Automating a manual outreach process can substantially reduce the average cost of service. TowerGroup estimates that an inbound call connected with a bank’s call centre costs an average of $2.77 to handle. By contrast, automated proactive alerts can cost as little as $0.10 to $0.15 for an informational alert and up to $0.40 for a more complex, two-way alert – an average of about $0.25 is standard globally.
Savings will multiply with the ability to reach more customers, more quickly, using automated alerts as compared with manual solutions. Also, the reduced time lag between an event and a customer’s ability to review that event can be used where fraud is a concern. Proactive alerts can give customers greater control and cut off fraudulent activity faster than relying on monthly statements or weekly account-review sessions on the internet.
Based on TowerGroup research by Ed Kountz, senior analyst in the Emerging Technology Solutions practice at TowerGroup, a leading advisory research and consulting firm focused on the global financial services industry. E-mail: ekountz@towergroup.com
