Boasting a base of more than 20 million potential customers with a broad range of financial services needs, the Small Business segment has long presented a significant opportunity for US banks. Following the financial crisis disruption, the market has largely settled back into competitive equilibrium, with many banks – and their advisors – allowing a set of conventional wisdoms to constrain their thinking as they craft their strategies.
Oliver Wyman research and analysis suggest that some of these conventional wisdoms are wrong, and others only half-right. Worse, they disguise powerful new insights that banks can leverage to upgrade performance substantially. In our latest report, we review in more detail these five conventional wisdoms that restrict banks’ strategic thinking:
1. Segmentation.
2. Relationship coverage.
3. Checking.
4.Small business lending.
5. New revenue.
