With banks facing increased levels of regulation following the financial crisis, it is vital that they become more customer-centric in order to stay ahead of the competition and maintain profitability. 
According to “@Banks: Stay Tuned With Your Customers”, the latest report from global management consultancy Arthur D. Little, those institutions that genuinely listen to their customers, differentiate their product/service mix, and simplify and innovate their operational model will emerge as winners in an increasingly knowledge-based economy.
The Arthur D. Little report puts forward a new communications model that could generate average cost savings of 10% for banks.  However, to be successfully implemented, this model must combine both communication with customers and communication with employees:

• Customer Excellence: communication with customers enables financial institutions to establish direct and constant interaction in a one-to-one model that puts the customer at the centre of the bank’s business model. An effective cross-selling and up-selling strategy also ensures improved retention.
• Operational Excellence: communication with employees will enable institutions to improve the collaboration and knowledge-sharing process, making them more responsive and flexible.

Arthur D. Little has developed a Communication Positioning Matrix to help organisations establish a communication strategy roadmap that aligns the institution’s medium and long-term business targets and is supported by emerging technological tools.
“Our Matrix is designed to promote integration and collaboration, and mobilize a way to share knowledge in a structured and dynamic way,” comments Fabio Matera, Principal in Arthur D. Little’s Financial Services Group.
“A communication model that encapsulates both the customer and employee perspective will improve productivity and simplify operational processes,” continues Gigliola Falvo, Principal in Arthur D. Little’s TIME (Telecoms, Information, Media and Electronics) Practice. “However, if banks do not recognize this, it could severely threaten their profitability and success. Inconsistent communication can affect customers’ loyalty to financial institutions at a time when gaining their trust is more critical than ever.”
 “@Banks: Stay Tuned With Your Customers” is available to download at
www.adl.com/@banks