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The Future of Revenue Growth for Banks – End to End Revenue Management

Darren Cherry
Consulting Practice Director, EMEA

This is the 2nd Blog in the series on “The Future of Revenue Growth for Banks”. Stay tuned for more insights from Darren by subscribing to our Blogs.

Building the Case for Change:  End to End Revenue Management

To build the business case for change, several key focus areas should be at the heart of the decision making process.  Beginning with a view of your end-to-end revenue management cycle, you can assess how you service your client segments impacts your overall customer and product propositions. The key is being able to provide customers with the products they need when they need them and at competitive market rates. As these are mission-critical drivers for achieving sustained competitive advantage, it follows they are also mission-critical drivers for delivering revenue growth and therefore profit with minimal risk.

Historically for revenue management activities, banks have relied on disjointed, piecemeal approaches centered around manually intensive processes, spreadsheets, and home-built applications that are costly to run and maintain to manage their revenue processes.  It comes as no surprise that these processes are labour intensive, prone to error and siloed often resulting in missed revenue opportunities or leakage.

Banking trends, such as commoditisation, increased regulatory controls, and proliferation of channel choice and complexity have caused these processes and systems to become outdated, inflexible, and ineffective for today’s customer needs.

Providing customers with the products they need, when they need them – all underpinned by flexible, but controlled pricing models.

The end to end revenue management cycle should be viewed as a client-centric infinity loop of business activities which provides dynamic pricing options that deliver bottom-line revenue. With Oracle’s Revenue Management and Billing solution, your target operating model allows you to provide your customers with a range of aligned and integrated products and services that fuse to provide you with a global view of the total overall relationship. The ORMB solution links together and automates the complexities of the end to end revenue management lifecycle for all key operational areas, including product management, sales, operations and finance.

For the bank, ORMB provides increased visibility and control around deal compliance and becomes key to driving customer behaviour.  Customer transactional activity is closely monitored against the terms and conditions of sale with alerts and exceptions being generated for those customers who transact outside of reasonable tolerance. At the same time, sales and account managers are aligned to customer behaviour and overall profitability and incentive payments can be adjusted based on actual customer behaviour.

The application also gives banks a comprehensive infrastructure for placing command and control within all steps of the revenue management infinity loop and maintains comprehensive audit and traceability of all user actions. The resultant effect is that in today’s risk-adverse world, ORMB improves the ability of banks to manage financial risk and regulatory exposure.

This is my second blogpost in a series of blogs on how banks can enjoy revenue growth with the adoption of the right technologies and best practices. To learn more, feel free to message me to explore more, or have a conversation.

For more information, please visit:
The Future of Revenue Generation for Banks: Read the post
Oracle Revenue Management and Billing Quick Start Program: Learn more
Oracle Financial Services: oracle.com/financial-services

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