Challenge

A major Financial Services institution, operating in an increasingly complex regulatory environment, was looking to reduce its compliance burden and unlock cost savings by simplifying its product range.

In the short term, the client’s goal was to better understand the profitability of its current product offering in order to optimise the product portfolio. Over the longer term, the client needed a solution to monitor profitability across multiple dimensions including product line, customer segment, distribution channel and customer-facing operations.

Our Solution

• PCG implemented its Dimensional Profitability Model (DPM), enabling the client to map true profitability of products, channels and customer segments. Using our solution, the client also gained valuable insights into operating efficiency at a branch level relative to peers and benchmarks.

Benefits

• The product suite was reduced by over half, resulting in a net profitability improvement
• Loyalty initiatives were structured to retain the most profitable customer segments
• Efficiencies and best practice from branches with low cost-to-serve were replicated and implemented across the retail network