Sectors: Financial – Retail banking
Retail banking is constantly changing. Over the past two years, most retail banks have made a fundamental strategic shift to increase margins, moving from a cost-reduction focus to a top-line growth focus.
Banks now expect 75% of their profit growth in the next three years to be generated by revenue growth, and only 25% by cost cutting — almost a complete reversal of expectations expressed a few years ago (Source World Retail Banking Report 2005).
Bank executives acknowledge, however, that several major challenges impede this new, revenue-focused strategy, including:
- Difficulty and high cost of acquiring new customers in a mature market
- Fewer options for growth via acquisition as the industry continues to consolidate
- Rising customer expectations, based on their favourable experiences in other consumer industries
To address the challenges, Stratiformis assists bank executives to focus and evolve the following areas:
Sales and Service Innovation
Transforming from a traditional product management business model, in which each product area makes its own independent sales and service decisions, to a relationship-based model, in which all customer interactions are handled holistically across the business.
Customer Management
Developing the processes, tools, and infrastructure that help synchronise a bank’s diverse distribution channels in a way that optimally balances customer preferences and profitable economics.
Back Office Utilisation
Making more effective use of the existing asset base by assessing different options for the supply of products, including pooling resources into shared service centres and outsourcing non-core activities.
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