Calculations

The following calculations were used to produce the revenue projections that were stated on the homepage of the website.

Additional revenue of $936,000 per year:

  • 1

    Assume 3 NAOs per branch per week.

  • 2

    Assume an increase of 2.0 additional products/services (accounts) at each of these NAOs above and beyond existing baselines.

  • 3

    Assume branches are open 52 weeks per year.

  • 4

    Assume an average of $30* (conservative) revenue per additional product/service sold.

  • 5

    3 X 2.0 X 52 X 30 = $9,360 additional per branch revenue per year.

  • 6

    $9,360 * 100 = $936,000 additional revenue per year for 100 branches.

* The average incremental revenue per branch per year will vary and depend upon the number of NAOs per branch per week, the number of additional products/services sold per NAO, and the specific additional mix of products/services sold at NAOs, along with individual bank revenue calculations.

Additional total five-year revenue of $14,040,000** by the end of 5 years:
Note: The following presumes that all incremental accounts opened at NAOs would remain active and utilized.

  • 1

    Year 1: $9,360 of additional per branch revenue in the first year.

  • 2

    Year 2: $9,360 from new NAOs plus $9,360 revenue from retained additional products/services sold at NAOs (retained accounts) = $18,720

  • 3

    Year 3: $9,360 from new NAOs plus $18,720 revenue from retained accounts = $28,080

  • 4

    Year 4: $9,360 from new NAOs plus $28,080 revenue from retained accounts = $37,440

  • 5

    Year 5: $9,360 from new NAOs plus $37,440 revenue from retained accounts = $46,800

  • 6

    Total of incremental revenue by combining incremental revenue per year = $140,400 additional per branch revenue over 5 years.

  • 7

    $140,400 * 100 = $14,040,000 additional revenue over 5 years for 100 branches.

** The incremental total five-year revenue projections will also vary and depend upon the ongoing average revenue of the retained products/services sold at NAOs in years 2 through 5.

Additional Revenue

  • 1

    As there is a direct relationship between the number of products/services held by customers at a single bank, and the retention of accounts by that bank, it is reasonable to assume that customer attrition will be reduced. This will clearly have an additional economic value for the bank.

  • 2

    As the NAO Cross-Selling Process also increases cross-selling with existing customers, there is significant incremental revenue generated.