Benchmarking performance in branches, especially in mature markets, can be critical in building differentiation and efficiency, but is extremely difficult without the appropriate data. About five years ago, KBC – Belgium’s third largest bank and one of Europe’s top 10 bancassurers, with a network of 800 bank branches in Belgium alone – had a relatively poor financial performance. It had a cost/income ratio of more than 80% for its domestic retail distribution activities.
General manager distribution Erik Van Acker and senior adviser Stefaan Van Der Vekens say an initiative to improve the efficiency of KBC’s sales network has been an important driver behind its recent improved performance (comparable cost/income ratio of 55%).
