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Case
| HBS Case Collection
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2011
(Revised from original 2007 version)
Bankinter: Deploying the Mortgage Simulator to the Branches
by
Francisco de Asis Martinez-Jerez and Katherine Miller
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Abstract
Describes how Bankinter, a mid-sized Spanish bank, altered the information set available to its customer-facing employees. In the spring of 2003, Bankinter introduced an Excel-based program called the Mortgage Simulator that helped branch managers calculate the price of a mortgage and estimate the customer lifetime value (CLV). Facilitates a discussion of the impact of such a change in the information set for employees when the incentives and decision rights remain unchanged. Also examines the tradeoffs front-line employees face as they divide their efforts between reaching new customers and increasing the amount of cross-selling to existing customers.
Keywords: Customer Focus and Relationships;
Customer Value and Value Chain;
Banks and Banking;
Mortgages;
Employees;
Motivation and Incentives;
Spain;