0450-0735 • Rev. AESI • 3701 E. Plano Parkway • Plano, TX 75074 • 800 374-0422 • fax: 972 422-9700e-mail: sales@esi-estech.com • Web: www.esi-estech.com

ENTERPRISE REVIEW

Financial

A C C O R D I N G T O T H E U . S . F I N A N C I A L S E R V I C E S F O R E C A S T ,published in February, 2007, by the Economist Intelligence Unit, the U.S. financial servicessector is expected to lend a whopping $39.4 trillion in 2007. In order to successfully market to

firms within the financial industry, one must understand their priorities and challenges and offer solutionsto address these challenges. Financial institutions within this vertical market are sophisticated, and trulyunderstand the importance of technology and how it relates to theireveryday business practices.

A financial institution such as a bank is just like any other business.While another business sells products or services, a bank sellsmoney — in the form of loans and other financial products. Thebank initially obtains the money to sell in the form of deposits for whichit pays interest to depositors. The bank then loans this money toborrowers, charging a higher interest rate than what it’s payingto its depositors. The difference makes up a large part of thebank’s revenues. Other sources of revenue for a bank areinvestments, securities, and services fees — like those charged forchecking accounts, ATM access, safety deposit boxes fees, andoverdraft protection.

The interest rate a bank charges its borrowers depends on both the demand — in terms of the numberof people who want to borrow — and the amount of money the bank has available to lend. The amountavailable to lend also depends upon the reserve requirement the Federal Reserve Board has set. At thesame time, it may also be affected by the “funds rate,” which is the interest rate that banks charge eachother for “overnight” (short-term) loans.

Terms like bank, credit union, and savings institution may seem interchangeable, but there are somedistinct differences among them:

• Banks are community, regional, or national for-profit business corporations owned by private orpublic investors and governed by a board of directors chosen by the stockholders. Most anyone canopen an account at a bank, and income generated at a bank is returned to the stockholders in theform of higher dividends on their shares of stock.

• Credit unions are non-profit financial cooperatives owned by their members and governed by aboard of directors elected by those members. Usually there is a common bond among the members,such as belonging to the same organization or living in the same geographical area. Credit unionsaccept deposits from their members and use them to make short-term or mid-term loans. (Creditunions generally do not offer long-term loans, like a 30-year mortgage). Deposits are regarded aspurchases of shares, and all earnings of the credit union are paid out as dividends to members.

• Savings institutions (also called savings and loans or savings banks) specialize in real estatefinancing. They can be either corporations or mutuals (a type of business where making a deposit islike purchasing stock in the organization). Savings institutions always have the letters SSB or FSBafter the name to indicate whether they are a state savings bank or a federal savings bank,respectively. Each type is governed by an elected board of directors.

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These financial entities can be further classified:

• Commercial institutions specialize in business accounts, though they also offer consumer accounts.

• Retail institutions have many branches, and specialize in consumer accounts.

Many banks are regional, with two to 10 offices. Most are either part of a large, national bank (such asCitibank® or Bank of America®) or a community bank, which offers more personal service. Community banksare usually smaller banks, operating within a specific geographical area. On the other hand, credit unionsare almost entirely “retail,” while savings institutions are a combination of “retail” and “commercial.”

While not specifically addressed in this vertical market Enterprise Review, mortgage companies andinsurance companies are good prospects with similar challenges and solutions. Mortgage companieswere discussed in greater detail in the real estate Enterprise Review, and the insurance industry will bediscussed in a later Enterprise Review of its own. Similar “financial” businesses which are not specificallyaddressed here but should still be considered good prospects: stock brokerage firms, financial planners,investment banks, pension management companies, certified public accounting firms (CPAs), andprivate funding firms.

TrendsBanks need a steady influx of deposits to survive, and face increasing competition for these deposits. In order to find new deposits, banks are targeting areas with a significant growth in population andbuilding branches as new commercial and residential building occurs. A banking “boom” is currentlyoccurring in many of the metropolitan areas of Texas, Florida, Arizona, and Nevada.

Even though the banking industry is experiencing a new construction “boom” in several areas, foot trafficwithin the facilities is actually decreasing. The number of times the average consumer visits a bank dropswith each passing year, and one can only assume this number will continue to decrease as technologicaladvances make banking possible from virtually anywhere. Additionally, the banking industry is making iteasier for commercial accounts to do business with them without entering their facility. The federalCheck Clearing for the 21st Century Act (“Check 21”), which was signed into law in 2003 and becameeffective in 2004, was designed to foster innovation in the payments system and to enhance its efficiency.The law facilitates “check truncation” by creating a new negotiable instrument called a substitute check,which permits banks to truncate original checks, process the check information electronically, and deliverthe substitute checks to banks that want to continue receiving paper checks. A substitute check is the legalequivalent of the original check and includes all the information contained on the original check. As a resultof Check 21, commercial foot traffic will also gradually decrease within the bank’s facility as customerswill no longer need to physically enter the facility to deliver or pick up the original paper checks.

The financial industry continues to take advantage of the newest technology. Online banking is nowcommonplace, as are debit cards and automatic teller machines (ATMs). Even though the financialindustry is progressive in many areas, such as technology adoption, it is conservative in other areaswhen it comes to spending money. Firms within this industry want clear and tangible indicators whichshow how new ideas and solutions can positively impact their bottom lines.

