WalletSizing^® represents a breakthrough approach in Bank Relationship Management (BRM). The naming is derived from the banking world, where the ‘size of wallet’ describes the business potential a corporation represents to the banking world and the ‘share of wallet’ indicates each bank’s share in the total banking business.

Banks play a crucial role in economic and business live. Every enterprise requires banking products ranging from payments and current accounts to funding, trade products and derivatives. Managing banking relationships is a core discipline within corporate financial functions covering for requirements such as secure market level conditions, access to funding and banking capabilities.

Thereby corporations are challenged in many ways within their daily BRM activities, in areas such as:

• Gaining visibility on their banking business across the corporate landscape
• Difficulty to reference to market level conditions
• Consistent judgment of quality and service levels
• Balancing best practice pricing and required service levels
• Empowering local management while securing corporate interests, such as concentrated buying power
• Establishing the ideal number of bank relations
• Insuring each bank’s fair share of business, depending on strategic relevance

WalletSizing^® provides a holistic approach to BRM solving the essence of the challenges experienced in daily BRM, resulting in a win-win for clients and banks.

WalletSizing^® results in an information lead, providing insight into:

• The revenues generated for each bank: To visualize the full scope of banking revenues and linking corporate banking costs with the associated sales revenues in the P&L of each bank
• The Return On Solvency (ROS) generated for each bank: ROS represents the prime KPI: The contribution of the client’s relationship to the bank’s return on equity
• Quality scoring on service levels
• The potential to improve conditions, quantitative and qualitative, on a continues basis

The information lead enables the like for like comparison of all bank relationships at ROS level providing instant identification and execution of optimization opportunities, creating significant business value.

Enabling the ROS visibility requires the analysis of multiple factors, such as:

• The bank’s capital requirements
• The latest Basel Accords
• The consistent calculation of banking revenues
• The client’s credit rating

Performing WalletSizing^® requires the management of many interdependent factors and therefore demands for a rigid overall structure, which includes a level of flexibility in the analysis at lower product levels to adequately reflect individual banking profiles. These requirements apply to companies large and small. Subsequently Vallstein provides multiple solutions tailored to the different requirements of companies, described in the Vallstein solutions area.