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Cash
Management
Using
Service Improvements to Change Buyer Behavior (Multiple
Studies)
By extending some principles of economic ‘game theory’
to the buying behavior of corporate treasurers, we have identified those
few aspects of service quality that have a significant impact on the range
and dollar amount of treasury products that are bought from a bank.
Outsourcing Remittance Processing
Using secondary sources, we identified the top 200 companies that account
for the largest portion of consumer remittances. Contacted senior people
at 150 of these companies to get their views on totally outsourcing their
remittance issuance and collection functions through a bank (including their
back office). Potential arrangements investigated included joint ventures
with the bank, as well as straight outsourcing.
Implementing e-commerce in Large Companies
Banks and other vendors continue to develop e-commerce solutions
for their clients, but only a few are wholeheartedly embraced. A trail of
broken promises compounded by ‘change fatigue’ dictates a new
and different approach to getting clients to adopt new e-commerce solutions.
Bank Insourcing of Transaction Services (Multiple
Studies)
Several studies fall under this heading. Most recent is
a global study of the bank market (assets $6 billion or more) for outsourcing
payment and trade transactions. Another study looked at outsourcing foreign
exchange for mid-sized banks and global asset managers. Other studies had
banks looking at enhancing their revenue by insourcing credit card transaction
processing, high volume remittance processing, financial services for non-banks
and administrative services.
Predicting Bank Performance in Treasury Services (Multiple
Studies)
Several studies fit under this title. In all cases, we have
built models to predict trends in bank positioning and market share. Our
models are typically complex multivariate models that begin with bank marketing
and service and build to future position by examining how corporate buyers
react to bank initiatives.
Revenue & Demand for a New Cash Management Service (Multiple
Studies)
There are at least 20 studies that could easily fit under
this title. In all cases, we do a complete market analysis including the
value of product features, pricing levels and structure, promotional appeals,
distribution strategies and analysis of the revenue potential of different
buyer segments. Some of the most recent studies involve ASP Treasury Workstations
and integration of cash management in supply chain management.
Online Migration
We evaluated market response to a system that allowed for gradual
migration from paper to electronic transactions for invoicing, collections
and payments. The system included dispute identification and resolution
features, as well as some attractive storage and retrieval features. The
gradual nature of implementation and the value for supply chain management
made the system attractive.
Price Elasticity for Wire Transfers
Mystery shopper techniques were used to identify the price for
standardized wire transfers, as well as evaluating the service surrounding
issue of wires. A set of peer banks was defined along with a standard set
of transactions, in order to foster sound comparison. Results indicated
that buyers were relatively insensitive to wire transfer cost.
Calculating Business Line Profitability
Banks often comment that competitors are “giving the business
away”. To investigate this claim, we interviewed several competing
banks about how they arrived at their pricing structure and prices. Findings
indicated that different philosophies guided pricing and that prices are
internally consistent with their philosophies. Differences in pricing were
most often guided by the answer to two questions: “Are development
costs allocated to all those who will benefit?” and “What proportion
of revenue should be used to cover head office costs?”
Electronic Bill
Presentment – Issuer Acceptance
Interviews with the largest volume issuers of consumer bills focused
on the value of a system for presenting their bills to their clients. Opinion
leaders discussed desirable features, issues of client control and payment
mechanisms. Overall, there was acceptance of electronic bill presentment
on the part of issuers, although most recognized that getting consumers
to use these functions would be a long and difficult effort until convenience
and critical mass is achieved.
Wire Transfers – Growth
for a Mature Product
Based on identified service problems with wire transfers, we sought
solutions to improve the product offering and accompanying service. Our
efforts included a survey of news and research reports highlighting best
practices, new software developments and other innovations. This was combined
with some client research and mystery shopping to identify growth strategies.
Our recommendations resulted in a doubling of profit within six months.
Payments System Strategy for Banks
A thorough review of ten years of strategy using program logic
models and summative evaluation techniques clearly identified the successes
and failures in past efforts. After an analysis of likely future changes
in the market using the PEST model (Political-Economic-Social-Technology),
we recommended a long-term strategy likely to prove more successful. |
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The Brondesbury Group, 144 Front St. West, Suite 650,
Toronto, Canada, M5J 1G2
Tel: 1.416.585.2414
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Fax: 1.416.979.9159
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email: info@brondesbury.com |
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