Maximizing Financial Institution Growth with Outsourced Services. Tim Witt, Diebold, Incorporated Don Ledet, IBERIABANK

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1 Maximizing Financial Institution Growth with Outsourced Services Tim Witt, Diebold, Incorporated Don Ledet, IBERIABANK

2 Challenges Driving Outsourcing Market Challenges Response to Challenges EXTERNAL Consolidation among financial institutions Loss of revenue due to fees Uncertain legislative environment Emerging security threats System modification to meet compliance standards, to overcome system integration challenges and to mitigate security threats INTERNAL Managing security risks Increased operating costs Maintaining a competitive advantage Improving customer satisfaction Keeping pace with technology Modernize systems to operational efficiency Support new behavioral-based products Improve customer communications

3 Outsourcing in Financial Services FIVE STEPS to a successful outsourcing partnership

4 Outsourcing in Financial Services STEP 1: Review Strategic Objectives Any outsourced solution should support overarching strategic initiatives Review 3- to 5-year strategic plans of entire organization Build outsourcing relationships on strategic initiatives that: Improve process efficiency Help the FI keep pace with evolving technology Minimize risk Support change management

5 Outsourcing in Financial Services STEP 2: Identify the Key Processes to Outsource Are you prepared to drive strategic outsourcing initiatives? Identify the key processes and stakeholders that will be required to drive these initiatives and deliver on the defined strategies Review resource availability against resource requirements Review technology capabilities against technology requirements

6 Outsourcing in Financial Services STEP 3: Define the Processes to Outsource Determine areas of focus and responsibility Identify where processes being considered begin and end Identify inputs and outputs Leverage a single-point-of-contact view of infrastructure and operations

7 Outsourcing in Financial Services STEP 4: Explore Partnerships A single-point-of-contact offers the most value and opportunity Assisting with a range of issues: Compliance with the latest data security standards and new requirements for ATMs Complex ATM vulnerabilities, such as card skimming Operational efficiency, growth and retention, and consumer experience objectives Additional major risk issues on the horizon

8 Outsourcing in Financial Services STEP 5: Measure Results Look beyond monthly fees, and delivery processes and systems Expect metrics that show quantifiable improvements and value in: Information sharing Transferred knowledge Advising Guidance

9 Benefits of Outsourcing Outsourcing management enables delivery of complex solutions through a single point of contact. 1. End-to-end program management 2. Maintain compliance, enhance security and improve efficiencies 3. High availability of delivery channels 4. Ability to leverage existing infrastructure of partners 5. Current and emerging technologies

10 Integrated Services Offering

11 IBERIABANK Overview IBERIABANK is the oldest and largest bank headquartered in Louisiana and has been a Diebold customer since Founded in 1887 providing financial services for 125 years $12 Billion in exceptional asset quality Significant growth activity organic/ mergers and acquisitions Funded by stable core deposits Tremendous liquidity and capital paired with a unique business model More than 120 NEW locations 2009 to present Conservative and disciplined, yet opportunistic

12 Locations 278 (Bank Branches 187) Total Assets $ 12.1 Billion Total Deposits Total Loans Market Capitalization $ 9.4 Billion $ 7.7 Billion $ 1.6 Billion Arkansas 35 Bank locations 30 Non-bank locations 65 Total locations $1.0 billion deposits #12 Rank Tennessee 3 Bank locations 1 Non-bank locations 4 Total locations $155 million deposits #113 Rank 9 other non-bank other states: Oklahoma 1 Mississippi 3 Illinois 1 Missouri 1 Georgia 2 Idaho 1 Florida 50 Bank locations 11 Non-bank locations 61 Total locations $2.5 billion deposits #22 Rank Texas 5 Bank locations 4 Non-bank locations 9 Total locations $185 million deposits #227 Rank Louisiana 79 Bank locations 30 Non-bank locations 109 Total Locations $5.1 billion deposits #5 Deposit Rank Deposit Market Share as of June 30, 2011 Locations include Florida Gulf Bank as of July 31, 2012 Source: SNL Financial Map Reflects Locations as July 27, 2012 Alabama 15 Bank Locations 6 Non-bank locations 21 Total locations $500 million deposits #20 Rank

13 Why Diebold Was the Trusted Partner for Outsourcing Joint Ideation and Deployment of ATM Fleet Upgrade. Together, Diebold and IBERIABANK identified three key areas where enhancements were necessary to optimize the ATM fleet. Standardized hardware and software in industry-leading platform (Diebold Opteva and Agilis ) Upgrade transaction processor Deployment of Deposit Automation, Intelligent Depository Module across entire fleet of ATMs

14 Why Diebold Was the Trusted Partner for Outsourcing A strategic ATM partner during a significant time of growth. IBERIABANK has undergone significant growth since 2007, triggering a critical need for a strategic ATM partner. Diebold was that partner. Diebold was able to meet aggressive timelines Diebold understood our vision Diebold delivered consistency across the enterprise

15 Achieving Control and Operational Efficiency After outsourcing to Diebold we were able to gain control, efficiency and a future migration path for advanced technologies. Significant cost controls: operational, capital expense, budget Technology refresh of all terminals enabled us to achieve brand consistency Single point of contact to streamline requests/projects Increased availability and up-time across ATM fleet More feature-rich, advanced functionality at the terminal Future migration path for deposit automation

16 IBERIABANK s Integrated Services Initiative Thanks to Diebold we were able to integrate and customize 198 ATMs. First and second line service Remote link and content delivery Campaign Office Advisor Currency Management Support desk Consumables

17 Questions and Answers