Non-Earning Asset Reduction
A proven approach to quickly grow the revenues associated with Non-Earning Assets (NEA) on either an enterprise-wide or line of business basis
Over the last 15 years, CAST has observed extensive mergers and acquisitions within the banking industry, frequently resulting in underperforming and largely untapped revenue potential from overlooked assets. For banks that have not carefully addressed this potential or have unsuccessfully attempted to increase NEA revenues in the past, CAST has developed a focused and highly proven technique for realizing improvements in the order of 5 to 10 basis points on total assets.
Factors Contributing to Under-Performing Assets
- Incomplete understanding of customer behavior related to various types of fees
- Misaligned product structures and incentives
- Insufficient tools for measuring and monitoring performance
- Limited understanding of competitive practices
- Inappropriate product structures and features
- Lack of product alignment across organizational silos
- Failure to actively manage the timing of fund inflows and outflows
- Ineffective procedures and policies
Why CAST for Non-Earning Asset Improvement
- Extensive experience in Cash Management, Operations, Finance
- 15 year successful track record in non-earning asset optimization
- Proven tools for monitoring and measuring performance
- Database of non-earning asset best practices
- Knowledge of the inter-relationships of various insurance and financial service products
- Proven, fact-based approach to analysis and implementation
- Cross industry experience in non-earning asset improvement
Representative Engagements:
| Non-Earning Asset Reduction |