The challenge
Amid shrinking demand for its core products and rising costs, a well-established mid-sized bank in Germany recognized that its traditional in-branch retail sales model was no longer sustainable for long-term profitability. While high-level strategic ambitions and preliminary action plans existed, these required thorough validation and feasibility checks by key business unit leaders.To successfully shift toward digital channels and B2B customer segments, the bank needed a clear, coherent strategic direction, robust validation of all key initiatives, and a comprehensive business case with a consistent KPI steering to anchor the change and ensure sustainable execution.
The approach
In response to these challenges, we developed a strategic target picture with clear objectives and actionable fields of focus, forming a robust strategic framework that clearly defined goals and measurable key results. Comprehensive market, customer, financial, and operational analyses anchored the strategy in current realities and opportunities. To ensure ongoing viability, an implementation roadmap was established, supported by a diligent bottom-up planning process for transparent progress monitoring. The transformation included optimizing branch networks, transitioning to digital customer interactions, and sharpening product portfolios and organizational structures. A key outcome of this process was a comprehensive business case that demonstrated the economic viability and value potential of the planned initiatives. Close collaboration with the board and division heads enabled joint development, continuous refinement, and rigorous validation of strategy and KPIs. This approach laid a solid foundation for successful transformation.
The transformation program is designed to restore and strengthen profitability, substantially increase operational efficiency, and establish a foundation for innovative, sustainable business areas.
The results
By redefining and enhancing its long-term strategy, the bank is better positioned to respond to changing market conditions and evolving customer needs. This renewed focus enables the bank to increase operational efficiency and access new growth opportunities, resulting in a reduction of the cost-income ratio by approximately 30%. Additionally, the bank is strengthening its cooperation with financial institutions and other business partners to solidify profitability and its competitive position in the German banking sector for the future.
About the client
A well-established German bank with a nationwide reach, serving a focused market niche with a portfolio of financial products. It serves both retail and business clients, including financial institutions and business partners, through a lean, expertise-driven approach and collaborative product offerings.
Philipp Sanders
Partner
Kevin Gerth
Project manager
Hannah Bauernfeind
Senior consultant