Our approach to segmentation recognises the uniqueness, dynamism and individuality of markets. This is because from our experience, global solutions and ‘one-size-fits-all’ brands have all too often produced less than actionable results for the highly diverse African market place.
This document discusses strategies for evaluating and optimizing corporate banking relationships. It suggests that companies may be paying too much for treasury management services or using services they do not need. By analyzing statements, comparing costs using common standards, and weighing factors like risk and opportunity costs, companies can identify savings and ensure their banks meet their needs. Financial regulations are also impacting banks and their pricing models. The document provides tools and recommendations for ongoing monitoring of banking relationships.
Thought Paper:Four Strategies to Build the Smarter BankInfosys Finacle
Robert Kiyosaki, American investor and author (of Rich Dad Poor Dad fame), hits the nail on the head when he says, “You have to be smart. The easy days are over.”
As consumers go about trying to manage their money, there is an opportunity for banks to show them that they’re not alone – by being the ideal financial partner that listens, understands needs, shows respect, acts with integrity, serves with a purpose and exceeds expectations through its products, services and financial guidance.
In other words, by becoming a smarter bank.
MainLine West is a municipal bond specialist firm that provides broker/dealer services and access to institutional-level municipal bonds for investors. They have over 70 years of combined experience in the municipal bond market. They offer a variety of services including portfolio reviews, recommendations for enhancing portfolios, and access to specialized bond funds providing high tax-exempt income. Their goal is to help optimize client portfolios through prudent investment strategies tailored to individual needs and objectives.
I’m really excited about the launch of Bluecap, my newest company that offers Innovative Financial Solutions to small and medium-sized Canadian businesses. After a busy and exhilarating journey, I’m thrilled to share the birth of Bluecap with you because – as you’ll see – we view lending differently.
Take a minute to view my presentation and feel free to share with colleagues, family and friends. Every time someone views the presentation Bluecap is donating $1 (max $250 - Bluecap is a start-up after all) to relief efforts in Haiti so be sure to pass it on.
Thank you for your support
Scott Wilson
President
Bluecap
Intelligent retail business transformationKelvin Tai
This document discusses challenges facing retailers and how a stored value solution from Ceridian can help address them. It outlines increasing operating costs, a lack of measurable marketing tools, and decreasing customer loyalty as common retailer challenges. Ceridian's solution leverages prepaid cards to boost sales, enable accurate targeted marketing, and improve the payment experience. Case studies show the solution increasing sales by over $30 million for one retailer and driving over 30,000 return visits for another. Ceridian has over 20 years of experience in prepaid solutions, serving over 650 clients across 45 countries.
White paper - Reinventing the customer lifecyclePaul Kennedy
This paper by Paul Kennedy at Callcredit explores how adopting a defined programme of ongoing customer communications - rather than taking a product-led, campaign-by-campaign approach - can drive better customer engagement, improve retention rates and increase revenue flows
MainLine West is a municipal bond specialist broker/dealer that provides institutional level services to clients. They have over 70 years of combined experience in the municipal bond market. MainLine offers clients access to desirable bonds with modest markups and tax advantages. They provide portfolio reviews, investment recommendations, and education to help optimize clients' municipal bond holdings.
Our approach to segmentation recognises the uniqueness, dynamism and individuality of markets. This is because from our experience, global solutions and ‘one-size-fits-all’ brands have all too often produced less than actionable results for the highly diverse African market place.
This document discusses strategies for evaluating and optimizing corporate banking relationships. It suggests that companies may be paying too much for treasury management services or using services they do not need. By analyzing statements, comparing costs using common standards, and weighing factors like risk and opportunity costs, companies can identify savings and ensure their banks meet their needs. Financial regulations are also impacting banks and their pricing models. The document provides tools and recommendations for ongoing monitoring of banking relationships.
Thought Paper:Four Strategies to Build the Smarter BankInfosys Finacle
Robert Kiyosaki, American investor and author (of Rich Dad Poor Dad fame), hits the nail on the head when he says, “You have to be smart. The easy days are over.”
As consumers go about trying to manage their money, there is an opportunity for banks to show them that they’re not alone – by being the ideal financial partner that listens, understands needs, shows respect, acts with integrity, serves with a purpose and exceeds expectations through its products, services and financial guidance.
In other words, by becoming a smarter bank.
MainLine West is a municipal bond specialist firm that provides broker/dealer services and access to institutional-level municipal bonds for investors. They have over 70 years of combined experience in the municipal bond market. They offer a variety of services including portfolio reviews, recommendations for enhancing portfolios, and access to specialized bond funds providing high tax-exempt income. Their goal is to help optimize client portfolios through prudent investment strategies tailored to individual needs and objectives.
I’m really excited about the launch of Bluecap, my newest company that offers Innovative Financial Solutions to small and medium-sized Canadian businesses. After a busy and exhilarating journey, I’m thrilled to share the birth of Bluecap with you because – as you’ll see – we view lending differently.
Take a minute to view my presentation and feel free to share with colleagues, family and friends. Every time someone views the presentation Bluecap is donating $1 (max $250 - Bluecap is a start-up after all) to relief efforts in Haiti so be sure to pass it on.
Thank you for your support
Scott Wilson
President
Bluecap
Intelligent retail business transformationKelvin Tai
This document discusses challenges facing retailers and how a stored value solution from Ceridian can help address them. It outlines increasing operating costs, a lack of measurable marketing tools, and decreasing customer loyalty as common retailer challenges. Ceridian's solution leverages prepaid cards to boost sales, enable accurate targeted marketing, and improve the payment experience. Case studies show the solution increasing sales by over $30 million for one retailer and driving over 30,000 return visits for another. Ceridian has over 20 years of experience in prepaid solutions, serving over 650 clients across 45 countries.
