Wilmington, Del.-based The Bancorp Inc. revealed a number of details related to its new business strategy under its new CEO Damian Kozlowski, including a review of its sales management and incentive structure.
In terms of financial metrics, The Bancorp is looking for greater than 10% core revenue growth in both the near and long term, an efficiency ratio of less than 80% in the near term and less than 65% in the longer run. Its return-on-equity targets are greater than 5% in the near term and greater than 10% over a multiyear period, while the return-on-assets targets are greater than 0.5% and greater than 1% in the near term and long term, respectively.
The company's new business strategy will revolve around a number of factors which include value-added solutions, low-cost funding and significant fee income for its leverage payments platform. The company also aims to build out its credit loss lines of business, which has been historically low.
In a recent investor presentation, the company revealed that it would be reviewing all its sales incentive plans and developing new incentive programs that are consistent across all its business lines. These programs will also be designed to be up to par with current market standards and the company's 2017 business objectives for its units.
Management-wise, the company also plans to establish an executive committee and new leadership team while eliminating redundant committees.
The company also plans to improve integration for its business unit by identifying and supporting cross-selling opportunities and managing its banking services to support multiple business units. Improvements are also slated for its centralized operating platform, where the company aims to assess and address the impact of fragmented and redundant activities, as well as improve the effectiveness and productivity of elements of its operating environment such as product delivery and end-to-end processes. The company also plans to improve support management for business units through a vendor management program and enhancement of subject matter experts.