Retail banking strategy for an Australian challenger bank

Nous was engaged to develop the retail banking strategy for the next five years for a small / mid- sized bank. The market share of the bank's key home loan product had recently plateaued and declined. The performance of the other key products – credit cards, transaction accounts and personal loans – was mixed.

Nous researched the competitiveness of each of the bank's products and expected future market developments. We then built financial models of the impact of various changes on revenues and profitability - analysing both new loans and the back book.

The key finding was that the competitiveness of the bank's products had decreased significantly, and with competition in the retail banking industry expected to remain intense, changes in pricing and distribution channels were necessary to restore profit performance for these products.