It is essential for corporate banks to evolve into an Advisory bank. The Advisory banks will be advising their clients in the right financial decisions, finding the best fit for them in sense of the financial products as well as non-financial products. The Advisory banks in the corporate segment have the complete picture about their clients and they understand what their clients do in their bank as well as in other financial institutions. Such banks are viewed by their clients as their preferred banks and the clients trust them.
In corporate banking, it is essential for the corporate bankers, account managers and corporate sales people that they understand the needs of the clients. The sales people want to know, what they should offer to whom and when so that they increase their effectiveness. Instead of blindly looking and trying what would work, they need the tips who would most likely buy which products from their customer portfolio.
An Advisory corporate/SME bank needs:
Multi-banking – the bankers in the role of advisors need to understand the full financial picture of their clients. In corporations it is required to integrate the bank services to the workflow or ERP systems.
Nano-Segmentation – the way of grouping customers into small segments, in which the customers have similar behavior, needs and preferences as well as similar future behavior. The customers in the same nano-segment are called "peers". The peers are good not only for benchmarking but also for advanced financial management and analytics.
Digital Financial Advisor – the automatic advising functionality, finding and suggesting the right offers to the right customers at the right time. These are the financial offers as well as non-financial offers which go beyond banking.
Automatic transaction categorization – from combined information in transactions history of clients with non-clients, text information in transaction remarks and from Internet, our analytics and machine learning tools derive who are the counterparts and what type of business they have.
Mapping the business relations among companies, who buys from whom and how much a specific client pays for a specific service with other companies in comparison with their peers. This can identify the whole supplier chain or company communities. It can help to balance cash between subjects or offer advanced products, e.g. cash pooling and credit lines with lower risk rates.
Identification of sale leads – advise the corporations and SMEs with the optimum target customers or market segments.
Supplier Advisory – identifies preferred suppliers for various services typical for the corporation peers. We derive the supplier chains and may identify potential future finance problems in supplier chains.
Identify the right cross-sell opportunities with the targeted tailor-made offers and products used by similar companies, identifies needs and behavior. The cross-selling is done in a smart way. The managed campaigns have boosting results, the sales messages are highly targeted and therefore not annoying.
Risk assessment – the complete financial picture decreases the overall and credit risks. If difficulties are predicted in the identified supplier chain, it triggers an alert for adjusting an appropriate risk position.
Daily ready KPIs – Banks’ representatives will be ready to discuss financial position of their client, thanks to the monitoring of the customer's dashboard. This combined with the cross-sell opportunities identification and relevant advisory proposals is very powerful engine for the sales reps when advising their clients (and successfully selling at the same time).
Client loyalty improvement – by becoming the Advisory bank, the bank knows better its clients, can prevent the customer churn and improve the Net Promoter Score (NPS).
Client future predictions – understanding the behavior of clients and the ability of grouping them into nano-segments, gives the understanding what the clients will most likely do in the future.