Case Studies

Large Brazilian bank achieves earnings enhancement values of more than $35 million

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Of the 26 strategies PROFIT INSIGHT supplied this major worldwide organization, 5 were implemented immediately bringing significant impact to the bottom line.

The Business Challenge

Large Brazilian bank was looking to identify non-toxic interest and fee opportunities in a market where inflation was 16% a month and Government and Regulators were hindering optimal performance, predominantly for political reasons.

Additional pressures from consumer groups to maintain and reduce pricing levels limited the ability to introduce new fees.

Despite being a CEO approved project, the client required Profit Insight to navigate discussions with business areas more independently due to limited resources available from the bank.

How Profit Insight Helped

Given external pressures and internal reluctance, an initial two-week pre-study focused on systems and pricing leakage, review of pricing variations, competitor benchmarking and auditing the costs of services provided by the bank to their customers.

Engagement Results

Presented 26 ideas - 5 were implemented immediately worth over $35.7MM

Insights

  • By focusing on pricing and calculation practices, systems parameter settings and performance against key benchmarks, Profit Insight identified a number of quick wins, including one major leakage idea which was implemented within 30 days of the project’s start.
  • Profit Insight identified many areas where the client could optimize or improve and provided implementation plans for the client’s management team.
  • During various status meetings with the product team, new strategy concepts were reviewed, estimated benefit values were discussed, customer impact evaluated, requirements outlined with the bank’s legal and compliance team reinforcing the value Profit Insight was able to recommend.

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