Novantas Review Vol. 2 No. 4
Following basic measures to cope with the revenue drought, retail bankers face the steeper challenge of transforming their franchises to compete in a changed market.
To grow in a market that is only partially recovered, commercial bankers will need a set of focused initiatives that match strengths with select opportunities. As with other banking lines of business, much of the commercial opportunity for 2012 centers on gaining market share.
Banks that under-invest in a multi-channel future do so at considerable risk. New strategies are needed to balance branch cost reduction with distribution innovation.
Facing an overhang of failing branches, banks will need to take decisive action to avert closures
To cope with market volatility and heightened regulatory pressure, bank boards must play a much more proactive role in risk management.
As banks gear up for 2012, the problem is not just overcapacity, but obsolete capacity. Deeper cost cuts must fit within a larger plan to rebuild the business.
Will branch staff cuts exacerbate the revenue crisis in retail banking? Much hinges on sales productivity. Leading banks are using four levers to meet the challenge.
Advanced pricing skills will be critical as home equity lenders compete for selective growth opportunities going into next year.
Novantas recently surveyed banks about how branch managers spend their time and found that banks whose managers spend more time on direct selling than on coaching outsell other banks by more than 30%.