Challenges in Retail Banking
The commodification of retail banking is driving a new wave of competitiveness. Demand for new innovations is increasing. Customers demand lower rates and more services. Margins are narrow, and the low interest rates are further depressing those margins.
This is forcing financial executives to dig deeper to thrive and profit, forcing them to connect products to costs. More accurately assess those costs, more accurately model product value and connect customer profitability to the product offered.
With advanced costing metrics financial services can re-examine the old rules of thumb. Through deeper insights and analytics customer profitability can be more clearly shown on the executive level and informed decisions made more easily.