"Alta Bering's Peer Benchmarking methodology has added great value to our target setting capabilities. We simply moved from comparing our portfolios and branches against averages to comparing against peers, both for performance reviews and target setting. EPO’s goal-driven interface enables us to transparently test new targeting models with speed and ease."
Nazan Somer Ozelgin, EVP - Yapi Kredi
Today, achieving sustainable growth in retail banking appears to be a significant challenge to most. Leading banks have transformed their origination and risk management into a unified decision platform, advancing from managing risk to leveraging risk.
The Hidden Challenge
It is difficult to quantify maximum growth potential and the resources to be applied for success in the management of bank client portfolios. Existing approaches and portfolio planning systems tend to manage against average performance. Managing to averages leaves 5 to 25% of the achievable potential on the table even before the strategy meets real-life constraints.
Our approach to value creation and operational efficiency removes the word “average” from planning and performance management speak, gets rid of ratio-inspired, parametric resource and target allocation. Peer-based targeting subject to board-approved strategies not only achieves better planning but lends stability and effectiveness to the performance compensation system.
Balancing risk against higher returns in banking is a portfolio problem and needs to be treated as such. Our approach to predictive analytics consulting and technology centers around the lean implementation of ensemble models.
The resulting system we implement is Enterprise Performance Optimization or EPO. Our clients recognize it as innovation in advanced management technology since 2004. We typically complete projects in weeks instead of months and years.