WIXLIB

How to Be theAmazon Prime ofChecking

Dave CrookManaging Partnerdcrook@strategycorps.com615-289-0586Dave efazio

OD Financial DynamicsOD Consumer DynamicsOD Political DynamicsMarketplace ResponsesReplacement Revenue

OD Feemax # per max per Extended ODdaydayFeegraceamountgraceperiod2022 Changes 343 102 50 0 for NSF; 1 day grace period; early direct deposit 354 140 1 0 for NSF; reducing OD fee to 10; 0 OD transfer fee 353 105 344 136 364 144 36 - 8 days 366 216 36 - 7 days 366 216 36 - 5 days 361 36 5 353 105 10 3519 am nextday 0 for NSF; early direct depositeliminating all OD fees 35Source: as of October 2021 per bank websites 0 for NSF; 50 grace amount; 24 hour grace period;smart alertsTruist one account with no OD fees; credit lines up to 750; “alternative account” available with no OD Fees 5Truist one account with no OD fees; credit lines up to 750; “alternative account” available with no OD Fees 524 hours 0 for NSF. Low cash mode - alerts, grace periods, andtransaction controls24 hour grace period; 50 grace amount; balance alertsNext DayGraceeliminating all OD Fees; will approve overdrafts up tounspecified amount if you’ve deposited 250 in 2 out ofprevious 3 months; already had early direct deposit

OD Feemax # per max per Extended ODdaydayFeegraceamountgraceperiod2022 Changes 343 102 50 0 for NSF; 1 day grace period; early direct deposit 354 140 1 0 for NSF; reducing OD fee to 10; 0 OD transfer fee 353 105 344 136 364 144 36 - 8 days 366 216 36 - 7 days 366 216 36 - 5 days 361 36 5 353 105 10 3519 am nextday 0 for NSF; early direct depositeliminating all OD fees 35Source: as of October 2021 per bank websites 0 for NSF; 50 grace amount; 24 hour grace period;smart alertsTruist one account with no OD fees; credit lines up to 750; “alternative account” available with no OD Fees 5Truist one account with no OD fees; credit lines up to 750; “alternative account” available with no OD Fees 524 hours 0 for NSF. Low cash mode - alerts, grace periods, andtransaction controls24 hour grace period; 50 grace amount; balance alertsNext DayGraceeliminating all OD Fees; will approve overdrafts up tounspecified amount if you’ve deposited 250 in 2 out ofprevious 3 months; already had early direct deposit

OD Feemax # per max per Extended ODdaydayFeegraceamountgraceperiod2022 Changes 343 102 50 0 for NSF; 1 day grace period; early direct deposit 354 140 1 0 for NSF; reducing OD fee to 10; 0 OD transfer fee 353 105 344 136 364 144 36 - 8 days 366 216 36 - 7 days 366 216 36 - 5 days 361 36 5 353 105 10 3519 am nextday 0 for NSF; early direct depositeliminating all OD fees 35Source: as of October 2021 per bank websites 0 for NSF; 50 grace amount; 24 hour grace period;smart alertsTruist one account with no OD fees; credit lines up to 750; “alternative account” available with no OD Fees 5Truist one account with no OD fees; credit lines up to 750; “alternative account” available with no OD Fees 524 hours 0 for NSF. Low cash mode - alerts, grace periods, andtransaction controls24 hour grace period; 50 grace amount; balance alertsNext DayGraceeliminating all OD Fees; will approve overdrafts up tounspecified amount if you’ve deposited 250 in 2 out ofprevious 3 months; already had early direct deposit

Overdraft Watch Stats38Financial Institutions Tracked186133589Eliminated OD FeesIncreased Grace PeriodLowered OD FeeOffered No Overdraft Checking AccountBetter Notification ToolsIncreased Grace AmountOther (including eliminating NSF fees)

strategycorps.com/overdrafts

Eliminate all overdraftsDaily fee minimumsGrace periodsGrace amountsUser controls

Service charges by year and percentage ofaverage assetsService charges maintenance charges, ATM fees, stop payment orders, wire transfer fees and overdraft fees

Community Bank with 31,899 accountsOD/NSF per YearNumber of AccountsPercentage of AccountsAverage Balance% of OD/NSF FeesZero26,33382.55% 11,9430%1 time1,6445.15% 1,7553.48%2 times8132.55% 1,2873.44%3 times5211.63% 1,2223.31%4 times3571.12% 1,5133.02%5 times2790.87% 1,5862.95%6 times2270.71% 1,2052.88%6 times1,7255.41% 89680.92%

Community Credit Union with 44,318 accountsOD/NSF per YearNumber of AccountsPercentage of AccountsAverage Balance% of OD/NSF FeesZero40,15990.62% 4,1360%1-6 times3,4147.70% 87037%6 times7451.68% 77963%

Source: StrategyCorps Revenue Recession survey, September 2021

Source: StrategyCorps Revenue Recession survey, September 2021

Subscription Society

How Do You Get Subscriptions toChecking Accounts?

A CC ESSO RIZ INGCCOU NTTH E CH EC KIN G AEq uat ionk/ Cust om er Val ueIm p rov ing t he BanRON SHEVL INchDirect or of ResearCorner st one Ad visorsBYCOMMISSIONED

How Do You Design and Price YourSubscription-Based CheckingAccounts?

Example of SC client that has introduced subscription pricing tochecking by offering new services on checking account

14,692Total Checking AccountsBeforeAfterChange1Total Checking Balances 56,296,956 64,173,43713.99%2Average Checking Balance 3,832 4,45616.29%3Average Monthly DebitCard swipes12.7713.667.03%4Monthly Debit Swipes 187,561 196,7654.91%5NSF Annual Occurrences2.432.7713.72%6NSF Fee Income 1,001,695 1,116,52811.46%7Service Charge Income 420,391 616,572 196,1818Debit Interchange FeeIncome 697,727 731,9674.91%9Net Interest Income fromChecking Accounts 2,166,701 2,805,30929.47%10Total Fee Income 4,286,514 5,167,866 983,862

10,437 Upgraded AccountsBeforeAfterChange1Total Checking Balances 34,543,018 39,563,95314.54%2Average Checking Balance 3,310 4,19926.86%3NSF Occurrences1.231.4820.36%4NSF Fee Income 360,155 391,3828.67%5Average Monthly Debit CardSwipes12.5113.8710.84%6Monthly Debit Swipes 130,593 130.6850.07%7Service Charge Income 303,830 475,190 171,3608Debit Interchange Fee 485,807 486,1490.07%9Net Interest Income fromDDA 1,329,457 1,733,40130.38%10Total Fee income 2,479,249 2,998,298 606,874

Dave CrookManaging Partnerdcrook@strategycorps.com615-289-0586Dave efazio

Total Checking Accounts Before After Change 1 Total Checking Balances 2 Average Checking Balance 3 Average Monthly Debit Card swipes 12.77 13.66 7.03% 4 Monthly Debit Swipes 5 NSF Annual Occurrences 2.43 2.77 13.72% 6 NSF Fee Income 7 Service Charge Income 420,391 616,572 196,181 8 Debit Interchange Fee Income 9 Net Interest Income from .