Digital Journey of Advanzia Bank Final - Frank Schwab - July 2024.pdf

Advanzia Bank How 200 people achieve EUR 100 million in annual profits - Digital Banking Journey of Advanzia Bank

Explore one of Europe’s most innovative banks. This month, we take a look into the digital banking journey of Advanzia, a Luxembourg-based niche bank that redefines consumer finance. Discover how they achieved remarkable growth, profitability, and efficiency by harnessing technology and focusing on customer needs.

Today, I am launching a monthly series of case studies on the digital banking journeys of various banks.

The first case study is about 🇱🇺 Luxembourg-based niche bank Advanzia and how 200 people achieve EUR 100 million in annual profits.

Advanzia Bank has carved a niche in the European banking sector by focusing on credit cards and payment solutions, operating exclusively through online and phone channels.

And Germany 🇩🇪 counts for 80% of Advanzia’s business.

Here are some key insights of the case study

🚀 Advanzia grew its credit card customer base from 1.2 million in 2017 to 2.6 million in Q1 2024

💪🏻 Advanzia outperformed the average 15% Return on Equity (RoE) for consumer finance specialists in Germany, reaching 38%

❗️the bank maintained a Cost-Income Ratio (CIR) below 40%, while the German average for banks is around 75%

💡Finally, Advanzia proves that doubling down on investments in technology pays off and can increase productivity by 50%


Executive Summary here 🔗 https://bit.ly/4cVZU56


✍️Contact me to learn more about the in-depth case study and receive the comprehensive 18+ page report, featuring detailed analysis and multiple informative graphs.

📧 [email protected]

🗓️ Insights from the case studies will be published on the first Tuesday of every month.

Goodbye for today

1. Selectedinsights&highlights
grewitscreditcardcustomerbasefrom1.2
millionin2017to2.6millioninQ12024
achieved€100millioninannualprofitswitha
teamof200people
outperformedtheaverage15%ReturnonEquity
(RoE)forconsumerfinancespecialistsin
Germany,reaching38%
maintainedaCost-IncomeRatio(CIR)below
40%,whiletheGermanaverageforbanksis
around75%
provesthatdoublingdownoninvestmentsin
technologypaysoffandcanincreaseproductivity
by50%
A Case Study on
AdvanziaBank
Efficient Digital Banking Journey of a Niche
Bank
Frank Schwab, July 2024
A Case Study on Advanzia Bank’s Digital Transformation Journey,Frank Schwab, July 2024FrankSchwab.de

2. AdvanziaBank
Number of credit card customers (in millions) more than doubled in 7 years
2017 2024
1.2
2.6
A Case Study on Advanzia Bank’s Digital Transformation Journey,Frank Schwab, July 2024FrankSchwab.de

3. 2017 2024
Germany's Total Consumer Loans in Billion EUR
AdvanziaBank‘s Credit Volume in Billion EUR
238
234
1.2
3.0
-1.5%
+147%
A Case Study on Advanzia Bank’s Digital Transformation Journey,Frank Schwab, July 2024FrankSchwab.de

4. Advanzia’s Digital Banking Journey
2019
oIntegrated workflow system
oCore Banking System
2020
oNew mobile app
oMobile payments
2021
oCloud-based platform
oInfrastructure as a Service
2022
oCapitol platform
oOmni-channel platform
oDigital workspaces
oAnalytics workbench
2023
oID AI-powered
oCentralized touchpoint for
customer
oVulnerability detection platform
oCore Banking upgrade
A Case Study on Advanzia Bank’s Digital Transformation Journey,Frank Schwab, July 2024FrankSchwab.de

5. Doing More with Less –Operational Efficiency
2017 2018 2019 2020 2021 2022 2023
Number of Employees 143 160 177 198 187 188 208
Number of Credit Card Customers
per Employee
8,398 8,941 9,597 9,701 10,98311,88912,297
Assets per Employee (EUR million)12.1 12.3 14.4 13.4 16.7 17.3 20.0
Loan Volume per Employee (EUR
million)
8.6 9.3 9.7 9.5 12.1 13.9 14.6
Profit per Employee
(EUR ‘000)
324.67369.38414.12507.58645.45651.06468.75
Cost-Income-Ratio (CIR) 38.60%35.50%34.40%34.30%31.60%32.30%34.80%
A Case Study on Advanzia Bank’s Digital Transformation Journey,Frank Schwab, July 2024FrankSchwab.de

6. Learn more about Advanzia’s Digital Banking Journey
A Case Study on Advanzia Bank’s Digital Transformation Journey,Frank Schwab, July 2024FrankSchwab.de
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