Senior Director of Operations Synovus Financial Corp. ECP at Synovus Kathy Martin Senior Director of Operations Synovus Financial Corp. ECP Forum Birmingham, Alabama January 14, 2003

Agenda Background on Synovus Initial Approach Image as an Enabler Building the Business Case ECP Opportunities More Questions than Answers

Who is Synovus? Fortune’s 100 best companies to work for in America – Top 10 for the last 5 years $20 Billion in assets 39 separately chartered banks in 5 States – community bank style 270 Branches 81% ownership in TSYS – 2nd largest credit card processor Core processing outsourced in 1998

Geographic Presence

Synovus’ Initial Approach to ECP Jim Blanchard, Synovus Chairman and CEO, BITS Chairman 2000-2002, encouraged all banks to consider ECP Service provider didn’t offer ECP – cost prohibitive to Enhance Incomplete strategy around electronification alternatives: ECP, ECL Check Conversion, Check Truncation ACH, EFT Reg E, UCC ECHHO, SVPCo

Synovus’ Initial Approach, cont. Pressure developed in the community bank environment with customers asking for image. Shifted Focus from ECP to Image – Image had “traction” and could be the gateway to electronification and other opportunities for revenue and cost savings.

Image As An Enabler Sold Image from retail perspective with emphasis on Customer Service rather than “Operational Savings” Decentralization makes it difficult to get initiatives pushed through; success came by joining forces with a member bank. Key Business Case Drivers Customer service Product Opportunities – CD Rom, Image Statements, Image via Internet Cost Savings – ECP, FTE Reduction, postage Enabled us to bring capture system back in-house

Image As An Enabler Image Strategy Incoming Returns 5/2001 Image Capture 7/2002 – 3/2003 Images on Intranet Available Immediately Image Statements 45 days after capture Power Encode 12/2002 – 5/2003 On-Us Fraud Detection 12/2002 Images on Internet 4/03 Electronic Delivery of Statements 12/03 ECP Next Phase Positive Pay Next phase Kiting Next phase Adjustments/Exceptions Next Phase Branch Capture Next phase

ECP – Building the Business Case Check use is falling in absolute terms, impacting even the largest players Check Use Falls; Fed to Cut Jobs   Memo to staff cites 'financial challenges' From: American Banker Monday, December 30, 2002   By Rob Garver WASHINGTON - The Federal Reserve System is expected to cut jobs and consolidate operations to offset declining volume and revenue from check processing, central bank officials confirmed Friday. The plan is the latest in a string of streamlining measures planned or executed by financial regulatory agencies this year. It is also the most tangible sign yet that paper check volumes are on the decline. At a meeting this year, the Council of Reserve Bank Presidents, made up of the presidents of the 12 district banks, resolved to reassess the system's check clearing and processing operation, which handles approximately 40% of checks written on U.S. banks. This review has come during what a Fed spokesman called "a time of significant change in the nation's payment system." Electronic payment methods are reducing the use of checks for retail transactions, and the Fed is finding it difficult to recover its costs from check clearing and processing services.

ECP – Building the Business Case

ECP – Opportunities Accelerated posting with next day settlement creates negative float, increases NSF income Interest expense is reduced by posting debits a day earlier Fraud/bad check losses reduced by accelerating electronic returns Truncating checks at BOFD reduces operational expenses ECP with Image reduces transportation costs

More Questions Than Answers Where should we start? ECP with checks to follow? ECP with image to follow? ECP with image on demand (Lockbox-ARC)?

More Questions Than Answers Who are our potential exchange partners? What are our options for exchange? Direct (SDS partners) Exchange Network SVPCo Viewpointe Endpointe Fed Other Players?

More Questions Than Answers What software will we need? What transmission capability/capacity will be required (for image)? What will the business case support? How will the CTA and Check 21 impact ECP?

For Further Information Kathy Martin Senior Director of Operations Synovus kathymartin@sti.synovus.com 706-649-4395