News & Views - Savantor

Banks making the most of your “lost” money

Thursday, 15 February 2007

Interesting to see that some UK Banks are trying to gain credit points with customers by jumping the gun on the Government initiative to release funds in unused accounts for charitable purposes.  HBOS has launched a publicity drive to attempt to find the owners of cash in dormant accounts.  The move coincides with the banking sector facing claims of greed following increased profits and warnings of impending account charging.  The HBOS campaign is aimed at the owners of approximately £50m in dormant accounts.  Whilst many dormant accounts have a balance of less than £100 the nationwide estimate is that there is around £400m in such accounts.  LTSB and Barclays are estimated to have anything up to £100m each in dormant accounts while HSBC is thought to have around £30m.  The dormancy issue does not just affect current and deposit accounts as many credit card accounts also lie dormant and the problem with all of these accounts is the cost of maintenance.  It is estimated that on average 18% of any credit card portfolio is dormant and worst case scenarios this figure has been as high as 35%.

Costs are still incurred for these accounts; the minimum being processor account residency fees but can also include the wasteful production of statements and plastics and the unnecessary inclusion of these accounts in advertising mail shots.  The move to Chip and PIN has further increased operational costs and has probably resulted in the reduction of cards in customer's wallets and an increase in dormant accounts.  The cost of attracting a new customer is estimated to be in the region of £130 whilst re-activation through this process can be achieved at a fraction of this cost.

So whether it is current/deposit accounts or credit cards there are costs to be saved as well as PR points to be gained by conducting a clean up exercise on dormant accounts.  If you are interested in discussing this further contact us on support@savantor.com

Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

New Fuel Card Guidelines

"Savantor successfully assisted Clear2Pay by providing specialist EMV expertise."

Marie Costers, General Manager - Clear2Pay Open Test Solutions

Card Migration

"I was impressed by the speed with which the Savantor team were able to start delivering and as a team they have made a significant contribution to the success of the Programme."

Bjorn Niels, Programme Director - ABN AMRO Bank - The Netherland

Moneris Solutions

"Savantor did an outstanding job of the review and I received nothing but positive feedback on the interaction with our management team."

Jeff Guthri, COO - Moneris Solutions - Canada

Market Insights

"Savantor did a good job in helping us understand the dynamics of a key growth area for Trionis. Savantor's ability to listen and their degree of commitment have always impressed me. They have been of great help in providing us important market insights and I would not hesitate to work with them again in future."

Ernst Verbeek, Managing Director - Trionis - Belgium

New Payments Initiative

"In moving our new initiative into reality, we required specialist payments knowledge and forward thinking in the retail sector. Savantor supplied this and provided very effective guidance throughout. We enjoyed working with them."

Sophie High, Head of Innovation Delivery - Cancer Research UK

Credit Risk Review for New Product Launch

"We needed expert help at short notice and Savantor were very impressive in their response and knowledge. The results were very clear and useful, enabling us to quickly make good progress on the next steps."

Sami Karhunen, Head of Business Intelligence and SME Sales - Point Transaction Systems Oy - Finland

Complex Cards Business Transformation

"This was a major business transformation that required us to build an excellent team made up of internal bank specialists, supported by external card business, technical and operations expertise. Savantor provided specialists from the local market and with international experience to fill a variety of important roles. The Savantor resourcing team are professional, reliable and good people to work with."

Ricardo Gomez, Director - Operations & Technology - WiZink Bank - Spain

Credit Card Migration and Operational Support

"The bank has undergone significant transformation of its card business on both the issuing and acquiring sides. One business partner we have looked to for support in the areas of strategy, major project leadership, management analysis and ongoing business support is Savantor. The Savantor team has contributed to our success as we have leveraged their deep industry knowledge and broad range of operational skills."

Sean Sheehan, Service Management Director - Bank of Ireland

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.