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Choosing clients strategically – A comprehensive guide to profitable growth in banking

2014

In a resource-constrained world, banks have to set their sights on those clients with the best strategic fit. 80% of bank revenues are usually generated by 20% of clients. Typically, those clients also have the highest earnings potential – and thus set the standard for a bank's service model. Such focus benefits both banks and customers, thus creating a win-win situation. The best products and services for a selected set of target clients will distribute resources in the most effective and efficient ways. This strategy offers new growth opportunities for a bank.

At the same time the service model and processes for non-target clients need to be standardized to such an extent that the cost structure becomes flexible, making it possible to lower the cost base in line with reductions in non-target client activities – without putting revenues at risk.

Our new market study, "Choosing Clients strategically – A comprehensive guide to profitable growth", focuses on key levers and success factors for reshaping existing business models in banking.

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