbility to maintain the number of times delinquent on installment debt to date

Day 1 3 4 PA: ACBS field provides number of times

(not incremental)

FraudAutomated fraud check and fraud verification pre and post booking; includes risk rating and grids

Day 1 3 1

PA: No specific checks exist within ACBS; requires further analysis into desired functionality to support operational fraud practices

Collections Processes

Support collections processes executed to recover payments from delinquent customers

Day 1 4 3

BD: Company Y has an Auto dialer – Novel System – integrated with CACS

PA: RMS is integrated with CACS, but would need to be upgraded to support functionality Client X employs today

PA: Does not use 3rd party vendors for early stage collections – done in house, but has been used in the past

PA: Automatic Line Management is not being used at Company Y

Specialty Collections Processes

Support various specialty collections processes for exception situations

Day 1 4 3 PA: CACS can hold multiple promises PA: CACS is capable of queuing and

reporting by site or geography

Charge Offs Ability to support charge off processing Day 1 4 3

PA: System has the capability of charging automatically, can be an automated charge off process

PA: Right now Company Y charges off manually on a monthly basis


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key





126Confidential



Company Y Rating





Compliance and Reporting Requirements

Support the management of compliance and reporting requirements (e.g., Manage Credit Bureau Reporting, Manage 1502 Reporting (SBL Only))

Day 1 4 TBD TBD – need input from Compliance

workstream

Credit Risk Splitting Sophistication

Ability to support credit risk splitting (credit policy, bureau connectivity, data usage capability, interaction with credit policy)

Day 1 4 2 PA: Sophistication of NIL business is

much more able to handle the local banking credit policy

Application Fraud Processes

Ability to perform fraud review, notify appropriate persons, and decision issue accordingly during the application capture process

Day 1 4 4

PA: Utilizes credit bureau flags that run against CIS flag (some nightly, some weekly)

PA: Flag alerts within ACAPS, this is the situation, this is what is needed from an investigative standpoint

PA: Utilizes VerID


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

9. Manage Risk











F. Consumer Lending




129Confidential

Functional AssessmentProduct Detailed Findings – Commercial Lending

Custom

er E

xperience

Process

Alignm

ent

Business

Differentiation


Company Y Rating


All ProductsAbility to adjust amortization schedule when payment is made out of schedule, “re-amortization”

Day 1 4 4 PA: ACBS supports amortization without

limits on the number of billing schedules

All Products “Re-amortize” payment when rate changes Day 1 4 4

PA: ACBS offers the ability to ‘auto amortize’ on every payment in one click with various options for re-amortization to kick in

All Products Capture various accrual bases (maintain flexibility) Day 1 4 4 PA: This is native functionality within ACBS

All ProductsAbility to track parent-child relationships (sub-commitments)

Day 1 2 4 PA: ACBS supports parent and child

capabilities

All ProductsAbility to track legal v. non-legal commitments (for performance tracking)

Day 1 2 4 PA: ACBS supports this and has the ability

to can set these up in one or two facilities

All ProductsAbility to calculate unused amount of commitment (exposure)

Day 1 2 4 PA: ACBS will take to an additional level by

auto withholding amounts

All Products Ability to book reduction of unused commitment Day 1 4 4 PA: This is native functionality within ACBS

All Products Ability to track all products within total relationship Day 1 4 4

PA: All loan products are tracked within ACBS data mart

PA: All loan and deposit relationships held within Company Y CIS

All Products Ability to view and track households Post Day 1 3 3 Company Y CIS would need to be

configured to exhibit houesholds

All ProductsAbility to add an additional amount beyond the payment amount (without adjusting the original payment structure)

Day 1 2 4 PA: This is native functionality within ACBS

ConstructionAutomation related to tracking against original budget and plan for disbursements

Day 1 1 4 PA: CLCS has the ability to capture budget

for disbursements, which can be multiple types (house level, project level)

ConstructionAutomation related to ability to capture state lien laws and other state-specific data

Post Day 1 2 3 PA: CLCS has the ability to capture state

lien laws

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

130Confidential

Functional AssessmentProduct Detailed Findings – Commercial Lending

Custom

er E

xperience

Process

Alignm

ent

Business

Differentiation


Company Y Rating


Commercial Mortgage

Escrow: availability to pay multiple diff taxes at multiple times of the year

Day 1 3 2 PA / BD: Require building an interface and

tax payment due reporting

Commercial Mortgage

Capture additional documentation with defined user fields for number of units, vacancies (multi-family real estate)

