MIS in Banking Automating Key Thesis

Open, View, and/or
Download this Document

Total Length: 1282 words ( 4 double-spaced pages)

Total Sources: 0

Page 1 of 4

Assuming the increased attention to customer satisfaction saves at a minimum just 10 accounts, this will be worth approximately over $200,000 over the life of the accounts assuming a modest level of financial activity per account. The fixed costs of this recommendation are none as Google Analytics is free and the incremental IT-based costs of maintaining the linked code and the internal training could be covered by Overhead Cost Allocations already made to spread operating costs across the bank. The significant revenue upside is the potential for customer acquisition, customer retention and customer satisfaction from creating services that better align with the needs of customers over time. Differentiating banks' services on the ability to offer services that are more closely aligned to their needs than competitors can be a significant source of revenue over the long-term. Using Google Analytics as the basis of the strategy to complete this first recommendation and then using the knowledge and data to differentiate marketing strategies to increase sales and increase customer satisfaction is possible using the data collected.

The second recommendation of automatic transfer of funds between savings and checking accounts would require an initial investment of $40,000 to $50,000 and would also have the incremental costs of training, development and code maintenance underwritten by the Overhead Cost Allocations. As this would save customers collectively hundreds of thousands of dollars a year and also promote the bank's brand, the potential impact on new customer acquisition is very significant. As every other bank uses these fees to incrementally gain greater fees, a bank that did not do this would be seen as considerate of customers and would therefore have an exceptional level of interest and support in the customer base. As these fees continually are escalating causing customers to leave banks over them for others, the potential for customer retention by doing this and increasing satisfaction would be exceptional.

Stuck Writing Your "MIS in Banking Automating Key" Thesis?

View All Our Example MIS in Banking Automating Key Thesis

Have A Custom Example Essay Written

The value of the public relations alone would be well worth over $200,000 in advertising spending as no one is doing this today. The cost of the adapter and the benefits it would deliver would be worth the investment. This would be so groundbreaking in the banking industry it might even be reporting on CNN and other news networks as the U.S. Congress is now investing these fees to see if they are valid and reasonable or not.

The third recommendation of transferring funds between different bank accounts from different banks has a wide spectrum of costs to implement. At the low-end there are XML-based secure bank networks emerging that cost between $75,000 to $100,000 to create and at the high-end, there are EDI-enabled Internet costing as much as $300,000 to get up and running with $100,000 per year costs to keep them operating yearly. The impact on revenue of this strategy would be to significantly reduce customer churn, a major issue in banking marketing, and also increase customer retention as customers would no longer choose to move all their accounts to a single bank. These two aspects of a customer service strategy can save a bank well over $1 million a year when applied across the thousands of accounts a mid-size to large bank has. Training for an XML adapter or connector would be included in the consortium fee that is often required to get included in a trading network. The implementation fees are often shared across the entire consortium of accounts or banks and this makes it affordable for every institution. The impact on customer retention, customer satisfaction, and customer profitability would be very significant as it would alleviate customers from having to move all their accounts to a single bank. Assuming that a bank has just one thousand accounts, a reduction of 5% in churn.....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"MIS In Banking Automating Key" (2009, November 10) Retrieved May 18, 2025, from
https://www.aceyourpaper.com/essays/mis-banking-automating-key-17638

Latest MLA Format (8th edition)

Copy Reference
"MIS In Banking Automating Key" 10 November 2009. Web.18 May. 2025. <
https://www.aceyourpaper.com/essays/mis-banking-automating-key-17638>

Latest Chicago Format (16th edition)

Copy Reference
"MIS In Banking Automating Key", 10 November 2009, Accessed.18 May. 2025,
https://www.aceyourpaper.com/essays/mis-banking-automating-key-17638
   

Open, View, and/or
Download this Document
order custom essay example