Orient Point Consulting LLC

...new results tools

Bank Cost Model Examples

Home Case Study Visitor Reception 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 by a bank 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 Visitor Reception Seminar Center Quality Center File Room Free Pilot Conference Room

clientservices
Use of this website signifies your agreement to the terms of use.