Day 1 3 4

PA: Able to capture additional documentation depending on fields

ACBS will open up additional screens for Real Estate

Commercial Mortgage

Escrow processing to include interest on some loans and not on others

Day 1 3 3 PA / BD: ACBS possesses escrow functionality, although warrants further analysis of functionalityCommercial

MortgagePerform escrow analysis Day 1 3 3

Loan SyndicationsAbility to support loan syndications (additional detail in capabilities 7.0 Manage Distributions)

Day 1 2 4 BD / PA: ACBS performs desired

participant tracking and agency servicing abilities

Asset-Based Lending

Automated ability to track A/R and Inventory from borrowers to generate accounting base for accounting inputs (and in turn, a borrowing base)

Day 14

Performed on Stuckey

3

PA: Currently brought in electronically with interface, however, could set up criteria to enter receivables and borrowing base to calculate

International Lending

Continue to support International Export Related Lending Day 14

Performed on Cibar

2

BD: Would require an interface to perform documentary credits, currently outsourced to M&T as processor; exposures captured on ACBS

BD: Able to perform Non-documentary credits

Note: ACBS is a multi currency system

Debt Client X Markets

Fully support debt Client X markets including swaps and derivatives

Day 1 3 3 BD: ACBS handles basic swaps / swap

transactions with – with defined standard instruments

Equipment Leasing

Continue to support Equipment Leasing Day 14

Performed on LeasePlus

1 BD: Requires significant changes to ACBS

as the core platform does not deal with leasing activities

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key


132Confidential


Services

2.1 Ideate




2.5 Launch



Company Y Rating







Day 1 4 4




Post Day 1 3 3




In Scope L0

Process



Process Key

Functional AssessmentCapability Detailed Findings – Commercial Lending

3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

133Confidential



Company Y Rating


Sales Force Management

Ability to manage entire relationship and incorporate select information from core systems

Post Day 1 2 2 PA: SalesForce.com currently not

functioning to support holistic relationship Note: Not integrated to ACBS or Baker Hill

Pipeline Management: Front-end interface for bankers to manage their own pipeline including: entering new opportunities, advancing opportunities from stage to stage, query and sort by client, tier, size and stage of opportunity

Day 1 3 3

CE / PA: SalesForce.com manages leads and pipeline management as well as origination progress

Note: Not integrated to ACBS or Baker Hill

Through underwriting, query system to get prospecting updates; get input by RM, but also UW have their own notes and assessments

Day 1 3 3

CE: Company Y UW/Credit analysts view Salesforce.com for notes and interview and are able to enter data

Note: Security capabilities are available

Ability to identify and stratify by roles in lending process (e.g., Relationship Manager, Underwriter, Portfolio Manager, Account Executive, Credit Officer, Loan Administrator) as well as function, business unit, P&L

Post Day 1 3 3 PA: Company Y catalogs and identifies

activity as well as roles throughout the process

Central repository of prospects in footprint periodically updated from reliable external list providers (e.g. DnB)

Post Day 1 2 2 PA / BD: Require an interface to DnB to

upload external prospect lists

House HoldingMultiple house holds for customer relationships and credit (Underwriting can view all interrelationships)

Day 1 3 3

PA: Company Y has the ability to see relationships and household in Company Y CIS, although no current feed into ACBS


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

3. Market Products

3.1 Plan Marketing


134Confidential



Company Y Rating


Credit AnalysisSupport standardized tools and procedures for the first pass loan analysis prior to formal decisioning (e.g., use of Moody's platform)

Day 1 4 4 PA / BD: Baker Hill Advisor ,

implementation due in March 2009, used for loan analysis

Statement Spreading

Ability to spread multiple statements, annuals and interims within a centralized spreading location

Day 1 4 4 PA: Baker Hill Advisor will serve as

centralized location to spread multiple statements, annuals, and interims

Statement Consolidation

Functionality of consolidation for two statements together – rolling 4th quarter statement, financial templates, accommodate different types of businesses

