ABC Costing System for Bank and Financial Services

  • The Activity-Based Costing methodology for medium to large companies where it is required to have an integral model of the organization, requires the implementation of an ABC Costing System. The ABC Costing Software allows companies to configure all the activities and processes, as well as all the “dimensions” of Cost Objects such as: products and services, customers, distribution channels and sales regions, to obtain accurate costs and therefore real profitability for each business segment, both at a total and “granular” level.
  • The ABC Costing Software for Banking and Fiancial Services will allow you to obtain the detailed cost, including: costs of “front office”, “middle office” and “back office”, indirect costs and expenses, cost of reworking, cost of non-quality, costs of inefficiencies, marketing and advertising expenses, sales expenses, administrative expenses, among others.
  • With this information you will be able to generate a product & services costs statement and a Profit and Loses Statement with results by service, customer, distribution channel, branch or region, with which you will be able to carry out analyzes to capture opportunities and obtain important benefits:

Benefits of Implementing an Activity-Based Costing System in Banking and Financial Services

Implementing Activity-Based Costing System in Services and Banking will allow you to obtain accurate costs by business segment. With this information you will be able to:

  • Determine the cost of the activities, identifying the most expensive and the least expensive, as well as those activities that do not add value and generate inefficiencies that translate into losses for the company.
  • Identify the real cost of each service, and identify which services generate profits and which generate losses. With this information you will be able to find opportunities to reduce costs or carry out profitable pricing and commissions strategies for the services or services families.
  • Determine which customers, branches or distribution channels add value to the organization and which destroy it.
  • Based on sales expenses per customer or per Distribution Channel, you can carry out differentiated pricing strategies or Service Level Agreements in order to ensure that the operation generates profits.
  • Activity-Based Costing in Financial Services allows establishing breakeven points by branch or business segment, based on volume and fixed and variable costs.
  • ABC Costing in Financial Services allows establishing Target Costs and Sales Prices based on expected profitability.
  • An ABC Costing System will allow you to have information for fact-based Decision-Making.

 

We have more than 20 years of experience implementing ABC Costing Systems in all types of industry. We carry out from the survey of activities and processes, mapping of resources, activities, cost objects and drivers, development of a conceptual costing model, identifying sources of information, automation and systematization, loading of information into the model and generate results. We also rely on Business Intelligence software to facilitate executive reporting, analysis and detection of opportunities for costs reduction or processes improvement in order to Add Value to all type of organization.

Pilot ABC Costing Model Template & Toolkit

If you want to carry out a Pilot Model of Activity-Based Costing or a Sample with ABC Costing methodology, we can support you with training and workshop to solve a business case of your industry, either face-to-face or virtual through Teams or Zoom.

You can also purchase the Toolkit Template of ABC Costing for Banks and Financial Services, by clicking on the following link: