Keys To Making Your Financial Institution More Profitable
It is a term with which we are all familiar but are challenged with how to achieve profitability and maintain it long term . In the context of establishing and - as importantly - maintaining profitability ongoing, profitability can be a moving target.
The War Between Cost & Price
Let’s break out profitability as a construct into its basic elements. Essentially profitability is finding and winning the means to manage the war between cost and price. As an example, the macro cost of operating your branches, as well as, your product margin requirements determine the ‘sale price’ that goods and services promoted through your financial branches need to be sold in that branch and your other channels (on-line, mobile and others). If your value proposition is built properly then price becomes a facet but not the sole factor in a customer’s decision to buy and your profit goals are realized. If your products are priced correctly, how are you enabling them to be sold in the branch network? Deliberate and well-designed Automation of the branch is one of the foundational keys to achieving profitability. It provides the tools and environment to allow relationships to grow and products to be recommended based on proper need, which is the basis for effective cross-selling.
Implementing Cash Automation
By implementing automation, Financial Institutions improve many of the transaction processes freeing up staff to focus their efforts on improved customer interactions and focusing less on counting cash accurately. By maintaining eye contact and relevant conversation, the customer feels more important and, therefore, is more likely to open up for ideas to solve their personal challenges in their financial house. Cross-selling is less about pushing a particular product, but rather actively listening to the challenge or goal and recommending the proper path to connect the here to the there.
Connecting The Dots
Financial Institutions are looking for vendors that will partner with them to understand how the solution of Automation will impact their operations. Many vendors are quick to talk about the ‘box’ or system, but have little knowledge as to how the dots connect in terms of the right type of equipment solution operating on the branch floor and how this ties to the FIs performance, ledger, balance sheet and shareholder and branch personnel benefit and acceptance. We find this gap of thought leadership an issue for many customers that can result in many pitfalls and disappointments in the form of inconsistent performance of high cost equipment and personnel frustrations at all levels of the organization. As the goal for profitability doesn’t allow for anyone to ‘wing it’ or take time to figure it out as they go, finding the right partner is critical to ensure success.
About Sean Farrell
Sean has been in the business since 2003 and always aims to be an expert on whatever solutions QDS is providing. Sean has grown into a thought leader in the space through research and company growth. Sean holds strongly to his Christian faith and uses those principles to guide the business.