Banking
Profitability by product, customer and channel
Retail banks operate in an increasingly competitive environment within the saturated markets of the developed world. Technology innovations have allowed new entrants to emerge with a significantly lower cost structure than long-established operators. The Internet has created transparency, enabling consumers to make rapid and direct comparisons between the services provided by different banks.
Achieving underlying performance improvements, both to grow revenues and control costs, is a key factor in driving profitable growth in this environment. Retail banks need to focus much more closely on tracking and predicting the drivers of revenues, costs and profitability to ensure that early corrective actions can be identified and put into effect.
Meaningful analyses, with an emphasis on trends and diagnostics and a focus on forward-facing indicators, will help banks to capitalise on the opportunity to manage the future rather than dwell on the past.
Key questions that might be addressed include:
Profitability by product, customer and channel
Retail banks operate in an increasingly competitive environment within the saturated markets of the developed world. Technology innovations have allowed new entrants to emerge with a significantly lower cost structure than long-established operators. The Internet has created transparency, enabling consumers to make rapid and direct comparisons between the services provided by different banks.
Achieving underlying performance improvements, both to grow revenues and control costs, is a key factor in driving profitable growth in this environment. Retail banks need to focus much more closely on tracking and predicting the drivers of revenues, costs and profitability to ensure that early corrective actions can be identified and put into effect.
Meaningful analyses, with an emphasis on trends and diagnostics and a focus on forward-facing indicators, will help banks to capitalise on the opportunity to manage the future rather than dwell on the past.
Key questions that might be addressed include:
- Which factors attract and keep customers? How can we sustain and improve performance in these areas?
- In what products and areas are we gaining or losing market share against our key competitors?
- Which products, customers and channels are our profit drivers? Which product and market segments offer the biggest or most profitable opportunities?
- What are the most effective measurement and incentive frameworks to stimulate sales of profitable products?
Client benefits
"So many people in Finance spend so much time in getting the data. The quality of the subsequent analysis is not as good as it should be, partly because of the time factor. Metapraxis' work for us is particularly powerful since we would not have been able to produce these analyses so quickly with our own resources alone."
CFO, FTSE 100 Banking Group