For a large regional multi state Bank,
Quantifacts was asked to bring its experience and software
tools to help the Bank decide how best to increase investment
and trust revenues across its diverse footprint.
The Quantifacts team met many times with
the client Executive Team including all Regional Managers.
Current situation analysis reflected a wide disparity in
pricing across their markets due largely to inherited, legacy
acquired banks and no changes having been made to any fee
schedules. Accordingly, there were many fee schedules with
much overlap, some duplication and a somewhat irrational
pricing message being sent to the market.
Using Fee Manager, the
consulting team showed client management the pricing disparities
and lack of pricing consistency across their many regions
and diverse markets.
In addition the team analyzed competitive
pricing, market by market and compared it to the client’s
pricing policy. Discounts, deals and other substandard pricing
issues were analyzed and viewed for each market and a substandard
revenue matrix was built showing the amount of money the
client had “left on the table” by not collecting
full fees.
A plan was devised to:
a) Design
fee schedules with phase up rules to fit all markets
b) Move customers to these new, simpler fee schedules
c) Collect substandard fees immediately, or with phase
up deals,
wherever possible
Using Quantifacts’ tools the
client was able to generate the customer-by-customer reports
by Account Officer within each office and Region that
showed the fee shortfall and revenue “opportunity”
for each account and relationship. Account officers were
trained and motivated to convey the bank's value proposition
to each customer. Managers used Fee Manager reporting
to track officers' progress in moving customers to new,
and higher, fees, on a monthly basis.
The client successfully implemented new
fee schedules, increased revenues, simplified fee-taking
operations and established the groundwork for more consistent,
rational pricing policies across their network. Other benefits
included simplified pricing for new customers, considerably
less discounting and more explicit policies on fee waivers
and discounts going forward. As a result; revenues were up, operations
ran smoother, management was simpler with fewer "custom pricing”
deals that were costly to maintain. The client also benefited
from consistent pricing across their franchise so they became
more “open” and “honest” in their
client’s eyes.
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