Most banks - due to the complexity of their operations - are facing with the problem of realizing less commission fee income than their potential based on their market and contractual opportunities. The contractual conditions of financial institutions are typically so complex and circumstantial (e.g. handling so many exceptions) that several types of fees are often not collected or discounts are not withdrawn. Unrealized fee income may arise from shortcoming of the administration, wrong settings in the IT system or bad business practices. These problems together can cause massive losses for financial institutions.
Based on its banking experiences, ABRIS has developed a methodology for analysing the operations of financial institutions within 2-3 months. First we identify problem areas, then we perform focused interviews. We also process controlling data and reports retrieved from the data warehouse, and examine the related IT systems, administration procedures and decision-making mechanisms. We make income calculations according to potential and actual fee types, further analysing cases where a discrepancy is found. Based on our market-specific know-how, we also perform benchmarks in the identified service sectors to investigate the efficiency of collection.
The identified loss of revenue is quantified. An estimate is given for the potential increase in collected fees. We offer multiple alternative solutions for eliminating errors causing the identified problems. The cost of the changes is also assessed to provide effective support in choosing the most cost-effective alternative.