B2C companies can generate large savings using bank data analytics. Sectors like telecoms, utilities and mobile phone operators have large numbers of customers making regular bill payments.
Large volumes of payments and huge sums are moved daily through the banking system as customer’s monthly bills are settled by direct debit and bank transfer. This heavy banking and payments activity drives large costs. Mobile phone operators in particular find it difficult to benchmark and address these costs.
In addition to the normal billing process there are many third parties including banks providing top up services for customers of the mobile phone operators. All of these services come at different costs. The pricing applied by the third party providers of these services is very often driven by legacy commission levels that are no longer appropriate.
With declining margins mobile operators are under pressure to reduce their cost base. Banking and payment costs are an area where significant savings can be generated.
Our client is a mobile phone operator which is part of a larger telecoms group. It has gone through challenging times and it is now focused on consolidating its market position and reducing costs. It has long standing relationships with its banking and payment providers.
Using their historical banking and payments data and its benchmark analytics software Bankhawk were able to help them to identify annual savings of £400k per annum. These savings were achievable without much effort from the client. The data provided new insights into the business and significant other opportunities for efficiencies.
Savings were in a number of different areas. Payment costs were excessive when benchmarked against the sector. Top up costs paid to third parties were analysed and far higher than expected. There were also savings in merchant acquiring costs. None of these savings could have been easily identified without Bankhawk Analytics.
This example illustrates Bankhawk’s capability to easily analyse, benchmark and optimise banking activity in B2C organisations. The result for the company is large ongoing savings in banking and payment costs, finance efficiencies and great business intelligence.