Revitalizing a venerable lender

Client Results Story

Opportunity

Growth had stalled at FinServe, a global leader in consumer and commercial lending and trade finance. The client was facing shareholder pressure to improve performance. Cost cutting had stabilized the company's income statement, but the challenge for the CEO was to secure FinServe's future by restoring growth and creating shareholder value.

View Approach

Approach

Bain built a survive-and-thrive strategy for span class="CaseStudyCompany" title="We take our client's confidentiality seriously. While we've changed their name, the results are real.">FinServe, which required us to address three priorities:


479_2_a We began by evaluating the company's portfolio and assessing the long-term prospects for each of nearly two dozen sub-scale business units. 
479_2_b The second task was to work with the client to identify common attributes among the diverse business and cluster them into groups that would enable them to share resources, focus on common customer or geographical groupings, meet evolving customer needs and bring products to market more effectively, and benefit from economies of scale.  
479_2_c Finally, we worked with the client to develop an implementation plan that would speed decision-making and cross-business collaboration. 

View Recommendations

Recommendations
  • Divest three businesses and restructure six others.
  • Consolidate remaining two dozen business units into a handful of operating groups.
  • Apply disciplined decision analysis and processes to deliver superior customer service

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View Results

Results
  • Created a detailed, bottoms-up financial and strategic plan to increase profits 15% annually. Implementation after 18 months is on track.
  • Developed and led training sessions to facilitate adaptation of businesses to new group structure and push change throughout the organization.
  • Helped communicate span class="CaseStudyCompany" title="We take our client's confidentiality seriously. While we've changed their name, the results are real.">FinServe's new strategy and structural transformation to the financial analyst community, resulting in a better than 30% increase in the company's market capitalization over a period of 18 months.

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