Sophisticated new analytic tools are enabling smaller U.S. banks to effectively target their rivals’ revenues, says Greenwich Associates in a new report.
The report found smaller firms are increasingly able to use technology to target disgruntled corporate clients at other banks. Greenwich’s models point to at least US$5 billion in commercial banking revenues that are derived from clients that are dissatisfied with their existing banks.
“This low-hanging fruit is not theoretical,” said Don Raftery, managing director at Greenwich Associates, in a release. “The new data and analytic tools needed to identify and capture businesses that are unhappy with their current providers are available to any bank.”
To successfully use these tools, the report said banks need robust, reliable data on both the companies in play and the banks competing for their business.
These new capabilities are levelling the playing field between smaller banks and the big players, the report found.
“The increasing power of data analytics to improve sales productivity is driving the industry toward an inflection point,” said Jen Paterson, vice president of business development at Greenwich Associates.
“Banks that fail to make the necessary investments in these tools now risk quickly falling behind — and missing out on unprecedented opportunities for growth,” she added.