How Profitable Are Your Customers?

Customer profitability is a critical question, no matter if you are a bank in a slow-growth market (where it’s probably regulation and slashed operating budgets that are making your job harder) or a high-growth market (where you have been so focused on originating and acquiring customers, that you may have neglected a strategy to ensure their long-term retention and profitability).

This is the topic driving our upcoming FICO Seminar: Customer Profitability, to be kicked off in Bangkok and Kuala Lumpur next week.

Banks in these high-growth areas are clamouring to know how they can maximize revenues and minimize losses, while improving customer retention and multi-product “stickiness” across multiple lines of business, such as deposit accounts, credit card, etc. We’ll be gathering to discuss how banks can assess their portfolio’s health with exploratory questions such as:

• How will your portfolio perform if the economic recovery progress slips?
• Are your strategies and processes set up to make you competitive and profitable under more stringent regulations?
• How much could you save by taking faster action to control risk using intra-cycle risk assessments that leverage more granular transaction data?

• Have you right-sized your credit lines with scalpel-like precision, or potentially lost profitable customers by using a hatchet?

If you’re in the area, I invite you to join us. More to come on this important topic of customer profitability.