White paper - Reinventing the customer lifecyclePaul Kennedy
This paper by Paul Kennedy at Callcredit explores how adopting a defined programme of ongoing customer communications - rather than taking a product-led, campaign-by-campaign approach - can drive better customer engagement, improve retention rates and increase revenue flows
MainLine West is a municipal bond specialist broker/dealer that provides institutional level services to clients. They have over 70 years of combined experience in the municipal bond market. MainLine offers clients access to desirable bonds with modest markups and tax advantages. They provide portfolio reviews, investment recommendations, and education to help optimize clients' municipal bond holdings.
Reducing Cost And Risk In Cash Handlingstevefitton
The document discusses how new cash handling technology solutions like the RCS 800 cash recycling system can help retailers reduce costs and risks associated with cash management. The RCS 800 allows cashiers to generate their own till floats, deposit cash at the end of shifts, and get change as needed, improving accountability and reducing cash shrinkage. It estimates the RCS 800 could save a sample retailer over £40,000 per year in areas like shrinkage, till processing costs, coin purchasing, and cash office staffing. The document suggests the RCS 800 would be well-suited for retailers like department stores, event venues, and amusement parks seeking more flexible and efficient cash management.
The document discusses the challenges that financial institutions face in complying with amended Regulation E, which requires opt-in for overdraft fees on ATM and debit card transactions. It outlines strategies that institutions are taking, such as discontinuing overdraft services, maximizing opt-ins, increasing debit card usage, implementing new pricing, and reducing deposit account costs. Specific tactics discussed include segmenting customers, multi-channel opt-in campaigns, debit card activation promotions, and process optimization.
- Multiplus is a growing loyalty network in Brazil with over 8.5 million members, up 19.5% YoY. It had 18.5 billion points sold in 2Q11, up 51.4% YoY.
- Multiplus has an innovative business model with low CAPEX, negative working capital, and strong cash generation. It aims to diversify gross billings and redemptions away from over-reliance on air travel.
- The strategy is to expand partnerships, increase marketing actions, and improve client experience to diversify revenue sources and control costs over the long term.
Banks must focus on measuring and optimizing customer lifecycle value (CLV) rather than just satisfying current needs. CLV considers both current and potential future value over a customer's lifetime. To do this, banks need to implement frameworks to accurately measure costs associated with each customer as well as their current, potential, and influencer value to properly segment and serve customers according to their total value. With CLV analysis, banks can improve profitability by focusing on high-value relationships and using influencer customers to promote additional sales.
So if the bank of the future is really the “bank of now”, what does that mean? It means that you have to take action now, today, to create a banking environment that’s capable of taking on the challenges of a rapidly changing marketplace.
The document discusses how multinational corporations work with banks, describing the roles of corporate banking, investment banking, client deal teams, and client service teams in onboarding new multinational clients and providing ongoing services. It also outlines how automated processes, business process management, and empowering relationship managers can help banks better serve multinational clients and increase sales.
Special-use properties like restaurants, hotels, and car washes are difficult to finance due to their specialized nature. They are often harder to convert to other uses than traditional commercial properties. Lenders are cautious approving loans for special-use properties, typically requiring 20% equity and only financing 80% of the property value. Additionally, the equipment involved in special-use businesses requires shorter loan terms that are challenging for borrowers. Considering the total project costs rather than just property value helps make special-use projects more feasible to finance.
Here is a conceptual example of how a bond trade works:
1. Big Company Ltd wants to acquire Small Company Inc for $1,000,000 but needs to raise capital to do so.
2. Big Company Ltd issues bonds to investors, effectively borrowing $1,000,000.
3. Investors purchase the bonds, providing Big Company Ltd with the $1,000,000 needed for the acquisition.
4. Big Company Ltd now owns Small Company Inc.
5. Big Company Ltd makes regular coupon payments to investors over the 10 year term of the bond. At maturity, Big Company Ltd repays the $1,000,000 principal amount to the investors.
In this way
The document discusses factors to consider when choosing between a 15-year and 30-year mortgage. It notes that while a 15-year mortgage has lower total interest costs, many overlook the tax benefits of the higher interest payments in a 30-year mortgage. When accounting for tax deductions, investment returns on savings from lower monthly payments, and inflation, a 30-year mortgage can often be more financially beneficial. This highlights the need to do a comprehensive analysis of one's individual situation rather than relying on claims of saving money through various financing options.
FeeSeeker is a credit card processing comparison site that allows business owners to quickly compare rates from multiple processors to potentially save 40% or more on monthly fees. It addresses problems with complex contracts and hidden fees from processors by offering a transparent pricing structure. FeeSeeker leverages its buying power to offer low rates to all clients regardless of processing volume. The company is led by an experienced team and advisory board and partners with developers and marketers to expand and sustain itself as a profitable long-term business.
Bottom-Line Selling by Jack Malcolm excerpt (ch.7)jmalcolm
An excerpt from my book, Bottom-Line Selling, which explains how you can add meaningful and measurable value for your customers by becoming a cash flow engineer.
The document provides an overview of the Business Centric Services Group (BCSG) and their solutions for small businesses. BCSG offers packaged business solutions through a single sign-on portal called Business Hub that provides tools like bookkeeping, website building, and legal services. They also offer CreditHQ, a credit management tool that allows small businesses to check customer credit and monitor payments. The document discusses implementation timelines and options for banks to offer BCSG's solutions under their own brand.
