Financial services
Refocusing a regional bank on its most profitable customers
A cost-to-serve overhaul that lifted return on equity without cutting the front line.
- +3.4 pts
- Return on equity
- −6 pts
- Cost-to-income
- 2 quarters
- Time to impact
The challenge
Years of incremental product launches had left the bank serving everyone, profitably serving no one. Return on equity trailed peers and the cost base kept climbing.
Our approach
We rebuilt the customer economics from the ground up, identified the three segments that drove the vast majority of value, and redesigned the operating model and branch network around them.
The outcome
Within four quarters the bank had exited two unprofitable product lines, simplified its operating model and reinvested in its highest-value relationships.
Representative engagement — anonymised and illustrative. Outcomes reflect the type and scale of results achieved in similar engagements.
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