Cost-Effective Solutions: Optimizing Payment Channels for a European Telecom Giant
Bankhawk’s client is UK & Ireland companies of a major European mobile operator. The combined revenue of the UK & Ireland operations is $8bn. It has two main lines of business, mobile phone, broadband and business communication services.
The Challenge
The client had multiple distribution and payment channels, many different providers of payments services and decentralised business operations. There was a strong desire to review the cost of its payments and distribution channels. There was huge pressure to reduce costs across the business.
The Deployment of Bankhawk Services
It was decided the banking and payments arrangements needed to be reviewed. Bankhawk was hired to work with the local supply chain teams to develop a roadmap to its payments and distribution arrangements.
In establishing the clients requirements Bankhawk engaged with many stakeholders across the business and mapped out the landscape of incoming payments and distribution channels.
Fees and charges applied by payment providers and distributors were audited and commercial contracts were reviewed.
The Success
The client has now got best in class commercial payment and distribution arrangements and vastly reduced costs.
The project commenced with an audit of the existing arrangements and the fees and commissions paid to service providers. Overcharges were identified and addressed. Poor commercial terms and weaknesses were identified by market analysis, zero based costing and benchmarking.
A cost improvement strategy was devised by Bankhawk which included major RFP processes and direct engagement with suppliers. The client has been able to generate savings of over €10m without any change of providers with other larger cost saving opportunities identified.
About Bankhawk
Bankhawk helps large organisations like Aon, Axa, Allianz, AIG, Canada Life, EY, IHG, KPMG, Mercer, PwC and Vodafone to optimise banking and payments and generate huge savings.
Bankhawk delivers pioneering services which have been proven to be very successful at reducing costs with a range of company clients. Its team has global leading banking, payments, finance IT and project management experts.