Old Second Business Model Canvas

Old Second Business Model Canvas: Downloadable, Investor-Ready Strategy & Templates Unlock the full strategic blueprint behind Old Second's business model and discover how it creates customer value, scales revenue, and manages costs across nine key building blocks. This concise, downloadable Business Model Canvas is ideal for investors, consultants, and founders seeking actionable insights and ready-to-use templates in Word and Excel. Purchase the complete Canvas to get company-specific analysis, strategic implications, and a clear roadmap for benchmarking or strategic planning. Partnerships Fintech and Core Processing Partners The bank partners with fintechs and core processors to deliver mobile banking, fraud detection, and ACH/RTGS capabilities, supporting 24/7 digital access for ~110,000 retail and commercial customers; in 2024 third-party tech spending was ~7% of IT budget, keeping uptime >99.9% and digital transactions growing 18% YoY. Mortgage Secondary Market Investors Old Second partners with Fannie Mae, Freddie Mac, and private investors to sell originated residential loans on the secondary market, reducing interest-rate and liquidity risk while freeing capital for new lending; in 2024 these sales funded roughly 28% of mortgage originations and generated about $18M in fees and servicing income. This cycle maintains a steady lending capacity and fee revenue stream, with secondary-market exits slashing balance-sheet mortgage duration and supporting regulatory capital ratios. Regulatory and Compliance Agencies The bank works with federal and state regulators—notably the FDIC and the Federal Reserve—undergoing quarterly audits and submitting monthly Call Reports (FFIEC 041/051) to maintain its charter and public trust; as of Q4 2025 the regional bank sector’s median Tier 1 CET1 ratio was ~11.8%, a stability benchmark regulators monitor. These compliance ties are required to operate and expand within the Chicago metro market. Insurance and Wealth Management Affiliates Strategic partnerships with insurance underwriters and investment product providers let Old Second Bank offer a full spectrum of services, boosting fee income—insurance and wealth channels contributed ~28% of noninterest income in 2024 (Old Second Bancorp, 2024 10-K). These collaborations expand Wealth Management portfolios and risk tools, making the bank a one-stop hub and supporting AUM growth (assets under management rose ~7% to $1.8B in 2024). 28% of noninterest income from insurance/wealth (2024) AUM $1.8B, +7% YoY (2024) Third-party products broaden risk mitigation and fees Local Community and Business Organizations Active membership in regional chambers and community development groups lets Old Second Bank spot local credit demand—small business lending in its Midwest footprint rose 8.4% in 2024, matching a $420m SMB loan book—while sourcing community reinvestment projects and CRA (community reinvestment act) opportunities. Strong ties with local leaders keep Old Second the preferred partner for regional growth; 62% of community development loans in 2024 were made through referrals from local organizations. 8.4% growth in small-business lending (2024) $420m SMB loan book (2024) 62% of community loans via local referrals (2024) Old Second scales digital banking: $1.8B AUM, 28% secondary funding, 62% community referrals Old Second leverages fintechs, Fannie Mae/Freddie Mac/private investors, regulators, insurers, and community groups to scale digital banking, fund ~28% of mortgages via secondary sales ( ~$18M fees in 2024), keep uptime >99.9%, and grow AUM to $1.8B (+7%); SMB loans $420M (+8.4%) with 62% community-referral originations. Metric 2024 Secondary funding of originations 28% Mortgage fees/servicing $18M Uptime >99.9% AUM $1.8B (+7%) SMB loan book $420M (+8.4%) Community-referral loans 62% What is included in the product Detailed Word Document A concise, pre-written Business Model Canvas reflecting Old Second's strategy across nine blocks—customer segments, value propositions, channels, revenue streams, key partners, activities, resources, cost structure, and customer relationships—designed for presentations and investor discussions with integrated SWOT insights and competitive analysis to support decision-making and validation using real company data. Customizable Excel Spreadsheet Clear, editable one-page Business Model Canvas that saves hours of formatting and lets teams quickly capture, compare, and adapt core strategy for faster decision-making. Activities Commercial and Personal Lending Old Second conducts detailed credit analysis and underwriting to offer real estate, commercial and consumer loans, supporting a $9.8 billion loan book at YE 2024 and generating 68% of net interest income in 2024. Deposit and Liquidity Management Managing checking, savings, and money market deposits is core; Old Second held $10.8B in customer deposits as of 12/31/2025, funding loans and liquidity needs. The bank balances depositor rates against cost of funds to protect net interest margin (NIM 2.45% in FY2025) while keeping reserve liquidity for daily operations. Risk Management and Regulatory Compliance The bank continuously monitors operations to meet evolving regulations and cut operational, credit, and market risks, including quarterly internal audits and real‑time cybersecurity monitoring; in 2024 US banks spent about $88 billion on compliance and risk functions, up 7% year‑over‑year. Maintaining AML (anti‑money laundering) checks—screening transactions against sanctions lists and KYC—helps protect clients and the bank, and preserves its license and reputation. Digital and Physical Channel Maintenance Digital and Physical Channel Maintenance: Old Second keeps 22 branches in the Chicago area operational while investing in its mobile and web platforms, allocating about 15% of annual IT and facilities spend (≈$9.6M of a $64M budget in 2024) to updates and upkeep to sustain satisfaction and compliance. A hybrid channel strategy preserves service for older clients and drove 18% YoY growth in mobile users to 78,000 in 2024, helping attract younger customers while keeping branch traffic stable at ~120k visits annually. 22 Chicago branches maintained $9.6M (15%) annual allocation for IT/facilities 78,000 mobile users (2024), +18% YoY ~120,000 branch visits annually Wealth Management and Trust Services Old Second offers specialized financial planning, investment management, and trust administration to grow and preserve client wealth, leveraging in-house experts in markets and estate planning; wealth management and trust fees represented roughly 18% of noninterest income in 2024, boosting fee revenue and margins. These services deepen long-term relationships with high-net-worth clients, where average household AUM (assets under management) per client exceeds $1.2M and trust retention rates exceed 85% year-over-year. Specialized planning, investment, trust admin 18% of 2024 noninterest income Avg AUM per client ~$1.2M Trust retention >85% YoY Old Second: $9.8B loans, $10.8B deposits, 78k mobile users, NIM 2.45% Old Second underwrites $9.8B loans (YE2024), manages $10.8B deposits (12/31/2025), and earned 68% of NII in 2024 while maintaining NIM 2.45% (FY2025); it runs 22 branches, 78k mobile users (+18% YoY), and spends ~$9.6M (15% of $64M) on IT/facilities for digital/physical upkeep and compliance. Metric Value Loan book (YE2024) $9.8B Deposits (12/31/2025) $10.8B NII share from loans (2024) 68% NIM (FY2025) 2.45% Branches 22 Mobile users (2024) 78,000 (+18% YoY) IT/facilities spend (2024) $9.6M (15% of $64M) Delivered as Displayed Business Model Canvas The document you’re previewing is the exact Old Second Business Model Canvas you’ll receive after purchase—nothing simulated or promotional, just a live extract from the final file. When you complete your order, you’ll instantly download the full document formatted and structured exactly as shown here, ready for editing and presentation in Word and Excel formats. We prioritize transparency: no hidden pages, no placeholders—what you see in this preview is the real deliverable, complete and production-ready.