Journal Detail

Journal 16 – Transformation 2

April 2006

This 5th anniversary issue of the journal features a special series of papers based on the presentations given at the recent SIBOS conference. These articles, referred for the first time, represent some of the best thinking from that conference and include important contributions on areas such as the efficiency of international labor and financial markets and the practical application of transformation ideas.

Why would the Journal of Financial Transformation dedicate — again — an issue to transformation, you might ask? Well for one, transformation as a theme in the financial services industry is a dynamic concept, which changes over time depending on market conditions, changing insights, and technological developments. Our last Journal dedicated to transformation was published in November 2003, and in the 30-odd months that have passed since that date, the concept of transformation has matured considerably.

In that that issue, we described the convergence of developments in the economic, technology, regulatory, and enterprise design spheres that are allowing leading financial institutions to develop and implement radically new business models and architectures at both the firm and industry levels. These developments have since continued at break neck speed: regulatory developments such as MiFID are taking shape, helping to transform the way the industry works; operations offshoring or sourcing to BRIC countries and beyond have come of age, and no longer just focus on labor arbitrage but on quality as well; and widely available workflow-based technology solutions allow financial institutions to rapidly modernize business models and architectures.

The early adopters of transformation in the financial services industry, such as CIBC in Canada, have started to reap the benefits associated with implementing the (sometimes painful) operational concepts that follow from the strategic principles they set at the beginning of their transformational journey. A top-down transformation of their businesses supports ongoing improvements in their efficiency ratios, making them market leaders in efficient and effective operations and technology management. These institutions are now in an improved position to grow, to enable new product roll-outs, and to adapt rapidly to new and changing market conditions.

It is in this market space that Capco has helped many financial institutions to transform their business, operations and technology, and we will continue to do so in our quest to form the future of finance. This Journal is a testimonial to this quest, and contains contributions from several institutions that have made successful transformations. This issue is supported by Sibos, which dedicated its last successful event in Copenhagen late last summer to transformation. This is more evidence that the financial services industry has embraced the concept, has started to transform “transformation” itself, and continues full speed ahead.