In an increasingly competitive environment, with low market interest rates, the banking and financial service industry (including credit unions) continues to face significant challenges to improve revenue and profit growth. Financial systems have limitations, as they cannot accurately provide true costs of products. They fail to attribute costs of market facing and business support activities.
Succeeding in this jungle starts with knowing where your business is and where it’s headed. You need to be able to quickly assess and understand the true cost of providing your service, and profitability margins you can optimize. If you can’t identify weak spots in your profit growth plan, you may not know until it is too late to remedy them.
Machine learning and software can now be leveraged to do what it does best – Analyze data and prioritize it for human’s to make the right decisions. Profit Analytics for Banks and Credit Unions, Powered by SAS, developed by CT Global Solutions (https://www.ctglobalsolutions.com) allows the selection of the most profitable combination of products, markets, and channel locations, so there’s no need to “guess with your gut” when if comes to driving profit growth.
This empowers banks and credit unions to rapidly understand and drive profit growth across their business without wasting money on stunted profit growth. Customer profitability analysis facilitates profit focused customer segmentation, ultimately allowing you to focus your resources where the biggest return on your investment is proven to be. In other words, you can retain your best customers with insightful analytics. Using this data opens new doors to corporate strategy developed around improving financial performance, sales and marketing, IT, and even HR! Imagine if you could not only see where the best place is to spend your capital, but also run predictive models to see what will be the most profitable channels based on past data in a predictive model!
With profit analytics, you can stop guessing and going with your gut, and start acting on decisions that are proven to make you money.
Other benefits of Profit Analytics:
- retention of profitable customers
- optimal pricing
- development of new products and services
- restructuring of branches based on profitability
- process improvements at the branch and corporate levels