Profit Improvement Roadmap for Financial Service Companies

What are leading financial service companies doing to improve their profits? A lot.

• One company launched a Lean Management / Six Sigma program to eliminate waste in its trading processes.
• Many retail banks have used customer relationship management (CRM) tools to better understand thE needs of their diverse customer base.
• Some investment banks have used activity-based costing to assign the cost of shared resources to internal departments (e.g., IT charge-backs).
• Other companies have used capacity analysis to understand how resources can be shifted.
• Policy and price optimization has also gained in popularity. Understanding the true cost of printing statements, making trades, and providing research can change how banks serve their customers.
• Customer profitability analysis can help re-define which customers to serve.

This industry has become a poster child for enacting change. Given the huge volumes of transactions, the competency of their staffs, and their massive investments in information systems, financial services companies are capable of making change, and are poised to reap tremendous rewards.

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