Today’s acquirers must put customer retention at the top of their post-merger agenda

As the banking industry enters a new round of M&A activity, today’s acquirers face a changed environment. Cost bases are leaner, making efficiency savings harder to achieve. Customers are increasingly fickle, making them even less likely to stick around if service deteriorates. And while buyers still need to cut costs, they must place far more emphasis on retaining and growing the most significant asset they’ve acquired: customers.

In this article, we lay out four rules banks can follow to increase post-merger customer retention and simultaneously achieve the cost savings that together make the deal economically compelling. We argue that the key to meeting these objectives is to avoid the most harmful service disruptions that inevitably drive customers away. A well-thought-out integration plan can steer clear of these disruptions – and in some cases even improve service. The result: a solid customer base on which to grow revenues and profits.