Profit increase via improved service and sales effectiveness
Increased front office efficiency
The front office has less and less time to service customers due to the ever increasing volume of administrative and compliance tasks. How can front office efficiency be improved?
Regulatory changes in cross-border banking and customer protection and a shift in customer behaviour, combined with increased competition with other financial hubs are causing Swiss banks to face new challenges. They also have increasing implications for relationship managers’ schedules. New laws and compliance policies increase the administrative costs of customer acquisition and service.
According to a Deloitte study, the time allocated directly to customer interaction has decreased from around 70% to 50% over the last five years. The main reason for this decline is the rising compliance and administrative workload involved, especially when serving foreign
customers. The introduction of additional customer protection laws (e.g. the MiFID II regulation) will further intensify this trend. The resulting additional effort, together with a falling customer interaction time, leads to a reduced profit margin. This means that productivity and customer orientation become the focus of attention. With respect to a clear value proposition and service offerings, wealth managers have to determine which customers they should serve actively and which to serve only passively. This is the only way they will be able to lift margins back up to a pre-crisis level.
Successful customer focus management therefore consists of three
components: customer orientation, customer interaction, and (customer) organisation. However, according to a recent survey of wealth management CEOs, the customer interaction component is the most important differentiation factor. The differentiation itself can be further clustered into three areas: capacity, effectiveness
Inside magazine issue 5, June 2014
Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.
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