Performance Improvement in Banking
Improving product, client and channel profitability
New competitive entrants, de-risking investment behavior as well as an increased cost base due to a raising regulatory and compliance density are conspiring to pressure profit margins like never before. For banking organisations intent on preserving — and growing — margins, it is imperative to adapt their game plan.
Pricing and profitability management needs to be a key element of that plan. As a lever for growth, it offers an under-leveraged and often neglected opportunity for substantial and sustained revenue and margin improvement. Just a few points improvement in price realization, driven by a more strategic approach and better execution, can translate into substantial enhancement of a firm's profitability.
With our unique combination of analytical skills, industry experience and proven tools, we can offer you the right team to help you improving your profit margin. We have experience in analysing industry and company specific impacts part of the current industry transformation. We have the right tools, developed and constantly improved by Deloitte experts around the world, combining countless client cases, benchmarks and our vast industry expertise.
Our client impact is measured significant revenue and margin improvement. These organizations have developed pricing and profitability management as a sustained source of competitive advantage outperforming their peers.
How we can help
Improving the performance of a financial institution requires careful planning to diagnose specific issues affecting the business, establish the right priorities, and address the most critical problems. Deloitte’s Pricing and Profitability propositions are assessing the key drivers and issues impacting your performance and develop a detailed thorough response to address them
Our Pricing and Customer & Market Strategy team works with clients to help them drive profitable revenue, volume, and market share growth by effectively managing customer relationships, product pricing, pricing execution and governance. We help our clients transform their customer service delivery models and define the right mix of product / service offerings to meet the changing needs of their customers.
Our Profitability Management proposition covers the set up and implementation of a framework for transparency among various dimensions. We develop consistent methodologies for customer and product profitability calculation, including cost allocation and risk-adjusted profitability metrics. This enables organisation to improve their distribution strategy as well as to develop differentiated service levels offered to clients.
Portfolio Rationalization review
Our concept of portfolio rationalization is based on a staged process, covering scoping, candidate identification, deep dive analysis and agreement of an action plan. The objective is to concentrate efforts on areas with the greatest potential return and defining rationalisation, harmonisation and standardisation initiatives. The outcome of the review is a more profitable and strategically aligned business portfolio.
Sales Force Effectiveness
Within the context of ‘‘sales force effectiveness’’, we work with our clients that aim to improve the performance of their organisational structure and activity, compensation and incentives, training and development as well as tools and technology.
Our Service Offerings