Case Stories: Finance

The financial community may be struggling to improve the performance of their portfolios and to address the continual need to handle more and more onerous legislation, however it remains the key component in the quest to establish new and more innovative companies.

For niche players, the message is to protect their niche, strengthen their ability to sense market changes and their ability to respond.

For global and multinational players aiming to increase their customer base and market share, our observation is: you cannot do high volume, low margin business without IT.

The message for domestic banks is not to be too complacent about customer loyalty – history has shown that the customer is price sensitive.

As a general comment to the sector we would add that being too technology driven without an attendant analysis of operational processes can be a recipe for disappointment.

Research has identified the following particular issues to be current:

Due Diligence, a risk-based approach to customer relationships. Financial firms are obliged to apply basic Know Your Customer requirements but are changing what they will have to do in addition. Now financial firms must define what they consider to be customers with a higher risk, depending on the nature of their business against certain criteria. Every financial firm has to define these risk-based criteria for the client relationships themselves
Codification of processes, to address talent shortage and skills acquisition. Many companies' propose employees who are both expensive and highly knowledgeable. Many of these personnel undertake tasks that are repeated many times. These resources are often found to be scarce and expensive.
E-security should be viewed as an asset not a cost. The damage caused by cyber-crime is not just financial. It can also affect a company's image and personnel, it has legal implications, and it may even cause a loss of competitiveness.

EXTERNAL INVESTIGATION

Impact of legislation

We investigated the likely effects of new government regulations on a key market segment for a global pensions company. By analysing the evolution of US pensions industry following similar legislation we help the client to determine the likely profitability of their proposed future products.

Channel partner identification

Through an analysis of our pension client's individual channel partners we developed a push (to the FS intermediary) and pull (to the end customer) marketing strategy. Resources for implementing this strategy were then allocated based upon our analysis of which FS intermediaries or prioritisations would deliver the fastest return on investment.

INTERNAL ANALYSIS

Technical Strategy Study

Swiss Private Bank This covered the overall bank's functions, including, client marketing within the front office, management information system, data entry for the front, middle and back office. The services included, technical & applications environment study business requirements, design of the technical and application architecture, migration and IT strategy plan.

Harmonising IT strategy

Major Swiss Universal Bank Create a single harmonised IT strategy for all units, encompassing both organisation and systems. The Europe division's IT Strategy to support the Bank in the development of a common IT strategy for its European operating division.

Vulnerability audit of the trading and administrative systems

Major European Stock Exchange The audit was commissioned after a number of system problems had disrupted normal trading activity. Our report described major problem areas, suggested short and long term solutions and highlighted areas for further detailed investigation.

European Investment and Retail Bank

Standardisation of management processes and improvement in knowledge management by integrating the subsidiary companies of the group using a corporate portal. The portal also enabled the cost effective delivery of employee services

IMPLIMENTATION SUPPORT

Web Based Payments System

Pensions & Insurance. A large and very successful pensions provider urgently needed to find a way of reducing the pressure on its back office. One of our Associates was assigned to build a team drawn from the company's Sales, Marketing, Legal and IT departments and to plan and manage the implementation of a new web-based payments subsystem which would augment the company's existing web-based sales system. In six months this enhancement was successfully implemented - at a cost of £300,000 - and marketed, with the result that the company's share of new pensions business was doubled while avoiding significant additional staffing costs.

Major Italian Investment Bank

Asset Management: online fund management improves customer relationships. Creation of a B2B and B2E knowledge management/sharing system to integrate product development and financial information across all sales channels of the group

Major Swiss International Bank

Realisation of Financial centre open to the public designed to attract existing and potential clients to an environment where they can receive market information (e.g. financial stock markets, portfolios, etc) and specific assistance with their own products.

American Global Credit Card Company

Implementation of a multi-lingual corporate portal across 11 European countries, designed to improve access to company knowledge, brand communication, and improve the efficiency of delivering new services to clients

Red Consulting SA

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