Introduction
Our client, a Tier 1 bank, had embarked on a multi-year operational transformational program as a key pillar of its Securities Services Operations strategy. Capco has been a trusted implementation partner on this program since inception in mid-2022, with the initial focus being Custody transformation which has now extended into other domains. The Custody transformation aimed to automate or streamline manual processes across the Clearing & Settlement value chain to generate FTE savings as its key benefit. In its second year of implementation, it has achieved 4x benefit vs. the prior year, having rolled out a strategic utility of six Clearing & Settlements microservices to up to 15 key APAC markets.
Why Now?
The program is a key enabler of the bank’s target Custody operating model including the location strategy, demise of core custody system, and streamlined product offering. In 2024, it experienced several challenges given the increase in scale and complexity of extending pilot rollouts across markets. This resulted in delays in benefit realisation and increase in funding ask vs. the original business case. Factors below contributed:
- Business case based on point-in-time snapshot of process effort
- Missing “global standard” target operating model documented for each service
- Missing robust and proactive program governance toolkit given the scale of the program
- No strategy around “non-strategic” IT solutions to supplement strategic IT capacity
How We Did It
- Capco team of PMs and BA successfully delivered 100+ projects working together with Product, Operations, Change and Technology teams.
- Team members expanded their initial coverage to work on up to 5 projects in parallel and served as SMEs to adjacent projects.
- Capco BAs enabled the Loopback and SWIFT integration for workflow orchestration for 15 markets, which enabled 45 FTE benefit.
- Besides the program, the team delivered several projects under the Custody Value Stream BoW such as HKD-RMB Dual Counter and US T+1 settlement.
- We set up a centralised Control Tower hub to overlook the programme to standardise and synergise across the multiple projects.
- We also implemented a QA structure to ensure quality oversight over all Capco deliverables.
What We Delivered
- Our team of 10+ PMs and BAs worked on majority of 100+ projects delivered in 2023-2024.
- Automation of manual processes from Trade Capture to Settlement by establishing 6 Clearing & Settlement microservices.
- Case management and workflow orchestration for manual exception handling where automation cannot resolve, using a unified front-end across 20 markets.
- Streamlining FX settlement and cash processing.
- This enabled realization of 100+ FTE savings. YoY benefit was 4x and cost was 1.5x, implying ~3x ROI multiple.
- This also enabled benefits to client experience, risk & controls, capacity, and colleague experience.
- Program is powered by strategic IT platforms that enabled standardisation across markets.
How We Can Help
Capco has an established record of delivering, designing, and implementing large-scale operational transformation programs with Securities Services business lines. Learn from our experience in deploying a scalable microservices architecture across global markets. With our proven governance frameworks and process excellence methodologies, we help you unlock measurable value, align your operating model, and accelerate benefit realization.