PNC Bank 2012 Annual Report Download - page 6

Priorities for 2013
Building on the strong customer growth in our business segments – Retail Banking, Corporate &
Institutional Banking, Asset Management Group and Residential Mortgage – 2013 provides us with
greater opportunities to deepen relationships through cross selling and increase fee-based income,
while we also look to reduce expenses. Additionally, we have established several growth priorities
for 2013.
Across our industry, fewer customers are
regularly using retail branches. In fact 40
percent of PNC’s customers have not visited
a branch in the last three months as more
transactions are being conducted online, at
ATMs and through mobile devices. And the
number of checks deposited by mobile devices
grew from zero to nearly 15,000 per day at PNC
– all in 2012.
Evolving customer preferences along with
low interest rates and a dynamic regulatory
environment have created a new world for
retail banking. We are rethinking nearly
every aspect of this business with a focus on
enhancing customer loyalty by deepening
relationships while lowering costs.
For example, we plan to install nearly
2,500 multi-functional, check-cashing ATMs
this year in addition to the 1,100 we rolled out
in 2012. That would mean that by the end of
2013, approximately half of our ATM network
will allow customers to cash checks, receive
images of their deposits and withdraw cash.
Compared to a branch, these ATMs often
provide greater customer convenience and
have significantly lower transaction costs.
Our innovative Virtual Wallet® product, which
helps customers better manage their money,
now has approximately 1.3 million accounts. In
the fourth quarter of 2012, we became the first
U.S. bank to integrate with Visa’s new digital
wallet service – V.me – which should simplify
e-commerce for Virtual Wallet users.
We are applying this same innovative approach
to a new product that we will be launching
this year for our business banking customers.
It’s called Cash Flow Insight® and provides
business owners with an online tool to help
them better understand their cash flows and
forecast their cash position.
Reflecting customer trends, we also plan to
close more branches in 2013 than we have
in any year in our history. However, PNC will
continue to expand its branch presence in
underpenetrated markets.
As we look ahead, we envision technology-
centered branches that deliver products and
services such as business and commercial
banking, wealth management, investments
and mortgages. This approach should drive
customer loyalty while improving margins. At
the same time, we are looking to increase our
brand equity in the virtual space with the goal
of deeper relationships with our customers.
REDEFINE THE RETAIL BANKING EXPERIENCE.