This document provides an overview of invoice factoring or accounts receivable factoring. It defines factoring as a process where a company can sell its unpaid invoices to a factoring company in exchange for immediate cash, typically 70-90% of the invoice amount. The factoring company then handles billing and collection from customers. The document outlines the basic factoring process, defines common factoring terms, and notes that factoring provides an alternative source of financing for businesses compared to loans, with the creditworthiness of customers rather than the business determining eligibility.
121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Building scope...spirecorporate
This document discusses approaches to broadening adoption and usage of mobile payments in emerging Asia. It argues that scope and scale are important, as networks gain more value as more users join. Broad adoption requires recruiting across income segments and including those with purchasing power. Getting funds into the system and keeping them there reduces costs. Leveraging existing networks and finding the right partnerships can help scale up new services. Challenges include aligning interests over time between different players and sectors.
Building profitable relationships with multichannel consumersPaul McAdam
The document discusses how retail banks are moving away from a model where high-end and overdraft-paying customers subsidize the mass market, and instead must rationalize their branch networks while encouraging customers to use more self-service channels and consolidate their banking relationships. It analyzes consumer banking behavior across generations and channels, finding that while younger customers are more likely to be multi-channel, the majority of consumers still value in-person branch access and perceive it as important for convenience.
Smarter Customer Analytics - Customer DNAJerry J. Stam
This document summarizes a case study of how a major US retailer used customer analytics to optimize their marketing budget. It involved (1) building a data-driven customer profile, (2) applying customer insights to optimize spending across channels, regions, and customers. Advanced customer clustering analyzed over 30 variables to segment customers into 12 highly differentiated groups with tailored marketing strategies, such as a "Brand Fanatics" group that represented 9% of customers but 30% of revenue.
Oracle in the Financial Service Industry CTI Group
This document discusses Oracle's solutions for the financial services industry. It covers Oracle's capabilities in areas like multi-channel banking, enabling process-centric financial institutions, payment services hubs, and real-time banking. The document provides an overview of Oracle's offerings for transaction processing, corporate administration, shared services, and security services that financial institutions require. It aims to demonstrate Oracle's comprehensive coverage of the various users, touchpoints, business functions, and technological components that make up a modern financial institution.
The document discusses emerging digital banking trends and identifies leading practices. It highlights that digital capabilities are putting customers at the center and increasing their expectations around managing their finances simply across all channels. Banks need to deploy digital capabilities to deliver seamless, integrated experiences at speed to meet these expectations or risk losing customers to more nimble competitors focusing on customer experience. Mobile, social media, analytics and the cloud will drive significant changes in banking models and capabilities.
Cost Reduction Guide Issue 2 Banking And Financeymw15
This document provides tips to reduce non-core operating costs for businesses during economic downturns. It focuses on reducing costs associated with plastic card transactions, banking service charges, and finance processes. Specific recommendations include ensuring strong security for card transactions, negotiating transaction and service fees with banks, using credit cards for employee expenses, and automating financial processes like cash sweeps. Implementing these changes can help businesses find extra profit and weather economic downturns.
This document provides tips to reduce non-core operating costs for businesses during economic downturns. It focuses on reducing costs associated with plastic card transactions, banking service charges, and finance processes. Specific recommendations include ensuring strong security for card transactions, negotiating transaction and service fees with banks, using credit cards for employee expenses, and automating financial processes like cash sweeps. Implementing these changes can help businesses find extra profit and weather economic downturns.
Expense Reduction Analysts guide to cost reduction in the area of Banking and Finance. Covers credit card transactions and fees; service charges and finance processes.
Reducing Cost And Risk In Cash Handlingstevefitton
The document discusses how new cash handling technology solutions like the RCS 800 cash recycling system can help retailers reduce costs and risks associated with cash management. The RCS 800 allows cashiers to generate their own till floats, deposit cash at the end of shifts, and get change as needed, improving accountability and reducing cash shrinkage. It estimates the RCS 800 could save a sample retailer over £40,000 per year in areas like shrinkage, till processing costs, coin purchasing, and cash office staffing. The document suggests the RCS 800 would be well-suited for retailers like department stores, event venues, and amusement parks seeking more flexible and efficient cash management.
The document discusses the challenges that financial institutions face in complying with amended Regulation E, which requires opt-in for overdraft fees on ATM and debit card transactions. It outlines strategies that institutions are taking, such as discontinuing overdraft services, maximizing opt-ins, increasing debit card usage, implementing new pricing, and reducing deposit account costs. Specific tactics discussed include segmenting customers, multi-channel opt-in campaigns, debit card activation promotions, and process optimization.
- Multiplus is a growing loyalty network in Brazil with over 8.5 million members, up 19.5% YoY. It had 18.5 billion points sold in 2Q11, up 51.4% YoY.
- Multiplus has an innovative business model with low CAPEX, negative working capital, and strong cash generation. It aims to diversify gross billings and redemptions away from over-reliance on air travel.
- The strategy is to expand partnerships, increase marketing actions, and improve client experience to diversify revenue sources and control costs over the long term.
Banks must focus on measuring and optimizing customer lifecycle value (CLV) rather than just satisfying current needs. CLV considers both current and potential future value over a customer's lifetime. To do this, banks need to implement frameworks to accurately measure costs associated with each customer as well as their current, potential, and influencer value to properly segment and serve customers according to their total value. With CLV analysis, banks can improve profitability by focusing on high-value relationships and using influencer customers to promote additional sales.
So if the bank of the future is really the “bank of now”, what does that mean? It means that you have to take action now, today, to create a banking environment that’s capable of taking on the challenges of a rapidly changing marketplace.
The document discusses how multinational corporations work with banks, describing the roles of corporate banking, investment banking, client deal teams, and client service teams in onboarding new multinational clients and providing ongoing services. It also outlines how automated processes, business process management, and empowering relationship managers can help banks better serve multinational clients and increase sales.
