Who is SunTec?
Revenue Management and Business Assurance: Critical Performance Drivers in a Changing Environment In a tough business climate of ever-evolving challenges, increasing customer value is key not only to growth, but to survival. For financial services firms, greater customer-centricity means creating innovative products and pricing strategies, capturing new revenue streams and optimising digital channels – all the while proactively managing risk, maximising operational agility and instituting margin controls. These can all be achieved through the adoption of a comprehensive revenue management and business assurance solution. Managing revenue and risks, however, should be viewed not as a mere tactical operation. Banks and financial institutions should recognise the strategic relevance of revenue management and business assurance to increasing enterprise profitability, promoting sustainability and meeting the challenges of a demanding business environment.
Convergence, digitisation and the importance of real-time are creating a profoundly challenging and highly competitive business environment for financial services firms. The rapid pace of disruptive new developments presents numerous growth opportunities for banks and financial institutions but also can pose unexpected risks and drive unintended complexity if the necessary investments in talent, organisational operational model design and technological infrastructure are delayed. Maximising business value in this changing climate demands adopting a proactive outlook to growth as well as intensive strategic engagement. Strategic revenue management and business assurance offer a comprehensive and highly rewarding approach to business transformation. Banks and financial institutions achieve greater customer-centricity through innovative and personalised pricing strategies and the comprehensive management of the entire value network while optimising performance, increasing profitability, sustaining growth and managing risk
Meeting The Challenges of a Changed Environment
Financial institutions are navigating through three business trends critically impacting their organisational and strategic performance. Convergence provides unprecedented synergies among business domains, presenting new transactional models for financial services providers to increase wallet share. Examples of the impact of convergence are everywhere – we see it, for instance, in technologies previously designed for high-speed phone network operations that are now commonly used as core features in banking infrastructure. The continuous migration of all information to digital technologies (digitisation), meanwhile, produces disruptive business models that require swift and effective counter-strategies. A broad and still accelerating consumer expectation for real-time responsiveness demands corresponding dedication to infrastructure transformation, transparency and quality of customer experience delivery.
These trends present financial institutions with a complex set of challenges calling for a comprehensive response. Agility, flexibility and transparency are needed to adapt to the changes arising from a rapidly convergent, digitized and real-time business environment:
The highly competitive environment and increasing consumer sophistication pushes industry players to constantly differentiate and innovate their product offerings and deliver them ever more quickly to market. • Digital Channels.
Financial services firms need to provide transparent and real-time pricing to satisfy customers’ expectations and avoid losing clients to innovative competitors. Clearly upgrading digital competencies is crucial in light of consumer use of social media and digital channels for comparative shopping. • Customer Experience.
An industry shift from product-to customer-centric strategies requires financial services providers to prioritise building customer relationships by retaining and engaging profitable customers and by constantly innovating rewards and loyalty programmes. Consolidating and analyzing previously siloed data to a customer level to build customer and segment insight and provide personalised offerings becomes a key enabling process. • Liquidity Management.
Basel III and other country-specific regulatory compliance require banks to focus on liquidity, instituting risk-based pricing by reducing rates and providing value offerings for users and premium-rate bundles and relationship-based pricing for investors. Leveraging a precise understanding of deposit behaviour and rate sensitivity enables the development of strategies that support liquidity management. • Regulatory Scrutiny.
Previous loosely-enforced requirements to Know Your Customer have evolved into requirements that can only be fulfilled with real-time customer-level transaction and pricing tracing. The need for transparency involves turning the vast amounts of data into reportable and understandable information – to regulators, management and customers. The benefits of extending transparency to meet regulatory needs extend to directly enhancing business assurance in many areas, especially margin control.For financial institutions, the gains made from a focus on customer-centricity, undertaken through relationship-based pricing, should be followed through by the strategic adoption of comprehensive revenue management and business assurance processes designed to optimise business performance in an ever-evolving environment of convergence, digitisation and real-time expectations.