Day 1 4 2

PA: Ability to consolidate rolling 4th quarters would be complex (would involve spreading each quarter on its own, not year to date, and then setting the calculation to combine the 4th quarters that apply)

Credit / Risk Rating

Sophisticated risk rating (e.g., dual risk rating – (probability of default model)) and analysis capabilities

Day 1 4 2

PA / BD: Baker Hill Advisor requires external data (via Moody’s) to perform dual risk rating

Note: ACBS has capability to do split risk and dual risk ratings

Loan MonitoringCapture initial loan monitoring including documentation and covenant tracking (define own ratios, calculate and store)

Day 1 3 3 PA: Baker Hill Advisor will possess

enhanced covenant tracking abilities

Credit BureausRetrieve FICO and credit reports (need both business and consumer bureaus)

Day 1 3 3 PA: Any business and consumer bureaus

pulled via websites currently

Decision RulesEmbedded rules and escalations with audit trail of who made approval

Post Day 1

1 1 PA: ACBS Originations only has the ability

to track approvals under signature


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






135Confidential



Company Y Rating


Decision Tracking

Tracking of turn downs, policy exceptions of underwriting criteria and archiving

Day 1 1 2 PA: ACBS Origination will offer tracking

as a function of term sheets to maintain records and built in time stamping

Decision Notification

Streamlined notification of decisions to internal and external stakeholders

Post Day 1 1 2

BD / PA: Implementation of ACBS Origination will offer ability to kick out commitment to customer and internal email notifications if term sheet has changed

Credit Decisioning

Ability to electronically review and approve or decline loan package including electronic attachments, routing, recording, and tracking of policy exceptions

Post Day 1 1 2 BD / PA: ACBS Origination with no central

tracking repository for approvals, declines, or exceptions

Pricing TrackingTrack inputs/outputs in credit files used to produce rate, terms and conditions

Post Day 1 1 2

PA: Ability to view inputs/outputs in Company Y’s Excel based pricing model

PA: ACBS Originations although no workflow exists today to produce terms and conditions

End to End Pipeline

Pipeline from underwriting to documentation (tracking from documentation to receipt back from packages)

Post Day 1 1 3 PA: ACBS Originations tracks receipts of

documentation through loan processing

Terms & Conditions

Automation related to the ability to modify terms and conditions with notification to the appropriate parties

Post Day 1 1 2

PA: Once imaging is implemented, could modify terms and conditions, with approval, to feed ACBS and release notifications

Pre-populateAbility to pre-populate documents with previously gathered customer information

Post Day 1 1 3 PA: LaserPro will pre-populate with the

implementation of ACBS Origination


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






136Confidential



Company Y Rating


Archiving FilesGenerate and archive versions as document / file changes prior to closing

Post Day 1 2 3

PA: Capability to copy package, version, and index into ACBS exists

Note: Imaging platform installed, although not currently implemented within originations process

Flood Verification

Verify that loans secured by real property are not in a flood plain and/or have appropriate flood insurance.

Day 1 3 3

PA: Baker Hill document tracking system in addition to 3rd party life of loan flood zone identifier

PA: ACBS has flood capabilities which Small Business is currently experimenting with

Document Generation

Automated document generation pre-close (e.g., negotiation documents, term sheets)

Post Day 1 1 4 PA: ACBS Originations includes built in

templates of which will populate the commitment letter

Pre-close Document Formats


Post Day 1 1 3 PA / CE: ACBS Originations supports

documentation in PDF and other formats pre-close

Closing Document Formats


Day 1 4 4 PA / CE: Company Y utilizes LaserPro

which supports closing documentation in PDF and other formats

Pre-close Checklist

System requires checklist pre-close and post close with exceptions issued pre-close

Post Day 1 1 2

PA: Checklist , based on type of loan (although not the structure of the deal), is software is by an outside vendor tool; and not integrated with other systems

Consideration: determine how this will integrate with ACBS Origination


Provide automated workflow capabilities from originations to booking to handle SOX requirements

Post Day 1 2 3

PA: ACBS Origination system will offer tracking timing between approval and receipt of documents

Note: Salesforce.com also offers basic statuses


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






137Confidential



Company Y Rating


Document Review

Verification that all appropriate documentation has been gathered as part of booking the loan (i.e., document controls to ensure docs are tracked and received) based on factors and manageable doc rules

