Bank shaves up to 40% off telecom costs using UC
WesBanco's Cisco network already pays for itself
By
Jim Duffy
,
Network World
, 06/02/2008
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West Virginia-based WesBanco Bank, which provides financial services to the residents and businesses of West Virginia, Ohio,
and western Pennsylvania, grows through acquisition.
In addition to buying the assets of other banks it takes on the liabilities too – specifically, disparate, disjointed and
far-flung telecommunications networks that were difficult to integrate and manage.
"When you go through those acquisitions you inherit what they have in place," says Mark Krupinski, WesBanco senior vice president
and data security officer. "We had a conglomerate of different key systems out there. People couldn't go from facility to
facility and know how to communicate effectively. It came to a point in time where we decided we need to redesign it to be
a multiservicing network."
WesBanco began planning its unified communications network in 2004 and deploying it in late 2005. The bank decommissioned
several decentralized PBX systems from multiple vendors and installed a centralized Cisco Unified Communications Manager call control, systems at its Wheeling, W.Va., headquarters and Cisco Integrated Services Routers
(ISR) at branch locations.
The system performs call control and routing for 2,000 Cisco IP phones at 160 locations, Krupinski says. It also provides
four-digit dialing, in-house audio conferencing and group distribution of voice mails.
WesBanco invested $1.5 million to $2 million into the network and it's already paid for itself. The bank is shaving $1.2 million
per year off its telecommunications costs, a reduction of 33% to 40%, Krupinski says.
"It floated to the level of the board of directors, and the CFO was marching in himself to say, 'Look what we saved on this
project,'" he says.
Much of that savings is due to:
• Local telecom cost reduced by 63%.
• Long-distance cost reduced by 69%.
• Equipment\maintenance cost reduced by 45%.
• Leased line expense reduced by 21%.
• Other communication-related expenses reduced by 18%.
The system features toll bypass, which allows WesBanco to eliminate plain old telephone system lines to local carriers and,
in essence, become its own phone company. Calls to Pittsburgh, Cincinnati and Columbus, Ohio, are like calling down the hall,
Krupinski says.
But the success of the deployment is because of education and training of WesBanco personnel on the features and functions
of their new phones; and to a gradual and phased rollout of the system.
"We were really big on educating our user community on what it was they were going to get and how that was going to be different,"
Krupinski says. "We pushed our education internally hard. We went out and took the time to mimic, Day One, this is how you
were used to doing your phone calls before we came in; and then we're going to come back and try to do things for efficiency
reasons. Where some mistakes were made is a lot of people come in and say, 'Look at all these wonderful things you can do
and we're going to do them all Day One.' You end up confusing your user community."
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