How a leading banking player successfully expanded its consumer financing and retail deposits business?
Background and Challenge
Client’s Background:
- The client is one of the Philippines’ leading universal banks serving retail, commercial, corporate and institutional clients and publicly-listed with the Philippine Stock Exchange in 1995.
- They offers a wide range of services including financing, leasing, foreign exchange, stock brokerage, investment banking and asset management through its subsidiaries.
Challenges Faced by Client:
- Digital Penetration: The client recognized the difficulties turn around time and digital penetration in Auto Finance Market. Hence, they contacted Ken Research and Strategy Advisory to understand how other players are performing in terms of auto finance and their strategies by comparing their operational and financial performance.
- Require a roadmap for Business Expansion: Furthermore, the client wanted to get assistance on major target market where they can expand their footprints in home finance & retail deposits, hence they outsourced this activity to Ken Research.
Home Finance, Auto Finance & Retail Deposit Industry at Glance:
- The real estate market price index has grown at a CAGR of ~4% in last 6 years, creating high price fluctuation and large scope of loan disbursement in this sector.
- The auto industry demonstrated positive sales growth of 27.2% in February 2023 on a year-on-year basis – a clear indicator of a continuously progressing auto industry from the course of the pandemic
- Retail deposits, also showed a positive growth in pandemic as well, creating opportunities in the market for banks to attract more customer base.
Approach and Recommendations
Phase 1: To identify top players in the banking/financing sector
- Ken collaborated with its client in curating the list of major financing and non financing companies automotive & home finance sector, indicating number of players in both organized segments.
- Ken Research have approached to management of these companies to assess the current market framework, business potential, customer behavior and future growth in the sector space
- These discussions gave the client possible opportunity windows to know-how of the financing market.
Phase 2: Key Analysis of Competition Benchmarking
- The second phase of work focused on competitive landscape of the financing and retail deposits for the client.
- Deep Dive Competition Matrix was performed including various parameters such as loan outstanding, CASA ratios, retail deposits, customer base, USPs, future expansion plan and more.
- This helped the Client to see through the financial and operational benchmarking of all the three Markets with eminent and noteworthy Primary Research by Ken Research in short span of time duration.
Phase 3: Market expansion Strategy
- After identifying and analyzing the competitive KPIs across the market, Ken provided phase wise plan and constructive strategies to the client for the financing & retail deposits market.
- These included various digital strategies, Target market analysis, B2B Strategies and geo mapping for expansion specifically.
- With quality recommendations and success factors, Ken Research has provided a clear road map to the Client in order to enter successfully into Philippines Home Finance, Auto Finance & Retail Deposit Industry.
Result and Conclusion – Banking Institute was successfully able to target the relevant audience, increase CASA ratio with client satisfaction, and was able to build scalable business model canvas.
Constructive Market Assessment
-
The competition specific market assessment will enable the Client to substantially develop their understanding about Philippines Home Finance, Auto Finance & Retail Deposit Market.
Holistic Approach driven Competition Benchmarking
-
The client was well able to assess the organized competition with operational financial benchmarking in the market and how they can penetrate in this space.
Precision Geo-Location Mapping
-
Ken Research was able to leverage on the phase wise market expansion strategic approach or the client and suggest them multiple location where they can setup their footprints and future expansion plans.
Our Work Turnaround
Philippines Home Finance Industry: Government Initiatives
Home financing services offered by the major players in Kuwait
Interest Rate on Home Loans
Business Impact
-
Expand in Used Car segment, B2B Collaborations and Digital Expansion