Bankhawk Saves Insurer Over $1 Million Annually by Modernizing Payments
Snapshot:
Identified savings of over $1 million annually from legacy systems.
Revealed significant additional opportunities for cost savings.
Provided the insurer with invaluable banking and card payment insights.
Background:
The insurance business is generally cumbersome, with many third parties, including brokers, agents, underwriters, and reinsurers, all involved in different areas of the company. The banking system moves large volumes of payments and huge sums daily. Globally, the insurance sector generates revenue of over five trillion dollars. This massive cash movement is costly, making business more challenging to manage, and creates vast profits for banks. With rising interest rates and declining investment income, insurance companies are pressured to maintain profitability and reduce costs.
Banking costs are an area of potentially significant savings. Much of this cost is hidden in interest margins and other transaction costs. Our client is a global insurance company with multiple international subsidiaries. It has gone through some challenging times recently and focuses on cost reduction. It has numerous product lines and a direct consumer business.
How Bankhawk Helped:
Bankhawk ran a series of banking and payments projects across the UK, Ireland, and Canada, working with local teams and liaising with the Group Treasurer. Using data provided by the client, Bankhawk reviewed the structure and configuration of the bank accounts and how payments are managed. Bankhawk identified legacy arrangements were in place for banking and payments. Using its banking and payments data and its benchmark analytics, Bankhawk was able to help the insurer locate savings of over $1 million annually. These savings were achieved through several initiatives, such as working with the client at Bankhawk and “doing the heavy lifting.” The data revealed significant other opportunities for savings and great business insights.
Results:
Bankhawk identified savings in several different areas. Interest margins were quantified and far higher than expected. Payment costs were high when benchmarked against the sector. In the direct business, there were large savings in merchant acquiring costs. None of these savings could have been identified without Bankhawk’s insights, strategies, and implementations. This example illustrates Bankhawk’s capability to easily analyze, benchmark, and optimize banking activity in the Insurance sector. The result for the insurance company is vast ongoing savings in banking and payment costs and invaluable finance intelligence.
