The Pentas Blog

In 2008, when the economic bubble burst, financial institutions were simply trying to survive. They weren’t investing in new products because they were focused on saving money. It’s hard to forget what a difficult time that was for so many institutions. The Pentas Group Founder, Frank DiSilvio, saw this chaos as an opportunity to address the need and help financial institutions negotiate fair market pricing so that they could achieve their desired results and stay competitive. At the time, Frank had years of experience in the banking technology industry, working for a major provider of banking services. He realized that CEOs were in need of assistance to negotiate contracts with their vendors to save money. Aside from salaries, data processing is the second largest non-interest expense to a bank. Knowing that financial institutions were extremely focused on their bottom-line, they needed to better understand their existing contracts and pricing. Given his experience in reviewing invoices and filtering through different vendors’ pricing models, he could advocate on their behalf and help them restructure their existing agreements to better manage this expense. He quickly realized in order to execute on this this concept, he would need help and support. He decided to reach out to his network of resources to discuss the concept and solicit feedback. He contacted a few of those resources, namely, Steve Proud, Frank Vairo, and Melanie Havlik. With backgrounds in data processing, banking, sales, and client relations, they all agreed that Pentas seemed like a great idea and were excited to help nurture the concept and model. They joined Frank soon after that initial conversation, and that was the start of The Pentas Group team. Following the economic recession, other consulting companies were suggesting arduous Requests for Proposals (RFPs). However, the Pentas team’s industry knowledge in data processing and banking helped shortcut the process in developing a NO COST Survey and Recommendation process, helping financial institutions better understand how to reduce costs, create efficiencies, and improve contract terms and conditions. Knowing that financial institutions focus on their bottom line, The Pentas Group was a pioneer in a contingency-based pricing model based on specific geography across the country. This service model that The Pentas Group went to market with is known as MVP (Managed Vendor Performance), which focuses on negotiating contract terms and conditions, compression on current spend, and bringing in new products and services to promote efficiencies. The Pentas Group first pitched a few community bank CEOs in the greater Chicago metropolitan area. The reception was very good, saving one of their early clients over $1 Million. Word spread quickly, and the team continued to use their connections to help other institutions. Retaining and nurturing client relationships has led to substantial repeat business over the past decade. The Pentas Group’s service offerings expanded as they discovered additional needs that their clients had. After honing the MVP services, they expanded their offerings, as some clients needed reoccurring assistance, so they developed the MVR (Managed Vendor Relations) services, which works on a monthly retainer fee. This allows The Pentas Group to conduct monthly meetings and orchestrate the appropriate interaction between the client and the vendors to ensure everyone is on the same page while keeping the client’s best interest top of mind. Over the years, the team saw that some clients were growing and acquiring other banks, so the MVC (Managed Vendor Contract Review) services was born, enabling institutions to leverage The Pentas Group’s industry expertise during a merger or acquisition. The Pentas Group continues to grow. After working in leadership roles in financial services and banking technology at some of the biggest processors in the country, Gregg Wright and Gary Dei Dolori joined The Pentas Group as Partners. After negotiating directly with and referring The Pentas Group in their previous roles, Gregg and Gary knew The Pentas Group business model was centered on the client. They came to The Pentas Group focusing on expanding client relationships and thinking of the client as a whole by recommending services and value-add solutions. Gregg’s Managed Network Services background added additional value to the Pentas Services, an area that is ever-changing and costly. As a result, a new service the MVN (Managed Vender Network) service was created. The focus was to promote solutions that would tackle the security, maintenance and back-up services in the most secure and cost-effective way. The protection of customer data, internal IT resources, and the financial institution’s reputation are major reasons that Managed Network Services has become more complex, expensive (sometimes rivaling the expense of Core Processing) and an area that requires additional expertise to properly access and determine the right solution. Gary’s leadership role with a major provider added further value and opportunity for the Pentas Group to grow further in the Eastern region of the US, an area that Pentas had previous success. Gary’s extensive experience in client management, contract negotiations, and relationship building was a natural fit and a welcomed addition to the Pentas team. The Pentas Group deeply values client relationships as well as vendor relationships. While working with their clients, they are also committed to interacting with vendors and expanding their industry knowledge through webinars, client conferences, etc. The team reviews vendor product roadmaps so that they are able to share and communicate this information with their clients. Additionally, due to the cumulative industry knowledge and pricing database, they’re able to reason with vendors and negotiate fair terms and pricing for clients while finding some balance with the vendors as well. As they look ahead, the team is thrilled to continue to help their clients produce measurable results through services that decrease costs and increase productivity within financial institutions.

