Essay Research Paper
Infinity Bank (A)
Retail Branches and Customer Profitability
• Winner of the 2009 European Case Clearing House Award in the category “Finance, Accounting and Control”
This case was written by Igor Vaysman, Professor of Accounting and Control at INSEAD, and Stephen Smyth of Esfren Consulting as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation.
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Marc Rickard, Infinity Bank’s new CEO, asked Philippa Smith to review a new strategy proposed by the retail banking division:
“Our retail banking has lost ground against all major UK competitors over the last five years. I don’t trust their management team. Now they have hired some overpaid consultants and have come up with a new “supermarket” strategy. I see you are Head of Customer Intelligence - why don’t you tell me if their strategy is intelligent!”
Philippa had 48 hours to figure out what she thought of the strategy proposed by the retail division, formulated with the help of a major consulting firm. That meant finding out what the new branch strategy involved and whether it made sense – fast. She hoped a recent study of customer profitability would help provide the answers.
Infinity Bank, one of the 10 largest banks in the United Kingdom, was a major force in banking. The bank had over 1,800 retail branches – one of the largest branch networks in the UK. Infinity’s management