In the current economy, the banking ecosystem is undergoing a fair amount of scrutiny. With concerns like overleveraging, risky investments, cybersecurity threats and high interest rates, consumers are losing trust in today’s system. So how can banks improve their internal planning to improve customer satisfaction and earn consumer trust back? One solution is Anaplan.
Anaplan is a cloud-based planning solution that brings all data and communication of a regional bank into one hub, offering one source of truth. With the capabilities and monitoring of Anaplan, banks can be two steps ahead and assess their risk regularly.
Let’s discuss the 5 capabilities Anaplan has that can improve regional bank planning, risk management and customer satisfaction.
1. Financial Planning and Analysis: Anaplan provides a comprehensive financial planning and analysis solution that enables regional banks to create budgets, forecasts, and financial models. This allows banks to better manage their finances, optimize resources, and make informed decisions.
For example, let's say that a regional bank wants to create a budget for the upcoming fiscal year. Using Anaplan, the bank can import financial data from its various systems, such as its general ledger, accounts receivable, and accounts payable. Anaplan can then automatically consolidate this data and generate financial reports, such as income statements, balance sheets, and cash flow statements.
The bank can use Anaplan's financial modeling capabilities to create different budget scenarios and run what-if analyses to see how different assumptions would impact its financial performance. The bank can also create a rolling forecast that automatically updates as new data becomes available, allowing the bank to quickly adjust its budget as market conditions change.
Anaplan's reporting capabilities allow the bank to monitor its financial performance against its budget and identify areas where it is over or underperforming. The bank can use this information to make informed decisions about how to allocate resources and manage its finances.
2. Risk Management: Anaplan provides a risk management solution that helps regional banks identify, assess, and manage risk across the organization. This includes credit risk, market risk, operational risk, and regulatory compliance.
Banks can assess their risk through Anaplan easily. The bank can import data from various source systems, such as its loan origination system, credit bureau data, and loan servicing system, which will automatically be consolidated and generate credit risk reports by segments, such as credit risk exposure by borrower, industry, and geography.
Anaplan's credit risk management solution allows the bank to model different scenarios and perform what-if analyses to see how changes in market conditions, borrower behavior, or other factors would impact its credit risk exposure. A regional bank can use this information to proactively manage its credit risk exposure and take steps to mitigate potential losses.
Anaplan's regulatory compliance capabilities also help the bank stay compliant with regulatory requirements, such as stress testing and capital planning.
3. Performance Management: Anaplan helps regional banks improve their performance by providing a performance management solution that enables them to track key performance indicators (KPIs) and metrics. This allows banks to identify areas of opportunities and improvements. KPI’s such as:
• Net Interest Margin (NIM): This KPI measures the difference between the interest earned on loans and investments and the interest paid on deposits and other borrowings. A regional bank can use Anaplan to track its NIM over time, analyze trends, and identify areas for improvement.
• Loan-to-Deposit Ratio (LDR): This KPI measures the amount of loans a bank has outstanding relative to its deposits. A regional bank can use Anaplan to track its LDR and monitor how it is changing over time. If the LDR is too high, it may indicate that the bank is taking on too much risk.
• Efficiency Ratio: This KPI measures a bank's operating expenses as a percentage of its revenue. A regional bank can use Anaplan to track its efficiency ratio and identify areas where it can reduce costs and improve efficiency.
• Non-Performing Loan Ratio (NPL): This KPI measures the percentage of loans that are not being repaid on time or are in default. A regional bank can use Anaplan to track its NPL ratio and identify problem loans early, which can help minimize losses.
• Customer Satisfaction: A regional bank can use Anaplan to track customer satisfaction scores over time and identify areas where it can improve customer experience.
4. Sales and Operations Planning: Anaplan provides a sales and operations planning solution that enables regional banks to align their sales and operations strategies with their overall business strategy. This allows banks to optimize their sales and operations processes, reduce costs, and improve customer satisfaction. The data can be used to inform programs, such as:
• Referral programs: A regional bank may incentivize existing customers to refer their friends and family members to the bank. This could include offering rewards such as cash bonuses or gift cards for successful referrals.
• Personalized customer service: A regional bank may differentiate itself by offering personalized customer service to its customers. This could include assigning a dedicated account manager to each customer, or offering personalized financial advice and solutions based on the customer's unique needs.
• Cross-selling and upselling: A regional bank may use cross-selling and upselling tactics to increase revenue per customer. This could include offering customers additional financial products and services, such as credit cards, investment accounts, or insurance products.
5. Collaboration: Anaplan provides a collaboration platform that enables regional banks to collaborate and share information with their teams, partners, and customers. This improves communication, increases productivity, and enhances decision-making. A key example of this would be for compliance communication.
Regional banks need to communicate effectively with regulators to stay compliant with relevant laws and regulations. Anaplan can help regional banks track and report on their compliance activities, such as KYC (know your customer) and AML (anti-money laundering) checks, to ensure that they are meeting regulatory requirements and avoiding potential penalties or fines.
At Accelytics, our banking and finance experts offer two option for Anaplan implementations. For complex banking challenges and solution needs, our team will build an Anaplan model custom to your business. For the general challenges regional banks face, we have a Quick-Start Application offering that reduces the investment cost and time to implement. This is still a completely customizable solution, but it is out-of-the-box and ready to be configured.
By taking a proactive planning stance, regional banks can improve their customer trust and satisfaction with data-driven product offerings and personalization, while minimizing their risk. With a solution like Anaplan, regional banks gain deeper visibility into their business, ultimately influencing the key decisions and products necessary for success. If your regional bank wants to continue to grow and thrive, Anaplan could be the solution you’ve been looking for.
Reach out to our solution experts at email@example.com to learn more.