Revenue Leakage In Banks Meaning

Instead of correcting errors after they occur or not detecting and correcting them at all revenue assurance enables the csp to examine and plug dozens of actual or potential leakage points throughout the network.

Revenue leakage in banks meaning. These conditions often result in many businesses being exposed to material levels of revenue leakage across some or all of their revenue streams. Revenue leakage defined revenue leakage is the unnoticed or unintended loss of revenue from your company. It results in a gap between supply and demand. We can see that bofa s revenue is well balanced with roughly half of the bank s revenue coming from fee and service income.

How to identify revenue leakage. Some businesses are aware of the value they are leaking but don t have the capability to manage this risk while others are still unaware of how much they are losing. In keynesian economics the process of removing money from the economy. Leakage is an economic term that describes capital or income that escapes an economy or system in the context of a circular flow of income model.

Revenue assurance is the application of a process or software solution that enables a communications service provider csp to accurately capture revenue for all services rendered. Savings imports and taxes are leaked out of the economy though they may come back in through the spending of one s savings exports and government injections keynes circular flow model subtracted the value of leakages from national output to identify aggregate output. Net income of 18 2 billion is the profit earned by the bank for 2017. Ask yourself these questions to know if you re at risk for experiencing revenue leakage.

Now that you understand some of the most common occurrences of revenue leakage for small business owners let s apply that knowledge to your own bottom line.