In general, financial services for retail and commercial accounts are in high demand, due to a risingpopulation of working-age adults and the savings requirements of retiring “baby boomers.”

Smaller “private” banks, which cater to upscale, high-wealth individuals, are beginning to emerge.Larger banks are also taking advantage of this trend by offering a “wealth” division.

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Common characteristics of financial institutions1. Consolidation is on the rise; smaller financial facilities are being purchased by larger ones in both

the banking and credit union industries.

2. The “cross-selling” of services is a key component of the financial industry. Banks and credit unionsoffer many services, such as checking accounts, savings accounts, safety deposit boxes, certificateof deposits (“CDs”), debit and credit cards, loans, and money market accounts. A customer is lesslikely to move business elsewhere if the customer uses more than one service the bank offers.

3. Most incoming calls to retail banks are requests for information, such as current account balanceinquiries, rates on loans, specials, etc. Larger banks have a centralized live-answer call center, oftentaking advantage of Interactive Voice Response (IVR) software. Smaller branches typically have a lowervolume of incoming calls and often handle balance inquiries using a live operator. The volume ofoutgoing calls will vary. Loan officers, many of whom are paid on commission, make the most outgoingcalls, as they coordinate with the multiple parties involved with a single loan.

4. Banks and credit unions are typically open to the public from 8:00 AM until 3:00 PM, Monday–Friday,although the office staff members work until 5:00 PM. From 3:00 PM until 5:00 PM, the staff is takingcare of paperwork, balancing the books, and completing other tasks which do not require face-to-face customer service.

5. There is, however, an emergence of banks that are open to the public from 7:00 AM until 7:00 PM,seven days a week. These banks are trying to make it as convenient as possible to do businesswith them. Many of them are also opening “mini-branches” in somewhat unconventional areas,such as grocery stores.

6. A very large amount of data is transferred to and from each financial facility every day, processingmillions of transactions. To ensure speed and accuracy, each facility is equipped with premium-quality high-speed data lines.

7. Banks and credit unions are currently at odds over how each should operate within the financialindustry. While each has always seen the other as a competitor, the rivalry is becoming increasinglyintense. Banks dislike the tax-exempt status of credit unions, and say credit unions, who operate asnonprofits, want the advantages of being a bank without having to pay taxes like one. Creditunions, meanwhile, assert that banks oppose them because they don't want the competition.

8. Foot traffic within a bank continues to decrease as advances in technology give the typical consumerthe ability to use the bank’s services from virtually anywhere in the world. Online banking, automaticdeposits and withdrawals, and ATMs are a few of the many customer-friendly services offered bythe average bank. Additionally, those who have commercial accounts are also being offered newservices which will reduce the need to visit the bank in person.

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Getting in the doorBanks and credit unions vary greatly in size andaffiliation. Some are small, working with only a handful ofloan officers and tellers. Other can be much larger,belonging to a group of banks with many branches andhundreds of employees. Regardless, each facility needsa phone system and the ability to communicateefficiently. Your goal is to speak to the decision maker ordecision-making team. Finding this person or this teamcan take time and skill, and getting an appointment mayprove even more challenging.

You should be prepared to find the “pain” of severalemployees you may encounter along the way. Don’tdiscuss the features you’re selling; talk about theapplications and benefits their new phone system willprovide. Here are a few thoughts to consider whenspeaking to various staff members who can help you getthe appointment you’re seeking.

Board members • Senior officers

Don’t be afraid to call on those at the top. Many telecom sales reps are hesitant to contact senior-levelmanagement. Therefore, if you can gain access and build a relationship with senior-level management,the number of competitors you face may decrease. Additionally, these senior-level managers arefocused more on long-term value than on price. They want solutions to key business issues and aremore willing to pay for them than, say, a purchasing agent, whose bottom line is price. Senior officersand board members can also provide an idea of how important your project is to their organization.They are the ones who prioritize the projects, so they are the ones who can advise which projects mayhave a chance at getting the necessary funding. They can also let you know if there is a sense ofurgency or a compelling reason for them to act. If you have the opportunity to speak directly to a boardmember or senior officer, discuss what you can do to help the bank or credit union run more efficiently,and then ask the person to help you. Try to create a “win-win” situation.

The following script may be of benefit when speaking to a board member or senior officer:

“Hello, Mr./Mrs. [name], thank you for taking my call. I know you’re extremely busy, so I’ll get rightto the point. We’ve helped other [banks/credit unions] increase staff productivity, control accessto restricted areas, save time, and manage expenses. I’d like to meet with you briefly to show youhow we can help. My schedule is open next week. When is a good day and time for you?”

Alternately:

“I’d hate for lack of time or money to be a reason for your [bank/credit union] not to benefit frommy unique application geared towards [banks/credit unions] like yours. Perhaps it would save youtime if I worked with your operations manager or IT department to start. Can you help facilitatea meeting with them?”

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IT committee members

It is very common for banks to have several committees under the direction of the board of directors,and an IT committee is usually responsible for purchases like telephone systems. Most members of anIT department enjoy new and cutting-edge technology. They know about VoIP, and probably have thedesire to implement it if they haven’t already. VoIP technology can help IT professionals when they areneeding to move or change extensions, and it can reduce or eliminate the need for additional telephonecables, as the banks traditionally have extensive high-speed data networks. Show them how you canhelp them, and ask them to facilitate a meeting with the decision maker(s) if they do not have theauthority to make such as decision. Either way, you must determine who has the power to make a finalpurchasing decision. If applicable, be sure to mention if you have already spoken to anyone else at thebank or credit union, like a loan officer.

