1. Senior Director of Operations Synovus Financial Corp.
ECP at Synovus
Kathy Martin
Senior Director of Operations
Synovus Financial Corp.
ECP Forum
Birmingham, Alabama
January 14, 2003

2. Agenda Background on Synovus Initial Approach Image as an Enabler
Building the Business Case
ECP Opportunities
More Questions than Answers

3. Who is Synovus?
Fortune’s 100 best companies to work for in America – Top 10 for the last 5 years
$20 Billion in assets
39 separately chartered banks in 5 States – community bank style
270 Branches
81% ownership in TSYS – 2nd largest credit card processor
Core processing outsourced in 1998

4. Geographic Presence

5. Synovus’ Initial Approach to ECP
Jim Blanchard, Synovus Chairman and CEO, BITS Chairman , encouraged all banks to consider ECP
Service provider didn’t offer ECP – cost prohibitive to Enhance
Incomplete strategy around electronification alternatives:
ECP, ECL
Check Conversion, Check Truncation
ACH, EFT
Reg E, UCC
ECHHO, SVPCo

6. Synovus’ Initial Approach, cont.
Pressure developed in the community bank environment with customers asking for image.
Shifted Focus from ECP to Image – Image had “traction” and could be the gateway to electronification and other opportunities for revenue and cost savings.

7. Image As An Enabler
Sold Image from retail perspective with emphasis on Customer Service rather than “Operational Savings”
Decentralization makes it difficult to get initiatives pushed through; success came by joining forces with a member bank.
Key Business Case Drivers
Customer service
Product Opportunities – CD Rom, Image Statements, Image via Internet
Cost Savings – ECP, FTE Reduction, postage
Enabled us to bring capture system back in-house

8. Image As An Enabler Image Strategy Incoming Returns 5/2001
Image Capture 7/2002 – 3/2003
Images on Intranet Available Immediately
Image Statements 45 days after capture
Power Encode 12/2002 – 5/2003
On-Us Fraud Detection /2002
Images on Internet 4/03
Electronic Delivery of Statements 12/03
ECP Next Phase
Positive Pay Next phase
Kiting Next phase
Adjustments/Exceptions Next Phase
Branch Capture Next phase

9. ECP – Building the Business Case
Check use is falling in absolute terms, impacting even the largest players
Check Use Falls; Fed to Cut Jobs   Memo to staff cites 'financial challenges' From: American Banker Monday, December 30,   By Rob Garver WASHINGTON - The Federal Reserve System is expected to cut jobs and consolidate operations to offset declining volume and revenue from check processing, central bank officials confirmed Friday. The plan is the latest in a string of streamlining measures planned or executed by financial regulatory agencies this year. It is also the most tangible sign yet that paper check volumes are on the decline. At a meeting this year, the Council of Reserve Bank Presidents, made up of the presidents of the 12 district banks, resolved to reassess the system's check clearing and processing operation, which handles approximately 40% of checks written on U.S. banks. This review has come during what a Fed spokesman called "a time of significant change in the nation's payment system." Electronic payment methods are reducing the use of checks for retail transactions, and the Fed is finding it difficult to recover its costs from check clearing and processing services.

10. ECP – Building the Business Case

11. ECP – Opportunities
Accelerated posting with next day settlement creates negative float, increases NSF income
Interest expense is reduced by posting debits a day earlier
Fraud/bad check losses reduced by accelerating electronic returns
Truncating checks at BOFD reduces operational expenses
ECP with Image reduces transportation costs

12. More Questions Than Answers
Where should we start?
ECP with checks to follow?
ECP with image to follow?
ECP with image on demand (Lockbox-ARC)?

13. More Questions Than Answers
Who are our potential exchange partners?
What are our options for exchange?
Direct (SDS partners)
Exchange Network
SVPCo
Viewpointe
Endpointe
Fed
Other Players?

14. More Questions Than Answers
What software will we need?
What transmission capability/capacity will be required (for image)?
What will the business case support?
How will the CTA and Check 21 impact ECP?

15. For Further Information
Kathy Martin
Senior Director of Operations
Synovus