Helping a leading European bank owned asset finance provider to benchmark their performance and identify key improvements

The Problem

Our client runs a large successful asset finance business across a number of European countries offering Asset, Equipment and Consumer finance. Whilst performance is undoubtedly good, their aspiration is to be a “great European bank”. Their challenge was to identify what else they could do to support this aspiration.

Our Solution

We employed our two step Asset Finance diagnostic model to identify whether and where improvements could be made. In Step One we size the gap between current performance and what our experience tell us is “best in class” for the industry. It involves reviewing a set of key documents; forward business plans, financial performance, monthly management packs and organisation charts.  We then interview key stakeholders to validate what our experience shows us will be the opportunities for improvement.

In Step Two we focus our analysis on the parts of the organisation where the greatest improvements can be made.  We identify and speak to key individuals in these areas to develop and test our hypotheses.  Step Two typically takes a handful of days to complete.

We advise our clients that the diagnostic could end with a number of outcomes:

  • That it has been a useful exercise and current performance is good enough
  • There is room for improvement but you have the next steps under control
  • That it would be beneficial to explore how to deliver the improvements to become best in class

Client's Benefits

In this case, we identified in Step One that there was room for improvement in performance, especially in our client’s return on assets. Importantly we identified that our client was already best in class for two other key metrics, which could therefore be removed from our subsequent analysis.

In Step Two we identified two specific areas which our experience suggested could be improved. We advised the client to focus activity on improving their portfolio management tools and skills and developing a more define risk operating model.  Using our experience of what good looks like in the industry, we gave the client a detailed steer on how this could be done.  Collectively these will help the client to identify the most profitable business and hard-code this into the sales force and risk community using formal risk documents and processes.

Client Testimonial

“We were impressed at how quickly the team used their instincts and analysis to cut to the heart of the issues. Their analysis was sound and their advice constructive. A truly illuminating process”.
Client Chief Financial Officer

“The process was short, sharp and to the point. Their advice on areas to improve and how to improve them was concrete.”
Client Chief Executive Officer