Ssi Group

IFC Holdings (formerly INVEST Financial Corporation,

the nation's largest third-party marketer of investment

products, headquartered in Tampa, Florida)

(98.75 percent ownership)

• The SSI Group (the largest processor of hospital healthcare

claims in the U.S. headquartered in Mobile,

Alabama) (49 percent ownership)

With operations in Tennessee, Kentucky, Virginia, Mississippi,

Arkansas, and LouisianaIFC Holdings (formerly INVEST Financial Corporation,

the nation's largest third-party marketer of investment

products, headquartered in Tampa, Florida)

(98.75 percent ownership)

• The SSI Group (the largest processor of hospital healthcare

claims in the U.S. headquartered in Mobile,

Alabama) (49 percent ownership)

With operations in Tennessee, Kentucky, Virginia, Mississippi,

Arkansas, and Louisiana, FAC had $20.7 billion in assets, 7,195

employees, 391 banking offices, and 650 ATMs in 1998. It had

the largest deposit market share in Tennessee, the secondlargest

deposit market share in Mississippi, and the largest small

business and the middle deposit market share in Tennessee.

Conditions were not as good, however, in 1991 when

Dennis Bottorff became chairman and chief executive officer.

Because of FAC's problems, there was concern that the bank

would be closed, and that the larger banks would "come in

and pick the pieces they wanted." Bottorff and his management

team started by "fixing the broken things in the company."

However, they realized that FAC needed a long-term

strategy if it were to survive in the increasingly competitive

banking industry. It needed a new way of thinking and a new

business model. FAC could not be the low-cost provider

because it lacked the economies of scale of larger financial

institutions. Product differentiation was not a feasible strategy

because other banks could quickly duplicate products

that showed promise in the marketplace. It could not compete

for large accounts (e.g., Fortune 500 companies),

because they are the province of large national and international

banks.

Tailored Client Solutions

Bottorff decided FAC should focus its attention on three market

segments—consumers and small and midsize businesses—in

which the bank could compete effectively. It also needed to

shift from the traditional banking emphasis on products to

being much more customercentric. This new customer focus

required a data warehouse to support it. Top management felt

that the effort should be driven from the marketing department

and, after a year-long search, Brian Cooper was hired as executive

director of marketing.

The marketing department, senior management, and key

members of the finance department worked together to

develop the Tailored Client Solutions strategy. Exhibit 1 shows

the four interlocking components of the strategy: excellent

client information, a flexible product line focused on mass customization,

a consistent sales and service approach centered

on meeting