San Francisco, CA, USA
October 9, 2007 Evaluation
of Customer
Profitability Analytics Vendors
Report Published by Celent
Over the next decade, financial institutions will
differentiate themselves based on their customer profitability analytics.
As the return on traditional growth
strategies deteriorates, financial institutions are finding that they need
to shift gears from a pure growth plan to increasing customer
profitability. In a new report, Evaluation of Customer Profitability
Analytics Vendors, Celent examines the necessary "gears"
offered by third party customer profitability analytics providers.
Celent believes that the ability to develop
customer profitability analytics and execute strategies and tactics based
on the results will differentiate financial institutions over the next
decade. Financial institutions that differentiate service levels, develop
segment-specific products, and implement relationship pricing based on
customer profitability will excel.
"It has always been easier for
financial institutions to improve the bottom line by cutting costs rather
than growing revenues. The revenue lever has been trickier to maneuver for
two reasons. First, it takes time to show results (unless a financial
institution simply acquires business). Second, it does not guarantee
profit growth. Banking economics are such that it is easy to grow
unprofitably,” comments Alenka
Grealish, author of the report and Managing Director of the Banking
team.
Given the growing importance of profitable
growth and the maturing of customer profitability applications, Celent
conducted a vendor evaluation applying its ABCD Vendor View framework.
Celent examined the offerings of nine vendors: CorePROFIT, Fidelity
National Information Services (FNIS), IPS-Sendero (a Fiserv
company), Oracle, ProfitStars (a Jack Henry & Associates
company), QRM, SAS, SunGard BancWare, and Teradata. The selection criteria included ability to calculate
profitability at the account level and at least five installations in the
US.
This 42-page report contains 10 figures and
19 tables. A table of contents is
available online.
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