Internet Bank Benefits from Substantial Postage Savings

Internet Bank Benefits from Substantial Postage Savings

Having to mail up to 40,000 commercial letters a day, one of the leading Internet banks* were keen to save money on their postage overheads by taking advantage of a Royal Mail discount service. By incorporating an IDS mailing solution, over £700 is now saved every day!

  • Mark Williams


*Due to the corporate policy of the Internet bank this case study focuses on, their name and background details have not been published.


With an average of 35,000 marketing letters being mailed each day, the subsequent postage costs were extremely high. The bank was eager to reduce this overhead by taking advantage of the savings offered by a Royal Mail bulk mail discount service. However, with an unconventional envelope design, a bespoke solution was required.


Having previously engaged IDS to install a connectivity and output management system at their UK print centre, the bank approached IDS again for a bulk mail discount system. The solution needed to be integrated without disruption and had to be capable of handling a high volume of mail while still retaining the bank's corporate identity.

IDS used its MailSort On Demand software (part of Funasset's TN Interface solution) to satisfy the bank's bulk mail discount needs.

"We were already familiar with the mailing requirements of a financial services company because we had previously integrated a similar system for London Scottish Bank", states Mark Dowson, Managing Director for IDS. "Furthermore, our knowledge of the Internet bank’s print environment would help to ensure the software was operational and saving money without delay or disruption."

The unconventional envelope used by the bank to mail their letters meant the Royal Mail's OCR equipment would be unable to read any window address or envelope barcode. As a result, the number of bulk mail discount services the bank were eligible to use was restricted to just two – CleanMail CBC, and CleanMail Plus CBC.

Following analysis of the mail data, IDS found CleanMail Plus CBC would save the largest amount of money and also provide continued use of the bank’s envelopes.

Mark explains: “Although CleanMail Plus CBC did not offer the best discount, it did allow the bank to retain their corporate identity. All we needed to do was insert a barcode next to each recipient’s address so the Royal Mail’s sorting machines could read it through the envelope window.”

By using CleanMail Plus CBC, the bank was able to save 10% off their normal postage costs. When applied to 34,000 mail pieces a saving of £715 could be made almost every day (£3,570 p.w. and £185,640 p.a.) and all within the Royal Mail's strict guidelines!

MailSort On Demand was installed on an existing IDS PC alongside the bank’s connectivity and output management software. Not only did this mean an additional PC was not required, it also enabled all correspondence to be distributed and load balanced amongst the bank's suite of Xerox printers.

"The modular design of MailSort On Demand allowed us to easily integrate it with other software and hardware," states Mark. "This adds further value to MailSort On Demand because it can process almost any form of data sourced from almost any host and load share it amongst any number of local and remote printers."

The compatibility of MailSort On Demand makes it an ideal solution for businesses and organisations not normally able to take advantage of a bulk mail discount solution. Furthermore, the sophisticated method used to process data means there is no need to maintain two separate address databases – a prerequisite of most other bulk mail discount software.

"MailSort On Demand simply extracts and verifies customer addresses directly from the correspondence data," comments Mark. “When customer details change, only one data source needs to be updated.”

NOTE: Since integration, Royal Mail discount services have changed and the software supplied by IDS has been updated to reflect this.


  • Substantial Postage Savings
    All savings attained within the Royal Mail’s strict guidelines.

  • Almost Immediate ROI
    The first three weeks postage savings paid for the MailSort On Demand solution!

  • Corporate Image Retention
    Selected discount solution configured so an unconventional envelope could be used!

  • Single Correspondence Source
    Only one database needs to be updated when customer address details change.

  • Fast Turnaround
    Facility to load balance across multiple printers minimises the time it takes for correspondence to reach the mailroom.

  • Future-proof
    Host and printer independent solution means future hardware and software integration is quick, easy and cost-effective.

  • Non-invasive
    No hardware or software changes required on the host or printers.

  • Small footprint
    MailSort On Demand installed on an existing PC alongside other software involved in the printing process.

  • Minimal “down-time”
    Quick and seamless integration of all solutions.

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Funasset Limited is a UK software development company founded in 1986. It specialises in document and mail solutions that are used globally by businesses and organisations including Xerox, Civica, the NHS and local Government. Read more

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