The complex legacy systems that support many of the banks’ new fee-based services frequently leak revenue. It’s a risk that can erode margins, trigger compliance penalties, and damage customer trust.
The shift from selling interest-earning products to delivering fee-based services is helping banks protect margins, offset declining interest income, and tap new revenue streams. But it also introduces a hidden risk: revenue leakage.
The complex and fragmented systems that support the services provided by banks leak revenue. Missed charges, incorrect billing, and failed collections frequently go unnoticed and result in significant loss of revenue, says Siva Subramaniam, Senior Industry Principal at Infosys Finacle.
As banks respond to customer demand for more services, the systems and processes needed to support those offerings will become increasingly complex. And if banks continue to rely on legacy systems the likelihood and scale of revenue leakage will rise sharply.
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