The following script may be helpful when speaking to an IT committee member:

“I was speaking to [name] and he/she said you have the best understanding of your [bank/creditunion] from an operational standpoint. You may not be familiar with all of the new technologiesmaking [banks/credit unions] more efficient. I’d like to get together with you to review some ofthe ways we can help. Are you available this week or would next week be better for you?”

Alternately:

“Thanks for taking my call, Mr./Mrs. IT Committee Member. I know how busy you are during theday. I wanted a moment of your time to tell you about the advancements in telecommunicationsmy company has found to be beneficial to [banks/credit unions] like yours. We’ve been able tohelp other [banks/credit unions] increase staff productivity, control access to restricted areas,save time, and manage expenses. Would you have some time to meet with me, to see if youcan benefit from my solutions? I’ll do what I can to work around your schedule.”

Loan officers and tellers

Remember: every prospect is unique. Try to find who wields considerable influence, regardless of thetitle and rank possessed. Don’t overlook loan officers or tellers — they can provide valuable insight andcan be a strong ally if approached correctly. In fact, one of the most effective ways to get your foot in thedoor is through an internal referral. While it is highly unlikely a loan officer or teller will have the authorityto make a purchasing decision of this size, they can be a good starting point. Ask them if they arecomfortable with their current telephone system. Ascertain what they like about their current system andwhat they would change. You must determine what they need and present it to the decision maker in amanner that makes good business sense. Briefly discuss possible benefits you can offer, and turn theloan officer or teller into your ally. Once you have revealed to them how you can help, ask them tofacilitate a meeting with the decision maker.

Tip: Find a bank that is opening additional branches or buying other banks. Consolidation and expansionwithin this industry will provide great leads for you when you are prospecting.

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Potential challenges and solutionsYour first appointment should be considered a fact-finding (or “discovery”) appointment. During thisfact-finding mission, your primary goal is to gather information about the prospect. Identify areas inwhich you can offer a better solution to their communications “pains.” It is your responsibility to listencarefully to the information given to you through your contact’s comments, and translate thosecomments into real-world issues you can resolve with your customized ESI solution.

Each of the following challenges is followed by several potential ESI solutions. Your challenge is to pickthe best solution for your prospect, and design an ESI system recommendation around it.

Challenge #1:To effectively market financial services to customers.

Solutions

1. Customizable music/message-on-hold (MOH) recording provides the bank with the ability to storerecorded tracks which callers hear while they’re on-hold. Each ESI phone system holds several suchtracks. Professionally recorded ones are included with each system, and ESI Communications Serversallow the bank or credit union to record several of their own. As an example, the bank could record a listof current loan rates and make changes on a weekly basis if desired. The ESI system would then playthe most current recording to callers who are on hold. Since “cross-selling” of services is a keycomponent, the bank could remind the caller of services it offers, such as safety deposit boxes.Alternatively, the bank may choose to use a “live” feed from an external audio source by just plugging ina cable.

2. Each ESI system’s auto attendant contains day, night, holiday, and auto modes; most ESI systemsalso have day2 and night2 modes for even greater convenience. The outgoing messages androuting tables can change, based on the day and time, as set forth by the system programming.Changes can be made to reflect the bank’s schedule, including many “banking holidays” (such asPresidents’ Day and Columbus Day), during which many other businesses are open.

3. Customized departments with flexible ringing plans can be developed to route incoming calls.This feature permits a call to ring one or more stations as a first choice, and then switch to ringing asecond station or group. Ring plan choices include a station, hunt group, ACD group, autoattendant menu or branch, or any other Esi-Link-networked system. As an example, a departmentcan be established to include all loan officers. A special DID can be used to route all calls regardingloan inquiries directly to a loan officer or group of loan officers. For consistency, each branch canset up a dialing plan mirroring the dialing plan of the main office.

4. Information mailboxes more efficiently handle repetitive requests for the same information — e.g.,spoken directions to the bank, the hours of operation, upcoming holiday schedule, etc. Whether theautomated attendant or a live attendant originally answers the call, the system transfers the callerinto the appropriate information mailbox.

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Challenge #2:To provide the safest and most secure environment possible forcustomers and employees.

Solutions

1. ESI Presence Management can reduce security issues by providing access control for specificareas of the financial facility. For example, the safe deposit area, the area behind the teller counter,or rooms containing sensitive documents like loan files can be securely locked. Electronic keys canthen be assigned which will easily grant access of these areas to select (or all) staff members. If the keys become lost, they can be turned off immediately.New keys can be quickly and easily created without theneed to re-key any of the locks.

Once a bank deploys ESI’s RFID-powered ESIPresence Management on an ESI phone system,ESI TimeLine provides the benefits of combiningan automated time and tracking system with theproven technology of electronic employee cardsand fobs. Records are created showing when anemployee entered and exited the facility orsecured area on any given day. These records canhelp supervisors ensure employees are openingand closing the bank promptly during workinghours. As an example, ESI Timeline can help makecertain tellers are working after-hours at the drive-inteller windows as required. (ESI Timeline isdiscussed further in Challenge #3.)

