Planning a strategy for a bank

Staying competitive was becoming a problem for a leading financial institution. In response to declining sales, the bank asked us to assist them in reinventing their products, pricing, and sales processes.

We had three weeks to analyze all of the client’s data and identify the key weaknesses in the targeted areas. Getting the right data from clients can sometimes be tricky, but not with this client. Within a matter of days, we received a comprehensive database with all the data we needed. It took one of our most powerful computers eight hours to run a single complex analysis. There was no room for error because each mistake in analysis, design, or programming would cost us a full working day while we waited for the results.

Two weeks into the engagement, we finished running our analysis and the results painted a much different picture of the bank’s customers than was thought. Some profitable customer segments were shrinking dangerously, while large efforts and money were invested in segments with little profit potential. The results of this analysis set the direction for all our following work. We assembled a joint client-McKinsey team and in three further months redesigned and re-priced all the key product packages. In a separate work stream, we designed and tested a sales force model, which proved able to sharply increase sales and customer acquisitions.

After the initial pilot phase, the bank has been systematically implementing our recommendations.