Over the last two years, we have spotted a favorable trend in retail banks’ increasing demand for performance management solutions. Companies are aggressively applying a variety of initiatives, including account/customer profitability, IT charge-backs, pricing, staffing levels, benchmarking, product/service rationalization, and marketing campaigns. Even more exciting is that each bank is identifying and capturing profit improvement opportunities in the millions of dollars, far exceeding the cost to implement the solution. This is a dream-come-true for companies like Acorn, but I suspect that what is taking place has more to do with what is going on in the banking industry than with Acorn. I would not be surprised if Acorn’s competitors were enjoying similar gains. Time-driven activity-based costing is a perfect fit for retail banking. In this whitepaper I will try to put into perspective why banks are rethinking activity-based costing and how they are in a great position to capture the benefits of time-driven activity-based costing.
Specifically, I will address:
- Recent trends in retail banking.
- The need for banks to understand what is driving their cost structure and profitability.
- Why retail banks are in a great position to reap the benefits of time-driven ABC.
- Potential road map for banking institutions.