Case study
A European bank was concerned about its credit business, which was a significant resource drain. The credit decision process was particularly poor. Bain was brought in to help implement a redesign of the entire process. The change resulted in improved profits and effectiveness of the entire division.
EuroBank's* credit business was a significant resource drain. Outdated systems and misallocation of resources were to blame.
EuroBank was concerned about its credit business. Around 80% of resources were occupied with non-customer related activities and potential in the middle market segment was not optimally exploited.
The credit decision process was particularly poor - it took up to two weeks to reach a decision, and each application went through more than 50 handovers between different staff members. The credit reporting system supported only 15-20% of the process, and modern IT applications were not in place.
Bain was brought in to help EuroBank exploit the potential in this business by helping to implement a redesign of the entire process.
Bain first identified major change opportunities.
With Bain's support, implementation teams were set up to formally manage the change process.
The change effort in the credit business improved profits and effectiveness of the entire division.
* We take our clients' confidentiality seriously. While we've changed their names, the results are real.