Personal Financial Services Market Reports The Personal
Banking Market Report focuses on banks and trusts plus Desjardins. It provides market size and growth
trends by product (retail operating deposits, term investments, mortgages and personal loans) by sector and by individual
competitor. It provides detailed change in share performance on a monthly basis for the top 25 competitors in the market.
We also track and report on strategies, tactics, relevant press releases and advertising messages for the top competitors.
Our mortgage share reflects the IFRS view that includes on balance sheet, securitizations and mortgage backed securities.
Our historical share is consistent with this approach for the top 9 players where securitization information is available.
The annual subscription is $8,000 plus taxes. Our clients include banks, trusts, credit unions and suppliers to the
industry.
The Credit
Union Market Report is similar to the banking report but focuses on the top 25 credit unions. Information is
updated annually from credit union annual reports except where information is available more frequently (we have some monthly
information providers as well as a couple of quarterly reporting CUs.) Share includes share of the total market, share
of credit unions, share of Provincial Credit Unions and share of banks by Province. The annual subscription is $4,500.
Everyday Banking Strategic Assessment: Have you ever undertaken a strategic planning exercise and found that
the fact gathering and assessment phase was so exhausting, that you had little time or energy left for the most important
part – undertaking a detailed assessment of your own capabilities and developing and assessing strategic alternatives.
That is where our Everyday Banking Strategic Assessment comes in – it undertakes the work that would be common to all
competitors so you can focus on what makes you different. The report includes the following sections: Everyday Banking
Market Size and Growth Trends: This section looks at the national market size for personal demand and notice
deposits by sector and individual competitor (banks and trusts). Everyday Banking Structural Attractiveness: This section looks at the overall attractiveness
of the Everyday Banking line of business by competitor type – Large Multi-Channel, Small Multi-Channel (Credit Unions
and Regional Banks) and Direct and Broker Channel. We use the Porter 5 forces model = Customer Power, Sales Force Power,
Rivalry, Threat of Substitution and Threat of New Entry. Buyer Purchase Criteria: This section looks at the main factors driving customer selection
of their Everyday Banking provider. We look at distribution breadth (number and geographic coverage) and depth
(personal deposits and loans per branch) and growth per branch. We also look at distribution partnerships such as PC
Financial, National Bank's partnership with Power Financial, RBC’s partnership with Shoppers Drug Mart and BMO’s
partnership with Sobey’s. On pricing, we focus on high rate savings accounts, transaction fees and package plans.
We also highlight the features of reward programs currently in the market. Relative to brand, we are looking at differentiating
factors – eg: TDCT as the convenience leader, credit unions as community leaders etc. Performance: This section looks at short and long term share of market trends by competitor Everyday Banking Issues: Here
we briefly discuss what we see as the key issues for the line of business - Spread Management, Attracting and Retaining
Primary Clients, Simplifying Product and Pricing Structures and Remaining Relevant in the Payments Business.
The annual subscription is $5,000 plus taxes including quarterly updates ($3,000 for subscribers
to the Personal Banking Market Report.
Customer Strategy
Surprisingly,
most financial services firms have built their strategies around product, channels and operations which result in a fragmented
offer at the client level. As a result, integration of these capabilities is left to customers to address,
which in turn drives low satisfaction and loyalty. We are seeing a major shift among banks to become customer-centered,
yet few have accomplished this goal. The first step is development of a customer strategy that answers
the following questions: - Which customers:
What are the strategic segments of the market? What is their relative size and attractiveness?
.
- What offer: How do these customers choose
their financial services provider? Which factors are table stakes (required but not differentiable) and
which are winning criteria? What are the main factors driving customer satisfaction and loyalty?
- What relative competitive position do you want to achieve against each segment:
These range from acceptable (you are prepared to cede leadership to a competitor) to competitively superior.
- What will it take to achieve your desired competitive positioning? What
are the gaps in your capabilities that must be addressed to achieve your desired future state and what is your game plan to
address those gaps? Is the game plan value creating?
- What
is the measurement system and accountability framework required to monitor progress and to align delivery with your strategic
goals?
McVay and Associates Ltd have the experience
to help you develop a customer strategy ideally suited to your company. |
