The Total Economic Impact™ Of ClearBank Embedded Banking
Cost savings and business benefits enabled by ClearBank Embedded Banking
ClearBank commissioned Forrester to conduct a Total Economic Impact™ (TEI) study examining the return on investment (ROI) firms can realise with our Embedded Banking proposition.
Download the report to learn how firms are generating new profits, boosting customer retention and delivering fully compliant financial services in a more cost-effective manner with ClearBank.
Key insights
ROI of 90%
Prior to ClearBank, dysfunctional partnerships and the limitations of EMI licences led to innovation delays, operational inefficiency and customer trust issues at interviewed firms. Forrester’s research revealed that Embedded Banking delivers significant ROI with payback in 10 months.
£9.7m in new profits
Forrester’s examination of ClearBank clients and its proven financial model reveals a profit of £9.7m due to product expansion, onboarding and retaining more customers and cross-selling new services to their existing customer base.
10% reduction in customer queries
A central element of ClearBank’s Embedded Banking proposition is its ability to deliver compliant financial services. Forrester estimates a 10% reduction in customer queries due to ClearBank’s stability and resiliency, equating to a cost saving of nearly £63,000 through the reduction of service desk tickets.
3% improvement in customer retention
Real-time inbound and outbound payments, FSCS protection and an improved user experience reduced churn rate. Forrester’s research revealed ClearBank Embedded Banking clients had seen a 3% improvement in customer retention.
“We’re now able to offer better user experience due to the technology behind the embedded banking solution including instant withdrawals, faster payments etc., that was able to keep users happier with their experience and less likely to churn.”
“The fact that ClearBank don't compete with us externally is extremely beneficial.”
“We feel that ClearBank really wants to understand what's in our roadmap and how they can support us. ClearBank is more a partner rather than a provider.”
01
Avoiding the cost of a banking licence Saving of approximately £17m over three years
A central element of ClearBank’s Embedded Banking proposition is its ability to deliver compliant financial services without incurring the substantial cost of applying for a bank licence. Forrester estimated that a new fintech organisation (with the same characteristics as the composite) planning to become a bank would save roughly £17 million over three years by investing in ClearBank Embedded Banking.
The costs avoided include the full banking licence application fees, the minimum capital required by BoE, staff costs, and the cost of SaaS core banking infrastructure needed to run the bank. For an existing firm, for example one that operates as an EMI and is looking to apply for a licence, the application costs are even higher due to increased capital adequacy requirements.
02
Driving growth and operational efficiencies New revenues and improved retention
Forrester’s TEI analysis revealed ClearBank Embedded Banking enabled the composite firm to offer instant-access savings accounts to its existing investment customers, onboard net new customers via savings accounts and cross-sell investment accounts to them. This resulted in additional profits of £9.7m.
ClearBank was also proven to improve customer retention by 3% due to its clients’ ability to offer reliable real-time payments and FSCS protection. The operational efficiency and cost benefits are also seen in clients’ customer support teams, where a 10% reduction in service desk tickets has led to savings of nearly £63k.
03
Pragmatic and strategic partner for growth No direct competition boosts trust
Organisations interviewed by Forrester perceive ClearBank as a partner rather than a service provider. They highlighted ClearBank’s pragmatism and focus on understanding the organisation’s business model and what it was trying to deliver to its end customers.
The research showed clients’ confidence in the bank’s long-term vision and focus on continually improving the embedded banking proposition. That was reinforced by the bank’s unique model of not offering a product direct to consumers, which interviewees commented further boosted their trust in ClearBank.
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The Total Economic Impact™ Of ClearBank Embedded Banking
About Forrester TEI
Forrester’s Total Economic Impact™ (TEI) consulting practice develops business value justification analysis to help organisations understand the financial impact of a technology investment. The TEI methodology has been used for over 20 years by technology consumers and technology organisations.
It consists of four components to evaluate investment value: cost, benefits, flexibility, and risk. It is a proven industry-standard framework that models all aspects of a piece of technology or solution and the associated impacts on the business and illustrates the ROI of products and services.
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