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Steve Klinkerman
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sklinkerman@novantas.com
Novantas Outlines Top Retail Banking Challenges in Report Published by Consumer Bankers Association
April 18, 2005
NEW YORK - Novantas LLC, leading provider of management consultancy and information services to the financial industries, today outlined the top retail banking challenges in "Beyond the Failsafe Point: In Search of Targeted Solutions in Retail Banking," a research report published by the Consumer Bankers Association.
The research study examined three major issues facing the retail and small business banking markets today: 1) Erosion of the most profitable type of deposit products caused by rising interest rates; 2) customer relationship profitability and retention challenges following the proliferation of free checking; and 3) a tightening market for home equity lending.
To address these three challenges, Novantas offers recommended solutions, beginning with the advice that retail banks must look beyond products to the major types of customers who use them. By learning to identify major clusters of customers and then tailor products, prices and marketing messages accordingly, banks can tap special pockets of opportunity and leap ahead of one-size-fits-all competitors. "Customer science," or a customer-focused scientific method, will be essential to overcome obstacles and systematically identify and capture opportunities, the authors said.
The report is part of The Defining Difference, a research series created exclusively for the CBA. Each quarterly report delves into a particular aspect of targeted retail banking, detailing the business issues that executives face, providing specific recommendations on how to respond, and discussing the organizational implications.
The Consumer Banker's Association is the recognized voice on retail banking issues in the nation's capitol. CBA members collectively hold two-thirds of the industry's total assets, and include most of the nation's largest bank holding companies, as well as regional and super-community banks.
Novantas is the acknowledged leader in customer science and revenue strategy for the financial industries. The Firm specializes in applying advanced analytics and technologies to help clients make better decisions in marketing, product, pricing, customer management, and distribution.