Bankinter: Deploying the Mortgage Simulator to the Branches
Posted: 18 Sep 2008
Date Written: May 4, 2007
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.
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