Day 1 1 2 PA: ACBS Originations tracks receipts of

documentation through loan processing

Loan Attribute Verification

Ability for auto data reconciliation between origination system and processing system verifies loan is booked in accordance with the front end documents

Day 1 1 3 PA: Company Y ACBS Origination

implementation will offer additional automation for reconciliation purposes

Compliance Related Workflow

Automation and workflow associated with loan compliance measures including (Know your Customer OFAC, CRA, CIP)

Day 1 2 2

ACBS Originations will begin when a customer moves from prospect to real customer – do not do now – could monitor – but could – Currently house CRA in ACBS do CRA reporting out of ACBS


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






138Confidential



Company Y Rating


ACHAbility to perform incoming and outgoing ACH transactions

Day 1 3 3

PA / CE: ACH credits are manual, although could be automated with an interface

PA / CE: ACH debits are automated

Escrow

Ability to pay interest on escrow funds Day 1 4 4 PA: Currently not performed, although

could in ACBS by setting up parameters

Systematic capture for cancellation notice and reporting from insurance providers

Day 1 4 3 PA: Capability to feed external vendors,

although not used currently

Automated insurance tracking and receipt of notice

Day 1 2 2 PA: Would require development to

automate insurance and receipt

Capture insurance exception reporting Day 1 4 4 PA: Currently not performed, although

could report exceptions in ACBS

Payment Schedules

Support multiple payment scheduling types including principal only, interest only, principal and interest, fixed principal plus interest due, and interest plus a % of principal balance

Day 1 4 4 CE: Ability to create and attach own

payment schedule

Pending Transaction Processing

Ability to process a pending transaction Day 1 4 4

PA / CE: Able to see pending transactions and go in change and delete them

PA: Must have a primary but can have multiple secondary (within limits)

Line of Credit Reporting

Ability to report all used and unused credit lines in the form of a commitment report

Post Day 1 2 4 PA: ACBS supports reporting on unused

credit lines in the form of a commitment report

Facility SearchAbility to look up facilities by collateral, address, etc. (enhanced search functionality)

Post Day 1 24

ACBS data mart

CE / PA: Search functionality within ACBS data mart including approximately six types of searches (as of day prior)


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key




5.3 Manage Content



139Confidential



Company Y Rating


Billing Schedule

Ability to set up large number of billing schedules (i.e. 5yr interest only, 20yr amortized schedule, unique monthly billings for life of loan)

Day 1 4 4 BD: ACBS has no limit on the number of

billing schedules

Ability to capture pending rate change, pending P&I change (to move into payment schedule)

Day 1 4 4 BD: ACBS supports pending rate changes

and P&I changes

Ability to support staggered due dates and drop dates for billing

Day 1 4 4 BD: ACBS supports staggered due dates

and drop dates

Thresholds

Support account level thresholds in loan process, for example, loan floors, min balances, LIBOR floors (also should include portfolio limits)

Day 1 4 4 BD: ACBS supports thresholds, although

portfolio limits are not a core capability

Support thresholds at the portfolio level Day 1 3 3

Tax PaymentsAllow for payment of taxes in multiple jurisdictions

Day 1 4 4 PA: ACBS supports payment of taxes in

multiple jurisdictions

Multiple Payment Types

Ability to support different types of payment (interest only, % of payment, staggered due dates, drop dates for bill borrower)

Day 1 4 4 CE / BD: Native ACBS supports a multiple

types of payments

Reporting Ability for standard and ad hoc reporting Day 1 4 4

BD: Company Y maintains standard reports using business objects on data mart with ability to write a query

Note: All ad hoc reporting off data mart is end of day yesterday

Online BankingAbility to integrate with online banking site to show all commercial customer relationships

Post Day 1 2 2

CE / BD: Customers can pull account balance and see transactions , however this is a view only

CE: Currently batch feed of information to OLB, however, ability to do real time


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key




5.3 Manage Content



140Confidential



Company Y Rating


Guarantor

Ability to capture Guarantor information Day 1 4 4 PA: ACBS supports guarantor information

Ability for limited guarantee or non-limited guarantee

Day 1 4 4 PA: ACBS can add under loan, facility or

customer, can make limited or unlimited and can specify what they are limited too

