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Business case KBC (www.bmcons.com - time-driven activity-based costing, profitability analytics, cost management, management accounting)

B&M Consulting
B&M Consulting

KBC, a large Belgian bank, wanted to improve its insights into costs related to its bancassurance business. It had previously used an Activity-Based Costing model but found it too complex and not providing necessary management insights. B&M Consulting implemented a Time-Driven Activity-Based Costing model to help KBC better understand its costs across different customer, product, and activity dimensions. This provided KBC with the data needed to determine fair pricing, identify cost-saving automation opportunities, and make strategic decisions based on reliable cost data.

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Business Case Financial Services B&M helps KBC to improve insights of their cost-to-serve in the dynamic and complex environment of bancassurance. KBC is an experienced user of model in order to gain insights in the traditional Activity-Based the complexity of its transactions Costing-model. Which means in the following dimensions: that KBC was also confronted with the downsides of the ABC- Customer model. Counterparty These downsides were: Correspondent Product group The increased complexity of the environment, made the This information was needed to model even more answer some of these questions: complex. The ABC-model didnt What is my cost-to-serve give the necessary per dimension? management insights. Are my rates fair, or do I The Challenge need to raise/lower my The Approach prices? KBC is an integrated How much time and bancassurance group, catering The ABC-model was down- money is a specific mainly for retail customers, small graded to a cost-allocation dimension costing me? and medium-sized enterprises model where employees were and private banking clientele. asked to give a rough Where are my highest It occupies leading positions on percentage estimate of the automation its home markets of Belgium and time they were spending on opportunities? Central and Eastern Europe, certain activities. where it specializes in retail bancassurance and asset As these estimates were made management activities. ex-ante, the allocated costs The Results often seemed to be Elsewhere around the globe, the disconnected from the ex-post group has established a Implementing Time-Driven ABC, transactional data. makes it possible to map presence in selected countries and regions. transactions in complex and On top of that, the application dynamic environments like management was logging for With more than 13 million KBC's. continuous automation KBC now has the necessary customers, a staff of 54.000 opportunities but had difficulties employees and a revenue of concepts, systems and insights with making a business case. that will enable them to provide more than 5,3 billion, KBC is in the top-15 of the largest banks more accurate information to With the broad experience of in Europe. the business units and take B&M in the financial industry, we strategic decisions, based on This specific project was rolled- suggested KBC to install a Time- out in the division of Securities reliable data. Driven Activity-Based Costing and Derivatives Processing. 息 2010 B&M Consulting www.bmcons.com

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Business case KBC (www.bmcons.com - time-driven activity-based costing, profitability analytics, cost management, management accounting)

  • 1. Business Case Financial Services B&M helps KBC to improve insights of their cost-to-serve in the dynamic and complex environment of bancassurance. KBC is an experienced user of model in order to gain insights in the traditional Activity-Based the complexity of its transactions Costing-model. Which means in the following dimensions: that KBC was also confronted with the downsides of the ABC- Customer model. Counterparty These downsides were: Correspondent Product group The increased complexity of the environment, made the This information was needed to model even more answer some of these questions: complex. The ABC-model didnt What is my cost-to-serve give the necessary per dimension? management insights. Are my rates fair, or do I The Challenge need to raise/lower my The Approach prices? KBC is an integrated How much time and bancassurance group, catering The ABC-model was down- money is a specific mainly for retail customers, small graded to a cost-allocation dimension costing me? and medium-sized enterprises model where employees were and private banking clientele. asked to give a rough Where are my highest It occupies leading positions on percentage estimate of the automation its home markets of Belgium and time they were spending on opportunities? Central and Eastern Europe, certain activities. where it specializes in retail bancassurance and asset As these estimates were made management activities. ex-ante, the allocated costs The Results often seemed to be Elsewhere around the globe, the disconnected from the ex-post group has established a Implementing Time-Driven ABC, transactional data. makes it possible to map presence in selected countries and regions. transactions in complex and On top of that, the application dynamic environments like management was logging for With more than 13 million KBC's. continuous automation KBC now has the necessary customers, a staff of 54.000 opportunities but had difficulties employees and a revenue of concepts, systems and insights with making a business case. that will enable them to provide more than 5,3 billion, KBC is in the top-15 of the largest banks more accurate information to With the broad experience of in Europe. the business units and take B&M in the financial industry, we strategic decisions, based on This specific project was rolled- suggested KBC to install a Time- out in the division of Securities reliable data. Driven Activity-Based Costing and Derivatives Processing. 息 2010 B&M Consulting www.bmcons.com