The Client
Bank Orange, a mid-sized customer owned regional bank with a strong focus on retail banking.
The Challenge
Bank Orange faced difficulties forecasting demand for its transaction banking and lending services. The bank which had long relied on traditional methods and local expertise, realized these approaches were no longer sufficient in an evolving economic and demographic environment.
Highlights
- .id (Informed Decisions) developed a comprehensive Regional Snapshot Report providing insights into population growth, migration trends, and demographic shifts in key service areas.
- The report challenged internal biases by presenting data-driven insights into local and regional market dynamics.
- Bank Orange was able to optimize resource allocation, improve local marketing strategies, and target emerging demographics with confidence.
Results
Bank Orange gained data-backed insights to inform strategic decisions, optimize resource allocation, and expand its market share.
Business Challenge
As Bank Orange prepared its strategic plan for FY25, its leadership recognised that relying solely on historical data and personal experiences in the region was not enough to anticipate future demand. The bank needed a fresh perspective to adapt to changing demographic patterns and stay competitive in the local market.
With plans to optimise services and expand its customer base, Bank Orange sought more sophisticated tools to forecast demand for its banking and lending services. This need led them to .id (Informed Decisions), a leader in population forecasting and demographics, to provide clarity on future population growth and demographic shifts in their core service areas.
The Solution
- Population Forecasting: Detailed projections for population growth and shifts in age groups, as well as housing trends within Orange, enabled Bank Orange to far more clearly understand key market opportunities.
- Migration Trends: The report revealed where previous residents of Orange had relocated, housing area trends and insights into where different segments were buying, allowing Bank Orange to refine its local marketing strategies and better target its existing customer base and new prospects.
- Demographic Analysis: The analysis identified new target demographics that Bank Orange had not previously prioritised, helping them uncover growth opportunities in unexpected areas. For example, while leadership had believed Orange had an aging population, the data revealed a significant segment of younger residents renting in nearby cities, representing a potential market for first-home buyer loans, investors and next logical property households.
.id’s forecasting team developed a Regional Snapshot Report for Bank Orange, which offered comprehensive insights into the current and future market landscape within the Orange Local Government Area (LGA). Key features included:
Outcome
The insights from .id’s Regional Snapshot Report helped Bank Orange address several key strategic questions:
- What are the demographic and migration trends in the region?
The data provided by .id revealed migration trends and population dynamics that were previously unknown, leading to better-targeted marketing efforts. - Where are our target segments located?
Bank Orange’s leadership initially believed that Orange’s population skewed older. However, the data uncovered younger segments affiliated with the region but residing in other centres, ready for the right opportunity to return. These insights helped the bank refine its marketing strategy for first-home buyers. Lewis von Stieglitz, CEO at Bank Orange shared, “Bias tells me there are no young people – on the face of it that’s correct, but if you look at the data, the parents are still in the region (empty nesters) and the kids are actually just renting, in the other centres, waiting for an opening to come back. A perfect target market for loans.” - Where should resources be allocated for the best outcomes?
The Regional Snapshot Report highlighted when and where population growth was expected, guiding the bank on how to optimize the placement of branches, ATMs, and local marketing efforts. Lewis remarked “it’s very important for us to be able to direct resources. The report tells me that it is smart idea to direct our resources into Orange as opposed to, say, all of New South Wales.” - Are we investing in the right areas at the right time?
The data served as a validation tool for Bank Orange’s strategic decisions, ensuring that investments in specific areas were well-timed and backed by demographic evidence. As CEO Lewis von Stieglitz remarked, “The .id reporting verified some of the strategic decisions we’d already made, assuring us we’re on the right path.”
What’s Next for Bank Orange?
By leveraging .id’s forecasting data, Bank Orange enhanced its FY planning process, optimized resource allocation, and sharpened its growth strategy. These insights have helped it meet current market demands while positioning for future strong growth.
For more information on how .id can help your financial institution unlock growth opportunities and mitigate risk, visit their website.
