iPeopleFINANCE

It is not surprising that most big banks are working hard to offload their least profitable segment of customers, those with one banking product and maybe $1,500 in their checking or savings account.

           

Most banks struggle with the value of “profitability and scalability” when looking at financial services for the underserved.  The current environment underscores some of the frustration for traditional bankers: consumer backlash to increasing fees on existing products and a hostile regulatory environment for small dollar credit products. Traditional banks would seem to have two equally undesirable choices: be a mercenary or a missionary.  There may be another path – be a visionary.

Traditional banks should do a better job at data analysis and a much better job of understanding their customer’s behavior.  Combining a basic segmentation analysis of their accounts with a look at their “whole wallet” of financial transactions can…

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About Steve King

iPeopleFINANCE™ Chief Operating Officer. Former CEO of Endymion Systems, Inc. a $36m Information Systems Services company. Co-founder of the Cambridge Systems Group, the creator of ACF2, the leading IBM Mainframe Data Center Security product; acquired by Computer Associates. IBM, seeCommerce, marchFIRST, Connectandsell alumni. UC Berkeley alumni. View all posts by Steve King

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