Bankinter is a little independent national bank, positioning itself as an advanced, multichannel, low-priced fiscal services supplier. The bank uses assorted client acquisition webs and distribution channels ( brick-and-mortar subdivision, practical banking and agents, telephone, cyberspace ) . The house realized that the Internet is a low-priced channel suitable for a smaller bank like itself, and launched its online site, e-bankinter.com in 1997, which ranked as the best on-line fiscal site in Spain. The Internet subdivision of the bank is called Branch 8700. In 2001, the Internet was the chief beginning of entry of new consumers, so it was of import portion of the client acquisition scheme of the house.
The Internet acquisition scheme of Bankinter was based on three channels: confederations, e-collaborators and 8700. I prepared a tabular array to depict the advantages and disadvantages of the confederations and e-collaborators acquisition schemes. As from the tabular array can be seen, the e-collaborator scheme was much more efficient in footings of geting new clients and it resulted in lower acquisition costs, so Bankinter decided to end the confederations with the portals and focused on e-collaborators.
High trafficked portals
High traffic sites
Difficult to copy by rivals ( customer-based CRM-system )
Lower acquisition costs
Higher figure of new clients
Co-branding ( trade name was hidden, version )
Reproduction of systems
Creation and care costs
Customer acquisition costs ( publicity, advertisement, fee/each client acquired )
Up-front one-year fee
Ease to copy by rivals
Sites irrespective of content
High figure of nonformalized clients
Number of new customers/year
2000: ~5,000 clients
2001: 2,096 clients
2001: 43,433 clients
1st tabular array: Professionals and cons of the different Internet acquisition schemes of Bankinter
The following tabular array shows the public presentation of the three online channels in footings of new clients. The Branch 8700 acquires the most clients, followed by e-collaborators and confederations. The nonformalization rate is the highest in instance of e-collaborators ( 76 % , 33,003 clients ) . The acquisition rate is non merely the highest in instance of 8700 but this option has the lowest nonformalization rate ( 47 % ) , every bit good.
Formalized clients ( active )
2nd tabular array: Customer acquisition rate of the different acquisition schemes and channels at Bankinter
2 ) Which channel ( 8700, confederations, e-collaborators ) performs better for the bank, and why?
To analyse the public presentation of the three online channels, I computed the client life-time value for each channel. The excel tabular arraies incorporating the elaborate analysis can be found in the Appendix. Due to the deficiency of information on involvement rates, I used a 10 % involvement rate in all scenarios to do the computations transparent and the consequences easy comparable. I used two decimals at the computations, except for the keeping rates, where I used rounded Numberss. When ciphering the keeping rates I used the first twelvemonth ‘s keeping rate as a base to cipher each twelvemonth ‘s keeping rate. I assumed a short-run and long-run period to demo the consequences: 5 old ages ‘ and 10 old ages ‘ period – besides because at some scenarios the expected old ages in bank exceeds the 5 old ages period. By adding the first five old ages ‘ discounted values ( including twelvemonth 0 with the acquisition cost ) , or by adding the first 10 old ages ‘ discounted values we arrive at the client life-time value.
Based on the client life-time value, the 8700 is the best acting channel, because in this instance the profitable clients have the highest client life-time value among the three scenarios. However, the client life-time value of the nonprofitable clients is besides the highest in instance of 8700, which means the highest costs. As there are merely little differences among the client life-time values of the nonprofitable clients of the three channels, it is less of import. I mentioned in the old portion that the rate of the nonformalized and formalistic clients is the best in instance of 8700 ( 47 % to 53 % ) . Based on these computations the 8700 is the best acting channel. E-collaborators is the 2nd best option, as it has the 2nd biggest client life-time value in instance of profitable clients.
3 ) What ( acquisition ) scheme would you urge to Bankinter? What actions should be taken by Ana Peralta?
Bankinter is a multichannel bank known as the leader in on-line banking in its several state. As both the traditional brick-and-mortar and online channels are indispensable for the bank, it should maintain both concentrating on the Internet subdivision. The brick-and-mortar channel still plays an of import portion, because of client trueness and cross-selling chances, every bit good as the high figure of branch minutess ( 36 % – Exhibit 5 ) . However, Bankinter could carry clients to cut down the subdivision minutess and utilize Internet banking alternatively ; it would ensue in lower dealing costs for the bank.
Concentrating on the Internet subdivision is besides of import because in 2001 it is the chief beginning of entry, which means that it is an acquisition scheme of great relevancy. Furthermore, the Internet selling run of the bank was successful, as the acquisition costs dropped and the figure of new clients increased exponentially. I would propose go oning the run, nevertheless altering some elements.
Bankinter should concentrate on 8700 clients as their client life-time value is the highest. Among 8700 clients e-brokers and e-mortgage clients are the most valuable ; Bankinter could seek cross-selling to them. As for the other clients, happening new ways through presenting new services and attractive bundles can assist them turn into profitable clients.
Drop confederations ( as Bankinter did ) , and utilize e-collaborators alternatively. The job with e-collaborators is the high figure of nonformalized clients and the fact that the rate of the new client acquisition scheme was correlated to the sum of inducements offered. By utilizing the CRM system of the bank, it can acknowledge which selling sections are the most valuable, and it enables the bank to utilize aiming. By utilizing aiming in the e-collaborators channel Bankinter can pull more valuable clients. Finding the appropriate mark groups besides reduces the drawback of inducements.
Bankinter should besides happen out what factors are behind the high figure of nonformalization by carry oning studies, analysing information on the nonformalized clients and the procedure itself. This manner, they can present new services or change their enrollment procedure.