Bank desires pre-launch market validation of a new service adjacent to its current equipment finance offering

SITUATION

A long-standing client of The Alta Group was considering developing a new service capability that offered significant synergies with their existing lending business. Management wanted an independent evaluation to ascertain the viability of the planned expansion. This independent assessment would be used for discussions with their board of directors.

SOLUTION

Responding to the needs of the client, Alta dimensioned how the growth potential of prospective service as well as the synergies with existing origination channels. We then profiled the market and the characteristics of the market sub-segments including market size, competitive dynamics, credit considerations, risk level, and proven strategies for winning in this space. Our assessment also addressed how to align the new service with regulatory factors. We provided guidance on the various market entry vehicles such as de-novo launch, lift out, and acquisition options. Alta concluded the engagement by delivering a detailed, actionable growth plan for the selected sub-segments that identified market entry success criteria and forward growth opportunities, coupled with a timeline and the concrete steps necessary to achieve the identified outcomes.