Nine out of 10 Banks are Mulling Overhauls
June 11, 2012
A recent KPMG study found nine out of 10 banks are in the process of reexamining their operating models. Banks are rethinking how best to serve their customers while promoting profitable growth.
These findings are not surprising, and mirror sentiments expressed to Mercator in recent research. Financial institutions must find ways to replace revenues lost because of regulatory changes and tepid economic conditions as they simultaneously strive to increase customer satisfaction and overall profitability.
Included in their analyses are new ways to reach customers, and new methods to promote and offer products and services, both of which are long overdue at some institutions. The old model of adding high-cost branches willy-nilly are over as we have entered an era of smart, sustained (and in some cases restrained) growth.
Financial institutions are reevaluating the ways they reach their customers and offer value-added products and services over time. Particularly noteworthy are a renewed focus on wealth and asset management as well as how to best attract new customers and engage them through appropriate channels.
Other strategies being considered include more investments in both full-service and self-service channels. Financial institutions most notable are seeking smart investments in selective branch expansions and upgrades. There is a focus on using the branches more as a sales channel, and less a service channel. And investments in ATMs and mobile banking remain top-of-mind.
As more financial institutions begin to think outside the box and consider (and embrace) multi and cross-channel strategies, they will undoubtedly uncover new opportunities to achieve seemingly contradictory goals. Those achievements are to increase efficiencies, revenues, and profitability while simultaneously improving customer service, cross-sell opportunities, and customer satisfaction.