Your monthly revenue results are in!

Estimated monthly revenue increase for your SMB portfolio at the end of year 1

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Understanding your revenue opportunity

To calculate your ROI with Autobooks for your first year, simply fill-out the fields in this page and the next.

Note: Only factor in account holders who rely on your digital banking channels

Note: Only factor in account holders who rely on your digital banking channels

Step 1

Calculating the transactional revenue share value of an SMB that actively gets paid through Autobooks.

Business Retail
10 10 Average number of monthly transactions These numbers are derived from historical company data.
$650 $350 Average transaction amount These numbers are derived from historical company data.
2.89% 2.89% Transaction processing rate This is the current rate for processing card-based transactions. For our purposes here, we’ll calculate all transactions as card transactions.
70% 70% Estimated transaction processing cost Transaction processing costs are based upon system wide estimates of 70%.
15% 15% FI revenue share percentage This is the percentage of revenue shared with your FI.
$8.45 $4.55 Monthly Transactional Revenue

How did we get this answer? See the detailed analysis

The formula to calculate monthly transaction processing revenue per active SMB is built upon these four calculations (steps 1-4 below):

  1. Total monthly processing volume per active SMB
  2. Gross transaction processing revenue to share
  3. Net transaction revenue to share
  4. Monthly transaction revenue per active SMB

1. Total monthly processing volume
First, let’s determine the total dollar amount processed per month by an active SMB. Below are the system-wide averages, per SMB, for both number of transactions processed per month, and average dollar value per transaction.

2. Gross monthly transaction processing revenue to share
Next, we multiply the monthly processing volume times the processing/interchange rate. This determines the gross amount of transaction processing revenue to be shared. For the purposes of this guide, we’ll calculate all transactions as card transactions with a rate of 2.89%.

3. Net monthly transaction processing revenue to share
Next, you will take the gross transaction processing revenue and subtract the estimated transaction processing costs. Transaction processing costs are based upon system-wide estimates of 70%.

4. Net monthly transaction processing revenue for the FI
Finally, we multiply the net transaction revenue times the FI revenue share percentage.

Step 2

Estimating how many active SMBs your FI may have at the end of year 1.

Business Retail
Total number of online accounts entered at the beginning These numbers are based on the information you entered at the very beginning.
100% 15% Accounts that are eligible for Autobooks The 15% is based on industry-wide estimates of retail customers exhibiting micro-business behavior.
5% 5% Estimated Autobooks adoption at the end of 12 months We assume a 5% adoption rate at the end of year 1.
55% 55% Payment activation rate These percentages are derived from historical company data.
Active Number of SMBs at the FI

How did we get this answer? See the detailed analysis

The formula to calculate monthly transaction processing revenue per active SMB is built upon these four calculations (steps 1-4 below):

  1. Total monthly processing volume per active SMB
  2. Gross transaction processing revenue to share
  3. Net transaction revenue to share
  4. Monthly transaction revenue per active SMB

1. Total monthly processing volume
First, let’s determine the total dollar amount processed per month by an active SMB. Below are the system-wide averages, per SMB, for both number of transactions processed per month, and average dollar value per transaction.

2. Gross monthly transaction processing revenue to share
Next, we multiply the monthly processing volume times the processing/interchange rate. This determines the gross amount of transaction processing revenue to be shared. For the purposes of this guide, we’ll calculate all transactions as card transactions with a rate of 2.89%.

3. Net monthly transaction processing revenue to share
Next, you will take the gross transaction processing revenue and subtract the estimated transaction processing costs. Transaction processing costs are based upon system-wide estimates of 70%.

4. Net monthly transaction processing revenue for the FI
Finally, we multiply the net transaction revenue times the FI revenue share percentage.

Step 3

Calculating the subscription revenue share of an SMB that upgrades to our accounting and reporting package.

Business Retail
Active number of SMBs at the FI These numbers are carried over from the previous section.
15% 15% Subscription rate These percentages are estimates derived from historical company data.
$3.33 $3.33 FI revenue share Your FI will receive 33% of the $9.99 subscription fee (about $3.33).
Monthly Subscription Revenue
Total Monthly Subscription Revenue

How did we get this answer? See the detailed analysis

The formula to calculate monthly transaction processing revenue per active SMB is built upon these four calculations (steps 1-4 below):

  1. Total monthly processing volume per active SMB
  2. Gross transaction processing revenue to share
  3. Net transaction revenue to share
  4. Monthly transaction revenue per active SMB

1. Total monthly processing volume
First, let’s determine the total dollar amount processed per month by an active SMB. Below are the system-wide averages, per SMB, for both number of transactions processed per month, and average dollar value per transaction.

2. Gross monthly transaction processing revenue to share
Next, we multiply the monthly processing volume times the processing/interchange rate. This determines the gross amount of transaction processing revenue to be shared. For the purposes of this guide, we’ll calculate all transactions as card transactions with a rate of 2.89%.

3. Net monthly transaction processing revenue to share
Next, you will take the gross transaction processing revenue and subtract the estimated transaction processing costs. Transaction processing costs are based upon system-wide estimates of 70%.

4. Net monthly transaction processing revenue for the FI
Finally, we multiply the net transaction revenue times the FI revenue share percentage.

Your Estimated ROI Results

Business Accounts

$8.45

Monthly Transactinal Revenue

X
--

Active Number of SMBs at the FI

=
--

FI Monthly Transactional Revnue

Retail Accounts

$4.55

Monthly Transactinal Revenue

X
--

Active Number of SMBs at the FI

=
--

FI Monthly Transactional Revnue

Subscription Revenue

0

Business Accounts

+
0

Retail Accounts

=

Total Monthly Subscription Revenue

By establishing the estimates in the previous steps, we can now calculate the monthly revenue at the end of year 1.

Business Accounts

$8.45

Monthly Transactinal Revenue

X
--

Active Number of SMBs at the FI

=
--

FI Monthly Transactional Revnue

Retail Accounts

$4.55

Monthly Transactinal Revenue

X
--

Active Number of SMBs at the FI

=
--

FI Monthly Transactional Revnue

Add totals to the monthly subscription revenue

+
--

FI Monthly Transactional Revnue Business

--

FI Monthly Transactional Revnue Retail

Total Monthly Subscription Revenue

=

Total Monthly Revenue of Active SMBs - End of Year 1

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