Lastly, if the staff’s extension numbers are programmed on available DSS keys of the other staffmembers’ phones, the DSS key will indicate the “in” and “out” status of the staff member when ESIPresence Management is installed. When the DSS lamp is flashing amber, the co-worker is not inthe office. Pre-programmed DSS keys can prove to be helpful if the facility is ever evacuated forwhatever reason; employees can be accounted for more readily and easily.

2. As needed, banks can take advantage of the live call recording feature by pressing the RECORD keyat any time during a live conversation.* The recorded conversation can then be easily copied to anothermailbox via the QuickMove feature. The Caller ID** information of incoming call is also captured.Live call recording can be especially helpful if a branch receives an irate or threatening phone call.

* In most jurisdictions, it is permissible to record a conversation if one of the two parties is aware that it is being recorded.However, ESI takes no responsibility as to its legality in all jurisdictions. It is the responsibility of the installing companyand the end user to determine and follow the applicable state and local laws regarding recording of conversations.

** This and other references to Caller ID within this document assume the prospects receive Caller ID service from theirtelephone service provider.

3. Banks and credit unions implementing ESI’s optional VIP software have automatic access tofolders as part of their Outlook menu tree. All calls are captured in one of three folders:

a. The Call Log folder tracks all calls to and from the VIP user’s station.

b. The Missed Calls folder captures the call details of those callers who chose to hang up ratherthan leave a message.

c. The Recycle Bin permits deleted voice mail messages to be restored to the VIP user’s mailboxand Outlook Inbox.

Phone call activity can easily be reviewed using one of these three folders.

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4. VIP Professional offers even greater tools which help ease security concerns with the optionalauto-record feature. One or more stations can be programmed in auto-record mode. This add-onlicense for select VIP Professional users enhances ESI’s manual recording function byautomatically recording every outside call received and placing the recording into the user’smailbox. The caller’s voice, time of call, and (if available) Caller ID data are captured so thatappropriate action may be taken. For example, loan officers who deal with sensitive informationmay wish to ensure all telephone conversations with potential applicants are recorded. The officercan save or delete each recording at its conclusion. When archived as a .WAV file, the recordingcan be attached to any e-mail or burned to a CD and placed in a filing cabinet.

5. Bank/credit union employees also have the ability to view the Caller ID information of incomingcalls, even if the caller did not leave a message. The 25 most recent calls presented to a stationcan be reviewed on the phone’s display by assigning a Caller ID Key in user programming. Theemployee can press this key to scroll through a single list of calls, sorted into four differentcategories:

• VM — Calls in which the caller left a voice mail.• MISS — Calls in which the caller disconnected before or during the mailbox greeting.• ANS — Calls that were answered.• RE — Calls that were re-routed in any way.

“OLD” indicates that the user has previously scrolled through this entry. The total number of NEWrecords is displayed, as is the total number of OLD records.

Note: This key can be programmed only on a 48-Key or 24-Key Feature Phone. It cannot beprogrammed on a 12-Key Feature Phone or ESI Cordless Handset.

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Challenge #3:To enhance communication among the main branch and the branch offices.

Solutions

1. ESI’s VIP combines the power of the ESI phone system and Outlook to enhance day-to-daycommunications. VIP is offered in two user configurations: basic VIP andVIP Professional. With either configuration, it’s easy to:

A. Manage voice mail messages, e-mails, and faxes ina centralized location — View voice mails, e-mails,faxes, live call recordings, and personal memos in oneOutlook Inbox; prioritize each message by importance;and select voice mail messages for playback, in any order.As an example, if a loan officer is waiting for a call from aparticular customer, a voice mail from the customer can bereviewed first by scanning the Caller ID of all messagesand selecting the desired message. Recordings and voicemail messages can then be saved as .WAV files. These.WAV files can be forwarded to others as e-mail attachments,or archived for future reference. Deleted voice mail messages canalso be restored.

B. Organize contacts — View the bank’s speed-dial lists along with personal Outlook contacts ina central location. System speed-dial lists are always kept current because they aresynchronized with the ESI phone system, as are extension listings for all of the bank’s staffmembers who have extensions programmed into the ESI phone system. This can be veryhelpful to new staff members.

VIP Professional offers even greater productivity tools which enhance everyday communicationswith ease. Text-messaging provides an immediate means of communications between VIP Professional users that is non-intrusive. For example, if Troy Staubach, VP of Operations, is onthe phone, his secretary can send a text message to him, advising that his 2:00 appointment is inthe lobby.

2. If the staff’s extension numbers are programmed on available DSS keys of the other staff members’ phones:

a. They can all see when another bank employee is on the phone, idle, or in “do-not-disturb.”

b. They can use the programmed DSS key to answer calls ringing at another staff member’stelephone easily, without performing a complicated feature operation.

c. The DSS key will indicate the “in” and “out” status of the staff member when ESI PresenceManagement is installed. When the DSS lamp is flashing amber, the co-worker is not in thebuilding.

Additionally, branches can “square” the DSS keys to mirror those of the main branch.

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Note: VIP’s fax management requires installation of a third-party fax server. For more information,see the VIP Product Overview (ESI document #0450-0608).

