Managed services delivery from a. 'virtual captive' center. The processing transformation was initiated as a large, trad
CASE STUDY
Generating technology impact for a major European bank CHALLENGE Develop an efficient processing solution for a new business model One of Europe’s largest banks was moving away from high-risk, high-margin business activities toward lowerrisk/lower-margin ones. To compensate for reduced profitability, the bank needed to focus on per-transaction costs in order to reduce fixed costs in its post-trade operations and technology environment. Foreseeing back-office cost and capacity issues, the bank sought to consolidate to a shared platform and process framework. Its plan: implement a single, efficient multiasset trade processing solution to accommodate the new business model across 23 countries.
Solution Managed services delivery from a ‘virtual captive’ center The processing transformation was initiated as a large, traditional technology implementation with a limited scope, leveraging the bank’s partnership with Genpact Headstrong Capital Markets, to gain cost-effectiveness, speed and flexibility. The scope was then expanded to process all backoffice asset classes on the new shared platform. Genpact implemented the platform’s service delivery in a managed services mode from a “virtual captive” center, achieving unprecedented economies of scale. In addition, the solution handled cash management and the bank’s accounting system interface for general ledger entries. To accommodate still-fragmented front-office systems, Genpact configured the back-office platform to process multiple asset classes, irrespective of front-office systems used. A common process framework was developed and implemented, enabling multiple businesses to largely share the now-consolidated back office. Finally, a “follow the sun” location strategy enabled teams in New York, London, Paris and Hong Kong to provide 24/7 live support for the bank’s traders and operations.
Impact “Industrializing” operations to streamline back-office trade processing led to multiple business process optimizations through a Lean Six Sigma approach— resulting in higher trade volumes, significant throughput increases, and dramatic cost savings.
One-time implementation savings
Established a “virtual captive” with experienced technology and implementation project teams
Genpact engagement begins
Adopted a delivery model unprecedented in the investment banking industry
Over 3 years, delivered multiple business process optimizations through Lean Six Sigma approach “Industrialized” operations to streamline back-office trade processing
40%
reduction Over three years
Worked in offshore managed services mode for sophisticated trading platforms
Implemented multiple productivity improvements to increase volume and scope
33% more business users supported
Doubled batch operations supported
20%
cost savings
Increased geographic locations supported by 33%
In trade throughput Focused on straight-through processing
Minimized human intervention to improve productivity
Increased back-office capacity to process trades
600% increase
Overall Genpact Impact for the Capital Markets Industry
$700 million+
All figures in US dollars
Genpact Limited (NYSE: G) is a global leader in designing, transforming and running business processes and operations. Genpact generates impact for 700+ clients including over 100 of the Fortune Global 500. We offer an unbiased combination of smarter processes, analytics and technology through our 65,000+ employees in 25 countries, with key management based in New York City. For more information, visit www.genpact.com/home/industries/capital-markets or email
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