Why B-SaaS™?
Retail banks, large or small, of the financial industry are constantly striving to lower their costs in order to stay competitive in a market with eroding margins. At the same time they need to be flexible to adjust their services to meet customer demands and sustain competition from existing retail banks and new entrants. The key is to identify efficient businesses of the bank and pool resources and capital from non-efficient areas to maximise the leverage of the competitive edge of the bank.
The vision can come true today!
The operation cost of IT support to provide financial services has typically been measured per customer and year. IT support includes operation components like Core system, Front end support, Payment and Reporting infrastructure. Currently it is widely known that this annual cost is typically ranging €20 to €30 per customer. A long term vision of the industry is to slash this cost to under €10 per customer. IDEALINVENT can provide this vision today! Our B-SaaS offering will provide a new benchmark in the financial industry and is worth comparing with your current IT cost.
In the provided example we have compared B-SaaS with two Model banks that provide typical retail bank services. We call them Model bank A, Model bank B. For simplicity we assume that Model bank A has an annual IT cost of €30 per customer (typical industry cost), Model bank B has €20 (which is a very efficient figure). B-SaaS has €10 per customer. Then we have compared these banks in different sizes ranging from a customer base of 20,000 to 250,000 customers. In this we have assumed that all three banks benefit equally from economies of scale when the customer base increases.
All comparisons is on B-Saas™ side
The comparison shows that Model bank A with 20,000 customers would be able to free up more than €400,000 by opting for B-SaaS and when the customer base grows so does the benefit of the B-SaaS offering.
An efficient bank, Model bank B, with a 100,000 customers would still command an annual IT cost of around €1,800,000 where as the B-SaaS investment for the same category is below €900,000.
It becomes even more staggering when comparing the numbers for a customer base of 250,000 customers. Both Model banks would have to generate an annual income in the region of €5,625,000 and €3,750,000 respectively to break even. The investment for B-SaaS to manage 250,000 customers comes to €1,800,000. This works out to approximately €7 per customer and year meaning that B-SaaS can deliver the vision of the financial industry NOW!