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3. In larger banks, VIP PC Attendant Console gives the receptionist a powerful and professional callmanagement tool.

a. Call handling — When the bank’s receptionist experiences a peak in call volume, the calls canbe sent to another extension or mailbox by dragging the calls to a valid station or mailbox keyin the Virtual Button Window; it shows the attendant who is busy, off-premise, or available,based on the color of each station button. This format is useful when determining if a callshould be “blind”-transferred to a station. It can also be used if all incoming calls are handled bythe main branch. The receptionist in the bank’s main branch can answer the calls and transferthem directly to another branch, a loan officer, or any other appropriate party.

b. Virtual Button Window — The Virtual Button Window is the equivalent of adding more thanthree of the 60-Key Expansion consoles and shows the status of up to 400 entries. Theattendant can “mix and match” the programming of the status buttons to include stations,mailboxes, departments, remote locations, and speed dial entries. Additionally, the attendantcan sort the Virtual Button Window for alphanumeric searches. The label name can be color-coded to show call routing preference, department affiliation or physical location in the building.Lastly, the attendant can also arrange the Virtual Button Window layout to mirror the layout ofthe bank’s floor plan. The amber “OUT” button advises that a bank employee member is notin the building.

c. Calls on hold — ESI’s VIP PC Attendant Console allows the attendant to see the Caller IDinformation of holding calls in the Holding Calls section of the display. This can be useful inhectic banks and credit unions. Color and font changes enable the attendant to provide moreattentiveness. Once a held call changes from a regular black font to a bold red font, the changegives the attendant visual indication that this call needs prompt attention. Calls can also beprioritized based on hold time.

4. Staff members, particularly those who work in the main branch, will find the Quick Move™ andQuick Group™ features very beneficial.

a. Quick Move provides one-keystroke copying of a received message to another user’s voicemailbox. If a customer leaves a message for Tom Lilly in Emmitt Dorsett’s voice mailbox bymistake, Emmitt can quickly and easily move the message to Tom’s voice mailbox.

b. Quick Group is a feature which allows a user to quickly send a message to any combination ofusers without having to create specific group mailboxes. No programming is required to initiateQuick Groups. For example, Troy Staubach can let all of the loan officers know about the newloan rates or the new promotions they will be running without contacting each officer individually.

5. Esi-Link (“easy-link”) technology helps unite banks belonging to the same corporation, whetherthey are across the street or miles apart. Esi-Link uses the bank’s wide area network (WAN) or theInternet to join together up to 100 compatible ESI phone systems into one interconnected, IP-basednetwork of systems. Benefits enjoyed by those who deploy Esi-Link include:

a. One-button access to remote systems — Esi-Link lets the bank employees easilycommunicate with the branch’s other employees at remote locations without having toremember complicated codes. All they have to do is press a Location Key to gain dial tone forthe remote location they want to call, and then dial the desired extension. As an example, let’ssay Deondra in the Dallas office needs to speak to someone at the branch in the city of Irving.Deondra can call the branch by pressing a pre-programmed DSS key labeled IRVING.

b. Capacity — Esi-Link connects as few as two — or as many as 100 — ESI phone systems.

c. Speed-dialing across the network — The Esi-Dex speed-dialing capability already in place onESI phone systems gets smarter still with Esi-Link aboard. Esi-Dex can be used to speed-dialextensions at remote locations. Borrowing from our previous example: Deondra can call EmmittDorsett in Irving with the press of a pre-programmed DSS key.

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6. Virtual Answer helps busy bank employees prioritize answering order of incoming calls, by placingexcess calls in “queue.” Each station can have up to two Virtual Answer Keys, each of which letsthe bank staff member offer callers any of four distinctly different operations:

• Continue to hold.• Leave a message for the station (press 1).• Route to the Operator station (press 0).• Dial another extension number or department.

7. If an employee is on a call, she’ll still be able to see the second call’s Caller ID information. She canchoose either to end her current call or use the Virtual Answer Key. For the latter case, she maychoose between two prerecorded greetings to send to the caller. For instance, pressing herVIRTUAL ANSWER 1 key may tell the caller that she realizes that another caller is on the line andasks if the caller could stay on hold just a bit longer. Similarly, pressing her VIRTUAL ANSWER 2key could tell the caller that, since she does see the CID information (but can’t get off her currentcall at this moment), she is going to forward the call to someone who can help immediately.

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Challenge #4:To reduce operating costs while providing fast ROI

Solutions

1. ESI Communication Servers offer investment protection for the bank. They are scalable andprovide flexibility for future growth, delivering expandability and the greatest functionality ESI hasever offered. Additionally, ESI Communications Servers support both IP or digital in any desiredcombination. This convergence gives the bank the ability to add IP at a later date if they preferwithout requiring the purchase of a new system.

2. ESI IP phones provide the same great ESI phone capabilities as do the Digital Feature Phones, yetwith the additional advantage of “one-wire” VoIP (voice over IP) telephony. No additional telephonewires are needed. IP phones work both locally (LAN) and remotely (WAN or Internet), and useeither Power over Ethernet (PoE) or regular AC power. This “one-wire” setup can be very helpfulwhen a technician is installing telephones, since most banks and credit unions have high-qualitydata cables already installed, making moves, adds, and changes (MACs) easier.

