If you’re like most financial institutions, visibility into your customer’s profitability is limited. Core data alone just doesn’t show you the full picture. As a result, you likely don’t have the right information to assign costs to their accounts and come up with a specific net profit for that relationship to get a full view of your customer. In this post, we’re offering some ideas for tapping into the data to see your customer.
See the True Value of the Relationship
Years ago, customer profitability was based on industry standards but now, with the latest technology, you have access to the data to make this bank-specific and tailor those benchmarks to your institution. By bringing in information on costs, fees, and rates from your core system — along with the ability to create soft costs parameters such as overhead, data processing, and loan loss provision — you are able to gain unprecedented insight into your customer’s profitability.