Fifth Third Bank Corporate Entrepreneurship group project

1. Fifth Third Bank:
Branching Out
Nikki Gundimeda | Evan McCarthy | Ben Sandler | Chenxuan Shen

2. Agenda
01 Current Situation &
Problem
02 Research & Insights
03 Potential Solutions
04 Recommendation &
Business Case

3. Our Task
▪ Identify the “Branch of the Future” and
identify how Fifth Third should use its
existing branches
▪ WCS: Raise customer flow in branches
10% a year

4. Current Situation
▪ Branch Breakdown: 1,153 Branches in 10 States
▪ Customers value availability of branch, though many
don’t actually use the branch
▪ Branches build brand legitimacy
▪ 60% Americans would rather open an account in
person than online
▪ Homebuyers, small businesses, older individual account
holders make up the majority of branch visitors

5. Outlook and Financial
Highlights
7% Increase in Asset
Management
Revenue Q1-Q3 2018
3.15% Increase in
Revenue 2015-2017
Opening 100-125
Branches in Growth
Markets by 2021
Closing 100-125
Branches in Mature
Markets by 2021
2018 Branch Optimization
Plan
Financial Highlights

6. Problem
▪ Banking is increasingly conducted across digital
platforms, posing threat to branch utility
▪ Branches are a financial burden, yet too many
customers still use them to rapidly close
branches
▪ Current situation forces Fifth Third to address
Branch vs FinTech reality, requiring the firm to
innovate

7. Customer/Problem Insights
▪ Customers go to branches when they’re opening an
account, making a large transaction, or getting a loan
▪ Customers still find branches reassuring, even if they are
going to branches at declining rates
▪ Customers choose based on convenience/proximity, but
nothing is more convenient than mobile.
▪ Findings show that banks that can afford to keep branch
offices still have an advantage over online upstarts when
signing new customers.

8. Our Process - Ideation
WHAT IS
WHAT IF
WHAT WOWS
WHAT WORKS

9. Our Solutions
■ Personalized Digital Financial Planning Solutions
○ Provide personalized advising based on customer life goals through digital platforms
○ Use digital platforms to personalize and enhance retail experience - helps alleviate
“digital v traditional” tensions by fostering synergy
■ Fifth Third Supercenter
○ Consolidate urban locations and create a cutting-edge urban supercenter where
customers can make high-value transactions, receive loans, open new accounts, and get
help with long-term financial planning
■ Co-Working Space with Premium Financial Services in Entrepreneurial Cities
○ Small business owners do banking in person (Reuters 2017 survey)
○ No-overhead collaborative space for entrepreneurs, small businesses
○ Addition of top Fifth Third financial advisors in select branches
○ Anchors new target market in branches with easy access to financial services (new
accounts, loans, personal wealth management)

10. Our
Proposed
Innovation
Free vibrant
workplace that
facilitates
collaboration and
provides easy,
no-pressure access to
quality financial
services

11. Business Case
● WHY: Small business owners are large segment of customers still coming to branches for
an array of services; new accounts, loans, financial planning, etc.
● WHAT: Reengineer 10 pilot branches’ services to meet the needs of highly-entrepreneurial
markets AND provide no-overhead workspace for local entrepreneurs, thus addressing an
adjacent non-banking customer need.
● REVENUE: Gets potential customers’ feet-in-the-door with workspace so that
highly-skilled loan assistance officers and wealth managers in branch can help new
ventures with Fifth Third solutions. Expect to see increase in revenue derived from
business loan interest, new account fees, overdraft fees, and wealth management
brokerage fees.
● COSTS: Refurbishing selected branches; Office supplies/equipment; Hiring/training of
higher-quality employees geared more towards wealth management and loan assistance
than day-day transactions

12. Execution Plan
■ Chose 10 pilot branches based on local metrics:
○ Startup Density; Rate of New Entrepreneurs; Venture Capital Investment in the City;
Tax Friendliness to Small Businesses; Business as the Primary Source of Income for
Local Entrepreneurs; Infrastructure and Pollution
■ Localized marketing push of Fifth Third “Grow Your Business”
campaign to local accelerators, incubators, business associations, etc.
■ Partner with local businesses in refurbishment of space (e.g, local
interior designers to customize space to reflect city; local bakery to
supply coffee and baked goods on Fridays)
■ Create evaluation model to gauge successes and failures (locations,
services, user experiences) of pilot program

13. Appendix
■ Process of Design Thinking
■ Insights from Ideation
■ Business Model

14. Our Process - Ideation
WHAT IS - Current Situation
WHAT IF
WHAT WOWS
WHAT WORKS
Note: The following process is about how we utilize the design thinking model to
get to our final ideas. We started ideation with what if and we picked out what
wows and works with underline.

15. WHAT IF
● Theme party
● Life necessity/convenience providing at bank
● A place similar to Apple Store - whoever wants to go
can go
● Bookstore
● Library
● Change the environment to become more like a place
with less stress
● WeWork for urban banking branches
● Food offered at banks
● Community sponsorships
● Movie theater in bank
● Gym inside of the bank
● Banks offer monthly prizes
● Banks offer educational sessions
● Banks open new branches on the west coast
● Bank buys other banks
● Bank sells locations
● Use land/space as a rotational pop-up store for
startups/businesses that bank with fifth third; maybe
one company a month
● Educational Workshop Event - Local community for
high school students
● Partnership with post service or package center
● Charitable/philanthropy events hosted at
branches...charity runs with branches being the
starting point
● Multiple startups hosted in branches in urban areas
● Subscription service for number of times you visit a
branch
● Community involvement
● Partnerships with other companies
● Premier locations

16. WHAT WOWS
● Strategic locations
● Multiple startups hosted in branches in urban areas
● Subscription service for number of times you visit a branch
● Partnership with post service or package center
● Use land/space as a rotational pop-up store for startups/businesses that bank
with fifth third; maybe one company a month
● Banks open new branches on the west coast
● Movie theater in bank
● Gym inside of the bank
● Change the environment to become more like a place with less stress
● WeWork for urban banking branches
● Life necessity/convenience providing at bank

17. WHAT WORKS
● Change the environment to become more
like a place with less stress
● WeWork for urban banking branches
● Use land/space as a rotational pop-up store
for startups/businesses that bank with fifth
third; maybe one company a month
● Strategized locations

18. Ideation Insight
▪ It is important to think about novelty but the
process of validating whether the solution
would work can really facilitate the
converging process.
▪ The ideation that we provided needs to
synergize with the existing strengths of the
bank.

19. Business Model
Problem
▪ Brands are closing due to declining usage
Solution
▪ A UX Refurbishing branches, streamlining services to be more relevant to retail customers’ needs, and
addressing customer’s adjacent non-banking needs.
Unique Value Proposition
Customer Segment
▪ Founders of small business who is seeking financial management system
▪ People who are interested in investment but not having a lot of experience with it
Revenue Streams
▪ Expect to see increase in revenue derived from business loan interest, new account fees, overdraft fees,
and wealth management brokerage fees.
Cost Structure
▪ Supplies. Hiring. Tech. Renovations. Marketing.

20. Thank You!