3. Each ESI system integrates voice mail functions and call management into a single-platform, all-in-one voice mail and phone system. Since all ESI phone systems provide a voice mail systemthat’s built-in and not added on, overhead is actually minimized:

a. Each product is designed around a digital signal processing (DSP) to eliminate the need forlarge amounts of hardware. In addition, the DSP can be completely modified with a newsoftware program. In other words, there’s no need to take down the system to perform anymodifications. A bank simply can’t afford for the phone system to be down.

b. Built-in modems are added to all ESI Communication Servers to allow remote program loadsand full diagnostic capabilities. These program loads can be done by the bank’s IT department,by the authorized ESI Reseller, or by ESI’s Technical Support staff.

4. Flexible call coverage, hunt groups, and the built-in auto attendant can reduce the incoming callburden on existing staff. For example, the auto attendant can provide the caller with a pre-recordedoutgoing message (as previously discussed) and route the call accordingly.

5. An ESI Communication Server’s flexible numbering provides those banks that are currently usinganother manufacturer’s system with the ability to maintain their current telephone numbers/directinward dial numbers (DIDs). Employees and customers alike won’t be forced to learn newextensions or phone numbers. Flexible numbering provides the installer the means to programextensions, voice mailboxes, and department numbers based on the specific requirements of aparticular bank or credit union. This feature removes a potential hurdle if your prospect has had thesame telephone numbers and extensions for years and wishes to continue using them.

6. Fax server integration provides the capabilities to integrate a fax server with an ESI phone system.Alternately, automatic fax switching, a built-in and standard feature of all ESI telephone systems,detects an incoming fax call and sends it to a system port where, according to system programming,there is a fax machine. This eliminates the need for a costly, separate line dedicated to the faxmachine. Loan paperwork can be faxed directly to the loan officer with ease, maintainingconfidentiality. And, when these capabilities are used in conjunction with VIP and VIP Professional,all voice mails, e-mails, and faxes can be managed from a centralized location.

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7. Used in conjunction with ESI Presence Management, ESI TimeLine helps banks or credit unions:

a. Streamline the payroll process— Eliminate time sheet collection.— End manual-entry errors.— Automate the entry of data into their payroll system.

b. Create an accurate employee time-tracking system— Generate reports that quickly provide information about employee time.— Introduce a self-enforcing or compliance initiative for employee time.— Eliminate debate, manipulation, and misuse of a paper or “honor” system.

When each bank employee waves his or her electronic key past an ESI Presence ManagementRFID Reader, the ESI phone system creates a record used by ESI TimeLine. Times and dates ofall authorized employees’ entries and exits instantly become part of a record they can save, print,and use with their payroll system.

8. The Verbal User’s Guide is a feature of all ESI phone systems. Pressing the HELP key makes thesystem literally talk users through any feature with which they may need assistance; it also providestutorials on the operation of the phone system. New employees can learn the phone system at theirown pace. No “formal” training is necessary, making new employees or substitutes productivemuch faster.

Note: The Verbal User’s Guide makes it mostly unnecessary to rely on printed documentation. However,ESI also provides its User’s Guide materials in an on-line format at www.esiusers.com.

N O T E S

Challenge #5:To keep committee members in touch with each other

Solutions

1. ESI makes conferencing easy by requiring only the use of the CONF key. When speaking to thefirst party, press CONF and dial the second conference member. Repeat as needed for connectionof up to 16 conference members (including the user who is the initiator of the conference). Forexample, loan committees can continue to hold their weekly meetings, even if one of the membersis out of town. The traveling committee member(s) can simply join a conference call.

A typical complaint regarding conferencing on other telephone systems is when one of the addedconference members is not available and voice mail is accidentally reached. ESI phone systemsmake it easy to drop this unwanted member by pressing the FLASH key.

2. As previously discussed, VIP and VIP Professional provide the ability to manage voice mailmessages, e-mails, and faxes* in a centralized location. Contacts can also be organized in acentralized location as well.

* Requires the installation of a third-party fax-server.

3. The off-premises “reach-me” feature can be incorporated as part of the committee member’svoice mail greetings. Internal or external callers listening to the greeting can choose to dial 4 toreroute themselves to an alternate number of the member’s choice, like a cell phone. If the callerchooses to be rerouted, the original Caller ID will accompany the rerouted call when it is sent to thealternate number via a unique feature of the ESI solution called Intelligent Call Forwarding.†

† To take advantage of Intelligent Call Forwarding, the office must have a digital PRI circuit installed.

4. DSS keys of other staff members’ phones give committee members the ability to see if another bankemployee is on the phone, idle, or in “do-not-disturb” mode. Additionally, the DSS key will indicatethe “in” and “out” status of the employee when the bank is using ESI Presence Management.

5. By installing an ESI remote IP phone at their respective homes, committee members will almosthave the identical access and functionality as when in the office. As with a 48-Key Digital FeaturePhone, DSS keys can be programmed on the remotely installed 48-Key IP Feature Phone II so thatoffice employees can be reached with the single touch of a key.

6. VIP Softphone gives a busy board member or committee member the ability to essentially use aPC as a desktop phone, whether in the office or at home. Once VIP Softphone is set up on a laptopor home computer, users can gain access to the ESI phone system via a broadband Internetconnection. VIP Softphone users can check messages or make calls through the PC while athome, provided a connection is available.

