The FinPro strategic planning process is designed to help clients build value by structuring the institution to meet its financial goals. The strategic business plan includes all the regulatory required elements and the interactive, what-if modeling results in a one year budget, a three year business plan, and a five year strategic plan.

Interactive and Iterative Board and Management Involvement

Active institution involvement is essential to:

provide an understanding of the building blocks of the plan including the situation assessment and the assumptions utilized in the modeling process;

facilitate decision making through training and education;

promote institution ownership of the plan;

provide direct accountability to the individuals responsible for each area of the institution;

provide for the ongoing monitoring and updating of the plan.

The Process Drives the Results

The FinPro planning process typically involves two phases, each including a planning retreat.

Phase One is designed to identify the existing situation assessment (Chapters 2-9). The fact patterns created by these chapters are utilized to spur discussions between management and the board about the strengths, weaknesses, core competencies, primary thrusts, major objectives, and the ultimate goals. The compilation of these topics creates the institution’s direction for the next three to five years.

Phase Two is the scenario building phase. During this process FinPro and management meet to create the financial projections for the institution based on the direction given during the first board meeting. The corresponding retreat is held to review the various scenarios, discuss the recommended scenario and the various strategies outlined to achieve the scenario.

Results Driven, Built Incrementally

Unlike other firms that plan at the bank level, FinPro takes a more granular approach and builds value by planning at the following levels:

Product by Product

Segment by Segment

Person by Person

Strategy by Strategy, and

Market by Market.

Unmatched “What-if” Modeling Capability

The interactive what if modeling allows:

real time impact analysis of the strategies, which allows the Bank to determine the optimal timing and relative scope needed for success;

the Bank to discuss branch and cost center profitability for current and projected time horizons;

decisions at individual cost centers to be made;

the Bank to make a decision based on the merits of the strategy and not based on convoluted transfer pricing methodologies.

The Components to Success

All Plans are built modularly (each chapter is also a standalone service offered). A typical Plan includes:

Executive Summary
Internal Environment
External Environment
Individual Market Assessments
Asset/Liability Analysis
Community Reinvestment Act (CRA) Analysis
Quarterly Performance Report
Quarterly Capital Markets Report
Building Value
Strengths, Weaknesses, Opportunities, and Threats (SWOTs)
Objectives and Strategies
Modeling Output and Assumptions
Cost Center and Strategic Alternative Summary
Goals and Implementation Overview

Monitoring is Just as Important as Planning

To ensure the execution of the plan, the Board and management need to continually review financial performance relative to the established one, three, and five year goals.