Capco Transforms Leading Investment Bank Operations

Capco initiatives secure $120M reduction in operating expenses.

The capital markets and wealth management operations of this large North American investment bank had evolved without the benefit of a guiding strategy. This unstructured organic growth resulted in a lack of operational efficiency and a fragmented, inconsistent control profile. This led to deficient levels of customer service and significant regulatory compliance issues.

Capco’s project team conducted a detailed, bottom-up review of client operations and technology functions, and developed a best-practice target architecture and business case. Our target environment design incorporated an exception-based straight through processing (STP) environment, centralized storage and dissemination of data, and the use of workflow tools to build intelligence into the operations user interface. We also delivered a re-engineered operations organization to optimize efficiency, control and client service provision.

Benefits

  • Reduction in operational DOE by 40%, from over C$200 million to less than C$120 million
  • Payback period of 3.5 years including full redundancy costs, 2.75 years without redundancy
  • ROI over a five-year period of 125%, based on a discount rate of 15%
  • Markedly improved operational efficiency and control
  • Greatly improved customer service
  • Reduction in operational errors and operational risk capital charge