In times of low or even negative interest rates, the bank's profitability model is being questioned. All institutions have undertaken cost reduction efforts. As necessary as they are, they will not be enough to sustain the models.
Bredhill has confronted his point of view with bank managers and proposes a mapping of the levers to be addressed and questions on how to lead these transformations.
These levers are articulated around :
- Reviewing sales practices and associated models (sales methods, compensation, etc.)
- Upgrading offers (consulting, depth of range, etc.)
- Adapting pricing to the new environment (review of models, segmentation, billing for services, etc.)
- Developing new sources of revenue (service approaches/platforms, data valuation, etc.)
- And of course, the continuation of cost reduction efforts, which also includes avoiding additional costs (compliance, irritants, etc.)
The challenge is to build a coherent model so as not to be satisfied with multiple actions and lose the meaning. Classic levers but whose implementation deserves to be rethought:
- By focusing on high-impact levers (costs, revenues, customers) and focusing on results;
- By activating these levers in a targeted and coordinated manner, which often requires an in-depth review of project portfolios to address dependencies and reduce the load (fewer projects)
- By regularly monitoring the results obtained and by being able to constantly challenge / evaluate the results in order to adjust as needed
More meaning, fewer projects, more impact!
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