Success Stories: Capital Markets

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

German Bank

Leading international bank seeks help simplifying systems inventory

Located in major financial centers around the world, this leading German banking and financial services company offers financial products and services in Europe, the Americas, Asia-Pacific and emerging markets. Its offerings cover wealth management, retail banking, fund management, corporate finance, risk management and derivatives.

Confronting challenges
To reduce costs, the investment bank wanted to simplify its architecture landscape by retiring old systems and consolidating the remaining core platforms. Capco was engaged to lead an assessment to determine the application rationalization business case and to initiate a program to deliver these benefits.

The Capco team used Capco’s Application Rationalization assessment approach, delivery method and tools on this engagement. Capco’s Application Rationalization assessment approach is to develop a consolidated inventory of current applications, identify potential systems for retirement and determine the potential size of the simplification benefit case.

The Capco team began by capturing key attributes of current systems (i.e., user numbers, incident numbers, application fate), confirming primary IT ownership and building a mapping of each application to the client’s functional model. This was based on pre-existing architecture documentation and a series of workshops held with key management. The team then built an application current-state landscape model using Capco’s Edge tool, and then used this tool to drive the identification of gaps in the application to functional model mapping and to support workshops to confirm whether the function/system should be retired, outsourced or kept in-house as a strategic application.

The resulting consolidated application catalog and current-state architecture landscape mapped each system to its function within Capco’s Edge tool. The catalog allowed the analysis of system functionality, the identification of clusters of systems that shared the same function, and the illustration of the current set of systems that could migrate onto a smaller set of common platforms. Leveraging the Capco Application Rationalization method, the team also developed and piloted an end-to-end IT process to create business cases for system retirement and track approved business cases through to implementation and closure. The process allowed our client to have confidence that the planned benefits would be delivered by the simplication program.

Key benefits

  • Rapidly identified the scale of the retirement opportunities within the current application landscape and developed strategies to exploit those opportunities
  • Confirmed relationship between organization and application, which enabled clear operational responsibility for driving the decommissioning and realizing the savings
Case 02

Securities Trader

Leading securities trader seeks help migrating from three platforms to one

This global securities trader provides advisory and capital markets services to corporations, governments and institutions throughout the world.

Confronting challenges
The company wanted to consolidate its interest rate derivatives trading business from three platforms to one (Calypso). The project affected business units in Toronto, London, Ireland and Singapore. The securities trader also wanted to take advantage of middle office and operations automation available through the new system.

Capco was engaged to develop business requirements, assess current and target-state processes, and develop a migration strategy. We began by assessing trade and market data, products, volumes, risk, and profit and loss processes across approximately 100,000 trades, multiple business units and four geographical areas. We gathered business requirements from numerous areas across the organization, including operations, trading and credit risk, margin and collateral, and accounting and finance.

We worked closely with the client’s technology team to configure the new environment, develop a migration strategy, and integrate other systems and data onto the single platform. In addition, we coordinated testing across more than 20 business groups and developed a go-live strategy.

Key benefits

  • Developed an enhanced product modeling and selection process
  • Designed more accurate risk processing procedures
  • Streamlined operations to help increase automation, reduce complexity and redundancy, and standardize processes
  • Reduced trade, market, credit and liquidity risks due to improved modeling and accuracy
  • Improved operational flexibility
Case 03

Capco Helps Global Transaction Processing Company to Eliminate Highly Manual Processes

Capco intervention secures significant margin gains.

A transaction processing service provider contacted Capco to assist with process improvements which would help the firm to attain a 30% operating margin over a three-year period. The high number of manual processes had depressed margins; the client also wanted to achieve some separation from a core platform running on an aging mainframe system.

The Capco project team:

  • developed the business case for an operations transformation program which included a BPCM layer to manage human interaction;
  • conducted activity analysis, focusing on identifying and measuring user behaviours in the existing operational environment;
  • facilitated workshops with business service heads and users;
  • completed a detailed activity matrix for each operations focus area and adjusted initial benefits against real-life scenarios;
  • defined as-is and to-be process models to visualize user activity changes, common service usage and implied efficiency savings; and
  • prepared roadmaps for the work-stream releases and their associated benefits realization schedules as input to the business case model.

Benefits

  • The three-year program projected a 32% gain in operational efficiency
  • The efficiencies created by the new system would allow the client to recoup implementation costs in four years.
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