Omnichannel Strategy & Digital Transformation Case

Omnichannel strategy and digital transformation boost profitability for a bank

About This Project

Recognizing the evolution of customer preferences and the rising use of online and mobile platforms, the management team at a leading Spanish banking group sought help from Altair in developing its omnichannel strategy to enhance profitability. We collaborated with the company to design an integrated strategy that ensured it could meet and exceed the expectations of its customers.

Challenge

Spanish banking sector has been through the tough period of declined revenue and financial margins. Our client, a leading Spanish banking group was seeking to re-focus on improving top-line revenue after many years of concentrating on general strategy and cost efficiency.

Leadership was aware of the changes brought about by the transformation phase, which obligated them to reevaluate current practices, and pivot fast to catch up with evolving trends of the sector: regulation, digitalization, new products, multi-channel operations, non-traditional competitors, to name a few.

Altair’s Solution

As a long-term collaborator of the client, Altair was familiar with the bank’s strategic focus and day-to-day operations. After carefully weighing their capabilities and resources, we proposed a comprehensive plan to drive new sources of revenues. The plan consisted of four main areas:

  1. Customer Acquisition: Perhaps the boldest idea of the entire proposal, Altair suggested that the bank allow “non-clients” access to their services, granting free trial period without any promises required from the customer side, while providing more tailored service options according to their needs and interest, before signing a contract. Not only did this scheme aim to improve customer flexibility, but also the bank’s access to a much larger customer base.
  2. New Product Development: We proposed a new mortgage plan to any customers who have stable balance account: this “fidelity” plan offers them discount in interest and a series of value-added services such as online mortgage simulator, real-time track of repayment, priority customer services, etc. We also partnered with the client to design other products and service packages that have higher cross-selling and up-selling potential.
  3. Customer Retention: The increase of customer churn rate hurt profitability, therefore strengthening customer relationship became an effective tool to protect the bank’s margin. We also discovered that acquiring a new customer would cost 5-15 times more than retaining an existing one in this particular case. Based on advanced analytics and customer history data, we developed a robust model to predict customer churning with higher accuracy, mark customers who might churn potentially and recommend promotions to retain them.
  4. Digital Banking: Digital banking had a far-fetching impact on the entire value chain and became an indication of good customer services. Altair proposed an integrated digital renovation generation plan with the following three focus points: Mobile and Online Channels, Digital Transformation & Omnichannel

Country

Spain

Date
Category
Banking and Financial Services
Tags
Banking, Digital Transformation, Omnichannel

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