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Pnc Financial Services Group Finance

To provide exceptional service and innovative financial solutions that empower well-being by delivering best-in-class banking services with positive community impact

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To provide exceptional service and innovative financial solutions that empower well-being by delivering best-in-class banking services with positive community impact

Strengths

  • BALANCE: Strong balance sheet with $559B in assets and diverse revenue
  • ACQUISITION: Successful BBVA USA integration strengthening market position
  • DIGITAL: 80%+ of consumer customers using digital banking channels
  • TALENT: Experienced leadership team with strong industry knowledge
  • RISK: Robust risk management framework with conservative credit culture

Weaknesses

  • EFFICIENCY: Cost-to-income ratio higher than top competitors at 63%
  • INNOVATION: Slower adoption of emerging fintech innovations vs peers
  • INTEGRATION: Legacy systems creating operational inefficiencies
  • GEOGRAPHIC: Limited presence in high-growth western/southern markets
  • TALENT: Challenges attracting top tech talent vs pure tech companies

Opportunities

  • WEALTH: Expand wealth management services to capture aging demographics
  • FINTECH: Strategic partnerships with fintechs to enhance capabilities
  • DATA: Leverage customer data analytics for personalized offerings
  • ESG: Capitalize on growing ESG investment demand and sustainability focus
  • PAYMENTS: Enhance digital payment solutions for business customers

Threats

  • COMPETITION: Increasing competition from digital-only banks and fintechs
  • INTEREST: Interest rate volatility impacting net interest margins
  • REGULATION: Expanding regulatory requirements increasing compliance costs
  • TECHNOLOGY: Rapid tech changes requiring significant ongoing investment
  • ECONOMY: Potential economic downturn affecting credit quality

Key Priorities

  • DIGITAL: Accelerate digital transformation to improve efficiency ratio
  • DATA: Enhance data analytics capabilities for personalized services
  • INNOVATION: Establish fintech partnership strategy to drive innovation
  • GROWTH: Expand in high-growth markets while optimizing capital allocation
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To provide exceptional service and innovative financial solutions that empower well-being by delivering best-in-class banking services with positive community impact

DIGITAL EXCELLENCE

Transform digital infrastructure for optimal efficiency

  • PLATFORM: Launch next-gen digital banking platform reaching 85% digital adoption among consumer customers by Q3
  • AUTOMATION: Implement AI-driven workflow automation reducing manual processes by 30% in core operations by Q4
  • EXPERIENCE: Increase mobile app satisfaction score to 4.7/5 while reducing service calls by 15% through enhanced UX
  • EFFICIENCY: Reduce cost-to-income ratio from 63% to 60% through digital process optimization and automated workflows
DATA MASTERY

Leverage data analytics for strategic advantage

  • INSIGHTS: Implement centralized data lake integrating 100% of customer data sources for comprehensive analytics
  • PERSONALIZATION: Deploy AI recommendation engine increasing product cross-sell ratio by 15% for digital channels
  • RISK: Enhance credit risk models with alternative data decreasing default predictions errors by 20% in consumer lending
  • REPORTING: Create real-time financial analytics dashboard adopted by 95% of managers for data-driven decisions
INNOVATION ENGINE

Create ecosystem for continuous fintech innovation

  • PARTNERSHIPS: Establish 5 strategic fintech partnerships addressing key capability gaps in payments and lending
  • INCUBATOR: Launch innovation lab developing 3 new fintech solutions with minimum $5M revenue potential each
  • API: Expand API platform enabling 20+ new third-party integrations increasing product ecosystem by 35%
  • TALENT: Recruit 50 specialized technology roles while upskilling 200 existing employees on emerging tech
STRATEGIC GROWTH