7. Virtual Answer Keys presents bank employees with the ability to seamlessly and invisiblycommunicate with a second caller like a fellow committee member while they are on the phone.When a second call is presented, employees can press a pre-programmed Virtual Answer key (asdiscussed in Challenge #3) to advise that they are on the other line but will answer as soon aspossible. The original caller is not disturbed.

Even if the caller chooses to wait but changes his mind, he may dial 1 to leave a message or 0 toreach an operator, or dial another extension number while still in the waiting cycle by takingadvantage of ESI’s patented dial-on-hold feature.

8. As discussed in challenge #3, Esi-Link provides one-button access, toll by-pass, and speed-dialingacross the network, making collaborative communication among committee members easier andless expensive than ever before.

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N O T E S

Challenge #6:To ensure proper communication throughout the loan process

Solutions

1. When a loan prospect calls to inquire about getting a loan, the automated attendant, a standardfeature of ESI Communication Servers, can answer the call automatically with a recorded greetingand route the call accordingly; the call can be sent to an information mailbox, a Q & A mailbox, or alive representative who is assigned to handle calls of this nature.

2. In very large banks where incoming traffic is heavy, the rightchoice may be automatic call distribution (ACD), anotherstandard feature of ESI Communication Servers. Thisfeature “stacks” multiple callers in a queue and answersthem on a “FIFO” (first in, first out) basis. This ensuresthat the longest held call is answered first.

3. VIP and VIP Professional can help the loan officermanage contact lists, call history, and recordings. IfEmmitt Dorsett, a Senior Loan Officer in the Irvingoffice needs the phone number of the loan broker hespoke to a few days ago, he can review his VIP CallLog to find the broker’s telephone number. Additionally,each version of VIP can also centralize the storage ofvoice mails, e-mails, and faxes.*

* Requires the installation of a third-party fax-server.

4. As previously discussed, Virtual Answer Keys can help the loan officer prioritize calls when he ison the phone and another call is presented. He may choose between two pre-recorded greetingssuch as:

“This is Emmitt. I can see you’re calling, but I’m on the other line. Please wait, and I’llanswer your call as soon as possible.”

“Hello, this is Emmitt again. My original call is lasting longer than anticipated. Since yourcall is important to me, please allow me to forward you to another qualified loan officer.”

If Emmitt chooses to transfer the caller to another loan officer, the call will be transferred automatically,based on station programming, once the Virtual Answer message has been presented.

5. The loan officer has the ability to incorporate personal greeting #2 to activate the off-premises“reach-me” feature. Internal or external callers listening to the greeting can choose to dial 4 toreroute themselves to an alternate number of the loan officer’s choice. If the caller chooses to bererouted, the original Caller ID will accompany the rerouted call via Intelligent Call Forwarding.†

† To take advantage of Intelligent Call Forwarding, the office must have a digital PRI circuit installed.

6. If the officer is unavailable and the caller leaves a message, the new message will trigger any pre-defined message notification options, which include dialing a cell phone, another external number,or another station.

With ESI Presence Management installed, message notification options are enabled and disabledautomatically, based on the loan officer’s “in/out” status. When Emmitt scans out, his choice ofparameters are modified to accommodate his absence. When he scans in again, his normalselections are reinstated.

(Continued)

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N O T E S

7. A virtual mailbox key can be programmed to allow visual monitoring of and connection to a voicemailbox other than the mailbox normally associated with the phone. For example, a virtual mailbox keycan be programmed to help a loan officer know of any messages waiting. There is no need to assigneach officer with a physical telephone. A guest mailbox can be assigned as needed and a pre-programmed virtual mailbox key will provide message notification. However, the officer does nothave to keep accessing the guest mailbox to check whether there are new messages. Instead, thevirtual mailbox key will provide instant visual indication; if it’s not blinking, no messages are waiting.

Additionally, a loan officer may be work out of several branches and travel between branchesthroughout the week. Since the loan officer is consistently on the move, it may be prudent for eachbranch to associate the officer’s voice mail with a guest mailbox instead of a physical telephone.

8. All mailboxes may perform a pager notification. A cascade notification mailbox instructs thesystem to access an outside line and dial Emmitt’s pager number. Several attempts are made toreach Emmitt. If, for whatever reason, Emmitt does not answer the page, one or more alternatepersons can be paged. Leaving a message in a cascade mailbox increases the probability ofsomeone responding to the page.

9. Quick Move gives bank employees the ability to copy a message to another user’s voice mailboxwith one keystroke. If a loan customer leaves a message in the general mailbox, asking Emmitt toreturn her call, the receptionist can easily pass the message to Emmitt once she retrieves themessage from the general mailbox.

Additionally, the receptionist can take a “live” message for Emmitt without using a pen or paper.While on the phone with a customer, she can press the RECORD key. At the end of theconversation, she can move the recording to the Emmitt’s mailbox, using the Quick Move feature.This will provide the Emmitt with the customer’s voice inflection and tone. If, during theconversation, the receptionist sees Emmitt becomes available, she can easily add him to theconversation with the conference feature. Once the conference is established, she may remain aspart of the conference or securely pass control of the call to the Emmitt. As with a regular call,conference calls may also be recorded using the live call recording feature.*

* In most jurisdictions, it is permissible to record a conversation if one of the two parties is aware that it is being recorded.However, ESI takes no responsibility as to its legality in all jurisdictions. It is the responsibility of the installing companyand the end user to determine and follow the applicable state and local laws regarding recording of conversations.

