Value Management Group International LLC V M G

Value Management Group International, LLC: V M G I Information Document Overview, Case Studies, and Contact Information

Agenda • VMGI Overview • Case Studies • VMGI Contact Information V M G I 2 Confidential for Internal Use Only

Agenda • VMGI Overview • Case Studies • VMGI Contact Information V M G I 3 Confidential for Internal Use Only

Value Management Group International, LLC (VMGI) • We assist credit card issuers in the realization of performance improvement through superior strategy, operations management, and financial management • VMGI possesses the requisite experience and skills needed to be successful…those skills include: – – Strong analytical competence Broad exposure to front and back office environments The right balance between creativity and practicality Deep industry insights and knowledge • VMGI’s Mission: To offer the most in-depth and insightful advice to improve the financial performance of credit card issuers • VMGI has experience in many different kinds of projects with card issuers such as: * Operational Performance Improvement * Strategy Development and Implementation * System Conversion Assistance * Vendor Services Review * Budget Management * Competitive Assessments * Contract Negotiations * Revenue Enhancement • Lastly, we have acquired a detailed understanding of Total System Services and First Data Resources V M G I 4 Confidential for Internal Use Only

VMGI’s unique approach to management consulting has delivered outstanding results for our clients • VMGI Projects-VMGI strives to deliver projects in which: – The measurement of relative success is clear – The client is fully aligned with the project goals and objectives – There is frequent communication and consensus regarding project progress and results • VMGI Staffing-Our relatively small project teams are comprised of highly experienced and smart consultants that quickly diagnose the situation and then develop and manage the best solution • Post Project Management-We typically provide post-project support from the same VMGI project personnel in an effort to provide consistent post-project support and maximize benefit realization • The benefits from our unique approach to Management Consulting have been outstanding: – A recent project is projected to yield a five year return that is approximately 80 times greater than VMGI’s Professional Fees – A recent project identified annual performance improvement opportunities of approximately 20 times greater than VMGI’s Professional Fees V M G I 5 Confidential for Internal Use Only

VMGI possesses deep experience in all of the significant card functions Function 1. Credit • • Internet functionality Application processing procedures Connectivity to data facilities Intelligent data capture 2. Customer Service • • Quality metrics: ASA, average talk times, etc. Financial performance Incentive programs Voice Response Unit (VRU) strategies 3. Collections / Recovery V M G I Sample Areas of Expertise • • Financial performance Organizational structure Skip trace options Work standards • Throughput and quality metrics • Correspondence management • Risk management • Front end applications • Customer turnover and employee retention strategies • Online / Web-related customer service • • Use of third parties Agencies Forward flow buyers Point-in-time buyers 6 Confidential for Internal Use Only

VMGI possesses deep experience in all of the significant card functions (cont. ) Function Sample Areas of Expertise 4. Plastics • • One account number for life Total Management reporting Integration with risk management tools Photo cards • • Throughput metrics Quality metrics Card carrier design Daily reissue files 5. Data Processing/ Statements • Customized statements • Annual activity summaries • On-line information storage management • • Options structure Fees Interest rate Interface management 6. Risk Mgt • Risk Management Decision Engines • Event tracking • Performance-based pricing 7. Finance, Accounting, Settlement • GL reconciliation process management • Settlement process automation 8. Marketing/ • Promotional balance management New Product • Relationship management Development • Portfolio segmentation V M G I • Authorization parameter management • Custom score development and management • Billing element review • Management Reporting • Quality metrics • Support of reward programs • Online / web-related marketing • Support of various payment options 7 Confidential for Internal Use Only

VMGI possesses deep experience in all of the significant card functions (cont. ) Function Sample Areas of Expertise 9. On-Line Banking/ Emerging Technology • • Technology partners e. Wallet, e. Card On line functionality Digital Wallet 10. Fraud • Behavioral and neural tools Management • Falcon • Triad • Nestor 11. Reports • Report need analysis Management • Electronic vs. hard copy • Support requirements 12. Other V M G I • Network management • Organizational structure • Work standards • Gift card/stored value • Smart/chip cards • Electronic bill presentment • Throughput metrics • Quality metrics • Storage solutions • Contract terms • Performance standards • Support requirements 8 Confidential for Internal Use Only

Agenda • VMGI Overview • Case Studies • VMGI Contact Information V M G I 9 Confidential for Internal Use Only

