From compliance to confidence:

Client need

Ibercaja Bank, a well-established European financial institution with a strong history of serving its communities, recognized the importance of evolving its operations to meet new regulatory demands while staying true to its mission of empowering its people and supporting its customers. Balancing these priorities meant addressing the European Central Bank’s (ECB) requirements for aligning asset operations with risk-adjusted return on capital (RAROC) principles—a necessary step to ensure sustainable profitability. 

As a customer-focused organization, Ibercaja was committed to equipping its branch managers and client-facing professionals with the tools and knowledge to succeed in this new environment. The bank introduced a suite of resources, including a RAROC calculation tool, online learning modules, and a “pricing circuit,” to help its employees integrate RAROC into their daily decision-making processes.  

However, initial feedback revealed that some employees viewed these tools as procedural burdens rather than opportunities to drive better decisions and outcomes for the bank and its customers. 

 This prompted Ibercaja to take a thoughtful and strategic approach to improvement, identifying key areas to ensure that its employees not only embraced RAROC but also felt confident using it to strengthen relationships with customers. The bank focused on: 

• Helping employees shift from transactional goals to sustainable, long-term profitability to benefit both the business and its customers. 

• Building awareness of how effective capital allocation could enhance financial performance and customer offerings. 

• Equipping branch managers and client-facing teams with the financial skills to use RAROC as a practical and empowering tool. 

• Encouraging a mindset that viewed RAROC not as a compliance task but as a way to deliver better outcomes for customers and the bank. 

By addressing these areas, Ibercaja sought to empower its people to deliver even greater value to customers while aligning with regulatory standards—strengthening its reputation as a thoughtful and innovative financial institution. 

Solution

Ibercaja Bank partnered with BTS to create a practical, engaging training program that supported its branch managers and client-facing teams in navigating the complexities of the RAROC framework. The program was designed to help employees connect RAROC principles directly to their daily responsibilities, equipping them with the skills and confidence to make informed decisions that benefited both the bank and its customers. 

Recognizing the diverse needs of its workforce, the training was tailored for two distinct groups: 

• Tool Connoisseurs: Employees already familiar with RAROC and managing complex operations, who needed advanced insights to maximize the tool’s strategic value. 

• Non-Tool Connoisseurs: Employees newer to RAROC, who required foundational knowledge to apply the framework effectively and with confidence. 

The program was rolled out in three carefully designed phases: 

1. Collaborative Design and Roadmap: BTS worked closely with Ibercaja’s leaders across finance, risk, marketing, and retail banking to identify the unique needs of each employee group. Together, they developed a clear roadmap with tailored goals, customized content, and a training plan aligned with the bank’s strategic priorities. 

1. Pilot Sessions: To ensure relevance and effectiveness, the program was tested with 34 employees through pilot sessions. These sessions included interactive exercises and real-world simulations to help participants see how RAROC connected to profitability and decision-making in their roles. Participants practiced pricing decisions in realistic scenarios and provided valuable feedback to refine the final program design. 

1. Full-Scale Rollout and Simulations: The final phase included hands-on “know-how” sessions to deepen employees’ financial understanding and help them confidently apply RAROC concepts. Tool Connoisseurs participated in one-day sessions focused on advanced applications, while Non-Tool Connoisseurs attended shorter sessions to build foundational skills. Both groups engaged in simulations and decision-making exercises that connected learning to action. Participants left each session with actionable plans to apply their new knowledge immediately in their roles. 

By tailoring the training to Ibercaja’s specific needs and fostering collaboration across teams, BTS ensured the program resonated with employees and aligned seamlessly with the bank’s strategic goals. 

Results

The training delivered measurable and lasting impact, transforming RAROC from a regulatory requirement into a strategic asset that empowered employees to make more effective decisions: 

• Widespread adoption: 84% of new operations were priced using the RAROC calculator, reflecting a significant shift in behavior and mindset across the organization. 

• Extensive participation: Over 1,100 employees from multiple departments completed the program, promoting collaboration and a shared understanding of profitability goals. 

• Tangible outcomes: Participants drove more than 460 initiatives that enhanced cost-effectiveness, refined pricing strategies, and improved profit margins, strengthening the bank’s overall performance. 

 Feedback from participants underscored the program’s success: 

• Both Tool Connoisseurs and Non-Tool Connoisseurs rated the program an impressive 4.6 out of 5. 

• Facilitators earned strong Net Promoter Scores (NPS) of 79% and 76%, indicating high satisfaction and engagement. 

Beyond individual improvements, the training fostered a culture of strategic thinking and collaboration. By equipping employees with the tools to make better decisions and align their efforts with the bank’s broader priorities, Ibercaja Bank reinforced its commitment to delivering exceptional value to both its customers and its stakeholders. This focus on profitability, efficiency, and customer satisfaction positioned the bank for continued growth and long-term success.