This chain of 32 banks emerged from the recession in a strong financial position and used this position to gain market share through geographic expansion. Staying focused on the banking operations left little time for management to fully understand their telecommunications systems and the expenses associated with them. This shifted the balance of power to the telecom providers, and the bank’s management was left in the dark when it came to understanding and optimizing their telecom structure.
Case Study: Telecommunications
After a short introductory call with bank management, our telecom auditing team gained insight into the bank’s telecom infrastructure (both their existing systems and future plans) and immediately began organizing the data with our Telecom Expense and Inventory Management System (TEIMS). Using this system, combined with decades of experience in the industry, we identified several areas of opportunity for the bank. The first area we reviewed was the invoicing process. The bank was being charged for 25 separate summary invoices. Further, there did not appear to be any specific design to the current summary billing arrangement. As a result, accounting was incorrectly applying payments with very little carrier oversight. We worked closely with the primary carrier to migrate all invoicing to their on-line billing service. The bank was able to eliminate 100% of the extraneous charges and consolidate to one invoices with this carrier – greatly increasing transparency and simplifying things for the client and bank.
Through further review, we were also able to identify three additional areas of opportunity. The remote call forwarding service was improperly set up when the company had transitioned to a VoIP system, causing the bank to be charged thousands of dollars per month for a service that was not even functional. In addition to phone line forwarding, our team also identified over 185 phone lines that were no longer in service but were still being charged to the bank. Closing down these lines resulted in an immediate refund of $64,000 along with savings in excess of $125,000 annually. Seeing the trend, our team also went back and looked at the bank’s toll free phone lines and discovered errors resulting in an additional credit of over $52,000 and more ongoing savings to the tune of $95,000 annually.