Overview of the Banking sector competitive environment, and relative positioning of Community Banks and Credit Unions vs Mega-Banks. Why Community FIs should focus on High Net Worth Customers and how OptiRate can help.

1. High Net Worth Customer Acquisition for Community Banks,Regional Banks, andCredit Unions

3. Compete effectively with the mega- and online-only banks

4. Grow organically - customer base, assets and profitability

5. Improve Efficiency Ratio

7. Expensive technology

8. Traditional advertising, including

9. Print

10. eMail and Newsletters

11. Cold-calls

12. In-branch advertising

13. On-line advertising

14. Gimmicks such as free pens, mugs and toasters

16. Community FIs underperform despite large footprint Banks <$1b CUs <$1b Banks $1b - $5b CUs >$1b Banks >$5b Community FIs represent 99% of all FIs And control 55% of all Branches … but own just 24% of all assets … and just 27% of total deposits Source: FDIC and NCUA, December 2010 5

17. 6 The flight to Community FIs has been Greatly Exaggerated Number of Bank Accounts As of 12/2010 Millions of accounts <$1b 201 $5b+ 1,006 $1b - $5b 91 Number of CU Members As of 12/2010 Millions of members CU Membership Growth 12/2008 - 12/2010 Millions of members <$100MM 19 $1b+ 34 $100MM - $1b 39 Source: FDIC and NCUA, December 2010 and December 2008

18. 7 Clearly, positive consumer views have not resulted in desired action Net Promoter Score Customer Service Extremely Supportive Rating Likelihood to Stay Likelihood to Recommend Credit Unions Community and Regional Banks Mega-Banks Source: NPS - Bain & Co, Customer Loyalty in Retail Banking 2010; all others - RaddonFinanical Group, National Consumer Research, Fall 2010

19. Community FIs face unprecedented challenges 8

20. 9 Enviable opportunities await those willing to obliterate obstacles Staying ahead of the changes including real time transaction processing, online banking, mobile banking, business and retail RDC, PFM, etc. Technology 15,000 FIs in total; 48+ in a typical metropolitan area; wealthier areas have 200+ FIs Transition staff from order takers / tellers into active sales staff Customer Service & Sales Competition Challenges & Opportunities for Community FIs Dodd-Frank, CFPB, OD fee restrictions, interchange fee restrictions, capital requirements, safety & soundness, Basel II, Basel III, etc. Be there and be ready to meet customer needs whenever, where-ever, however they want Customer Preferences Regulations Products & Services Brand Standing out in a commodity based business; develop products & services not available elsewhere; improving relationship profitability Differentiate; Generate true loyalty; ensure that customers would miss your FI if it disappeared tomorrow.

21. Let go of old ways, behaviors, and expectations things are different now 10

22. Introducing… 11 OptiRate Best of both worlds: Personalized Service with Megabank-like reach

24. In branch advertising

25. Increase deposits rates

26. Expand your footprint

28. Online acquisition

29. High Net Worth Customer12

31. FIs increase High Net Worth customer relationships

32. FIs improve liquidity and quality of deposits

33. FIs reduce acquisition cost by 50%+

34. FIs increase net revenues by $1 million+ through NIM and cross-sales13

36. Safe & Sound insured products

37. Simple and intuitive user experience (5 minutes / 5 clicks)

38. Attracts, informs and retains consumers14

39. Consumer Expectations are Growing “Brands are barely keeping up with consumer expectations now. Every day consumers adopt and devour the latest technologies and innovations, and hunger for more. Smarter marketers will identify and capitalize on unmet expectations. Those brands that understand where the strongest expectations exist will be the brands that survive - and prosper.” - ‘10 Branding and Marketing Trends for 2010’ , Robert Passikoff, President of Brand Keys 15

41. Unbiased advise

42. Best offer id

43. Safety and Soundness appraisal

44. Anytime access

45. Banking products

46. Follow on customer service

47. Cross-sell / new product support

48. Lending capability

49. Transaction Processing

50. Asset / Liability management

51. Consumer Marketing

52. Provider agnostic advisor

53. Campaign Management

54. Product comparison

55. Initial Transaction Processing

56. Account Management16

57. This channel has been proven to be effective… And now YOU can help launch 17

59. Go-live within 4 weeks

60. Limited IT resource requirements for implementation

62. 1,000+ new High Net Worth customers

63. $1 millionincremental net revenues

64. Local & national media exposureSerge Milman Serge.Milman@OptiRate.com 415.260.3403 (c) 800.319.6784 x600 (o) www.OptiRate.com | www.OptiRate.com/Banks | BankBlog.OptiRate.com