PNC Bank 2013 Annual Report Download - page 5

Our business is built on relationships. The more
we can help our clients to define and achieve
their financial goals, the more they will trust us
to help meet their needs and the stronger, more
profitable our relationships will be.
To that end, we have worked to make investing
and retirement a part of every client conversation,
and we have established related goals for all
client-facing employees across the company.
The results in just the first 18 months or so of
this effort have been terrific as our entire team
has committed to the goal.
Within AMG, new primary client acquisitions
increased by 22 percent in 2013, with referral
sales from other PNC lines of business up
44 percent compared to a year ago. AMG grew
total revenue 7 percent year over year due to
increases in the equity markets and
strong sales production. Assets under
administration increased 10 percent
to $247 billion as of December 31,
2013. And in a sign of how our entire
team has committed to this goal, retail
banking brokerage managed account
assets increased 35 percent to
$9 billion.
Importantly, nearly 90 percent of our wealth
clients rate the PNC Wealth Management team
as “excellent” and say they are extremely likely
to remain PNC Wealth Management clients.
Our institutional client satisfaction has increased
as well, with 80 percent describing themselves
as “committed” or “loyal,” a testament to the
strength of the relationships we work to build
with our clients through time.
Capturing more investable assets
Assets under
administration
at year end
Billions
2012 2013
$247
$224
Redefining the retail banking business
In light of the current operating environment
and in recognition of our customers’ evolving
preferences, we took important steps in 2013
to redefine the retail banking experience and
the value exchange between the bank and our
retail customers.
Retail banking is evolving faster than at any
point in the industry’s history. Customers are
choosing every day to adopt new technologies
to connect with their banking institutions
and manage their accounts. Indicative of our
customers’ rapidly evolving preference for a
customizable, multi-channel experience, our
implementation of innovative, popular and more
cost-effective options by which to bank resulted
in record-high migration of deposit transactions
in 2013. In fact, just in the fourth quarter,
non-branch deposit transactions by ATM and
mobile increased to 30 percent of total deposit
transactions – nearly double the rate in the
fourth quarter of 2012.
Clearly, the retail banking industry has to adapt
to meet consumers where, when and how they
want to bank. And PNC is taking bold steps in
the direction of our customers. To that end, we
have begun reconfiguring our branch network
to offer more digital touch points and deposit-
ready ATMs that offer 24-hour convenience.
We entered into a partnership with the Tepper
School of Business at Carnegie Mellon
University to create the new PNC Center for
Financial Services Innovation, where we are
working with researchers to better plan to
serve the customers of the future. We are
transitioning from traditional branches to more
efficient spaces, and we are training