Special-use properties like restaurants, hotels, and car washes are difficult to finance due to their specialized nature. They are often harder to convert to other uses than traditional commercial properties. Lenders are cautious approving loans for special-use properties, typically requiring 20% equity and only financing 80% of the property value. Additionally, the equipment involved in special-use businesses requires shorter loan terms that are challenging for borrowers. Considering the total project costs rather than just property value helps make special-use projects more feasible to finance.
Here is a conceptual example of how a bond trade works:
1. Big Company Ltd wants to acquire Small Company Inc for $1,000,000 but needs to raise capital to do so.
2. Big Company Ltd issues bonds to investors, effectively borrowing $1,000,000.
3. Investors purchase the bonds, providing Big Company Ltd with the $1,000,000 needed for the acquisition.
4. Big Company Ltd now owns Small Company Inc.
5. Big Company Ltd makes regular coupon payments to investors over the 10 year term of the bond. At maturity, Big Company Ltd repays the $1,000,000 principal amount to the investors.
In this way
The document discusses factors to consider when choosing between a 15-year and 30-year mortgage. It notes that while a 15-year mortgage has lower total interest costs, many overlook the tax benefits of the higher interest payments in a 30-year mortgage. When accounting for tax deductions, investment returns on savings from lower monthly payments, and inflation, a 30-year mortgage can often be more financially beneficial. This highlights the need to do a comprehensive analysis of one's individual situation rather than relying on claims of saving money through various financing options.
FeeSeeker is a credit card processing comparison site that allows business owners to quickly compare rates from multiple processors to potentially save 40% or more on monthly fees. It addresses problems with complex contracts and hidden fees from processors by offering a transparent pricing structure. FeeSeeker leverages its buying power to offer low rates to all clients regardless of processing volume. The company is led by an experienced team and advisory board and partners with developers and marketers to expand and sustain itself as a profitable long-term business.
Bottom-Line Selling by Jack Malcolm excerpt (ch.7)jmalcolm
An excerpt from my book, Bottom-Line Selling, which explains how you can add meaningful and measurable value for your customers by becoming a cash flow engineer.
The document provides an overview of the Business Centric Services Group (BCSG) and their solutions for small businesses. BCSG offers packaged business solutions through a single sign-on portal called Business Hub that provides tools like bookkeeping, website building, and legal services. They also offer CreditHQ, a credit management tool that allows small businesses to check customer credit and monitor payments. The document discusses implementation timelines and options for banks to offer BCSG's solutions under their own brand.
This document provides an overview of invoice factoring or accounts receivable factoring. It defines factoring as a process where a company can sell its unpaid invoices to a factoring company in exchange for immediate cash, typically 70-90% of the invoice amount. The factoring company then handles billing and collection from customers. The document outlines the basic factoring process, defines common factoring terms, and notes that factoring provides an alternative source of financing for businesses compared to loans, with the creditworthiness of customers rather than the business determining eligibility.
121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Building scope...spirecorporate
This document discusses approaches to broadening adoption and usage of mobile payments in emerging Asia. It argues that scope and scale are important, as networks gain more value as more users join. Broad adoption requires recruiting across income segments and including those with purchasing power. Getting funds into the system and keeping them there reduces costs. Leveraging existing networks and finding the right partnerships can help scale up new services. Challenges include aligning interests over time between different players and sectors.
Building profitable relationships with multichannel consumersPaul McAdam
The document discusses how retail banks are moving away from a model where high-end and overdraft-paying customers subsidize the mass market, and instead must rationalize their branch networks while encouraging customers to use more self-service channels and consolidate their banking relationships. It analyzes consumer banking behavior across generations and channels, finding that while younger customers are more likely to be multi-channel, the majority of consumers still value in-person branch access and perceive it as important for convenience.
Smarter Customer Analytics - Customer DNAJerry J. Stam
This document summarizes a case study of how a major US retailer used customer analytics to optimize their marketing budget. It involved (1) building a data-driven customer profile, (2) applying customer insights to optimize spending across channels, regions, and customers. Advanced customer clustering analyzed over 30 variables to segment customers into 12 highly differentiated groups with tailored marketing strategies, such as a "Brand Fanatics" group that represented 9% of customers but 30% of revenue.
Oracle in the Financial Service Industry CTI Group
This document discusses Oracle's solutions for the financial services industry. It covers Oracle's capabilities in areas like multi-channel banking, enabling process-centric financial institutions, payment services hubs, and real-time banking. The document provides an overview of Oracle's offerings for transaction processing, corporate administration, shared services, and security services that financial institutions require. It aims to demonstrate Oracle's comprehensive coverage of the various users, touchpoints, business functions, and technological components that make up a modern financial institution.
The document discusses emerging digital banking trends and identifies leading practices. It highlights that digital capabilities are putting customers at the center and increasing their expectations around managing their finances simply across all channels. Banks need to deploy digital capabilities to deliver seamless, integrated experiences at speed to meet these expectations or risk losing customers to more nimble competitors focusing on customer experience. Mobile, social media, analytics and the cloud will drive significant changes in banking models and capabilities.
Cost Reduction Guide Issue 2 Banking And Financeymw15
This document provides tips to reduce non-core operating costs for businesses during economic downturns. It focuses on reducing costs associated with plastic card transactions, banking service charges, and finance processes. Specific recommendations include ensuring strong security for card transactions, negotiating transaction and service fees with banks, using credit cards for employee expenses, and automating financial processes like cash sweeps. Implementing these changes can help businesses find extra profit and weather economic downturns.
