FIC Expertise Focuses on SME Market Performance
FIC has exceptional expertise with small and midsized enterprises (SME).
Following are some examples that provide insight into the client situations we are typically asked to address, the focus of our work, and the value we provide.
Entering the Small Business Market with Impact
Situation
A community bank was entering the market with an initial focus on providing credit to companies with less than $5 million in revenues. It needed to determine key credit products and select the best infrastructure to originate, underwrite, and monitor loans.
Project Focus
Recommend the product set based on a competitive assessment, end-customer requirements, and client capabilities and preferences.
FIC Role
We developed a detailed entry strategy that emphasized not only credit but resulted in a strong deposit gathering effort.
Entering the Small Business Market in an Emerging Market
Situation
A major international bank decided to enter the SME space in a third-world market. Management wanted to target the most attractive segments within the country while avoiding excessive risk.
Project Focus
Evaluate the potential opportunity and optimal approach for market entry; assess customer trends and the current competitive environment; determine the trade-related requirements of SMEs; structure an offer that is competitive while minimizing credit risk.
FIC Role
FIC developed specific recommendations related to target customer segments, priority products and product packages, and optimal sales and underwriting approaches. We also identified key competitive and customer issues as well as credit and risk management concerns and developed a detailed implementation approach focused on mitigating risk and addressing customer and competitive issues.
Improving an Existing Small Business Effort
Situation
The new manager of a top ten small business bank in the US wanted to evaluate his group's current approach to multiple areas, including marketing, sales and origination, credit/risk management, and cross-sell. His goal was to highlight opportunities for growth to senior management and gain their approval for required personnel and technology investments.
Project Focus
Compare current activities and approaches to international best practices; demonstrate performance gaps; quantify and prioritize opportunities for growth.
FIC Role
FIC detailed performance gaps, detailed best practices, recommended specific changes in approach and drafted communications addressing senior management issues and requesting investment for growth.
Capturing the Owner's Revenue Potential
Situation
Our client, a top 50 US bank, had an established position serving the commercial banking needs of its customers. However, few business owners either maintained personal accounts at the bank or took advantage of the bank's strong investment management capabilities.
Project Focus
Determine the current number and profitability of "twin" business and personal accounts; determine high priority opportunities; assess gaps in the current sales approach; evaluate the bank's current approach versus industry best practices.
FIC Role
We worked closely with the heads of Commercial and Private Banking to break down internal silos to gain the owner's business. Our areas of recommendation included product packaging, customer segmentation, pricing and incentives.
Increasing Deposits
Situation
An active small business bank was experiencing a decrease in deposits. Management requested that we evaluate key factors impacting deposit growth and recommend specific changes.
Project Focus
Assessment of the current product set versus competitors'; analysis of the deposit sales process; evaluation of sales force activities and compensation structure.
FIC Role
FIC uncovered product gaps, detailed the need for a deposit-focused sales effort, highlighted incentive issues, quantified the potential opportunities and provided management with specific change recommendations.
Improving Distribution
Situation
A top five US bank needed to create a small business online banking strategy based on the current competitive environment and the anticipated future needs of the online small business customer.
Project Focus
Evaluate competitors' online business banking offers; analyze the current customers' online usage; assess the existing online banking platform; identify future online banking requirements.
FIC Role
We detailed gaps in the bank's offer versus specific competitors, recommended additional required functionality, and developed several price-based product/feature bundles targeting specific customer segments.
Learn More about FIC Expertise
Read the complete "Small Business Project History" PDF. Or browse details about FIC's SME expertise,
such as a focus on Increasing Profits or Market Performance or Non-Bank Opportunities.
Then contact us for even more information about FIC's expertise with small and midsized enterprises. Learn how we can help your SME perform.
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