Dri­ving Rev­enue Growth in Retail Bank­ing: A Suc­cess Sto­ry in South­east Asia

BACKGROUND

In the bank­ing indus­try, sales and chan­nel man­age­ment hold sig­nif­i­cant impor­tance as they enable banks to con­nect with cur­rent and poten­tial cus­tomers, earn rev­enue, and uphold cus­tomer rela­tion­ships. Through effi­cient sales and chan­nel man­age­ment, banks can enhance cus­tomer sat­is­fac­tion, reten­tion, and loy­al­ty, result­ing in high­er prof­itabil­i­ty and rev­enue. To ensure con­tin­ued suc­cess, a strong strat­e­gy for sales and chan­nel man­age­ment is essential.

THE CHALLENGE

The Client is a major bank­ing group in South East Asia with oper­a­tions in 7 coun­tries and thou­sands of branch­es. The Client asked Renoir to focus on grow­ing rev­enue the Fund­ing and Lend­ing seg­ments (auto-loans, mort­gage and cor­po­rate ben­e­fits pro­grams) in the retail branch­es. The Client brief was to analyse the under­ly­ing issues, iden­ti­fy areas for improve­ment and imple­ment a Trans­for­ma­tion Programme.

ANALYSIS

Detailed process reviews and oppor­tu­ni­ty iden­ti­fi­ca­tion was per­formed at 5 Pilot branch­es and shared with Area Man­agers, Branch Man­agers and Rela­tion­ship Officers.

5 key pro­duc­tiv­i­ty enablers and 4 key effec­tive­ness enablers were iden­ti­fied. The rev­enue growth oppor­tu­ni­ties of each were ful­ly quan­ti­fied and val­i­dat­ed. New tools were then defined and devel­oped to dri­ve improve­ments in Sales performance.

PROJECT APPROACH

The Renoir team worked along­side Client’s task force mem­bers and Man­age­ment Action Team (MAT) rep­re­sen­ta­tives to ensure the solu­tions were imple­ment­ed in the field amongst all sales per­son­nel to ensure com­plete buy-in and ownership.

An enhanced Direct Sales Plan­ning and Month­ly Activ­i­ty Plan­ner focused on gain­ing addi­tion­al mar­ket share. It rein­forced the need for prop­er plan­ning of resource and pri­ori­ti­sa­tion of customers.

The increased fre­quen­cy and high­er qual­i­ty of prospect qual­i­fi­ca­tion result­ed in a 10% aver­age cap­ture rate for sales efforts, com­pared with the indus­try aver­age of 5.4%.

The project intro­duced a new Man­age­ment Con­trol Sys­tem (MCS), new oper­a­tional stan­dards and tar­gets, util­is­ing a new Cus­tomer Pro­cess­ing Track­er, along­side cas­cad­ing Dash­boards to mon­i­tor KPIs through­out the branch network.

This mon­i­tor­ing sys­tem, cou­pled with reg­u­lar review meet­ings, result­ed in branch­es opti­miz­ing their indi­vid­ual loan appli­ca­tion process­es to reduce aver­age cus­tomer time-in-branch from entry to exit by 42%.

Once the new way of work­ing (NWOW) had been rolled out to the 5 Pilot branch­es, the project team moved on to imple­ment the agreed solu­tions at the next 15 branch­es with­in the Phase 1 project scope.

“ With pro­duc­tiv­i­ty improved in con­sumer fund­ing and lend­ing sales respec­tive­ly, we have seen, on aver­age, a growth in vol­ume across our main 52 branch­es. Our project with Renoir has not only enabled us to improve what we sell, how we sell and to whom we sell, it has also result­ed in bot­tom line val­ue to the company. ”

Chief Finan­cial Officer

The team used Renoir’s sit­u­a­tion­al audit­ing tool to assess the uptake of NWOW by the 180 Sales per­son­nel across the branch­es. This tool quan­ti­fies the progress of staff behav­iour toward the full adop­tion of new process­es and ways of work­ing. Progress is mon­i­tored and cor­rec­tive train­ing can be high­ly tar­get­ed to improv­ing adop­tion and performance.

With the suc­cess of the Phase 1 imple­men­ta­tion, the Client and Renoir embarked on Phase 2, rolling out the NWOW to 30 region­al branch­es across the coun­try. The com­bined effort of task­force and con­sul­tants, with a struc­tured plan of Solu­tions to be imple­ment­ed, ensured that we not only pen­e­trat­ed more than the orig­i­nal­ly planned branch­es but also cre­at­ed a more sales-focused cul­ture with­in the organization.

RESULTS