Case Studies & Challenging Projects in Banking Domain
Some good examples of real business projects with high business impact in banking domain. Helps the learner to understand how to create a well-defined project, with clear deliverables providing great learning experience. Short and precise structured output with good use of project management tools
How to use project management tools and how to manage a banking project?
Given below are some critical success factors:
- Sponsor support is always critical for success
- Regular meetings/communication
- Personal contact & communication
- Presentation skills defined reporting and governance structures
Given below are some challenges faced during banking domain projects:
- Availability of sponsors
- Changing scope & priorities
- Tight timeline & lack of resources
- Conflict of using project management tools vs. driving project for results
- Identifying a real business case
Project Description 1 - Primary banking: Current Account Switching
The current business challenge:
There is very strong resistance to switching current accounts today from your primary banking provider, even amongst the most dissatisfied customers. The current account is one of the most attractive products a bank can offer. It is a source of high margin balances, fees, and commissions, as well as providing key data about the customer's financial and lifestyle to enable banks to cross-sell other products and services. The goal of this project is to identify winning strategies for acquiring more primary banking current accounts.
Project Deliverables
- The project team will review the existing strategies deployed for attracting primary banking Current Account customer and identify any best practices
- Review the global banking market to identify best practices
- Make recommendations for winning strategies to attract more current accounts to include:
- marketing / promotion
- product design
- pricing
- supporting operational processes e.g. account switching services - The focus of the recommendations should be on the core 25-45-year-old market i.e. excluding children, students & graduates
Project Description 2 - Integrated sale of current account and income protection at the PoS
The current business challenge is to optimize/exploit the sales opportunity at the point of current account opening in branches. This requires the integration of the sale of an income protection insurance product into the current account application process. The goal of this project is to provide businesses with a clear roadmap of how to implement this in the branch environment and to quantify the size of the opportunity
Project Deliverables
The project team will
- Document the wing-to-wing branch sales process for the integrated sale of a current account and income protection
- Develop a single, legally compliant application form for both products
- Develop a sales script for use at the branch PoS
- Quantify the financial impact across the 2-3 biggest country opportunities
Project Description 3 - Consumer Credit Collection Approaches
The current business challenge is that the credit risk environment remains hugely challenging and as businesses are working through these challenges, understanding the effectiveness of the different approaches applied in Global Banking and JVs is key to developing a roadmap for the future. The goal of this project is to develop a detailed understanding of the different approaches to collection processes in consumer space, identify best practices and recommend key optimization initiatives
Project Deliverables
The project team will
- Review the bank’s current approach to the collection
- Screen best practices around the globe from other banks
- Compare and contrast the different approaches
- Identify required adjustments to collection approaches
- Define the commercial benefits to any recommendation
Project Description 4 - Credit Card Positioning
The current business challenge is that new credit cards’ have complex properties, so it is hard to communicate to customers. New cards need to compete with generic brands. The goal of this project is to increase brand awareness and position new offering as a generic brand in its category and to create new product attributes and/or sales approaches to sell it to right customers
Project Deliverables
The project team will
- Analyze the current positioning of existing cards
- Review the global approaches for new products
- Review the global approaches for generic brands
- Make recommendations for positioning a new card in the context of;
- marketing/promotion strategies and tactics
- product attributes
- profitability
Given below are some other Project Ideas undertaken by various banking institutions in the past to optimize their operational models.
1. Capturing unbanked transactions into the banking system
Still, some payments are mostly made by cash and people don’t use the banking system (eg: some salary payments, apartment utility fees, cleaning lady fees, some micropayments...etc.). Explore some areas with high potential where cash is still widely used and create ideas to capture these transactions into the banking system. Think about different product options (with or without using plastic cards) and business model propositions
2. Efficient Contact Management for Increased Customer Satisfaction
Improving A New Contact Management System For Increased Customer Satisfaction and Operational Efficiency
3. Enhancement of the performance reports
Improving the reporting process (drawing down the manual work, making the reports as automatically generated as possible -access based, etc.-) and covering most of the efficacious information can be considered as the main enhancements. Cutting down the time spent on accomplishing the reports will also be a plus for the project.
4. Local Currency Financing
Analyzing the viability of local currency long term loan facilities for project and acquisition finance transactions to improve the “bankability” of the projects in the current global problems.
5. Exceptionally Straight-forward Customer Experience
Customer Experience –implementing simplification and enhancing customer experience in acquisition, sales, and service across the whole Bank
6. Branch Network Optimization
To convert Branches to true Service & Salespoints. Process/product optimization, centralized collections, reporting system optimization; employee optimization; improvements in IT systems; rental optimization; changes in employee responsibilities (training, certification, etc.)
7. Product Launch Strategy
The market for banking products is experiencing the toughest competition. There are several banks on the market with almost similar business models. It is critical to get a learning advantage out of recent competitor’s launches to complement the bank’s own strategy development. Define and analyze key success/failure factors from recent competitors launches covering such areas as Brand, Products and Sales strategies
Banking Domain Knowledge - Resources
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