Large US Regional Bank
in projected total addressable market, increasing their competitive advantage
in annual revenue growth from fees
projected increase in organizational efficiencies by focusing on key customer-level targets
With consumers taking an increasingly active stance in managing all their financial assets, institutions must be ready to adapt targeting and pricing strategies—using data and digital capabilities to differentiate experience and engage consumers.
This bank believed it had a strong opportunity to grow their non-interest income through an enhanced private banking offering, growing both market share and share of wallet. Executives had varying hypotheses around the potential for such an offering—but the bank lacked data to prove or disprove these theories, hindering its ability to plan effectively. Specifically, executives wanted to understand the potential market size and the factors affecting the bank’s “right to win” among these segments.
Answering their questions required combining specialized third-party data with the bank’s own data, conducting sophisticated analyses to assess the potential value and costs of serving different customer segments with distinct wealth management strategies—while applying perspectives on leading and emerging industry practices to project potential. That requires an abundance of data and analytics power combined with deep industry Insights—which is why they called West Monroe.
We rallied a team with retail banking experience and data analytics expertise, helping the bank uncover data driven insights and driving alignment across a leadership team with differing viewpoints.
Working with distinctive data sets provided to the client by Equifax, we helped the bank create a complete view of customer assets both within and outside of the institution—down to the household level. This collaboration produced answers—including findings that some executives did not expect.
Here’s what we did to get there:
With new household-level insight into available market wealth and current penetration, executives can now make more informed decisions about deposit and wealth products and services.
We found a significant gap in the bank’s approach to serving customers with high levels of both investable assets and bank-held deposits that would limit the upside potential of a wealth management offering if not addressed. Our analysis also revealed an even bigger opportunity: More than 90% of the bank’s revenue potential lies with customers with a light deposit relationship today—and these customers have 3.5x the average household wealth of those with deeper relationships. While this represented a shift from the bank’s original focus on wealth management, it’s leading to a more holistic set of services for targeting this valuable but underserved customer group. Acting on these recommendations could increase fee revenue by as much as $500 million annually.
Segmentation analysis also isolated 45,000 specific households with the highest value potential for both fees and deposit growth. This provides clear direction for which customers to target (and which to avoid) for marketing and relationship activities, increasing the efficiency of marketing spend by more than 4x.