At a Glance
- A Filipino thrift bank faced challenges in managing rapid growth and scaling its sales and operational processes.
- With the help of Renoir Consulting, the client implemented a bank management control system (MCS), which led to significant improvements in sales efficiency, branch operations, and customer service.
- The project resulted in a 15% increase in new-to-bank (NTB) loans, a 49% year-on-year growth, and a return on investment (ROI) of 241%.
- This case study highlights the project’s successful return on investment and the establishment of sustainable improvements through new management roles, corporate alignment, and a culture of continuous improvement.
Key Results
- Achieved a 15% NTB loan growth, surpassing external market growth.
- Reduced customer time-in-branch by 42%, improving overall operational efficiency.
- Increased branch loan process productivity from 55% to 89%.
Background
In the Philippines, thrift banks – also known as savings and mortgage banks – are regulated financial institutions that accept savings deposits and provide mortgage loans. They promote financial inclusion, encourage savings and facilitate home ownership. These banks cater to individuals, small businesses and SMEs, offering financial services to sectors often underserved by larger banks.
The client, a prominent thrift bank in Philippines, has grown rapidly over the years, expanding its branch network and customer base. Primarily catering to the loan needs of specific sectors, the bank had grown its branch count significantly in just a few years.
However, with expansion came challenges in maintaining operational standards, ensuring sales effectiveness, and keeping up with the increasing demands of a growing customer base.
Analysis
Recognising the need to manage its dynamic growth effectively, the Chief Executive Officer (CEO) sought to develop and implement a comprehensive bank management control system.
Following the success of an initial pilot project that significantly increased new customer acquisition, the client embarked on a national rollout with a focus on long-term sustainability.
The primary challenge was establishing systems and processes to support the expanding branch network, enhance sales performance, and improve operational efficiency across the organisation. Addressing the improvement of branch sales processes was also a key objective.
Project Approach
To address these challenges, the client engaged Renoir Consulting. The project involved Renoir consultants and a Project Manager working across branch and corporate centre operations.
The implementation was structured in phases. The initial multi-week phase concentrated on identifying and training new Area Managers from within the client.
With Renoir’s support, these area managers were tasked with installing the MCS within one region. Following this initial implementation and confirmation of their roles, the Area Managers returned to their respective regions to oversee the complete roll-out of the MCS throughout the entire branch network.
A Management Action Team (MAT) was formed to drive alignment between branch operations and the corporate centre and identify opportunities for enhancing corporate department functions.
This included:
- A review of the organisational structure,
- Revised reporting processes, and
- Strategic goal alignment, ensuring branches are better equipped to contribute to overall strategy.
This collaborative effort between Renoir and the MAT aimed to identify coaching and development needs and refinements to the MCS to ensure alignment between the branch network and Corporate Centre Operations.
A key emphasis was placed on the sustainability of these changes, with system coaching audits and continuous improvement tools implemented to embed the new MCS into daily operations. The objectives agreed upon by the MAT were implemented concurrently with the national MCS roll-out by the Area Managers.
“We needed steroids to get this done… and the steroids start with Renoir.”
– President and CEO.
Implementation
Installation of a Management Control System (MCS) to drive new sales nationally. This included an enhanced Direct Sales Planning and Monthly Activity Planner. It led to a 10% average sales capture rate and a 15% increase in loan transactions.
Improve in-branch processes through new operational standards and targets. The introduction of a Customer Processing Tracker and cascading Dashboards monitored KPIs, resulting in a 42% reduction in average customer time in the branch. Tools were introduced to facilitate and monitor indirect sales activities. The productivity of branch loan processes and sales activities increased from 55% to 89%.
Development of new operational capacity with installing a new tier of Area Managers. These Area Managers were coached on tools to evaluate sales effectiveness and develop opportunities using the new MCS. They could drive and adjust sales tactics based on local market conditions. Renoir supported the identification and training of the new Area Managers. These managers were initially responsible for the full MCS installation within one region and then throughout the rest of the branch network.
“We are impressed with how the Taskforce has developed and wish to recognise them for the results that have been achieved.”
– Board of Directors
Results
- The project achieved a 15% new to bank customer growth over and above external market growth and an impressive actual year-on-year growth of 49% against a contracted target of 5-8%. The project also delivered a strong return on investment (ROI) of 241%.
- Enhanced sales planning and prospect qualification processes increased the capture rate for sales efforts from 5.4% to 10%. The client achieved a 15% increase in NTB loans, surpassing its growth targets.
- In-branch operations saw a major boost, with customers’ time spent in-branch reduced by 42%. Additionally, tools for indirect sales activities, such as bulk mailing and SMS campaigns, increased branch productivity, with loan processing capacity rising from 55% to 89%.
Renoir brought expertise in implementing change, provided crucial training and coaching, facilitated developing and implementing a key management system, and ensured the alignment of branch operations with the overall corporate strategy. This comprehensive support was instrumental in achieving and surpassing the project’s targets.
*Client-specific names and details have been omitted to protect the organisation’s identity while preserving the case study’s integrity.
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