Activity Based Costing in Banks

Since activity based costing (ABC) was first propounded in 1987, many consulting firms have advertised their specialist services and experiences in the implementation of ABC in the banking sector.

But the dearth of available data, published or otherwise, suggests that ABC is not as widely understood and practiced in the financial services sector as one may be led to believe.
Two reasons account for this: firstly, banks find it difficult to define their products and secondly, the banks think that the dififculty may not warrant the cost.

This article defines ABC and then suggests a practical way to define bank products. it also describes a step-by-step approach that has been taken by commercial banks in implementing the concept.

Contact me for the full article.

Comments

Siva of Tata Consulting Services: please confirm that you have received the article.

To: Siva (Tata Consulting Services)
From Dr. John
Kindly confirm to me that you have received the article. Thank you.

Thanks for sharing your thoughts on theatres. Regards

Dear Theo
I am not what youn are refering to on "volume, rate, and mixed variance"
Show me the example where it does not balance.
John

Dear Ewa

What is your email address? I wish to send the ABC article to you

Azmi, I wish to send you a copy of the3 article. Please provide your email address. John

Sassan,

Please email me your email address for the full article

John

Dear John,

My email address is :

sassan.bassiri@yahoo.com

I appreciate receiving your article on ABC in banking.

Best regards,
Sassan Bassiri

I think this is among the most vital information for me.
And i am glad reading your article. But should remark on some general things, The
site style is ideal, the articles is really great
D. Good job, cheers

Hi Bharat. The Activity Based Costing in Banking article has been sent to you already. If you need further clarification on any point in the article, just email to me. Let me know how you are doing on the article from time to time. Hope to hear from you. John

To: Karthik Vanam
From: John Vong

The ABC article has been sent to you.

I am surprised to hear that cost allocation is not popular.
HSBC and Citibank were front runners in the early 80s. Many banks will not share this "secret" with you. Only few people know exactly how ABC is done in banking. It is easier in manufacturing industry.

Banks need to measure product cost so that they can price the product, and with product costing the banks can also calculate customer profitabilty (that is what does a bank get from serving XYZ Company or XYZ Customer Group). Today the banks are measuring return on Risk-Weighted Asset by Customer.

Without product cost, how can banks measure profitability of serving their customers?

The banking industry has come very far, dont be left behind.

Let me know if you need further clarification.

Hi John,

Can you please send me the article. My mail id is

karthik.vanam@gmail.com

Thanks a lot.

Dear John,

Could you please send me the article?
a-andrey1982@rambler.ru

Thank's in advance!

Andrey

TO: Amal (Doctoral Scholar)
From: Dr John Vong

Dear Amal, Please find ABC in Banking article attached.
Yes, I know that al azhar is a very famous university in Egypt.

Dear John,

I am interested in this report as well. Could you please send it into my mail box:

selyhai@hotmail.com

I would like to use it to write my dissertation. Of course I will put you into my reference.

Thank you very much.

Best regards.

Yours sincerely,
Claire

Hi Claire

The article has been sent to you.
Kindly confirm receipt of article.
Thanks

Dear John,
I am interested in this report as well. Could you please send it into my mail box:
akai76@gmail.com.
Also, possibly , could I quote some of your points in to my assignment essay?
Thanks a lot.
Kai

Hi Kai
The article has been sent to you.
Kindly confirm receipt.

Dear John,
I am interested in this report as well, im writing in ABC in banking and i hope you can send me the article related to this supject
thanks
mohd

Hi Mohd
Kindly give me your email address to which I can send the article.
Dr John

Dear John,

My email is

olgaolszewska88@gmail.com

I appreciate receiving your article on ABC in Banking.

Best regards,

To: Olga
From: Dr John Vong

I have sent the article to you.
Kindly check your mailbox and confirm receipt.
Enjoy the reading.

Hey there! This post could not be written any
better! Reading this post reminds me of my old room mate!
He always kept talking about this. I will forward this write-up to him.

Fairly certain he will have a good read. Many thanks for sharing!

Hi John,

Could you please send me the article. My mail id is

hnguyenbk85@gmail.com

Thanks a lot.

Dear John,

My email is

acc4itunes@gmail.com

I appreciate receiving your article on ABC in Banking.

Best regards,

Cabe

Hi Cabe
The article is on the way.
Let me kow if you dont receive it in 24 hours.
DrJ