KPMG issues profit warning for banks
[QQ]As many as 50 percent of UK banks’ customers may actually be losing the organisation money, according to KPMG Consulting. Speaking at the Institute of Economic Affairs 2nd Annual Retail Banking Conference, Phil Middleton, head of European banking strategy at KPMG Consulting, warned that almost half of any bank’s customers are likely to be unprofitable, yet few financial institutions have the capacity to identify these customers and act accordingly. In addition, banks should focus on building trust as a means of increasing their ability to develop their customer base, rather than simply “bolting-on” services.[QQ] Middleton said: “Many banks are simply not aware which customers are destroying capital, due to the lack of integrated customer information.”