JOHANNESBURG (01/27/2004) - Siebel Systems Inc., a provider of business applications software, today announced that FNB Corporate, a division of First Rand Bank, has increased annual operating margins by US$3.4 million following its implementation of Siebel Finance.
FNB Corporate, which provides integrated corporate financial solutions to large and medium corporations, financial institutions and government bodies in South Africa (SA), has realized this increase in margins by introducing a single, consistent client and product view.
This allows the organization to target lucrative clients, cross-selling and up-selling its wholesale banking product portfolio. Siebel Finance has also enabled the financial services organization to streamline the introduction of across-the-board price changes, saving the company up to $2 million each year in lost revenues
Previously, it was difficult for FNB Corporate to implement company-wide product price increases, because prices on its more than 300,000 accounts needed to be manually adjusted. Also, because client and product information was scattered across the organization, it was unclear which services clients were using and how much they were being billed. As a result, FNB Corporate under-billed many clients, losing up to $2 million annually.
Siebel Finance has enabled FNB Corporate to streamline and automate its pricing system. With one common product and client database to adjust, the organization has now established standard minimum pricing levels at which clients are billed, with compelling discounts for volume clients. FNB Corporate has halted revenue loss through incorrect pricing, and is saving $300,000 in reduced back- and front-office price adjustment administration costs.
Additionally, using Siebel Finance, FNB Corporate has replaced multiple, cumbersome silos of client and product information with a unified, multi-channel client and product understanding. With this single consistent view of its more than 6,500 medium and large clients, FNB Corporate can now understand and manage clients' banking needs, identifying and focusing on its most profitable clients in order to cross-sell and up-sell its portfolio of integrated corporate financial solutions.
"Siebel Finance has helped FNB Corporate become one of SA's most successful financial institutions," said Martin Taylor, head of pricing, FNB Corporate. "By providing our relationship managers with a coordinated client and product view that straddles multiple legacy systems, the bank is able to focus on selling the right wholesale products to the right people. This has dramatically increased our sales effectiveness and operating margins."