The Banking RFP Process A Perspective from a Financial Institution July 20, 2016 Daniel Behanna Senior Vice President Market Manager | Eastern Carolina | Treasury Management 301 Fayetteville Street, Suite 2100 Raleigh, NC 27601 The PNC Financial Services Group (919) 788-5655 (office) (412) 901-4712 (mobile) * daniel.behanna@pnc.com

Why issue an RFP? State or local requirement Board Mandated Change in internal systems or processes Unhappy with current Banking Relationship Evaluate Current technology Pricing “I caution companies not to go into an RFP process just to save money,” Lynn said. “It may happen, but I’m not sure that I would advise clients to change banks based on cost alone. The bigger savings may be the reduction in the company’s own operating costs. Be honest up front with your bank about what it takes to get your business. The lowest cost may not be the most important factor.” Bruce Lynn, CTP, managing partner at The Financial Executives Consulting Group LLC,

RFP Considerations Be Clear about Objectives Ask the right questions What’s your target? Communicate Create a timeline Ask the right questions Review Analysis Statements and to ensure current processes are addressed Compare apples to apples Share your timeline Focus on Service Conduct One on One interviews Have decision makers sit in on final presentations Don’t conduct in-person interviews back-to-back AFP 2014 - How to Conduct a Successful RFP for Banking Services

RFP Considerations Use the RFP to review internal processes Review all paper based and manual processes Review your full Payables and Receivables process Ask the respondents for best practices Explain your current processes and ask for best in class solutions Use the RFP process to ensure you are utilizing the best products effectively Ensure you are upgrading services as well as reducing costs Reduce hard dollar costs Reduce costs from process improvement

After the Selection Kick off Call with selected provider Summarize needs from RFP Identify the needs and timing of IT Resources Develop preliminary project plan based on Client’s requirements Provider will review implementation documentation Implementation Meet personally with the banks to discuss strategy – Be open Document and agree upon implementation plan Utilize Solid Project Management Assign a point person

Lesson’s Learned Who are you Paying? Who is Paying you? Export all that is available from current Bank ACH templates Wire templates Who is Paying you? New lockbox address for invoices Look at accounts for payments received electronically Communicate new payment instructions to all payers

Lesson’s Learned Training & Implementation Review all products and services implemented with trainer Provide available dates for training Communicate expectations for training. In person or webinars After implementation, schedule touch base calls Understand your support team Regular relationship reviews Promotes discussions of unrealized needs New Product availability Addresses open issues and problem resolution “While the process of conducting an RFP from start to finish can take 3-4 months, the real work often begins with implementation” AFP 2014 - How to Conduct a Successful RFP for Banking Services