Achieving Excellence ill Retail Banking ^

Transcription

1 Achieving Excellence ill Retail Banking ^ Edited by Dr Reinhold Leichtfuss WILEY

2 Contents Preface Acknowledgments List of contributors ix xi xiii PART 1: EXCELLENCE AND HIGH PERFORMERS 1 1 Excellence in Retail Banking 3 2 High-performing Banks: Climbing to the Top 13 Star-gazing: identifying the brightest 13 What makes the stars shine 16 Success formulae in retail banking 19 Preparing for the ascent 28 3 Winning in Emerging Markets: Taking Steps toward Stardom 31 Eastern Europe: learning fast from the west 32 Asia: soft skills required for, long-term success 36 Latin America: ready for action? 41 PART 2: PERFORMANCE-ORIENTED CORPORATE LEADERSHIP 47 4 Performance Culture: Realize the Hidden Value of Corporate Leadership 49 Illuminating the building blocks 49 Pave the way to success 60 Core skills will remain critical 66 5 Strategy Matters: Make the Whole Worth more than the Sum of its Parts 68 Break up the bank 70 Define strategic guidelines for each business 73 Translate portfolio priorities into action 76

3 vi Contents 6 Bancassurance: Chart a Path through the Fog 78 Product range: achieving a close fit 79 Distribution: integrate or separate 82 Ownership structure: to control or not to control 84 The future for European bancassurance 86 7 Mass Market: Mission Impossible 88 The traditional route: build on what you have 89 The alternative route: innovate to win 95 8 Affluent Banking: Roll out the Red Carpet 99 Overcrowded competitive landscape 99 What affluent customers want 102 How retail banks can raise their game Small-business Banking: Hunting down Elusive Profits 111 A diverse segment sharing common needs 111 Meeting the profit challenges 113 Segment small-business customers 114 Execute with passion 116 PART 3: SOPHISTICATED MARKETING AND SALES Instilling Marketing Capabilities throughout the Bank Pricing: Capitalize on Opportunities 133 Four levers to optimize pricing 134 Institutionalizing pricing excellence Marketing Spend Effectiveness: Getting the Best from Your Brand 145 Understanding branding 145 A new approach to marketing spend effectiveness Sales Power: Maximum Effort and Maximum Reward 158 Optimize sales capacity 158 Maximize sales effectiveness Customer Service: Stand out from the Crowd 173 Why customer service matters 173 How to improve customer service 178 Prioritize efforts 182 PART 4: DIFFERENTIATED AND EFFICIENT DISTRIBUTION Lessons from the Decade of Distribution 187 An avalanche of opportunities: from ATM to itv 187

4 Contents vii More choice for customers; same cost for banks 191 Making investments pay off Branch-banking: A New Beginning 195 Branches in distribution down but far from out 195 Maximizing the value of the branch network Financial Adviser Networks: Embrace the Enemy 207 The financial adviser success story 207 Three options for banks 210 Building skills and meeting challenges Remote Channels: The Years to Come 215 Five aggregate trends 215 Different prognoses for different channels 217 Reduce costs and increase revenues Multichannel Management: Creating Value 223 Matching customer preferences with economics 224 Design multichannel processes and organization 231 Information technology as the final delivery stage 234 PART 5: COST-EFFICIENT PROCESSES AND IT The Eight Disciplines of a Cost Leader Outsourcing: Increasing Opportunities 250 A growing market 251 Challenges to outsourcing 252 Assessing value creation and feasibility 255 Putting outsourcing into action 258 Looking to the future Offshoring: A New Road to Cost Reduction 264 The three-lane highway 264 The economics of offshoring 265 Six decisions to make IT Costs: Reining in Excessive Expenditure 273 The cost challenge 273 Three levers to cut IT costs 276 Guidelines for success 279

5 viii Contents PART 6: SUPERIOR CREDIT POLICY AND SKILLS Changing Requirements for Excellence in Credit Risk Management 283 Traditional approach often destroys value 284 New techniques offer some solutions 288 Regulators are catching up 293 Capability requirements Internal Credit-rating: Building a Best Practice System 298 The role of internal ratings 298 Core features of best practice Loan-pricing: Adjusting for Risk 308 Addressing credit challenges 308 Determining the methodology 312 Establishing appropriate IT support Total RAROC: Bringing Economic Capital to the Frontline 318 Why total RAROC? 318 Introducing RAROC at the frontline 320 Implementation approach Credit-monitoring and Workout: Proactive Management 327 Sticking to the rules 327 Reducing exposure 330 Transforming debt recovery 331 Index 335