Bank Branch Profitability

It's an accepted axiom in retail banking that bank branch profitability is the foundation for a bank's success. Managing customers effectively at the branch level is critical to a bank's overall performance, allowing it fund the crucial lending activities that drive bank profits. But the achievement of branch profitability can be a complex task if the right technologies and processes aren't in place. Instead of hundreds of often inconsistent spreadsheets, successful banks are using Web-based planning tools for both top-down and bottom-up planning and forecasting to increase profits at the branch and bank levels. Sophisticated systems allow the branches to achieve their share of a bank's strategic objectives: to increase fee income, and to stem the attrition of high-value customers. And many of these prosperous banks turned to Cognos for the systems that helped them meet their goals.

Cognos Leads in Retail Banking Performance Systems

With over 1,000 financial services customers, including all 10 of the 10 top banks in North America, it's clear to see that IBM, understands the needs of financial services organizations. All over the world, Cognos solutions are being used to manage performance improvement in a wide range of initiatives—among them increasing customer profitability, managing risk, controlling compliance, and enhancing planning for increased profits. Cognos solutions integrate planning and business intelligence systems, allowing branches to drive better profitability through customer-segment and product-level planning. Branches can use leading-edge analysis and reporting functions to access and manipulate data by customer segment and product, for a high level of precision. Cognos customers also find that the Web-based and easy-to-use Cognos solutions make it easier to focus on their core competencies—planning for a better customer experience and accelerating profitability for the branch.

Improve Branch Profitability with Cognos Solutions

Branch profitability can be expanded through the highly collaborative, real-time Cognos planning applications. When branches aren't meeting their target goals, the fault is often found in outdated and inappropriate technologies—spreadsheets that increase the isolation of individual branches, teller and platform systems that are designed for transactions but used for planning, and inadequate ERP or general ledger systems that dosupply-logistics supply-chain-visibility stock sales-and-operations-planning-software risk-profitability-analysis retail-performance-management retail-operations-management retail-chain-management product-profitability manufacturing-performance-management federal-activity-based-costing defense-logistics customer-profitability claims-reporting claim-analysis banking-risk banking-profitability bank-branch-profitabilityn't provide any understanding of product or customer-segment performance. With a Cognos solution for modeling, planning, budgeting, and forecasting, management can define process, models, and content, and then distribute pre-populated, Web-based templates to contributors throughout the organization. Integration with Cognos business intelligence means that users have up-to-date intelligence available on demand, allowing them to base analysis and critical decisions on accurate, relevant, varied data such as product sales, interest income, branch staffing, advertising costs, and customer loyalty. With these Cognos capabilities providing increased insight and a better foundation for planning and decision-making, individual branches can manage their own profitability, and enhance their ability to acquire deposits, generate revenue, retain customers, and operate efficiently.

Learn more about Cognos solutions for bank branch profitability here.