A recent KPMG study found nine out of 10banks are in the process of reexamining their operating models.Banks are rethinking how best to serve their customers whilepromoting profitable growth.
These findings are not surprising, and mirror sentiments expressedto Mercator in recent research. Financial institutions must findways to replace revenues lost because of regulatory changes andtepid economic conditions as they simultaneously strive to increasecustomer satisfaction and overall profitability.
Included in their analyses are new ways to reach customers, and newmethods to promote and offer products and services, both of whichare long overdue at some institutions. The old model of addinghigh-cost branches willy-nilly are over as we have entered an eraof smart, sustained (and in some cases restrained) growth.
Financial institutions are reevaluating the ways they reach theircustomers and offer value-added products and services over time.Particularly noteworthy are a renewed focus on wealth and assetmanagement as well as how to best attract new customers and engagethem through appropriate channels.
Other strategies being considered include more investments in bothfull-service and self-service channels. Financial institutions mostnotable are seeking smart investments in selective branchexpansions and upgrades. There is a focus on using the branchesmore as a sales channel, and less a service channel. Andinvestments in ATMs and mobile banking remain top-of-mind.
As more financial institutions begin to think outside the box andconsider (and embrace) multi and cross-channel strategies, theywill undoubtedly uncover new opportunities to achieve seeminglycontradictory goals. Those achievements are to increaseefficiencies, revenues, and profitability while simultaneouslyimproving customer service, cross-sell opportunities, and customersatisfaction.