10. Most employees continue to work after the bank is closed. Loan officers can “screen” incomingcalls using live call screening (message monitor). When a caller is leaving a message, live callscreening provides a broadcast of the message through the ESI phone’s built-in speaker. Thisallows the officer to decide whether to answer call or let the caller leave a voice message, similar tothe way most home answering machines work. For example, officers who are working onpaperwork for tomorrow’s meeting can enable this feature and monitor voice mail messages asthey are being recorded. Messages can be intercepted as they are being recorded if desired.

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N O T E S

Challenge #7:To promptly and easily summon emergency personnel in the eventof an emergency within the financial office

Solutions

1. Depending on the call volume and the time of day, there may not be an available line for dialing 9 1 1 if an emergency arises within the financial office. Fortunately, all ESI systems provide the 9 1 1 Alert function, which forces the last line to disconnect if someone dials 9 1 1 during an “all-trunks-busy” situation — so it’s always possible to reach emergency assistance.

2. ESI’s 9 1 1 Alert feature also supports internal notification. When any station in the system dials 9 1 1, this notifies a designated station, such as the office manager’s extension. When emergencypersonnel arrive, the person at that station can direct them to the specific area that has the emergency.

Specifically, the designated station receives a ringing call and a visual display indicating whichstation dialed 9 1 1. The ringing won’t stop until someone lifts the alerted station’s handset of thealerted station and listens to the entire recorded message, which message further identifies thestation that dialed 9 1 1. (If the alerted station user hangs up before the conclusion of the recordedmessage, the telephone will begin ringing again until answered, at which point it plays the samerecorded message from the start.)

3. During an emergency, people may panic and forget simple things that ordinarily they know — suchas dialing the digit 9 to make an outside call. However, when the ARS feature is enabled and thedialed number string is exactly 9 1 1, an ESI Communications Server recognizes this sequence asthe emergency number and selects an available line on which to place the call.

Note: E911 is not a fully supported feature of ESI systems. Check with your municipal and state regulatoryagencies for clarification of your local requirements.

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N O T E S

Recommended discovery questionsDiscovery questions help you determine your prospect’s needs versus simply what you can offer.Preparation is critical, so you should make a list of questions to ask during your information-gatheringappointment. Think in terms of benefits, not features. Ask questions that prompt the prospects to revealwhat problems or challenges (“pain”) they face. You can then customize your ESI solution to solve theirproblems and surpass their needs.

Below are several suggested discovery questions you can use during your appointment. Listed aftereach question are applicable features or applications.

1. How do you currently use your telephone system to help market your services to yourcustomers? (Information mailboxes, customizable music/message-on-hold [MOH], day/nighttables [including holiday mode and auto mode], customized departments.)

2. What type of security issues do you face? How does your current phone system help you tocontrol access to sensitive areas of your facility? (ESI Presence Management, ESI Timeline,virtual mailbox, VIP, VIP Professional’s auto-record, DSS keys, live call recording, Caller ID key,911 Alert.)

3. What issues do staff members face when trying to communicate with customers and eachother? What steps are you taking to improve these communications? (Intercom, pagingcapabilities, DSS keys, VIP and VIP Professional, Virtual Answer Keys, Esi-Link, auto attendant,conference key, guest mailboxes, live call screening [message monitor], Intelligent Call Forwarding,live call recording.)

4. What about communication among board members and among members of variouscommittees? (Ease of conferencing, off-premises “reach-me,” DSS keys, ESI PresenceManagement, ESI remote IP phones, virtual mailbox, VIP, VIP Professional, VIP Softphone, VirtualAnswer Keys, live call screening [message monitor], Esi-Link.)

5. What challenges do your loan officers face when trying to complete the loan process?(ACD, UCD, VIP, VIP Professional, Virtual Answer Keys, personal greeting #2, off-premises “reach-me,”message notification, ESI Presence Management, cascade paging, DSS keys, QuickMove, ESI Cordless Handsets, flexible numbering, auto attendant.)

6. Approximately how many calls do you receive in any given day? Can you tell me about theflow of incoming calls? When a call comes in, where does it ring? What information does thetypical caller need? (Virtual Answer, hunt groups, VIP ACD, VIP PC Attendant Console, DSS keys,QuickMove, ESI Cordless Handsets, ACD, UCD, flexible numbering.)

7. How do employees deal with voice mails, e-mails, and faxes? Can they be reviewed basedon priority? Can they be stored in a centralized location? (VIP and VIP Professional, fax serverintegration, auto-record, live call recording.)

8. How many branches do you have? Are there plans to open additional branches or expandcurrent facilities? (Esi-Link, ESI system type [considering size requirements for the future], IP-capable systems, ESI Presence Management, VIP PC Attendant Console, guest mailboxes,Quick Move, Quick Groups.)

9. Are you tasked with reducing operating costs? What budgetary pressures do you face?(All-in-one platform, investment protection, fax server integration, automatic fax switching, analog ports,tenant service, flexible numbering, hunt groups, Esi-Dex, customizable music/message-on-hold[MOH], Esi-Link.)

10. How long does it take for a employee to become familiar with your current phone system?Who does the training? (Verbal User’s Guide, VIP and VIP Professional, ESI PresenceManagement RFID fobs and keycards.)

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