Profit Insight helped this top 10 North American bank mortgage lender identify over $20 million of annual benefit value in an intense and aggressive competitive market.
This top 10 North American bank offers a broad and deep portfolio of sophisticated mortgage products in a low interest rate and low margin environment with intense and aggressive competition from numerous bank and non-bank competitors. Combined with strict government regulations, the client was challenged to identify ways to improve bottom line performance without negatively impacting its reputation in the market. As part of their strategy to help offset this market challenge, the bank engaged Profit Insight to identify and implement strategies to help drive future growth as well as meet internal cost reduction objectives.
Profit Insight completed an end to end review of the mortgage business from sales and marketing through origination and funding and servicing. The engagement team conducted an extensive competitive market review of the client’s products as well as those of competitors including comparisons by type, product structure, marketing materials, loan documentation and servicing.
Profit Insight identified a variety of opportunity and formally presented 8 strategies for consideration with annual value of $30 million. These opportunities included changes in calculation routines, enhancements to product structures, modifications to marketing approaches to new customers as well as changes in sales approaches to existing clients nearing mandatory refinancing deadlines.
The client ultimately accepted 3 strategies for implementation with first year annual value of $20 million.