Case Study #1: Credit Card Call Center Review • For a top ten card issuing bank, VMGI was tasked with reviewing all areas of the Call Center in an effort to reduce the cost per customer inquiry, identify and position for implementation revenue enhancement opportunities, and improve the quality of service and customer experience. High level examples of the functions analyzed include: – Analyzed financial performance data and identified opportunities to improve cost performance and increase revenue streams – Suggested VRU strategies in an effort to increase containment rates – Review and critique the effectiveness and value of incentive compensation plans – began development of inbound BT incentive comp plan – Training programs and improvement opportunities – Employee turnover management and employee retention programs – Quality metrics and recommend improvement opportunities – Evaluated quality and usefulness of forecasting technologies – Evaluated internal websites, for ease of use, data accuracy, usefulness, etc. – Value of alternative delivery and servicing channels – Organization structure for overall Customer Service function – Bilingual servicing strategy for Customer Service – Explored additional technology and services which could potentially improve efficiencies in the Call Center V M G I • VMGI identified an estimated $3 million in annual savings as a result of our recommendations, and Customer Service productivity efficiencies of 40% over then current levels 10 Confidential for Internal Use Only

Case Study #2: Recovery Operations Review • For a leading card issuing bank, VMGI was tasked with performing a comprehensive analysis of how to improve the Recovery function’s cost and liquidation performance through improvements in organization structure, processes, vendor relationships, systems, and management reporting. Our analysis included the following: – – – Analyzed financial performance data and identified opportunities to improve cost performance Organization structure for the overall Recovery Function Review of contracts and proposals with/from third party vendors Review of skip trace options Review of recovery batch tracks to match and evaluate recovery cash flows to drivers such as: • Forward flow buyers (contractual and bankruptcy) • In-house recovery • Agencies • Attorneys • Third party purchasers of charged-off debt • VMGI identified an estimated $1. 4 million in annual, recurring cost improvement opportunities, and increased annual liquidations of $3. 0 million. V M G I 11 Confidential for Internal Use Only

Case Study #3: Credit Originations Review • For a leading card issuing bank, VMGI was tasked with a review of the end-to -end activities of secured and unsecured credit card originations in a recently consolidated operations facility. Project objectives included cost savings and efficiency opportunities. Our analysis included the following: – Analyzed financial performance data and identified opportunities to improve cost performance – Analyzed opportunities around and cost/benefit of installing a Voice Response Unit – Reviewed and suggested improvement opportunities for the phone unit in areas such as: call routing, reporting, monitoring and training needs – Organization structure evaluation and recommendation for the overall Credit Originations function – Detailed review and evaluation of alternative credit origination systems – Review and evaluation of the end-to-end secured card and supporting deposit account origination process – Review of alternative notification methods regarding customer-level credit decisions throughout the organization – Review, evaluation, and implementation assistance with regards to credit origination correspondence and customer inquiry management V M G I • VMGI identified an estimated $1. 4 million in annual, recurring cost improvement opportunities 12 Confidential for Internal Use Only

Case Study #4: Balance Transfer Improvement Initiative • For a leading card issuing bank, VMGI assisted with the comprehensive redesign of a balance transfer program which addressed best practices, profitability, risk management, operational issues, and stakeholder incentives. Our assistance addressed the following issues: – Profitability: Integrate the Marketing, Risk Management, and Operations functions to develop a holistic go-forward methodology for profitability analysis for various balance transfer offers/accepted offers for multiple cardholder segments – Risk Management: Integrated the redesigned balance transfer program into the overall bank card risk management function, to include offer-level tracking and customer-level behavior – Operations: Development of an aggressive roll-out timeline and systemic fulfillment process. Additionally addressed the requirement that operations systemically capture customer-level data to feed to other functions such as Marketing and Risk Management. – Incentives: Strategic thought leadership in terms of incentives designed to encourage representatives to request the balance transfer so as to maximize transfer-level profitability. • VMGI identified balance build opportunities of approximately $100 million V M G I 13 Confidential for Internal Use Only

Case Study #5: Processor Evaluation and Contract Negotiation • For a leading card issuing bank, VMGI assisted with the comprehensive review of third party processing alternatives. Our project addressed the following: – Cost to run ongoing – Cost to convert – Strategic suitability – Vendor stability – Vendor ability to meet functional, quality, and support requirements – Contract terms and conditions – Conversion risk • VMGI assisted in the realization of a significant reduction in annual processing fees from then-current levels, as well as more favorable contract terms and conditions V M G I 14 Confidential for Internal Use Only

Agenda • VMGI Overview • Case Studies • VMGI Contact Information V M G I 15 Confidential for Internal Use Only

VMGI Contact Information VMGI Lead Contacts • Scott Smith Phone: 314 409 -2476 Email: sesmith@vmgillc. com V M G I 16 Confidential for Internal Use Only