accessed and used. Typically, banks find themselves in a situation where their core platform doesn’t support the growing
portfolio of noninterest income generating products such as
wealth management, trust, prepaid cards and insurance. These
products provide vital fee income to the retail banking side—a
crucial and diversifying stream of income especially during
slow loan-growth periods. While banks have found success
by offering these products, the best-in-class institutions have
enabled referral processes supported by data that facilitate
influential customer conversations. At the very basic level, a
robust and well-implemented CRM platform can meet the
following needs of any bank:
m;Provide a 360-degree customer view of all accounts, touch
points and marketing.
m;Automate referral and cross-selling workflows.
m;Provide enhanced and flexible security permissions that
meet regulatory requirements but allow for sharing of
data across the enterprise.
m;Automate case management workflow, activity and task
m;Facilitate and provide visibility into the execution of
customer experience strategy.
An equally important aspect of a customer experience
strategy is the data and analytics that drive it. While CRM
solutions play a role in creating and delivering these insights
to the front line, the bank can’t forget the customers’ needs.
Customers demand data as well. By proactively empowering
customers with data, they’ll seek out additional opportunities with the bank and take advantage of more services and
products. Solutions outside of the bank’s CRM need to be
explored in order to create the two-way street that is necessary
for banks to successfully sell to customers and for customers
to identify their own needs and approach the bank.
Many banks have taken small steps in providing customers
with tailored personal financial management, however, they
continue to fall short because they fail to capture customer
data in a manner that supports the customer’s needs. As
younger customers quickly becoming more affluent, there
is increasing demand to have their banks become more than
payment processing engines.
To establish deeper relationships with these customers,
banks need to transition into a role that sets themselves apart
from third parties that are increasing penetration in areas
such as payment space. There is opportunity for banks to
adopt a proactive approach to customer service and reinvent
customer-bank relationships that have been disrupted by
digital innovation. The methods of acquiring and storing
data need to progress and accommodate for digital channels
and help restore relationship development and deliver new
and greater insights targeted towards fee-generating services.
Personal financial management tools (such as Geezeo,
Quicken or Yodlee) have provided the ability to link cards and
products from multiple financial institutions together but little
has been done to help customers interpret the information
generated by these products to encourage the use of other
beneficial services they might be missing out on.
Additionally, little is done to capture this information and
use it for the bundled products and services packages previously mentioned. By analyzing this information, banks could
identify trends in the market and discover new opportunities
for both parties to benefit.
Another potential opportunity is the bank monthly statement, which has remained relatively unchanged over the past
couple of decades. The statement still provides a monthly snapshot of transactions made but includes little analysis on past
activity or prediction for future spending and savings. Other
than minor branding or format differences, bank statements
look fairly uniform among competitors. Spending analysis,
savings plans, investment options and financial forecasting
could easily become an opportunity to generate fee income
by capturing monthly statement data that customers actually
want and need to see.
Customers aren’t the problem, they’re the
While fee income may be declining because of the commod-itization of traditional banking products, there is enormous
potential for banks to leverage technology innovation to
reshape the way they generate noninterest income. The problem lies in looking beyond charging for the use of products
and services to a mindset of focusing on the customer and
looking at ways of delivering value.
Customers are no longer willing to pay for commoditized
products that can now be found for free but are more than
happy to pay for personalized service. Additionally, with trust
comes loyalty and by building loyalty you create trust. Adapting to the digital customer and reinventing relationships from
their traditional roots is the key to standing out among the
status quo. It all starts with delivering customer value. n
ABOUT THE AUTHORS
BRYAN KNOPS is a senior consultant at West Monroe
Partners and NEIL HARTMAN is a director in West Monroe
Partners’ Banking Practice, Chicago. Website:
By proactively empowering customers with data, they’ll
seek out additional opportunities with the bank and take
advantage of more services and products.