TO:

HEAD OF IT - CDSC

FROM:

DATABASE ADMINISTRATOR - CDSC

SUBJECT:

JUSTIFICATION FOR PURCHASE OF A NEW STATEMENT MAILING

SOLUTION
26-05-2014

DATE:

Background
A mechanism for sending out monthly statements to clients or account holders is one of the most
important and at the same time, critical application for any organization that is in the business of banking
or depository of share equities and debt securities. Such kind of a statement mailing solution will not only
reduce manual labor on the IT resources but it will also help in cutting costs for the organization
significantly.
Introduction
This justification paper tries to explain the importance of having an efficient, error free and totally
automated email statement disbursement solution in reducing human intervention and cutting costs to
CDSC.
The need for implementation of a new statement mailing solution is long overdue since what we have
currently is running short of its expectations. What is in use now has an expired license and apart from
that, it requires much human intervention for efficient run, which is subject to human errors. The expired
license means that CDSC is going against ethical IT standards.
Cost reduction is also a factor that is considered in implementation of any application. A sample analysis
of how cost can be reduced with the proposed solution is presented in the attached excel file. The analysis
shows that we shall be saving costs worth kshs. 560,560/= annually from sending statements with
multiple registrations. This figure is from year 2013 and if year 2014 is added upto March, we would be
saving Kshs. 705,460/=, hypothetically, in a period of 5 years, our cost reduction on statement printing
and mailing would be Kshs. 3,527,300/=.
We can also go further and make more reductions in cost, considering that we are making requests to
investors to update their static details especially the email accounts which are important to our statement
disbursements. In 2013, we used Kshs. 5,345,655 /= to print and send statements, with the proposed
solution, we can half this to Kshs.2,6728,27/=, together with multiple registration prints, I foresee a
reduction cost of Kshs. 3,233,387/=.

EMAIL STATEMENTS
ANALYSIS.xls

Proposition
I propose we implement a new statement disbursement solution and a quote from SimbaTech Solutions
can be considered. The quote is attached below for review;

CDSC_QRT_2014.PN
G

Kindly review and advice,

Andrew E. Okoth

Database Administrator