CSA Alumni Career Conference

Banking Industry Panel

CSA Alumni Career Conference

Banking Industry Panel

Gary Schnettler

Fifth Third Bank

Vice President of

Debit Authorization Systems

TopicsTopics

Career Highlights

The Banking Industry, IT and 5/3

Sample Project

Skills for Success

Industry Trends

Career HighlightsCareer Highlights 1991 – Graduated from Miami’s Systems

Analysis program 1991 – Hired by 5/3 Bank as an Online

Systems programmer 1993 – Became a manager 1995 – Promoted to Officer 1998 – Promoted to AVP 2001 – Promoted to Vice President of

Online Debit Authorizations group

Fifth Third Bank ProfileFifth Third Bank Profile #1 Super-Regional bank for the second

consecutive year - Fortune (March 3, 2003)

One of only two banks with “AA” rating – American Banker (August 26, 2003)

29 consecutive years of record earnings

8th largest bank in the U.S. by market capitalization

Ranked 3rd in efficiency among 15 largest U.S. Banks

Dividends have grown at a compound rate of 19% over the past 10 years

Fifth Third Bank is a Growth Company!

How Banks Make MoneyHow Banks Make Money

Two Methods of Generating Revenue

Interest Income

– Based on the spread of interest rates on loans vs. the rates on Savings accounts and CDs.

Fee Income

– ATM Surcharges, Overdraft Fees, Credit Card fees, Loan processing fees, selling services to other banks, etc.

Banking and ITBanking and IT CSA graduates are ideally suited for the

banking industry because:

– Banks are in the business of tracking and providing information to customers, employees and third parties

– Banks still have many manual processes that can be automated

– Customers will continue to drive the need for new products such as:

• Internet banking

• Electronic Bill Payment

• Pre-paid Cards

• Person to Person transfers

Information Technology at 5/3Information Technology at 5/3 Approx.1,000 of the bank’s 20,000

employees are in IT 70% of the projects on the Revenue list

involve IT Management views IT as essential to the

business IT is utilized to:

– improve efficiency

– improve customer service

– increase revenue through new products

5/3 Bank Lines of Business5/3 Bank Lines of Business

Retail

Commercial

Investment Advisers

Processing Solutions

– Merchant Business

– EFT Business

5/3 Bank Processing Solutions5/3 Bank Processing Solutions

Merchant Business Line

• Process Credit and Debit transactions for over 160,000 merchant locations

• Merchant customers include national clients such as Kroger, Walgreens and Best Buy

• Ranked 5th nationally for acquired credit card transactions

5/3 Bank Processing Solutions5/3 Bank Processing Solutions

EFT Business Line

Drive over 11,000 ATMs for hundreds of banks and credit unions

Support ATMs in all 50 states, Japan, Korea, Germany, U.K., Russia, Iceland, etc.

Maintain card bases for over 11 million debit cards for 5/3 and hundreds of other banks and credit unions

Provide connections to over 20 Debit, Credit and EBT networks

Credit and Debit Card Transaction Growth

Credit and Debit Card Transaction Growth

0.01.02.03.04.05.06.07.08.09.0

10.0

1997 1998 1999 2000 2001 2002

Transactions inBillions

Verified by VisaVerified by Visa

I am Emmitt Smith!I am Emmitt Smith!

Verified by Visa Authentication ProcessVerified by Visa Authentication Process

VisaVisa DirectoryDirectory ServerServer

5/3 5/3 AccessAccess Control Control ServerServer

5/35/3 MainframeMainframe

Verified by Visa Verified by Visa Password Password

AuthenticatedAuthenticated

Internet Internet MerchantMerchant

Customer Customer DatabaseDatabase

Verified by Visa DevelopmentVerified by Visa Development Worked with Business Line and Visa to

define project requirements Created a project plan involving Visa, Online

Systems and eBusiness Wrote new encryption routines to store the

Verified by Visa passwords under Triple DES Created a test script with over 100 unique

test cases Performed extensive User Acceptance

Testing Passed a thorough Visa Security Audit

Skills for SuccessSkills for Success

Technical Aptitude

Communication

Project Management

Leadership

Technical SkillsTechnical Skills Programming Languages

Algorithms

Data Bases

Data Structures

Data Communications

Encryption

Cross platform interfacing

Communication SkillsCommunication Skills Interpersonal communications with end

users

Small Group Communications

Public Speaking

Technical Writing skills are required for communication with

– Auditors

– Legal Department

– Vendors

– Customers

Project Management SkillsProject Management Skills Requirements Gathering Risk Analysis Writing Specifications Developing the Project Plan (SDLC) Communication with Key Stakeholders and

Project team Issues Management Implementation Coordination

Leadership SkillsLeadership Skills Brainstorming

Decision Making

Negotiation

Ability to present a business case

Analytical and critical thinking

Time and resource management

Job ExpectationsJob Expectations Critical Nature of Systems Support

– A 98% score is excellent in school but it is not acceptable on mission critical systems

– We strive for 99.999% in everything we do

There’s more to development work than just computer programming

– Project analysis and design

– Unit testing, Integration testing, User Acceptance testing, Regression testing

– Implementation scheduling, coordination and monitoring of changes

Current Industry TrendsCurrent Industry Trends Privacy and Identity Theft concerns

Increasing audit scrutiny

Continued institution consolidation

Heightened disaster recovery planning

Manual systems automation initiatives

Employee and customer diversity

Purchases by Tender TypePurchases by Tender Type

Credit Card20%

Debit Card7%

Cash21%

Check47%

Stored Value5%

Check Truncation ActCheck Truncation Act Gives electronic check images the same legal

status as paper checks Expected to become law in late 2003 or early 2004 Allows checks to be imaged at the point of

submission

– ATMs

– Branches

– Merchants

Potential to reduce check clearing timeframes from 2 - 7 days down to 24 - 48 hours

This will result in huge savings for banks

– 5/3 processes approx. 6 million checks per day

SummarySummary

• Banking is a stable industry and provides above average job security

• The banking industry is exciting and provides many challenges for IT professionals

• Miami prepares students to excel in meeting those challenges