Corporate Banking: Case Studies

Cross Sell / Up Sell

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Problem: A middle market treasury management group was achieving strong growth of new customers, but not adequately developing the current client base share of wallet.

Solution: Novantas used behavioral segmentation techniques to identify customer segments with the highest potential for cross-selling. Relationship strategies and account action plans were tailored for different segments to achieve the desired client behaviors and to improve cross-sell opportunities.

Result: An identified 40% increase in fee income.

Customer Acquisition

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Problem: A large U.S.-based bank was experiencing limited growth in its small business banking customers, but recognized the revenue potential of this segment if structured approaches for acquisition could be developed.

Solution: Novantas developed a multi-channel acquisition model to achieve this bank’s objectives. Lead generation was separated from account acquisition and a specialized lead generation factory using a proprietary dialogue scripting platform called Mindswift was implemented.

Result: An increase of 200% in lead generation at a very low cost per lead.

Pricing Optimization

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Problem: The analyzed deposit portfolio of a Top 10 US Bank was in decline ($300M decrease) over three years and underperformed peers.

Solution: Our reference rate analysis revealed ECR position had historically been far below peers, with very limited exception pricing, though rates varied significantly by pricing region. Elasticity analysis was performed for analyzed DDA, comparing historical balance acquisitions and attrition to relative rates across all tiers. The analysis revealed that while ECR was generally inelastic, business banking customers with balances above a threshold were rate sensitive for both acquisition and attrition.

Result: Estimated reduction in account attrition of $40M per month.