As a banking institution, The Pentas Group knows you’re looking to save money and diversify into new products and services to attract customers and stay competitive in the evolving marketplace. We’re aware that having flexible and multiple options in providers and pricing is critical in negotiating agreements and saving on your expenses. However, we also recognize that there’s a lot of work that goes into navigating that process. We saw this industry-specific need and created a one-stop-shop solution for managing your cost structure through familiarizing ourselves with your institution upfront, making data-driven recommendations, and continually advocating for you. We're dedicated to staying up to date with the industry, including pricing, contract terms, and new products. Structuring agreements and negotiating better terms and conditions is time-consuming and requires having the right business intelligence and data to make informed decisions. For example, it can get complicated attempting to implement a better contract condition in a changing marketplace (such as a better price mix or new services). We attend breakout sessions with attorneys to keep up with legal jargon and regulatory compliance. We are constantly in communication with providers to keep us informed of what they're doing, now and in the future, which allows us to better articulate changes and progress while negotiating better pricing on your behalf. At the Pentas Group, we prioritize taking the time initially to get to know your institution, building a relationship, and remaining dedicated to keeping communication open. A part of our unique process includes several meetings with your provider(s) and you and your institution to ensure everyone is on the same page. We communicate weekly to further discuss where we're at with the provider(s) so that there's no radio silence, guaranteeing you always know what's going on. Our goal is to give you peace of mind, knowing you have somebody in the background that is always there to work on your behalf. We’ve perfected our 5-step process to 90-120 days to give you the most significant impact on your bottom line. These critical steps allow The Pentas Team to help guide you in a more informed manner. ASSESS : Our process starts with a mutual nondisclosure agreement which allows the Pentas Team to evaluate your current contract(s) and invoices with your current provider(s) to qualify what products and services are currently being used in your existing data processing environment. SURVEY : Next, we take this data and organize it into a pricing model. We review the information and strategy, find the products you use or don’t use, and identify gaps to build on your IT strategy and increase your competitiveness in the market. In order to understand your needs and current strategy to make our recommendations, we take the time to sit down with your executive and middle management in each department to go through the various functions within your institution. We combine all of this critical information to create an easily digestible survey. When evaluating each department, we focus on four essential components to give us a complete picture of your institution: Digital services Growth strategy Efficiency improvements IT infrastructure RECOMMEND : Following the survey, we review everything (including pricing and potential savings) to quantify the survey and share observations and recommendations. We want to ensure that you are fully informed on your current provider(s) and product(s) or service(s) so that you can decide on a course of action and whether or not you'd like to engage our services further. Up until this point, there has been no cost associated with the Pentas Group's involvement. We do all this work upfront to get to know your institution and its needs so that we’re confident in our ability to assist you in saving time and money. RESTRUCTURE : Then, if you decide to further engage with The Pentas Group, we will present you with an engagement agreement and work with you and your provider(s) to finalize the document. Once signed, we will develop your tailored Client Playbook: a complete reference guide for the services you've contracted. VALIDATE : This important stage highlights one of our unique services: we agree to stay on with you for several months to ensure the contract terms are being fulfilled. We perform audits to validate contract pricing, monitor what products and services are being used and implemented, and help with strategy along the way. This stage allows us additional insight, fostering educated recommendations and decisions. After the initial engagement, many of our clients continue to partner with The Pentas Group for other value-added services.

In the early days of Information Technology (aka Data Processing), many of the systems being installed were proprietary, so there was very little need even for the first form of protection: antivirus software. With the release of MS-DOS Personal Computers (PCs) and then Windows PCs, new capabilities, new tools for productivity, and new avenues for developers for new software applications were created, which also meant new avenues for Bad Guys (aka Cyber Criminals) to exploit the technology for their own gain.

