Client Results: Small Business Banking

Following Finalta engagements, our clients have been able to achieve rapid improvements in small business banking results.  The case studies below provide examples of how we have helped our clients.

Implementing an effective small business model in multiple countries

  • Bank J is a large European bank with retail presence in nine European countries. Increasing market share and profitability in the small business (SB) segment was identified as a Group strategic priority. However, within the organisation,  each country had a different approach and different results.
  • Bank J engaged Finalta to conduct a Benchmarking Study on the SB segment across all countries to compare performance with internal and external peers. The results demonstrated three consistent areas of weakness: credit process, sales reporting and head office segment support.
  • Of the three recommendations made by Finalta to the Group CEO, two were agreed. They have become Group-wide projects resulting in significant improvements in credit process efficiency and advisor sales productivity.

Set improvement targets

  • We worked with Bank K to evaluate new activity management data against peer benchmarks; to assess options for lending process improvement; and to understand how best to service the needs of small business owners.
  • The results of the Study helped raise a number of key issues at the executive level, including the potential to move service activities to remote channels and the opportunity to increase sales to the existing customer base.
  • Using external benchmarks, Finalta worked with Bank K to set long-term targets and to quantify the improvement potential.

Quantify the potential of improvement

  • Bank L took part in our annual Small Business Benchmarking Study. At the time of the Study, Bank L’s operation was successfully focused on lending and customer acquisition.
  • However, our analysis showed that this resulted in opportunities for sales of other products being missed, both in terms of non-lending business products and personal products.
  • We quantified the revenue opportunity from non-lending income to be approximately €130m and helped the bank develop a plan to achieve this potential.