Besides successfully undergoing a licensing procedure, designing an efficient business model is the most crucial step when establishing a bank. In order to increase cost-effectiveness, most banks source out services such as securities settlement, management of accounts or credit processing to external providers.
On account of this trend, the market for banking service providers has grown in the recent years. Both providers with a very strong focus on certain services as well as ones that offer the whole range of banking services are entering the market.
The PwC-survey “Ihr Reifegrad unter der Effizienzlupe” is analyzing and assessing the market of banking service providers by evaluating the maturity level of the single actors. The survey focuses on processes, service management, as well as customers and sales. In the analysis three main areas for enhancement in the provider’s degree of industrialization were being observed:
- Most providers don’t sufficiently focus on an integrated process improvement, i.e. process documentation and cost-controlling are not being integrated and workflow systems are not being used in a sufficient manner
- Due to of the irregular use of KPIs, a detailed and short-dated management reporting is hardly available
- The focus on growing revenues is not strong enough. Many providers are lacking a sufficient sales management, and a sales performance based controlling of the sales staff