Track Index Pricing

Ability to flag business and non business days for changes to any index ratings

Post Day 1 1 3

PA: Ability to set processing rules for holiday, last day of month or last day of year

Note: Flexible to count ahead or in the past; can set multiple calendars

Automated interfaces with subscription services to review, maintain (e.g., add / remove) and track various indexes and historic view of indexes

Day 1 2 2

PA: No limits on index pricing within ACBS

Note: Ability to look at history on any one index and search in either past or future

Note: Manually input index, ability to upload is there, and could get from treasury operation

Debit DDAAbility for automatic debit on DDA account (take payments from customer’s DDA accounts directly)

Day 1 4 4

CE: Automatic debit on DDA is overnight, not real time

Note: Ability to auto debit for additional funds to principle or escrow and auto two way sweep

Real time Transactions

Loan and deposit system transactions are real time

Day 1 2 4 BD: Booking and servicing is real time

Monthly Statements

Produce monthly loan statements (including line of credit) also available on demand with breakdown of how payments were applied with interest and escrows

Post Day 1 3 4 BD / CE: Company Y built ACBS

statements report off data mart, which has ability to auto consolidate


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key




5.3 Manage Content



141Confidential



Company Y Rating


NotificationsAutomated ability to generate loan review notifications of approaching and past due requirements

Day 1 3 4

PA: Native ACBS possesses loan notification built in with ability for user to sign in and have notices

PA: Ability to tie to email system to send notifications

Document Receipt Status

Tracking whether required loan review documentation has been received

Day 1 3 4

PA: Company Y’s Baker Hill, the system of record, tracks core collateral and review documentation

PA: ACBS can perform document receipt status

Automatic Transactions

Ability to debit or credit a DDA account for an advancement on a loan payment

Post Day 1 2 4

PA / CE: ACBS able to make advances on loans or payments

PA: Ability to debit account and complete online transaction against loan or advance against loan without live tickets

Covenant Tracking

Automation related to maintaining covenant requirements established during underwriting or credit review

Post Day 12

Manual data entry

3 PA: Baker Hill Advisor will automate

covenant requirements monitoring


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






142Confidential



Company Y Rating


Collateral Monitoring

Automation related to monitoring and maintaining collateral (including marketable securities)

Post Day 1 4 4

PA: Baker Hill, the system of record, tracks core collateral

Note: expected increased automation with Baker Hill Advisor implementation

Note: Able to be done in ACBS (which feeds Baker Hill with basic facility information)

Compliance Tracking and Notification

Automation and tracking related to loan compliance measures

Day 1 2 3

PA: Baker Hill Advisor Implementation will offer compliance document housing as well as tracking and required ratios

PA: Ability to identify fields and notify customers with required compliance documentation

PA: Ability to set ticklers (e.g., by period and day)


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key






143Confidential



Company Y Rating


Loan Syndication Indicator

Indication of master servicer (vs. participant) and as % entitlements

Day 1 3 4 PA / BD: ACBS contains agent record and

shows participants with option of % or $ proportion

Remit PaymentsAuto remit payments to participants where appropriate

Post Day 1 2 4 PA / BD: Auto generate information to

receive / remit payments

Agency Services

Support of agency services once loan is booked (Example: generate automatic notifications to participants (whenever a rate change, disbursement))

Post Day 1 2 3

PA / BD: ACBS email notification system exists, although utilized by Company Y today via faxing notices to members

Note: Has not licensed SyndTrak

Multiple Syndications

Allow for the input of multiple syndicates and participants with the ability to handle greater than five participations

Day 1 3 4 PA / BD: No limit on number of

participations


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key

7. Sell Loans



144Confidential



Company Y Rating


DelinquencyAbility to maintain the number of times delinquent on installment debt to date

Day 1 3 3 PA: ACBS field provides number of times

(not incremental); no aging

FraudAutomated fraud check and fraud verification pre and post booking; includes risk rating and grids

Day 1 2 2 PA: Ability to mark a Confirmed Fraud

Account with a unique flag immediately upon verification of fraudulent activity.


In Scope L0

Process



Process Key


3 Low / Med Effort

2 Med / High Effort

1 Will not support

4 Operational

Rating Key



