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Andy Efstathiou

Andy is the Banking Sourcing Research Director at NelsonHall where he has global responsibility for Retail and Commercial Banking BPS, Capital Markets BPS, and RPA, AI, and FinTech services in Banking, including consulting, design & deploy, and operations support.

Analytics and Reporting BPS Market Assessment and Forecast

Market Analysis

by Andy Efstathiou

published on Oct 28, 2015

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Report Overview:

NelsonHall's market assessment and forecast of the analytics and reporting BPS in banking market consists of 88 pages.

Who is this Report for:

NelsonHall’s “Analytics and Reporting BPS market assessment and forecast” report is a comprehensive market assessment report designed for:

  • Sourcing managers investigating sourcing developments within the retail banking, capital markets, and financial industry
  • Vendor marketing, sales and business managers developing strategies to target service opportunities within the retail banking, capital markets, and financial industry
  • Financial analysts and investors specializing in the retail banking, capital markets, and financial sector.

Scope of this Report:

The report analyzes the global market for analytics and reporting BPS services and addresses the following questions:

  • What is the current and future market for analytics and reporting BPS services?
  • What is the size and growth of the analytics and reporting BPS market by market segment?
  • Within analytics and reporting BPS services, which processes are emerging strongly?
  • What are the market segments for analytics and reporting BPS services and their characteristics? What are the drivers, benefits, and inhibitors for each segment? What are vendor capabilities by segment?
  • What technologies and platforms are being utilized and what are the implications by market segment?
  • What are vendor challenges and critical success factors by market segment?
  • How vendors are positioned within each analytics and reporting BPS market segment?
  • Additional topics include: contract lengths; pricing models; partnerships; acquisitions; delivery center locations and the use of offshoring; vendor targeting by client size, geography, and industry.

Key Findings & Highlights:

Analytics and reporting BPS (A&R BPS) is a nascent market with a low current adoption rate. Current adoption comes from global banks, as an add-on service to larger multi-tower BPS engagements. Vendors are delivering elemental processes focused on compliance and asset/liability/performance, from offshore centers.     

The A&R BPS market is dominated by North America, which accounts for ~64% of client spend. Europe and ROW are moving rapidly from an emerging to established market status in A&R BPS.

The A&R BPS market is established in mature markets, especially the U.S., and U.K.  

The primary client profile is:

  • Current: tier 1 banks and capital markets service vendors remain the primary adopters (~90%+)
  • Future: expand into regional banks (mature markets), emerging market banks (all types), and wealth/asset managers
  • Future: tier 1 banks support expanded channel initiatives and conversion to customer-centric management.

Clients are buying service bundles including:

  • Support for single product line (e.g. loans, portfolio management, capital compliance or payments) remains the primary service bundle
  • Manual review, remediation, and analysis of assets/liabilities and entities (customers, counterparties)
  • Process optimization to improve efficiency, accuracy, and meet deadlines
  • Emerging: increasing sales/marketing campaign support, compliance/ risk management support, and support for independent capital markets firms via industry service vendors.

Vendors have tended to focus on individual country markets for their services, primarily the U.S. However, globally offshore and nearshore delivery still dominates in the A&R BPS market, with >90% of service provider employees based in India. Onshore delivery locations are not yet an important part of this market.

The leading vendor selection criteria are:

  • Domain or sector expertise
  • Knowledge of the client’s business
  • Process transformation and change management capability
  • Geographic delivery footprint
  • Ability to achieve a strategic partnership with the client organization (to date demonstrated by existing work with other BPS for the client).

Table of contents:

Table of contents:

  • Analytics & Reporting BPS Market Assessment and Forecast
  • Changing Shape of Analytics & Reporting BPS
  • Buy-Side Requirements
  • Market Size and Growth
  • Vendor Market Shares
  • Vendor Offerings and Targeting
  • Vendor Challenges and Success Factors
  • Appendix A – Service Definitions
  • Appendix B – Vendor Details
  • Appendix C – Key Regulations

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