This document provides tips to reduce non-core operating costs for businesses during economic downturns. It focuses on reducing costs associated with plastic card transactions, banking service charges, and finance processes. Specific recommendations include ensuring strong security for card transactions, negotiating transaction and service fees with banks, using credit cards for employee expenses, and automating financial processes like cash sweeps. Implementing these changes can help businesses find extra profit and weather economic downturns.
Expense Reduction Analysts guide to cost reduction in the area of Banking and Finance. Covers credit card transactions and fees; service charges and finance processes.
The customer-centric theory may, at first blush, seem a backwards approach to profitability. The focus is not on the customer's wallet, but the customer himself. Learn how successful businesses have increased share of wallet and generated fiscal growth by putting the individual customer's needs before the company's.
More CRM and Loyalty Marketing Resources
Loyalty Blog: http://www.customerinsightgroup.com/loyaltyblog/
eBooks: http://www.customerinsightgroup.com/white-papers
Loyalty Workshops: http://www.customerinsightgroup.com/custom-loyalty-workshops
Systematic New Loyalty Program Development: http://www.customerinsightgroup.com/systematic-new-loyalty-program
Pinterest: http://pinterest.com/engagekeepgrow/
Who is Customer Insight Group?
Customer Insight Group, Inc. leads the way in the evolution of how companies engage their customers, positively motivate them and earn their long-term loyalty. Our extensive client work is testimony to our depth of knowledge and ability to apply strategic insight and solutions to a wide variety of business objectives. Our team’s client experience includes: NHFA, Thomasville Furniture, The Maxim Group Carpet Franchise, Ashro, A&P, The Bon Ton, Crate & Barrel, Dick’s Sporting Goods, Edwin Watts Golf, GE Consumer Finance, Monroe and Main, Swiss Colony, Midnight Velvet, MySwingle.com, The Great Indoors, G.H. Bass, Golf Galaxy, Helzberg Diamonds, HSBC, Kohl’s, La-z-boy Furniture Franchise, MCI, Payless ShoeSource, Pier 1 Imports, Petco, Proflowers.com, Regis University, Ruby Tuesday, S&K Menswear, Sierra Trading Post, Stein Mart, Tommy Hilfiger, Ulta, as well as various other leading companies.
Global Payables, Best Practices For Ecommerce Merchants By Dana Ninodananino
Global e-commerce merchants face challenges with cross-border payments including high costs, lack of transparency, and complex compliance requirements. There is a need for payment providers to offer more efficient, cost-effective methods in local currencies with real-time rates and reporting. Merchants should evaluate providers based on accuracy, bundling of payment types, online functionality, and auditing controls to streamline the payment process and reduce errors.
This document discusses cost recovery and retention in the insurance brokerage industry. It defines cost recovery period as the number of years it takes to realize a profit for a new customer after considering acquisition costs and ongoing servicing costs. Data shows the average cost recovery period is over 4 years for a $3 million agency. The document suggests ways to shorten this, including increasing retention rates to reduce acquisition of new customers, lowering acquisition costs, raising revenue per account, and reducing servicing costs.
The document discusses the competitive environment and new business development strategies of several large banks in 2011. It notes that banks are focusing on growing lending while reducing commercial real estate exposure. Specific banks' plans mentioned include PNC growing lending and treasury management services, Flagstar emphasizing commercial, small business, and retail lending, and 5/3 expanding in small business, private banking, and treasury management. The document recommends that banks bundle solutions to meet operational needs of prospective business clients.
After surviving the financial meltdown in 2008, the banking industry finds itself at a
critical juncture. A slow economy restrains the potential for increasing revenue,
while new complex regulations add high levels of uncertainty to the industry.
A Framework for Detecting Macroeconomic Changes and Their Effect on a Bank's ...Cognizant
For the banking industry, we describe the relationship between changing business conditions/technologies and variances in business models - including a matrix of internal and external "fit" based on flexibility and product variety.
Rebuilding Customer Trust in Retail BankingNoreen Buckley
An IBM White Paper by Mike Hobday Banking Practice Leader
Global Business Services UK
and Ireland
IBM & Charles Spinosa
Group Director & Leader Marketing Practices VISION Consulting
Traditional banking is facing its biggest challenge in over a generation due to factors like increased regulation, public distrust, and new digital competitors. A new tipping point has been reached where digital will play a pivotal role. To create value going forward, banks need to focus on building customer relationships and engagement through digital offerings. Younger customers especially expect banking to be available through mobile and online channels, so banks must enhance their digital capabilities to attract these customers and remain relevant in the future.
Banks are facing pressure from low interest rates and competition which is reducing profits, so they must leverage big data and mobile capabilities to provide new digital services to customers, gain insights from customer behavior, and target them with personalized offers in order to differentiate themselves, improve the customer experience, and generate additional revenue streams.
Finacle - Bank Customer Service: Click or Dial versus Branch BankingInfosys Finacle
Finacle paper on bank customer service analyses important factors that impact the adoption of technology on the banking ecosystem and how the effective balancing of the human factor against technology adoption can contribute to a fuller realization of banks goals.
New Edge Capital provides invoice factoring and financing solutions to help small businesses access working capital and accelerate cash flow. Factoring involves NEC purchasing a company's invoices and paying a percentage upfront, usually 80%, while the remaining 20% is held in reserve until the client pays. This allows businesses to turn invoices into immediate cash. NEC has remained committed to small business lending during financial challenges. Factoring is especially important for minority- and women-owned procurement businesses supplying large companies, as it provides the capital needed to continue operations. NEC can help businesses grow by shortening their cash conversion cycle and gaining confidence to take on larger orders and customers.
