Depending on the contents of your banking portfolio, banking costs represent between 0.5% and 1.5% of revenues. For a company of EUR 500 million in sales, banking costs equate to between EUR 2.5 million and EUR 7.5 million, which forms a considerable cost category that doesn’t always get the attention it deserves. The reason for this is not having relevant and actionable insights into costs at your fingertips to enable you to have an informed and empowered conversation with your banks.
How does Xploritas help you gain these relevant insights? Based on your banking costs and Basel III computed capital requirements, Xploritas maps the returns generated by your banks in scope. Typically, this is a trigger to discuss lower fees with banks with high returns or to shift funding from banks with lower returns to banks with higher returns. By assessing your reallocation options against lower fees, you can reduce costs.
Also, comparing the same products with different banks or understanding the cost trend over time can alert you to the need for a cost conversation with your banks. Or visualizing the impact of proposed cost increases on the return of the bank and comparing this to the other banks in your portfolio can help drive data-driven discussions. You can then share your insights with your banks and jointly discover ways for better optimization.
