Bank Telecom Consolidation2018-11-01T11:39:52+00:00

ComAudit Case Study #1: Bank Telecom Consolidation

Mid-sized bank telecom infrastructure needs additional consolidation and identification of cost reduction opportunities following the transition to VOIP.

Executive Summary

This client is a rapidly growing Bank with locations in multiple states and more on the way. When they met our Audit team, they had recently migrated all of their branches from a traditional telephony environment to a Cisco VOIP infrastructure. Our team was tasked with reviewing the post transition environment and identifying opportunities to reduce costs and further streamline the services.

Key Challenges

  • Contractual Issues – The area of greatest concern was the contract and those services billing through the contract. Although many big picture service items had been addressed, there were several local and regional items that had been neglected. Contract analysis identified opportunities to address services on a case by case basis and through new contract addendums create a cost reduction of $12,000.00 monthly or $144,000.00 annually. We also were able to have the carrier provide $60,000.00 in credits to offset the prior excess charges
  • Summary Billing and CD Charges – Another initial area of concern was the invoicing. There were 25 summary invoices all generating summary bill and CD charges (who uses CDs anymore?). There did not appear to be any specific design to the current summary billing arrangement. Accounting was incorrectly applying payments and there was very little carrier cooperation. 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 invoice with this carrier. We then worked with the bank to customize the invoicing around their particular accounting requirements.
  • RCF Lines – One large challenge inherent in any VOIP migration is the proper re-routing of key telephone numbers. In this case, 33 numbers were discovered Remote Call Forwarded improperly. These numbers were able to be modified creating a cost reduction exceeding $ 2,500.00 per month.
  • Inactive Voice and Data Lines – Through intensive manual review and the use of our inventory management tool, we were able to isolate several hundred phone lines priced $24.95 to $49.24 monthly that appeared to have no usage and rang no answer when called. There were also several data circuits identified that were billing without usage. In addition there had been some restructuring that created circuits not billing properly per the contract. Confirming their need and eliminating services not required created a cost reduction exceeding $16,200.00 monthly or $194,400 annually. It also generated a carrier credit of $42,000.00.
  • Toll Free Pricing Error – The primary toll free account had not been placed on the proper contract by the carrier. This resulted in approximate over billing exceeding $2,050.00 monthly or $24,600.00 annually. The problem was corrected and a credit of $32,388.04 was generated.

Additional Opportunities

Throughout the implementation phase of this project, it was determined that the client would benefit from a Telecom Expense and Inventory Management provider. With new orders for services along with adds, moves and changes happening sometimes daily, it had become critical to put a management system in place. Having just established a validated inventory and optimized service offering, they were in the ideal place to migrate to a TEM provider. We helped with the provider selection and facilitated the transition process thus enabling assurance against much of what had brought them to us in the first place.

TEM Enables Tracking, Troubleshooting & Planning

  • Place and track all adds, moves and changes through to invoicing using the on-line provisioning tool. As a result, there is massive time savings along with improved tracking and accountability with carriers.
  • Troubleshoot issues at any location using an easy to access inventory tool. Quick access to information has proved invaluable at shortening the duration of trouble tickets with carriers. Accounting is also able to quickly and easily verify invoicing.
  • Strategically plan Telecom changes and work with greater efficiency using an on-line Project tool.
  • Access detailed analytics and reporting quickly and easily utilizing on line tools.

Summary

As a result of the engagement, our client was able to experience a cost reduction of approximately $24,000.00 a month. This was in addition to the significant soft dollar savings associated with the rollout of a TEM service. New procedures were also implemented providing much greater simplicity and control over invoicing and order management. We were effectively able to turn a telecom challenge into a financial resource!

bank telecom