The Commercial Banking line of business has never been more challenged:
- Competition is intensifying the industry is approaching an oligopoly with the top three players controlling nearly 50% of fees and deposits and enjoying significant scale benefits.
- Disruptive FinTech firms are cherry picking the most attractive profit pools.
- After years of high double digit growth deposit growth is leveling off, resulting in increased rate competition for deposits.
- Banks enjoy tremendous pricing power but deal pricing is aggressive – understanding switching costs and customer buying behavior has never been more critical to success.
- Banks face constrained investment budgets but must invest on multiple fronts.
Novantas provides advisory solutions that combine unique corporate treasury buyer insights with an array of industry best practices and marketplace benchmarks.
DEPOSIT, TREASURY MANAGEMENT AND LOAN PRICING
Novantas helps banks maximize fees and net interest income through enhanced pricing techniques, analytics and intelligence. Our pricing models, best practices and tools help clients realize significant and sustainable improvements in profit and revenue.
PRODUCT & SERVICE CAPABILITIES
Product lifecycles are accelerating. Our proprietary industry dataset (which includes over 2,000 product features & functions), helps banks identify the most critical future investment priorities and benefits.
SALES & MARKET EFFECTIVENESS
Today’s sales force must deliver consultative advice to create value for the bank and its clients. Through our proprietary tools, benchmarks and knowledge management datasets, we help banks understand market opportunities and prioritize acquisition, retention and cross-sell opportunities.
COMMERCIAL BANKING PERSPECTIVE
Each quarter, we review the public financials of leading banks, diagnosing the state of the commercial banking industry and illustrating the leading practices and characteristics of industry winners. To receive a copy of our perspective, join the mailing list.
Businesses now hold more than $4 trillion of liquidity in the U.S. With rates rising and the slope of the yield curve shifting, stakes are high for banks.
Customers who seek a higher rate put the bank in a defensive position that often ends with the bank offering a rate that is above the optimal and fair price for that client’s deposit.
The U.S. banking industry has always followed a very simple formula: Intermediation 101 calls for banks to gather deposits from local depositors (primarily retail) and lend to local borrowers (primarily businesses).