Correspondent Blog

We often talk about “frictionless banking,” making it easy for the customer to open an account or add deposit balances. However, as banks design future products, they should consider taking into account the “Ikea Effect” to help increase customer lifetime value. In this article, we explain what the Ikea Effect is and how to apply…

In a previous article [here] we discussed why community banks need product managers to ensure that financial products and services are effectively developed, launched, and managed to meet customers’ evolving needs and the bank’s risk and profitability goals.  In this article, we provide a concrete example of how product management in lending might work. Our…

Banks don’t have enough product managers. A bank has a leader for a business line but usually only caretakers for products. A manager may oversee the operation of a product, but few banks have product managers who drive product development and performance. As a result, bank performance suffers. The magical equation is more profitable products…

In our last article (HERE), we highlighted the methodology around why banks should calculate and drive value through customer profitability and product profitability. We focused mainly on customer profitability and used risk-adjusted return on capital as a proxy for profitability. In this article, we wanted a different approach to arrive at the same conclusion but…