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