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Shareholder Value in the New Investment Banking Environment: The Role of the Back Office

Contact
Robert Akam or Joe Eldridge 020 7400 4480 or email rakam@hanovercomms.com or jeldridge@hanovercomms.com
Steve Vinnicombe joins Capco Capital Markets partner team

Capco, a global business and technology consultancy dedicated solely to the financial services industry, has appointed Steve Vinnicombe as Partner within its UK Capital Market leadership team, where he will be working with Tier One investment banks on improving their back office operations.

Steve Vinnicombe sees an investment banking environment where revenue trajectories are flattening due to increasing capital requirements and regulatory constraints on risk taking and product innovation. Many firms have built up capabilities and cost bases that support far larger businesses than those trading today. Given the limited room for manoeuvre in the front office, the back office is coming under renewed pressure to contribute shareholder value.

Steve Vinnicombe, Partner, Capco,said:
“Banks need to be more focused than ever on what sort of back office they want and how it provides or supports competitive advantage for its businesses. In the next few years we expect to see a much clearer distinction between the way that functions that provide competitive advantage are developed and run versus those that do not.

“The cost challenge will drive the industry to seek collaborative, standardised solutions, such as industry utilities which will remove cost and risk from the back office across the industry. This will in turn allow the re-allocation of resources - both finance and people - to those areas of the bank that it has identified as driving competitive advantage, e.g. risk management, product development, client service and operational excellence.

“We also expect more innovative approaches to the problem. For example, banks with excess processing capacity or strength in a particular back office function may choose toleverage that through service provision.”

Steve joins Capco with significant consulting expertise in investment banking and investment management having worked at Accenture for 11 years. The focus of his experience was in the definition of operating models for clients across the back office that responded to different business, regulatory and strategic drivers as well as leading the complex programmes to realise them.

About Capco
Capco, a global business and technology consultancy dedicated solely to the financial services industry. Our professionals combine innovative thinking with our unrivalled first-hand industry knowledge to offer our clients consulting expertise, complex technology and package integration, and managed services to move their organisations forward.

Through our collaborative and efficient approach, we help our clients successfully increase revenue, manage risk and regulatory change, reduce costs and enhance control. We specialise in banking; capital markets; wealth and investment management; finance, risk & compliance; and technology. We serve our clients from offices in leading financial centres across North America and Europe. To learn more, visit our web site at capco.com and subscribe to Capco's newsroom RSS feed.