Managing for Profitability - Case Studies from DEPROSC Development Bank (DD Bank) in Nepal and Banco Caja Social (BCSC) in Columbia

The Managing for Profitability case studies focus on how institutions have managed their operations in order to maintain or increase profit. This series looks at two institutions, DEPROSC Development Bank (DD Bank) in Nepal and Banco Caja Social BCSC in Columbia to examine the steps they have taken to remain profitable in challenging situations.In Keys to Cost Management, DD Bank has managed costs by focusing on integrating its financial services, training staff in savings services and providing incentives to deliver them, and standardizing its operating procedures and savings products. As a result, DD Bank has lowered its costs for deposit mobilization (from 3.2% to 1.8% over three years) and increased the number of clients per staff member (178 to 215).In Balancing Customer Satisfaction and Profitability, Banco Social BCSC has created low-cost savings products by encouraging clients to use less-expensive delivery channels and by designing products that limit the number of transaction and reward consistent savers.[Based on author's abstract]