The Intelligence That Drives Business
Our client is a holding company for a number of different banks all operating under unique brands in different communities throughout the region. The banks are in a strong position financially, although they all have experienced some degree of limited new customer growth due to solid market penetration and an aging population in their communities. Each bank realizes that the key to improving the profitability of their institution is tied to two questions: which customers are making their organization the most money, and how can they incite more of these types of customers to open new accounts. Our client had no in-house software they could use to understand profit or household demographics. They understood the benefit of these tools, but could not justify the expense of installing software across all of their banks. It can seem overwhelming to get to this level of profit detail without having a software system. Yet it is vital for a bank to thoroughly understand their profit position prior to pricing new products, introducing new services, targeting new customer segments or determining how to adjust rates to drive specific actions.
Each of the banks worked with Curtis 1000 and our partners to develop a profitability analysis for their marketing efforts. We were able to use real GL data to develop a database that could be used to understand profit by account holder and by product. The banks were also given access to incremental profit data? so they could understand what to expect when a new product was added to an existing portfolio. Additional tools allowed loan officers to price loans to make sure they hit ROA and ROE goals before they were booked. Household demographics were also added to each account holder so the banks could quickly understand what their best customers looked like and form plans to find more account holders like them in their market.
The banks within the holding company used our solution to understand their customer base in ways they never expected without a costly software install. They started to make better loans because they could see an entire customer relationship prior to pricing a loan. Demographics tied to the customers allowed the banks to understand what their best customers looked like before they built marketing plans to acquire more market share. The banks we serve and the overall holding company are now in an even stronger financial position. They are also able to quickly react to changes in their market now that they have the intelligence behind what drives their business.