Vendor Analysis
published on Jul 15, 2016
Report Overview:
This NelsonHall assessment analyzes Avaloq’s offerings and capabilities in retail banking services. Avaloq is one of a number of retail banking services companies analyzed in NelsonHall’s comprehensive industry analysis programs.
Who is this Report for:
NelsonHall’s retail banking BPS Vendor Assessment for Avaloq is a comprehensive assessment of Avaloq’s retail banking BPS offerings and capabilities designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of capital market process outsourcing and identifying vendor suitability for retail banking BPS RFPs
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the support services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of Avaloq’s retail banking BPS offerings, capabilities, and market and financial strength, including:
- Identification of the company’s strategy, emphases and new developments
- Analysis of the company’s strengths, weaknesses and outlook
- Revenue estimates
- Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s offerings and key service components
- Analysis of the company’s delivery organization including the location of delivery locations.
Key Findings & Highlights:
In 2011, Avaloq expanded its services into BPS by acquiring a 51% stake in B-Source, a BPS provider founded in 1995. In 2016 Avaloq acquired 100% ownership in B-Source and rebranded the company to Avaloq Sourcing (Switzerland & Liechtenstein). Today the Swiss BPO center of Avaloq has 853 employees and provides BPS services to ~33 clients, on Avaloq’s platform, the Avaloq Banking Suite.
Today Avaloq delivers BPS out of three BPS delivery centers. In November 2015, Avaloq’s BPS center in Singapore went live using the Avaloq Banking Suite, with Deutsche Bank in Singapore and Hong Kong; while the BPS center in Germany went live using the Avaloq Banking suite in January 2016, with five additional banks.
Avaloq entered the retail banking BPS business in 2011 with the B-Source acquisition. B-Source’s first BPS engagement, which included both retail banking and capital markets BPS, was with BSI (Banco Svizzera Italiana), in 2005.
Avaloq’s retail banking BPS delivers services from four centers:
- Avaloq Sourcing Switzerland & Liechtenstein
- Avaloq Sourcing Europe (in Germany)
- Avaloq Sourcing Asia Pacific (in Singapore)
- In conjunction with ARIZON, using a center based in St. Gallen, Switzerland: 260 FTEs, 49% ownership. JV with Raiffeisen of Switzerland to serve 292 cooperative member banks in the Swiss market; started in January 2015.
Avaloq’s primary targets for retail banking BPS are:
- Mid-tier and small retail banks headquartered in Europe and Asia
- Tier 1 financial institutions in Europe and Asia
- Start-up banks (standalone or subsidiaries of large banks).
Initially, Avaloq was targeting small and mid-tier banks only, but recently large banks have been active targets for BPS support, for either start-up subsidiaries or country-specific support (outside of the client’s primary market).
Target clients are typically looking for a mix of retail banking and wealth management capabilities. New market entrants are typically looking for fast implementation and low cost to set up new businesses.