As the financial services industry progresses into the digital age, a proactive approach that embraces technology will continue to be necessary to stay competitive. Attracting and engaging new customers is likely at the forefront of your business strategy, however, it’s crucial to not forget your current loyal customer base. Loyalty can be misleading: Everyone is on the go, and customers want a streamlined experience. Advanced and seamless digital experiences are important in everyone’s daily lives. Here are some things to consider when creating strategies to attract and maintain customer and member loyalty. Demonstrate they are your top priority As a traditional financial institution, you have an advantage with your established customer base. Show customers that you value the relationship by rewarding them for their loyalty. Programs such as debit and credit card rewards, relationship pricing and preferred rates will gain their allegiance and reassure customers that you are working with their best interests in mind. Focus on their overall experience It is important to understand your customers' needs. To set yourself apart from the competition, everything you do should be aligned to create a better and more seamless customer experience that is easy to use, fast, and convenient. Soliciting customer feedback provides an informed look into whether or not you're accurately serving them. In order to collect feedback, it's necessary to have the proper procedures and platforms in place to receive comments. Consider ways to measure your results, such as a Net Promoter Score. Another idea is to conduct a customer focus group in your community. It's essential to build and maintain customer loyalty. Offering your customers a chance to share their perspectives regarding how you can improve your business will go a long way in elevating your brand and attracting new customers. Find areas of opportunity While large banks often have the budget to implement a variety of the latest technologies, this may not be the case for your institution. Stay competitive by focusing on niche areas where you want to excel by providing user-friendly solutions that are tailored to meet objectives, ultimately investing in your core customers. Find the right solution for their needs There is no perfect solution, however, in today’s environment, technology offers a myriad of choices that provide solutions to fill existing voids. Evaluate existing tools and ensure you are using them to their full potential. This will allow you to become more efficient and work smarter. As banking technology evolves, opportunities will present themselves for considerable cost savings and improvements in day-to-day bank operations that will enhance your customer and member experience. At the Pentas Group, we are here to be your advocate. We enter into each engagement with a non-adversarial approach in dealing with your provider to ensure your solutions are meeting your strategic objectives. Take a proactive approach Your industry is faced with increased regulation, new security threats, technology advancements at light-speed, and an ever-growing pressure to build deposits, all in a competitive environment. Consumers expect service touchpoints on-demand like never before. As the digital world evolves, institutions must adapt by evaluating service providers’ costs and benefits. The Pentas Group recognizes the digital world requires a more proactive approach. We realize that cost containment and resource allocation is critical for survival.

A new generation of consumers is demanding more transparency and instant communication in banking. Financial Technology start-ups (Fintechs) are cultivating increased competition, using advanced technology like Artificial Intelligence (AI), instant response, and chatbots. This has translated to banking becoming more accessible, yet at the same time, potentially more vulnerable than ever. To navigate these disruptions, your institution must embrace technology in order to remain competitive. The constantly evolving market requires you to be as agile as possible. The Five Biggest Threats to Traditional Banking Digital Transformation Through increased online and mobile options that offer immediate and easy access, Gen-Z is shaping the future of banking. This poses a challenge to traditional banking where you need to be quick to market, providing solutions across your organization to address business problems efficiently. What can I do? Embrace innovation in your institution by leveraging technology to maximize existing processes and procedures. Invest in digital engagement tools to ensure long-lasting relationships with customers. Remember that consumers will gravitate towards institutions that are the easiest to work with and have deployed user-friendly and adaptable technologies. Increased Competition The rise of Fintechs pose another challenge to traditional banking. These revolutionary start-ups have gained significant traction by evaluating customer demands and responding with tailored products and resources. Consumers prefer to do business when their life is made easier with user-friendly technologies. What can I do? Look at Fintechs as potential partners rather than competitors. Embracing this technology will improve your customer retention and attract new customers as well. Collaborating (rather than competing) will provide you the opportunity to capitalize on cutting-edge technology that will meet the tech-savvy user demands. Through a partnership, your institution can significantly reduce structural costs and provide employees more time for building relationships. Cyber Breaches Access to increased banking technology means there is more opportunity for breaches and scams. However, institutions cannot eliminate all possible sources of cyber threats. What can I do? Employ effective security tools, or the right partner, to limit the vulnerability of entry points from potential attacks. Leverage solutions that address advanced analytics, real-time monitoring, AI, and identity verification. Cloud Technology More and more applications are being written with cloud-based technology. Implementing cloud technology provides for the elimination of on-premise hardware / software, allowing you to focus on banking. It also gives financial institutions a seamless path to disaster recovery. Self-service technology such as chatbots can assist banks with customer service in this new environment. What can I do? Embrace technologies such as Alexa or Google Assistant that are starting to act as virtual banking concierges. This means your customers will use smart devices to access their financial information where you were once the main source. Embracing cloud technologies will free up resources, allowing you to focus on your main business: banking. Compliance This has become the most prominent industry challenge due to the steep increase in regulatory requirements. It is no secret that compliance can significantly strain resources, often involving time-consuming processes that require you to compile and analyze data from divergent sources. What can I do? Create a culture of handling compliance through technology that collects and mines data, performs in-depth data analysis, and provides insightful reporting. This is crucial for identifying and minimizing compliance risk. Take an inventory of your product mix to determine that you have the right solutions in place. The Pentas Group can help you select the right technologies to help you standardize processes, attract consumers, enhance security, and enable your institution to remain competitive. Contact us for a no cost, no obligation evaluation.