How one insurance company made huge savings on their banking costs with Bankhawk’s bank data analytics.
The Insurance industry has many players including brokers, agents, underwriters and reinsurers. They move large volumes of payments and huge sums daily through the banking system. Globally the insurance sector generates annual revenue of over five trillion US dollars!
This huge movement of cash is costly, makes their businesses more difficult to manage and generates vast profits for banks. Today with record low interest rates and declining investment income, Insurance companies are under pressure to reduce their cost base. Banking costs are an area where significant savings can be generated. Much of this cost is actually hidden in interest and FX margins and third party expenses.
One recent client of Bankhawk is an Insurance company with a global parent based overseas. Having gone through some challenging times in recent years it has a big focus on cost reduction. It has multiple product lines and a large direct consumer business.
Using their historical banking and payments data, and its benchmark analytics software, Bankhawk were able to help them to identify savings of £300k per annum. The clarity of the information helped the company to achieve these savings quickly and easily. The data revealed significant other opportunities for savings and great business insights.
Savings were in a number of different areas:
1. Payment costs were excessive when benchmarked against the sector and market based pricing was negotiated.
2. Interest and FX margins were quantified and far higher than expected. Reconfiguration of the banking structure easily eliminated wasteful inefficiencies.
3. The transparency of the merchant acquiring analytics facilitated the negotiation of a much improved pricing structure.
The bank data analytics contained mines of information – using it the company was able to implement other efficiencies, accelerate funds flow and get really valuable business intelligence.
This example illustrates how important it is for Insurance companies to be aware of the value of their data and how easily it can be exploited. The case for using analytics tools to streamline activity is compelling. The result is large ongoing savings in banking and payment costs, greater efficiency and tremendous new business insights.
Brian Weakliam is the founder of Bankhawk Analytics and believes that the banking industry is inefficient and provides companies with poor information. If you would like to find out more about harnessing the power of your company’s banking data please visit Bankhawk.