Bankinter: Deploying the Mortgage Simulator to the Branches

Posted: 18 Sep 2008

See all articles by Francisco de Asis Martinez-Jerez

Francisco de Asis Martinez-Jerez

University of Notre Dame - Department of Accountancy

Katherine Miller

Harvard University - Accounting & Control Unit

Date Written: May 4, 2007

Abstract

SUBJECT AREAS: Mortgages, Customer profitability, Bank management, Banking, Banks, Central banks, Commercial banking, Customer & client analysis.

Describes how Bankinter, a mid-sized Spanish bank, altered the information set available to its customer-facing employees. In the spring of 2003, Bankinter introduced an Excel-based program called the mortgage simulator that helped branch managers calculate the price of a mortgage and estimate the customer lifetime value (CLV). Facilitates a discussion of the impact of such a change in the information set for employees when the incentives and decision rights remain unchanged. Also examines the tradeoffs front-line employees face as they divide their efforts between reaching new customers and increasing the amount of cross-selling to existing customers.

Suggested Citation

Martinez-Jerez, Francisco de Asis and Miller, Katherine, Bankinter: Deploying the Mortgage Simulator to the Branches (May 4, 2007). HBS Case No.: 9-107-070. Available at SSRN: https://ssrn.com/abstract=1270262

Francisco de Asis Martinez-Jerez (Contact Author)

University of Notre Dame - Department of Accountancy ( email )

Mendoza College of Business
Notre Dame, IN 46556-5646
United States

Katherine Miller

Harvard University - Accounting & Control Unit ( email )

Soldiers Field
Boston, MA 02163
United States

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