How financial services companies are using customer relationship management to converge people, processes, and products more effectively to earn the position of valued partner, and embark on true relationship banking — with the end result of growing business momentum
The document discusses the impact of new legislation that will lower debit card interchange fees for utilities. It explains that:
1) New rules from the Federal Reserve will result in lower interchange fees for debit card transactions, reducing costs for utilities and other businesses.
2) While some savings may be passed to consumers, cost reductions typically go to company profits rather than lower prices.
3) The growth of debit card use, especially online, means utilities need to accept card payments to serve customers, but lower fees will make this more affordable.
Finacle - Agency Banking: New Frontiers In Financial InclusionInfosys Finacle
Finacle thought paper identifies agency banking as a new frontier in financial inclusion. It highlights the important features and benefits of banks emerging with non-financial institutions in order to drive business growth.
The document discusses transformational customer experience in financial services through technology by examining changes in customer behavior driven by self-actualization and technology adoption, outlining 3 phases of behavioral disruption and shifts in how customers access services through various channels like mobile banking and internet banking. It also provides recommendations for improving customer experience across channels like branches, ATMs, call centers, and digital platforms through initiatives focused on usability, analytics, sales capabilities, and organizational changes.
Innovation In Banking: Hidden Opportunities in the Forces Propelling ChangeInfosys Finacle
With Darwin’s theory playing out in the last couple
of years, surviving financial institutions are
confronted with multiple challenges. On the
external front, banks are trying to: reclaim the trust
of increasingly strident, demanding consumers;
tackle competition from established and emerging
rivals and; comply with tougher mandates.
Internally, their biggest challenges include
adjusting to restructuring, consolidation and
improving operating efficiency. To top it all, the
quest for a competitive edge requires them to
imbibe best practices from peers and other
industries, and keep pace with new technologies.
Mobile apps for consumer finance in banking are increasingly crucial as customers expect mobility as a matter of course; such apps can help cut costs, improve branding and customer loyalty and heighten efficiency.
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....Lacey Max
“After being the most listed dog breed in the United States for 31
years in a row, the Labrador Retriever has dropped to second place
in the American Kennel Club's annual survey of the country's most
popular canines. The French Bulldog is the new top dog in the
United States as of 2022. The stylish puppy has ascended the
rankings in rapid time despite having health concerns and limited
color choices.”
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...Aleksey Savkin
The Strategy Implementation System offers a structured approach to translating stakeholder needs into actionable strategies using high-level and low-level scorecards. It involves stakeholder analysis, strategy decomposition, adoption of strategic frameworks like Balanced Scorecard or OKR, and alignment of goals, initiatives, and KPIs.
Key Components:
- Stakeholder Analysis
- Strategy Decomposition
- Adoption of Business Frameworks
- Goal Setting
- Initiatives and Action Plans
- KPIs and Performance Metrics
- Learning and Adaptation
- Alignment and Cascading of Scorecards
Benefits:
- Systematic strategy formulation and execution.
- Framework flexibility and automation.
- Enhanced alignment and strategic focus across the organization.
Digital Marketing with a Focus on Sustainabilitysssourabhsharma
Digital Marketing best practices including influencer marketing, content creators, and omnichannel marketing for Sustainable Brands at the Sustainable Cosmetics Summit 2024 in New York
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1. Grow From Within
A Practical Approach to Increasing Checking Account
and Debit Card Profitability in an Economic Downturn
By Ben Colvin and Michele Tucci
Executive Summary
Banks can expect fewer new retail at the moment. The best way, then, at the full range of products that a
customers in a steep economic downturn to drive net account growth and gain customer uses, measuring customer
like this one, as consumers struggle wallet share appears to be focusing on engagement, and forecasting the lifespan
with unemployment, wage cuts, falling those current customers with potential of each relationship. This article is aimed
home values, and diminished savings. to contribute strongly to your institution’s at showing retail banks a practical
Even in the best of times, attracting bottom line. approach to generate net account growth
a new customer is at least five times through improved account retention
more expensive than getting increased Accurately understanding each customer’s and the deepening of relationships with
revenues from an existing one,1 and the lifetime value to your bank begins with current customers who can bolster your
cost–return ratio is even more exorbitant taking an enterprise perspective—looking institution’s bottom line.
1 Emmett C. Murphy and Mark A. Murphy, Leading on
the Edge of Chaos, 2002.
Profit from Our Perspective™
2. Manage from the Core their behavior and increase their use of prompts many customers to reconsider
The current or demand deposit account debit cards at the point-of-sale instead their banking behaviors. Consider three
(DDA) is at the core of the relationship of using cash, they may see a direct recent trends that have put a damper on
between banks and their customers. It boost in revenues through increased new customer acquisition:
drives cross-sell opportunities for other fees generated by the transactions and
• First, people often switch banks when
financial products as well. Banks would incremental net interest income.
they change jobs. But with weak labor
do well to adopt a “whole customer”
Customers who stop withdrawing large markets around the world, fewer
profitability framework similar to one
amounts of cash at the beginning of each workers are moving into new jobs.
developed by MasterCard Advisors in its
week, and instead increase their debit
payments strategy practice (Figure 1). You • Second, home buyers often move the
card usage may increase the average daily
can determine the value each customer bulk of their banking business to an
balance in their DDAs, thereby generating
segment contributes to your business by institution that has just given them a
higher net interest income for the bank.
adding debit card revenue, net interest new mortgage. But with home sales
When this more profitable behavior is
income, and cross-sell revenue, while still flagging, fewer new mortgages are
spread across the entire customer base,
subtracting expenses, such account service being written.
the bottom-line impact can be substantial,
and maintenance, check processing, ATM
and the bank can acquire a new more • Finally, investor anxiety about the
maintenance, and the cost of rewards.
