More banks are coming to recognize that the way forward requires harnessing new banking models and capturing the economics of customer loyalty, while dramatically reducing costs. They face a long, steep climb to accomplish this, but they need to find practical first steps that will generate demonstrable progress.

ExpertActions draws on deep experience across industries to help banking institutions in every region address these unprecedented management challenges and plan for evolving competitive and regulatory landscapes.

We work with direct banks, retail banks, private banks, credit unions, community, regional and national banks to:

  • Revamp product lines and boost sales effectiveness
  • Develop customer loyalty and seize cross- and up-selling opportunities
  • Reduce back office costs
  • Optimize service operations, including branch and ATM networks and online and mobile banking services
  • Improve risk-evaluation methods—both managerial and technical
  • Realize full potential of information technology resources, investments, and assets
  • Assess business portfolios, manage divestments, and explore new markets and partnerships
  • Affect cultural change and build more effective organizations and decision-making capabilities
  • Adjust business models and refocus long-term strategy on the core business
  • Design and support full-scale transformations

A struggling economy, lingering effects of the global credit meltdown, the evolving Eurozone crisis, sweeping new regulations and tougher consumer oversight have dramatically changed how banks make money. Retail and commercial banks are challenged to blaze more innovative pathways to growth and profitability amid significant market constraints. Companies that develop customer loyalty, identify new profit pools, and strengthen risk management processes will be better positioned to compete in the developing industry landscape.

Earn customer loyalty—and the cost reduction it brings. The rewards of customer loyalty are significant. Loyal customers buy more, stay longer, cost less to serve and refer valuable new customers. That raises the stakes for banks to deliver the right experience for the interactions that most matter to customers, using the most cost-effective channel that will earn their loyalty.

Nurturing loyal promoters requires banks to close the customer feedback loop by gathering input at key interactions and identifying the root causes of customer dissatisfaction and making continuous, informed improvements that raise frontline performance and support service recovery. Customers value speed, convenience and reliability. Banks that direct customers to low-cost channels by making them easier to use and more ubiquitous stand to reduce operating costs significantly.

The long-term winners will be banks that reinvent the industry’s business model to grow the loyalty economics of their customers.

Embed superior risk management and governance systems into the organization. The collapse of global credit markets exposed profound flaws in banks' management of risk and capital. Pressure on banks to book earnings gains on profit-and-loss statements had superseded the liquidity and stability of the balance sheet. The consequences have been painful for banks across the globe.

ExpertActions helps banks develop sound risk-control mechanisms with end-to-end decision-making processes to guard against dangerous risk exposure now and adapt to government and regulatory changes going forward.

Evaluate opportunities in banking’s new profit pools. A big catalyst for change is the rapid evolution of the industry's traditional profit pools. International and national regulatory change altering historic banking profit pools via: higher capital requirements; higher risk charges for specific activities; the addition of new liquidity and leverage requirements; the prohibition of specific activities; and tougher oversight and requirements for compliance.

As markets mature, wealth shifts away from deposits toward investments. Banks in many countries are poised to capture growth opportunities in wealth management, with strong starting points in transactional products and distribution networks. The winners will create new pricing and service models adapted for diverse customer segments.

We share our client's ambitions. We work to understand their reality and deliver true results—focusing on strategic decisions and practical actions. And we align our incentives with our client's objectives, so they know we're in it together.

Transformation sparks financial leader's turnaround: Close collaboration allows firm to regain its financial footing while its stock price skyrockets.

Building relationships and profits through customer loyalty: A loyalty program with targeted awards gave our retail bank client the edge it needed to beat local competitors to market.

The change process unlocks potential and profits: Our banking client’s credit business was a resource drain. Redesigned decision processes resulted in improved profits and effectiveness of the division.

A bank and a grocer build a fruitful alliance: A major retail bank was positioned to win a bid for an alliance with a major grocer. ExpertActions recommended building the partnership on the strengths of each side, which led to a successful alliance.

The right value for the right customers: To combat declining performance, our banking client implemented a special program to attract and retain loyal customers. The result was an increase in both retention and profits.