Orient Point Consulting LLC

...new results navigation

 

Bank Cost Model Examples

 

Home  Case Study  About Us  Seminar Center  Quality Center  File Room  Free Pilot  Conference Room

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Banking Cost Model Example 1

This chart provides the product cost for this these client segments. It is used to determine
the profitability of its specialized client segments with high acquisition and retention costs.
 

Bank product cost models for customer segments

 

Banking Cost Model Example 2

This chart provides the product cost over 3 years for these client segments. Note how many costs have
been reduced.

Bank product cost models for customer segments

Banking Cost Model Example 3

This 3 part chart provides the process cost and hours for this portfolio of CD products. It is used by
a bank to determine CD product profitability and forecast how staffing requirements will change as
CD product volume changes. It was created during a 7 week project that was conducted with the
company's centralized time deposit department.

 

CD Product Process Model            
               
Process Total 1 Month 3 Month 6 Month 12 Month 18 Month 36 Month
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Account inquiry 5.2% 7.1% 2.6% 3.1% 3.4% 4.2% 12.5%
Address change 0.3% 0.0% 0.7% 1.6% 2.4% 3.0% 3.4%
Cancel 5.5% 0.0% 4.3% 20.0% 10.3% 11.3% 6.3%
Investigation 2.9% 5.8% 3.4% 3.9% 3.5% 4.2% 6.3%
Maintenance 13.0% 18.5% 18.1% 6.3% 6.9% 7.7% 8.9%
Monetary transaction 38.4% 33.0% 43.7% 46.9% 51.7% 23.3% 25.0%
New 32.6% 35.5% 27.0% 17.7% 20.9% 45.3% 36.3%
Partial pay 0.7% 0.0% 0.1% 0.3% 0.6% 0.8% 1.1%
Reconciliation 0.3% 0.1% 0.1% 0.2% 0.3% 0.2% 0.2%
 
             
CD Product Process Model Hours          
               
Process Total 1 Month 3 Month 6 Month 12 Month 18 Month 36 Month
Total 61,098 9,773 10,814.0 14,227.0 16,722.0 5,739.0 3,823.0
Account inquiry 3,177 694 281.164 441.037 568.548 241.038 477.875
Address change 183 0 75.698 227.632 401.328 172.17 129.982
Cancel 3,360 0 465.002 2845.4 1722.366 648.507 240.849
Investigation 1,772 567 367.676 554.853 585.27 241.038 240.849
Maintenance 7,943 1,808 1957.334 896.301 1153.818 441.903 340.247
Monetary transaction 23,462 3,225 4725.718 6672.463 8645.274 1337.187 955.75
New 19,918 3,469 2919.78 2518.179 3494.898 2599.767 1387.749
Partial pay 428 0 10.814 42.681 100.332 45.912 42.053
Reconciliation 183 10 10.814 28.454 50.166 11.478 7.646
 
             
CD Product Process Model Cost          
             
Process Total 1 Month 3 Month 6 Month 12 Month 18 Month 36 Month
Total 1,611,154 257,714 285,165 375,166 440,959 151,337 100,813
Account inquiry 83,780 18,298 7,414 11,630 14,993 6,356 12,602
Address change 4,833 0 1,996 6,003 10,583 4,540 3,428
Cancel 88,613 0 12,262 75,033 45,419 17,101 6,351
Investigation 46,723 14,947 9,696 14,631 15,434 6,356 6,351
Maintenance 209,450 47,677 51,615 23,635 30,426 11,653 8,972
Monetary transaction 618,683 85,046 124,617 175,953 227,976 35,262 25,203
New 525,236 91,488 76,995 66,404 92,160 68,556 36,595
Partial pay 11,278 0 285 1,125 2,646 1,211 1,109
Reconciliation 4,833 258 285 750 1,323 303 202

 


Home  Case Study  About Us  Seminar Center  Quality Center  File Room  Free Pilot  Conference Room

 

 clientservices
Use of this website signifies your agreement to the terms of use.
2014 Orient Point Consulting LLC, All rights reserved.