”Win-Win” Collaboration Opportunity

Imagine a mass affluent consumer named Maria who is uncertain about the retail banking products and services she has selected. Currently Maria has just her checking account at Bank X, which generates $85 in annual profit for the bank.

Maria heard from a neighbor about a free “buying advice session” offered by Bank X. Since her friend had raved about the great deal she got for consolidating her balances at Bank X as a result of this session, Maria decides to look into it herself. When Maria visits her local branch of, Bank X a branch banker invites her to sit down for a session.

The banker accesses the collaboration platform using a standard web browser. The collaboration session application prompts the banker to work with Maria to walk through a simple four step process:

1. Understand Maria’s Buying Goals & Objectives:

The banker is prompted to ask Maria to define her primary objectives in buying financial services. The balance of the session flow is tailored precisely towards trying to work with Maria to help her achieve these goals.

2. Review Maria’s Current Behavior Profile:

Maria describes the financial services she is buying from other banks, including a traditional home mortgage, a car loan, two credit card accounts (on which she’s paying high interest rates) and a savings account. The session application shows that across all of these products, her annual expenditure for the use of the money of these various financial institutions totals $8,725 per year.

3. Identify & Explore “Win-Win” Collaboration Opportunities:

The platform guides the branch banker and Maria towards the many untapped “win-win” opportunities in their relationship. It shows Maria how she can reduce her interest expense by moving her off-bank credit card and auto loans into a home equity line of credit with Bank X. It also lets Maria see how Bank X will gainshare back a portion of the profit it would earn if she simply moved some of her other off-bank balances to Bank X. So Maria is able to get an even lower effective rate on her home equity loan simply by transferring her CD’s to Bank X. All the time, the platform is only letting Maria see scenarios where Bank X is also further ahead. By identifying these opportunities, Maria is in effect helping to find ways she can increase her profitability to the bank.

4. Let Maria Define Her Preferred Exchange Agreement:

Through this iterative, value exchange dialog Maria explores all of the various previously untapped “win-win” relationship improvement options. For the first time, she sees the advantages of consolidating her buying through Bank X. In the end, although Maria isn’t willing to refinance her mortgage with Bank X at this time, she elects to consolidate many of her other off-bank balances at Bank X and use Bank X’s (retention-enhancing) on-line bill payment service. In exchange, Maria earns a half-point reduction on her home equity line of credit, receives a free financial planning session, and is able to get her fees waived on her checking account.

By tailoring a solution to her individual financial circumstances and needs, Maria cut her cost of financial services by $850. And by consolidating her banking with Bank X, the bank earned an additional $1,045.

This new value exchange represents a dramatic “win-win” outcome for both parties.