Enterprise Billing Systems in Corporate Banking
Manual billing processes and non-standard invoicing is all too common in the banking industry today. Legacy systems are not equipped to deal with the granular rule-based requirements that are needed in order to charge and bill dynamically – and this can lead to substantial revenue leakage – in one recent report it was estimated that poor quality data and siloed systems results in up to $70 million in lost revenue per $1 billion in revenues, annually. Manual workarounds and account analysis systems fill part of this gap, but in general these systems are not robust enough to provide a flexible billing platform going forward.
We implemented such a system at Skandinaviska Enskilda Banken (SEB) – one of the largest banks in Sweden – where the results speak volumes about the needs that exist today. You can read about the implementation details in our case study, but the ROI is what should really catch your attention. SEB experienced a 44% revenue increase in Sweden over 3 months and a 100% increase across the Nordic region (albeit on a smaller base size).
miRevenue can be used for Enterprise Billing in the following areas in the Corporate Banking business:
- Packaging and bundling of corporate banking products as a value offering to corporate customers - this involves individualized customer pricing with a special terms and conditions handling infrastructure whereby discounts, penalties and bonuses are offered within well-defined price deviation limits, eliminating ad hoc treatment;
- Pricing plans with pricing for different services and products offered in a transparent manner to enable customers to make a choice based on their assets and risk profile;
- Pricing and billing for investment services and cash management services offered by a bank to its corporate clients;
- Pricing and billing for correspondent banking services offered to financial institutions;
- Unified customer billing and statements across their business relationship.
Enterprise billing systems no longer fall in the category of ‘nice-to-have’ – an enterprise billing platform is a strategic imperative in corporate banking. An enterprise billing system can reduce revenue leakage and increase efficiency in billing systems leading to further cost savings. In the near future, as more banks implement global and enterprise billing, the risks shift to those banks which will find it more difficult to respond quickly to changing market needs. Contact us to learn more about how we can help you implement an enterprise billing system.