What we know:Branch Optimization
Our philosophy is similar to our principles related to loyalty programs – we believe that customer satisfaction is equal to operational efficiency. To improve efficiency, we start with horizontal and vertical analyses, topped with improvements implementation.
The horizontal analysis maps out the range of activities a client-advisor does and estimates the size of the time occupied by each activity. Activities are categorized on a two-dimensional scale of required tasks and value-adding tasks. For each quadrant, we also prepare actions on what to do with such activity.
With top activities identified, the most important is broken down in the vertical analysis. It is end-to-end process analysis, be it account opening, or loan application, or account statement check.
With such understanding, we help create lasting changes in the processes, task allocations, and KPIs.
FPY IMPROVEMENT | Improvement of First Past Yield Raito on Account Opening
Our client, an established bank in the South-East European region, looked for help with increased productivity and sales of their branch network.
First, ABC performed horizontal analysis of the task, their timing from logs and “clarification” of the tasks with managers, branch managers, and sales personnel. We have found that branch managers often put administrative tasks on sales personnel without noticing it lowers their sales production. Second, we performed two vertical analyses (vertical = end-to-end process) – cash loan and account opening. Identified account opening as one of the most frequent and also time-consuming task, across the whole organization.
The issue was mostly the copy-pasting of repetitive information into several systems which took the front office staff several minutes, but also the back office as well. It also created a lot of errors. The application had only a 28% chance of going through the process without mistakes along the way.
After analyzing the internal systems and processes, ABC devised a straightforward interface where data had to be entered only once and distributed to systems automatically; this created a virtually error-free environment, and FPY soared to 70%.
NETWORK OPTIMIZATION | Analyze Types of Branches And Decide Which Should Be Kept Open
Our client, a bank in the South-East European region, asked us to reevaluate their distribution network – branches. Our approach was simple, the branch should serve as a selling outlet (with some servicing functionalities) and as such should be profitable in the total business done through the branch.
There were several steps to the process of elimination. First exclusion criteria – which branches are there for other than selling purposes (e.g., PR / Marketing, innovation testing, etc.). Second, the sizing of the branches – 3 bands were created by size and the number of transactions (service + sales). For each size branch, profitability was computed, and the pilot was established with new KPI, focused on profitability.
After three months, we can see 73% of branches move above profitability levels (from <65%). Branches which did not go profitable after three months were wined-down and closed.
For more on our competencies in the areas of Customer Value Management and how we can help you, please contact: Tomas Wolf, our Subject Matter Expert and Engagement Manager.