Commercial Banking

Providing innovative solutions to reduce costs, simplify trade finance and comply with regulatory requirements

Regulatory compliance and higher capital requirements, combined with a slow economy and the need to develop innovative solutions, are driving commercial banks to focus on reducing costs, improving customer service and operational efficiency, and managing risk more effectively.

Commercial banks need to develop innovative and holistic cash management and payment solutions that help customers drive their own bottom-line growth. For example, e-invoicing technology is becoming a critical link between customers’ internal processes and their bank’s payment system.

In addition, financial institutions must leverage technology to simplify trade finance and provide end-to-end trade solutions to help clients facilitate international trade more effectively. They need to be flexible enough to integrate with software vendors, meet current industry standards and regulatory requirements, and create a collaborative environment for all players in the supply chain.

Leveraging Capco’s expertise
Capco’s commercial banking practice has the business and technical expertise to help commercial banks; customize products to meet local and global regulatory requirements; and to invest in technology to drive efficiency and improve operating model optimization. Our capabilities and structured approach enables financial institutions to respond effectively to global market challenges and opportunities.

From strategy to design to detailed implementation, we offer holistic, end-to-end services. Our commercial banking experts work side-by-side with our clients to develop innovative solutions and delivery models to meet their unique needs.

Specific capabilities include:

Business strategy development – Our approach is built on a pragmatic understanding of available alternatives rather than a solely strategic methodology. We help banks assess current performance, identify strategic options and qualify opportunities.

Client segmentation – Our services focus on diverse areas such as sales activity, channel offerings, new proposition development, pricing and operational organization.

Market entry strategy – We combine strong research skills with our knowledge of the industry to help banks understand their current strategy, analyze competitors, define go-to-market requirements and evaluate the financial feasibility of potential opportunities.

New proposition development
– We focus on understanding the client’s needs from the client’s perspective and appreciating how far an organization may have to change to deliver benefits from new products or solutions.

Revenue opportunity review – Our short evaluation can lead to a quick impact on top-line revenues. We focus on addressing revenue in different ways including; assessing reissuance programs; more effectively capturing fees to reduce revenue leakage; improving the alignment of risk to customer pricing; and reviewing the costs of tariffs.

Target operating model and transformation plan – We evaluate current operating models end to end to determine if a client can more effectively deliver sustainable cost savings through offshoring or outsourcing activities or with the introduction of new products and services.

Organizational design – Our approach examines the inter-relationships between sales, product management, compliance and risk, operations and IT to determine if a bank’s organizational structure needs to be revised to better deliver its strategy.

Operational excellence – We use LEAN methods to help banks identify how to achieve operational excellence within the constraints of limited investment, particularly in IT. Our approach focuses on process re-engineering as well as management processes that drive operational productivity.

Onshore/offshore opportunities – We identify the potential of using third-party providers to lower costs and improve productivity. A key prerequisite for considering an onshore/offshore model is the maturity to see the benefits of such an approach.

Technology architecture and road map – Our architecture, design and plan methodology allows commercial banks to identify how they can deliver business strategy while also creating greater flexibility in their IT applications. Our methodology ensures that there is a clear link between the business strategy and the IT program.

Vendor and package evaluation – Our approach enables a bank to robustly choose a vendor or package that can be easily integrated with its procurement processes and principles.

Helping clients succeed
Capco’s domain expertise in commercial banking translates into success for our clients. Our experienced professionals can help banks improve cash management and payments, differentiate transaction services to solidify customer relationships, and upgrade online banking applications to personalize service choices and information. Because most of our consultants have previously worked within the industry, they understand the issues at hand and can hit the ground running.

Specific projects we have worked on include:

  • Helped a leading private bank review current operation flow, reduce manual processing, identify risks, conduct competitive benchmark analysis and provide recommendations to improve efficiency
  • Designed and mapped an international payments strategy for a major European bank that provides end-to-end global view of IT, business and operations
  • Assessed the European card market potential for a global payments organization, analyzing card protection services landscape, current offerings and competitors
  • Identified revenue-enhancing opportunities in trade services, international payments and cash management for an international bank
  • Developed a business case for a universal processing center (UPC) in Asia to provide third-party processing of treasury, trade finance and payment transactions for a global bank
  • Evaluated and selected suppliers for a Web-enabled trade services front-end application for a UK commercial bank

The challenges of today’s ever-changing commercial banking industry creates enormous opportunities for financial institutions that can consistently provide excellent and cost-effective customer service. Helping them streamline processes and procedures to better manage risk, meet regulatory demands and operate more efficiently is how Capco is forming the future of finance.