Expand strategically while optimizing capital

  • MARKETS: Increase market share by 2% in 3 high-growth regions through targeted branch and digital expansion
  • WEALTH: Grow wealth management AUM by 12% through enhanced digital advisory platform and AI-powered insights
  • COMMERCIAL: Expand specialized industry verticals capturing 15% YoY growth in middle market commercial lending
  • CAPITAL: Optimize capital allocation achieving 15% ROTCE while maintaining strong CET1 ratio above 10%
METRICS
  • Net Income Growth: 7.5% YoY for 2025
  • Efficiency Ratio: 60% (down from 63%)
  • Digital Adoption: 85% of consumer customers
VALUES
  • Customer Focus: Put customers at the center of everything we do
  • Integrity: Act with honesty and transparency in all interactions
  • Performance Excellence: Strive for operational excellence and continuous improvement
  • Diversity & Inclusion: Embrace diverse perspectives that drive innovation and growth
  • Community Responsibility: Create positive impact in the communities we serve
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Align the learnings

Pnc Financial Services Group Finance Retrospective

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To provide exceptional service and innovative financial solutions that empower well-being by delivering best-in-class banking services with positive community impact

What Went Well

  • REVENUE: Net interest income increased 3% YoY due to asset yield growth
  • DEPOSITS: Average deposits grew 2.1% despite competitive market pressures
  • DIGITAL: Mobile banking active users increased 7% to over 6.5 million users
  • CREDIT: Credit quality remained strong with net charge-offs at only 0.28%
  • CAPITAL: Strong capital position with CET1 ratio of 10.2% above targets

Not So Well

  • EXPENSES: Non-interest expenses grew 5%, exceeding revenue growth rate
  • MARGINS: Net interest margin compressed 7 basis points QoQ to 2.65%
  • COMMERCIAL: Commercial loan growth below expectations at only 1.8% YoY
  • FEES: Fee income from wealth management declined 2.3% due to competition
  • EFFICIENCY: Efficiency ratio deteriorated to 63% vs target of 60%

Learnings

  • AUTOMATION: Accelerated digitization is critical to improve efficiency ratio
  • PRICING: Need more dynamic pricing strategies in rising rate environment
  • SEGMENTS: Middle market segment showing highest growth potential for focus
  • COMPETITION: Digital-only banks gaining share in consumer deposit segment
  • INTEGRATION: Tech integration timelines need more realistic projections

Action Items

  • COSTS: Implement cost reduction initiatives targeting $200M in savings
  • ANALYTICS: Accelerate data analytics capabilities for customer insights
  • COMMERCIAL: Expand specialized industry verticals in commercial banking
  • DIGITAL: Launch enhanced mobile banking platform with personalization
  • TALENT: Develop targeted recruitment for critical technology roles
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To provide exceptional service and innovative financial solutions that empower well-being by delivering best-in-class banking services with positive community impact

Strengths

  • ANALYTICS: Strong foundation in data analytics for AI implementation
  • INVESTMENT: Significant technology investment budget of $3.5B annually
  • SECURITY: Robust cybersecurity infrastructure supporting AI deployment
  • SCALE: Large customer base providing extensive data for AI training
  • PARTNERSHIPS: Existing relationships with major tech providers

Weaknesses

  • TALENT: Limited specialized AI/ML talent pool compared to tech firms
  • LEGACY: Aging core systems hindering AI integration and deployment
  • SILOS: Organizational silos creating data access challenges for AI
  • ADOPTION: Slower internal adoption of AI tools vs industry leaders
  • GOVERNANCE: Underdeveloped AI governance and ethical frameworks

Opportunities

  • AUTOMATION: Process automation to reduce operational costs by 25%+
  • PERSONALIZATION: AI-driven customer insights to increase retention
  • RISK: Enhanced fraud detection and risk modeling through AI
  • ADVISORS: AI-augmented financial advisors for wealth management
  • CHATBOTS: Advanced conversational AI to improve customer experience

Threats

  • COMPETITORS: Faster AI adoption by fintech competitors gaining advantage
  • REGULATION: Emerging AI regulations potentially restricting use cases
  • PRIVACY: Customer concerns about AI use of personal financial data
  • BIAS: Algorithmic bias risks in lending and financial advisory
  • EXPERTISE: Competition for scarce AI talent driving up costs

Key Priorities

  • TRANSFORMATION: Create centralized AI Center of Excellence
  • TALENT: Develop AI talent acquisition and upskilling program
  • AUTOMATION: Prioritize AI for process automation and efficiency gains
  • PERSONALIZATION: Deploy AI for customer experience enhancement