stable source of low-cost funds for its security of their financial assets has led
Figure 1 demonstrates the sizable lending business. people to withdraw substantial amounts
portion of bank revenue—more than from the stock markets. U.S. banks
a third in the U.S. and one quarter in New Needs Produce have derived some short-term benefit
Europe—that comes directly from the New Behaviors from these worries because consumers
DDA or current account. In addition, if Consumer banking needs are changing have sharply increased their deposits in
banks can persuade customers to shift rapidly as the economic downturn FDIC-insured accounts. Much of that
Figure 1: How Payments Optimization Can Impact Multiple Retail Bank
Revenue Streams and Retail Bank Revenue
U.S. Europe
% of Total Retail % of Total Retail
Bank Revenue Bank Revenue
Credit Credit
Cards 10 Cards 10
CROSS-SALES REVENUE
% of Current
CROSS-SALES REVENUE
% of DDA
Accounts Revenue Accounts Revenue
Mortgages 31 20
Debit Card
Mortgages 36 25
Debit Card Revenues
Revenues
Net Interest
Consumer
6 Consumer 72
Loans Loans 20 Income
Long-term
13 70 Net Interest
Income
Savings
Long-term 8%
Savings 14 Fees and
Other Income
DDA
Accounts: 5% Current
Checking 34 Accounts:
and Fees and
Other Income
Checking 25
Saving and
Saving
Sources: U.S.: Retail Bank Revenue Federal Reserve Bulletin, profits and balance sheet developments at US commercial banks in 2007, June 2008. Current Account Revenues:
MasterCard Advisors estimates on Federal Reserve data. Europe: European Commission Retail Banking Survey, 2005–2006.
GROW FROM WITHIN MASTERCARD ADVISORS 2
3. increase, however, may be due to the
Figure 2: An Accurate Assessment of Engagement Helps Retail Banks
government’s temporary boost in FDIC
Make More Informed Investments in Customer Segments
deposit insurance—to $250,000 per
account from the previous $100,000.
Changing needs and concerns like +
these create ample opportunity for
banks to deepen and broaden customer
relationships by implementing timely
Payments Engagement
marketing strategies that engage current PRIMARY
customers and generate incremental
SECONDARY
revenues from the most promising
segments.
CONVENIENCE
Begin with a Disciplined Approach
to Customer Segmentation SAVERS
Through close analysis of customer activity
and engagement, banks can segment
relationships according to the number, –
combination, and cost of products and
services used by each customer. The bank – Account Relevance & Engagement +
also can identify the behavioral paths most
likely to lead to cross-sell opportunities on
By tracking checking account debits, credits, and average balances as well as debit card payment behaviors,
one hand—or attrition on the other. We customer segments can be plotted across the engagement continuum. Depending on debit card usage patterns,
recommend a two-pronged segmentation Primary and Secondary segments could be found anywhere along the payments engagement axis.
Source: MasterCard Advisors.
approach: First, look at how customers
use their checking accounts; and second,
look at how they spend their funds.
• Convenience users – those with Once banks understand their customer
The first type of analysis measures such
accounts held for pensions or salary relationships, they can identify important
basic factors as checking account debits,
deposits, with singular or regular large customer payment behaviors—such as
credits, and average balances to track
withdrawal amounts spending at point-of-sale (POS), check-
customer engagement and distinguish
writing, direct debits, ACH transactions,
primary from non-primary customers: • Secondary users – those using their
ATM withdrawals, and so on—and use
accounts for specific, limited purposes,
Primary customers are those with the data to track deposit and payment
such as paying for utilities, emergencies
long-established relations with the bank, preferences. These preferences can
or unexpected bills; or those with
more liquid assets, and more frequent identify further sub-segments into
attrited primary accounts that they
transactions compared to the average which customers are divided and can
choose to downgrade due to such
customer. Primary customers may also be used as a basis for offering more
factors as a bad service experience or
have a salary mandate or use direct tailored products and services. Sub-
increased costs
deposit; bank in close proximity to home segment examples might include: cash
or office; have a mortgage or other loans; None of these segments are unprofitable dependents; branch lovers; ATM users;
and hold investments with the bank. by nature, but Savers who park transactors; low debit card users and high
considerable funds in their accounts for debit card users.
Non-primary customers are all those
long periods may be more profitable
customers who don’t regard the bank Once a bank has gained in-depth
than Primary customers who require
as their primary financial institution of knowledge of its debit cardholders’
high levels of service. The old 80/20
choice. They usually fall into one of the attitudes, behaviors, and preferences
rule usually applies: Primary customers
following categories: and determined which changes in
typically generate most bank revenues
cardholder behavior are most profitable,
• Savers – those who use their accounts and non-primary segments contribute
it can turn that knowledge into
primarily to keep funds, not to transact considerably less (see Figure 2).
actionable marketing strategies.
GROW FROM WITHIN MASTERCARD ADVISORS 3
4. STRATEGy ONE: Encourage Convenience customers
Deepen Customer Relationships to increase usage – Salary mandates or Figure 3: Why Debit Cardholders
Strengthening and cultivating customer direct deposits typically produce one large Become Dissatisfied
relationships requires ongoing effort at monthly deposit to the checking account
each point of interaction. Such efforts and an equally large monthly withdrawal
must become habitual—part of business or transfer. Banks can employ a variety of
18%
as usual—and not a random, last- tactics to further engage such customers. 28%
resort strategy in response to customer For example, an estimated 1.5 million
complaints. customers opened new savings accounts
when Bank of America launched its 26%
Retain existing customers – The first
Keep the Change program.2 Consumers
step is to review the existing customer 28%
embraced this simple savings program—
experience as well as your anti-attrition
which transferred the “change” from a
and retention strategies, processes,
debit purchase to a customers’ savings
and performance metrics. Among
account. With every debit card purchase, Non-existent
the common solutions to improving rewards program
the customer was also making small,
retention:
incremental transfers to their savings Overdraft fees
• Employ models to monitor changes in account, which might easily add up
spending behavior—say, a drop in POS to $500 or more in savings in a year.3 ATM surcharge fees
transactions or an increase in outflow Programs that help consumers save in
this economy could be very popular—and Poor rewards program
balances—to detect early indicators of
attrition and take preventative measures demonstrates that their bank is trying to
help them. Reasons for dissatisfaction with their debit issuer.
