Novantas Review Vol. 1 No. 3
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As retail banks fight for growth through market share gains, executive management will need explicit strategies to cultivate fuller customer relationships.
In a continuing tight market, banks can no longer pump out an assortment of their very best products and rest assured that profits will come rolling in.
The recent financial crisis has sparked a new level of collaboration between Treasury and customer-oriented business lines, centered on in-depth analysis of account behavior.
To win in a tight market for small business banking, institutions will need to serve the total customer relationship, including commercial and household financial needs.
Bank investment products may never gain momentum with mass affluent customers. Yet this group has other major retirement needs that fall right into the strike zone for banks.
The physical distribution network remains critical to banking, but old-style branches may soon go the way of the corner bookstore.
By considering the lifetime value of the customer relationship, progressive banks are re-focusing the cross-sell viewfinder on priority customer needs.
At a time of revenue drought in retail banking, there is tremendous pressure to ramp up sales within the individual product units. Yet many banks are sacrificing significant opportunity by failing to look beyond products to the total customer relationship.
Advanced bankers are taking a much more comprehensive view of asset diversification, with emphasis on pragmatic insights that can be harnessed to support healthy growth.