Retail core banking services costs optimization

Abstract

There is a very rigid structure on the market of retail core banking services in the Czech Republic. Main factors are low client mobility and non-transparency of tariffs. European Union Directorate-General for Health and Consumers Protection focuses on tariff transparency, client mobility and easier product comparison improvement. In accordance with these efforts in 2010 in the Czech Republic there was launched an independent retail core banking services calculator project (thereinafter as Calculator). Its purpose is to compare bank fees of different accounts based on demanded services and price. Each customer inputs his or hers usage pattern and the RCBS Calculator suggests the cheapest alternative on the market in the Czech Republic. The aim of this paper is to present group of inputting data in this system in the UML format and to compare results from September 2010 till May 2011. Available data from the clients are burdened by effort of non-transparency of fees structure from the banks in the market. From the presented data comparisons we can see the cheapest account on the market. There is a presumption, that more clear information about the cost of banking accounts will help local customers to orientate on the banking market and to optimize their expenditures.