Message from Our CEO

Imagine. Innovate. Industrialize: Framing the challenges and opportunities that lie ahead in the global financial sector.

It’s already been an eventful year. From a new crisis in the Eurozone, to fresh controversies that impact the reputation of the industry, there’s little doubt that this year will be another daunting experience for the financial sector. Although recent quarters have seen profits approach pre-crisis levels, the picture is less cheerful once you dig deeper. Capacity is still too high, return on equity too low, and costs continue to rise as institutions come to terms with wave after wave of new regulation.

How do you transform such challenges into opportunities? We believe that industrialization is the answer to this formidable question. Banks must be bold and look at how other sectors have used this approach to recover from similar storms of competition, regulation and falling demand.

Here, it’s important to distinguish this vision of industrialization from outsourcing. This is not about a homogenized approach to brands, customer service and product portfolio. Rather it is about the radical rethinking of traditional operating models and recognizing where and when technology can streamline, eliminate or otherwise improve internal processes.

First, the opportunity to address current over-capacity in banking. Innovative financial institutions will capture the huge un-banked market. At the same time, the sector will engage with the hyper-wealthy individuals in our emerging economies. As a result, current excess banking capacity can be taken up once again.

Second, industrialization can help banks regain healthy, sustained return on equity that meets the demands of all stakeholders. Third, industrialization is a key driver that

can help banks reassert their brands as a source of trusted financial expertise and so recover universal consumer confidence.

Positive change will come to all areas of the banking operation, not just the more basic ‘run-the-bank’ functions. Service to customers will become more not less personalized, while risk is better understood and more effectively managed, and the industry’s heritage of data protection and handling is fully leveraged.

Throughout this process Capco will remain committed, as expert consultants dedicated to the financial sector, to bringing the very best innovation to our clients, helping them realize in every sense the benefits of industrialization, and joining them in imagining and then forming the future of financial services.

As a result, more time, more human ingenuity and more investment can be focused on what really matters: exciting, rewarding, retaining and winning customers—while once again making attractive returns for the business.

It may sound like a very big challenge indeed. But, with imagination, vision and determination, it can and will happen.

As always we remain committed in our quest to help in forming the future of finance.

Rob Heyvaert
Capco Founder, Chairman & CEO
Corporate Executive Vice President and member of the Executive Management Team of FIS