Improvement of the earnings position in the retail banking of a market-leading savings bank
Initial situation and project goal
Within the scope of strategy workshop sponsored by EY Innovalue, the board of directors of a top 30 savings bank (assets of approx. €8 billion) its growth strategy: For the retail banking business, the board of directors has set the following goals:
- Improvement of the earning position, especially in the securities advising and in the consulting-heavy services industry (insurances, home purchase savings, etc.)
- Increasing the quality of advisory services through the consistent implementation of the savings bank financial concept, including the sustainable implementation of regulatory guidelines
- Stabilisation of market shares and optimisation of customer retention measures in all retail banking segments
The traditionally well-positioned savings bank in this region has been losing market share for years, especially with its highest earning clientele. On the one hand, a well-balanced equity and asset business as well as advisory services of its long-term customers provided the bank a with solid foundation for the targeted growth course. However, it is also presented a great challenge to both the employees and the sales managers of being able to achieve the board of director’s strategic goals.
The board of directors then asked EY Innovalue to analyse the structures and processes of the retail banking business and to present a concept which would return the savings bank to a strong position of growth in the retail banking segment. After fine-tuning the concept under inclusion of numerous of the bank’s managers, EY Innovalue was commissioned with the implementation.
The most important project milestones included:
- Detailed analysis of the structures and processes in the retail banking segment (organisation, management, advisory and management process, controlling, product offer and competitive analysis)
- Presentation of the analysis and assessment by EY Innovalue within the scope of a workshop with the entire board of directors.
- Integrative development of the implementation concept with numerous managers and multipliers in the savings bank.
- Accompanying (through training and instruction) the advisors during the successful application of the savings bank financial concept under inclusion of digital consulting aids
- Optimisation of the savings bank’s management system and the ongoing management activities in cooperation with the internal HR department
- Fine-tuning and management in terms of the requirements of the comprehensive advisory system
Project results and outlook
- Sustainable increase of the service revenues (esp. in securities business) and increase of the cross-selling quota
- Optimisation of the earnings structure (improved relationship of earnings from interest and commissions business)
- Increase in the employee satisfaction due to the improvement of the consulting quality and productivity as well as a newly defined quality of the internal cooperation
- Determination of customer retention, customer satisfaction in after-sales surveys and recuperation of market shares
- ROI: > 12 months (after 9 months, sustainable and with increasing tendency)