The domestic retail and private bank “His Earlship Charles” is in a bad state. Profits have been dropping in recent years as a result of the central bank’s continued low-interest rates. Furthermore, the bank is experiencing a decrease in the number of customers. The bank’s board of directors is concerned about digitalization and wonders if the institution is fully prepared.
Examine the reasons for diminishing profits.
Profit declines can be attributed to one of the following factors:
Increasing costs at constant revenues, declining revenues at constant costs, increasing costs with declining revenues, or a bigger decline in revenues than in expenses.
1- Fee reduction/elimination: Taking the customer complaints into account, the fees should be reduced, even while running the risk of short-term losses. To find a sustainable solution to the problem, the business processes have to be analyzed to what extent they can be made more efficient or even automated at best.
2- Enhancement of digital offer: In addition, the digital offer of the bank has to be enhanced. Online banking must be simplified.
3-omnichannel strategy: In order to harmonize the different channels and make communication transparent across all channels, an omnichannel strategy has to be developed. It is key to set up a standardized data source so that all channels know which information has been sent to the customer or which inquiries have been placed. This data source can be used in the long run to optimize the sales behavior on the customer level.
– Increase the number of customers.
– Sponsored Updates has been one of the most successful campaigns.
– Improved sales behavior at the customer level.