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Activity Based Costing in Banks

john wrote on March 22, 2009 - 2:48pm
in

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

john said on April 27, 2009 - 8:54am

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

john said on April 27, 2009 - 8:56am

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

Indian villages information said on February 16, 2017 - 10:26am

Thanks for sharing your thoughts on theatres. Regards

jonvon said on July 27, 2009 - 8:48pm

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

john said on October 1, 2009 - 10:42pm

Dear Ewa

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

john said on December 23, 2009 - 5:43pm

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

john said on February 1, 2010 - 11:43am

Sassan,

Please email me your email address for the full article

John

Sassan Bassiri said on June 15, 2010 - 1:57pm

Dear John,

My email address is :

sassan.bassiri@yahoo.com

I appreciate receiving your article on ABC in banking.

Best regards,
Sassan Bassiri

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john said on May 31, 2010 - 1:26pm

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

john said on October 26, 2010 - 10:58pm

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.

Anonymous said on September 22, 2010 - 8:00pm

Hi John,

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

karthik.vanam@gmail.com

Thanks a lot.

Andrey said on October 26, 2010 - 6:49pm

Dear John,

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

Thank's in advance!

Andrey

john said on October 29, 2010 - 3:10pm

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.

Claire said on April 28, 2011 - 1:54pm

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

john said on April 29, 2011 - 10:15am

Hi Claire

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

Kai said on May 7, 2011 - 10:06am

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

john said on May 7, 2011 - 10:05pm

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

Anonymous said on April 7, 2012 - 7:50pm

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

john said on April 8, 2012 - 10:49pm

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

Ola said on September 7, 2012 - 12:12am

Dear John,

My email is

olgaolszewska88@gmail.com

I appreciate receiving your article on ABC in Banking.

Best regards,

john said on September 7, 2012 - 10:23am

To: Olga
From: Dr John Vong

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

case interview said on April 17, 2015 - 6:50pm

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!

Hoang said on September 20, 2013 - 12:57am

Hi John,

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

hnguyenbk85@gmail.com

Thanks a lot.

Cabe said on October 3, 2013 - 10:58am

Dear John,

My email is

acc4itunes@gmail.com

I appreciate receiving your article on ABC in Banking.

Best regards,

Cabe

john said on October 3, 2013 - 11:10am

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