Success Stories: Banking

When financial services institutions come to us with their challenges, they expect us to cut through complexity and add genuine value. We respond with effective solutions delivered by financial services professionals who are distinguished experts in their fields. Our clients recognize and value the Capco difference – front-line experience, distinctive insights, and a total commitment to success.

Case 01

Major European Bank

Capco conducts payment studies for Asian, international markets for European bank

This European bank offers commercial and retail banking products and mortgage services. The financial services institution also has branches in several Asian countries as well as in North and South America.

Confronting challenges
The bank’s current payments processing in Asia was primarily manual, with limited IT support. As a result, only a limited number of transactions could be processed at a time, causing issues in pricing, cut-off times and product offerings. The financial institution’s international payments strategy in Europe was also highly complex with no overall governance framework. This resulted in high IT setup costs for foreign branches and uncertainty around system readiness to meet requirements for regulatory-driven initiatives such as the Single Euro Payments Area (SEPA). The bank turned to Capco to conduct a payment study of the Asian market and update its international payments strategy for its branch presences of countries in Europe.

For the Asian study, we conducted interviews and workshops to assess branch location, market and product information, competitiveness, and regulatory environment in the complex Asia payments market. We analyzed current payments processes and developed key future parameters (i.e., transaction types, client volumes, product offerings) for a proposed solution. Our team identified areas of improvement for both short- and long-term payments processing and designed several operating model scenarios to transform the bank’s Asian payments processing and enable straight-through processing (STP).

For the European project, we conducted an as-is analysis of the current IT infrastructure, interviewing key representatives from IT, business and operations. We identified redundancies and gaps in IT and functional processes and developed a prioritized improvement road map for dimensions of IT, operations and business to be implemented to enhance payments processing transparency in the European branches.

Key benefits

  • Developed valid scenarios for future Asian payments processing solutions
  • Identified “quick-win” opportunities to support short-term aid for limited operations bandwidth
  • Implemented a road map for every Asian branch using an overall model approach that led to a high degree of automation in payments processing aligned to global and local business aspiration and needs
  • Designed and mapped a European payments processing model using the current infrastructure capability model to provide the bank with a global view of its payments from front to end
  • Conducted a gap analysis to show discrepancies and redundancies in the current European infrastructure, comparing IT, business and operations to market leading practices
  • Identified concrete areas of improvement that led to cost savings and decreased complexity in the bank’s European payments processing operations
Case 02

Global Financial Institution

European bank seeks help transforming e-channel strategy

This global financial institution provides retail banking, wholesale, insurance and wealth management services to customers in the United States, Europe, the Middle East and Asia.

Confronting Challenges
As one of Europe’s largest banks, this financial institution wanted to revise its e-channel strategy for the wholesale division. They sought a clear vision as to how to deliver the required changes to its digital channel.

The client turned to Capco for help in documenting, evaluating and defining its vision and objectives for the new strategy and the potential effect on the digital channel. We evaluated the client’s target capabilities and tested several solution hypotheses against an agreed-upon evaluation framework. In addition, Capco examined several commercial packages to determine if they aligned with the client’s business needs, defined a delivery road map and high-level milestone plan, developed a functionality target model, and performed a bottom-up cost estimation to determine baseline costs.

We presented our banking transformation e-channels study to the financial institution’s IT board and senior business stakeholders to gain buy-in and funding approval for subsequent phases.

Key Benefits

  • High-quality deliverables seamlessly produced gave the bank’s program team confidence in their ability to deliver on the proposed changes
  • Bottom-up cost estimation formed the foundation of the client’s business case for the transformation project
  • Project road map provided a powerful mechanism to gain front-line support and buy-in from senior stakeholders
Case 03

Leading Nordic Financial Institution

Comprehensive delivery: Murex MX.3 upgrade and new Murex module-based securities back office

Our client, a leading Nordic financial institution, wanted effective delivery against the following key objectives:

  • Reduction of Operational Risk for both their Securities Finance and Structured Equity trading business, through the implementation of an integrated Front Office-Back Office trading solution.
  • Increased levels of STP, overall improved trade and event handling and significantly reduced manual processes.
  • An integrated trading platform aligned with the client’s IT architecture goal, harmonizing applications, in order to increase staff efficiency and realize cost savings.
  • Enhanced capability of business units to considerably increase business revenues, due to improved ability to deliver client solutions, and the removal of volume caps.

From a systems perspective a major upgrade was needed, as the target functionalities required in the Front but especially the Back Office and Accounting department were only available in the latest version of Murex (version MX 3.1), which was at that time only used in the Front Office (version MX Generation 2000 2.11). The identified functionality gaps in the Back Office had to be closed over the project journey, as the result of a substantial element of new functionality development.

Murex and Capco developed a joint proposal that created a single, fully integrated consulting and delivery team to handle every aspect of this challenging project, from scoping to implementation. Given the architecture change from the MX Generation 2000 platform to the new MX.3 version, the upgrade and the implementation strategy necessitated close planning and the involvement of Murex itself, leveraging the lessons learned from the two other MX.3 upgrade projects still running at that time.

Today, our client is a satisfied user of the new system, with high expectations of, and confidence in, the technology and its functionality. The client has acknowledged the very professional and committed project delivery approach adopted by Murex and Capco team members — an unstoppable determination in the face of considerable complexity.

To learn more details about the project download the full case study.