• Put a Quality Assurance team in place Source: MasterCard Advisors, Comparative
Cardholders Dynamics, Debit and Payment Choices
to identify issues and anomalies in Make a compelling offer to Secondary Study, 2009.
customer relationships before problems users – Customers who use their
are reported checking accounts for only limited
purposes need some compelling reason STRATEGy TWO:
• Make use of a specialized retention unit to increase their business with the Up-Sell and Cross-Sell
that is trained to manage disputes and bank. Using segmentation models, your Leverage the DDA or current account
service problems and to retain valuable bank can gain better understanding by migrating valuable customers to the
customers of Secondary users’ payments needs, products and services that are most
• Consider developing a rewards program attitudes, and behaviors. Based on relevant to them. Customer needs and
if one is not in place these insights, you can design relevant desires change over time as customers
offers—from savings accounts for experience different life stage events.
• Proactively score and offer an overdraft parents of children bound for university Banks that respond to these changing
line of credit to customers who to small business accounts rewarding needs with relevant product offerings
experience frequent overdraft fees, or business owners for their debit card increase the potential for customer
include an application for an overdraft spending through promotion of category satisfaction and engagement at each stop
line of credit in overdraft notices expansion education and promotions. along the engagement continuum. For
• Customers using another bank’s ATMs Each customer is unique, and example, you should periodically evaluate
should be provided easy ways to segmentation is the key to finding the customers who consistently maintain
locate your own ATMs; MasterCard’s right value proposition for each. higher balances in entry-level checking
online ATM Locator—now available accounts. If your bank offers a higher-
on Apple iPhones—lets banks embed tiered relationship product with better
offers in the location information to services, proactively offer to upgrade
prompt customers to in-store promos at them. For customers who accept such an
merchant partners upgrade, quickly follow-up with a cross-
2 Bank of America, Press Release August 28, 2008.
3 TowerGroup, Brian Riley, “Just Rewards: Adapting Credit Card Loyalty Feature to a Debit Card World,” June 2009.
GROW FROM WITHIN MASTERCARD ADVISORS 4
5. sell offer to ensure that they continue Stimulate recurring payments – STRATEGy THREE:
to maintain and grow their checking Online bill pay and recurring payments Increase Debit Card Usage
account balances, as required for that (RP) have been shown to increase spend Another way to deepen engagement
higher-level product. and loyalty. A bank may reward the is to understand customer preferences
debit cardholder who signs up for RPs in for POS, cash, and branch transactions
Savers may have limited migration
such categories as telecommunications, and then use that understanding to
potential – While a more effective
insurance, utilities, and satellite/cable/ help increase debit card usage. The
savings product may attract increased
TV by offering a credit on their next most effective kinds of offers vary with
deposits, the bank may find that
statement. MasterCard has seen a lift in each region and with each region’s
optimization of this segment is more
overall card spend whenever cardholders specific debit-card revenue dynamics. In
likely to come from growth in net interest
use debit cards for recurring payments building the business case, it’s important
income (NII) or through increased or
or set up RPs through a merchant. Debit to consider the broader benefits of
retained balances than from any new
cardholders who use their debit card to debit cards, such as increased balances,
product offerings. Depending on the
make recurring payments also spend improved retention, and cost savings
customer’s age and estimated wealth,
36 percent more with their debit cards associated with reducing costly ATM,
a Saver may turn out to be an affluent
than those who don’t make recurring cash, check, and branch transactions.
customer trying to diversify his or her
payments, and they also are much less
portfolio. One common tip-off: the
likely to stop using their cards in the
customer in question does not have
future (6 percent vs. 11 percent).4
or use a debit card because they don’t
feel they need to. Alternatively, a
customer may simply regard the account
in question as a “piggy bank.” Such Figure 4: Cross-Sales to Customer Segments Moves Them
customers often welcome financial Up the Value Chain
planning and retirement advice from an
in-branch advisor. Offering them liquidity MIGRATION PATH TO INCREASED VALUE AND ENGAGEMENT,
solutions to help manage their affairs WHERE DEBIT IS THE ENTRY POINT
can often lead to increased deposits and Debit Credit Personal Auto Investment
Cards Cards Loans Loans Mortgage Account
growth in net interest income.
Find the sweet spot for Primary
Primary
users – With customers who already are
frequent users of their current accounts,
CUSTOMER SEGMENTS
the secret to cross-selling is determining Secondary
what drives their engagement with
your financial institution. For budget-
minded consumers who spend primarily Convenience
on essentials, merchant discounts on
everyday products may be compelling.
For the more affluent household, rewards Savers
offering unique experiences may be the
strongest motivator. Configuring the right
offer and the right marketing message Potential For Customer Adoption
for each customer segment will help
expand your customer relationships and Best Worst Source: TowerGroup
stimulate profitable payments behaviors.
4 MasterCard Advisors, Comparative Cardholder Dynamics: Debit and Payment Choices, 2008.
GROW FROM WITHIN MASTERCARD ADVISORS 5