You are interviewing for a Strategy & Operations role at NorthBridge Partners, a consulting firm advising financial institutions on growth and operating model transformation. A long-standing client, HarborView Bank (HVB), has asked for an end-to-end recommendation on how to approach a multi-year digital transformation.
HVB is a US-based regional retail and small-business bank with $85B in assets, operating across 6 states in the Midwest and Southeast. It serves 2.4M retail customers and 210K small-business customers. HVB has historically differentiated on branch service quality and local underwriting expertise for SMB lending. It operates 410 branches and 620 ATMs, and employs 18,000 staff. Over the last decade, HVB grew steadily through acquisitions, resulting in a fragmented technology landscape: 5 core banking instances, multiple loan origination systems, and duplicated customer data across CRM, call center, and branch platforms.
Financially, HVB is stable but under pressure. In FY2025, HVB generated $4.6B revenue (net interest income + fees) and $1.1B net income. However, profitability is being squeezed by rising operating costs and intensifying competition from national banks and fintechs. HVB’s cost-to-income ratio is 63%, compared to best-in-class peers at 50–55%. Digital engagement is improving but still lags: 47% of active customers use mobile banking monthly, versus 65% for national peers.
HVB’s CEO and board are concerned about a “slow erosion” scenario: customers increasingly open accounts with fintechs for everyday spending, then keep HVB only for legacy products (mortgage, auto loans). Over the last 12 months, HVB saw:
Two competitors are raising the stakes:
HVB’s board has approved a transformation “envelope” of $280M over 3 years, but leadership is split on where to start. The CIO wants a core modernization program first (“fix the foundation”), while the Head of Retail wants customer-facing quick wins (new mobile app, digital onboarding). The Chief Risk Officer is concerned about regulatory and model risk, especially if HVB introduces more automation in credit decisioning and fraud.
Your mandate: propose a structured approach to HVB’s digital transformation that balances growth, cost reduction, risk/compliance, and execution feasibility.
| Channel | Share of service interactions | Est. cost per interaction | Notes |
|---|---|---|---|
| Branch | 28% | $4.80 | High fixed cost; staffing inflexible |
| Call center | 34% | $3.20 | Authentication + password resets are top drivers |
| Digital self-serve (web/app) | 38% | $0.18 | App rating 3.6; frequent login issues |
| Segment | Customers | Avg annual revenue/customer | Annual churn | Notes |
|---|---|---|---|---|
| Mass retail | 1.9M | $120 | 9% | Fee-sensitive; high service volume |
| Affluent retail | 0.5M | $420 | 4% | Higher balances; values advice |
| Small business | 210K | $780 | 6% | Needs payments + credit |
As the case candidate, you are the engagement lead presenting to HVB’s executive committee. You have 45 minutes to structure your approach and walk through your recommendation.
You will be evaluated on structured thinking, quantitative reasoning, and the ability to make trade-offs. You do not need perfect numbers; you do need a coherent approach, explicit assumptions, and a credible plan that HVB’s leadership could execute.