What percentage of the customers of a retail bank are
profitable/unprofitable on average?

"The two most valuable segments represented only 4% of the customer
base, but accounted for 39% of the total operating income.

The two least valuable segments, representing 57% of the customer
base, accounted for only 8% of the total operating income."

"Inforte's CRM Strategy Addresses Key Challenges Facing Small and
Midsize Retail Banking Institutions" Inforte Corporation (2005)
http://www.inforte.com/knowledge/case_studies/kn_casestudies.asp?case=cs_midsizebank

"It is not unusual to see more than 80% of a bank?s profits generated
by 10% to 20% of its customers."

"Customer Segmentation and Performance Measurement: Knowing the
Company You Keep" by Mike Middleton, Western Banking Magazine
(February/March 2004)
http://www.wib.org/wb_articles/wow_feb04/cust_segment_feb04.htm

"The old paradigm of banking was that 80% of the profits came from 20%
of the customers. The reality is that for most, it is 130% of the
profits coming from this magic 20%. Unprofitable customers erode the
ultimate bank profits."

"The search for profitable customers" by Suzanne Donner and Cathy
Dudley, nFront (1997) http://www.banking.com/aba/community0896.htm

Sincerely,

Wonko

Search Terms: bank "customer segment" profitable

Very useful and precise answer with sources. Thank you!