Vendor Analysis
published on Jul 25, 2016
Report Overview:
This NelsonHall assessment analyzes NIIT Technologies’ offerings and capabilities in retail banking services. NIIT Technologies 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 NIIT Technologies is a comprehensive assessment of NIIT Technologies’ 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 NIIT Technologies’ 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:
NIIT started its retail banking BPS business in 2009, by beginning an account set-up and maintenance services relationship with a U.S. based processing services vendor (to ~200 banks and asset managers), which had been a client since 1995. In 2009, this client approached NIIT Tech to provide support for a London based customer which was moving accounts across platforms; NIIT Tech provided data validation services for the customer. Over time, other account processing services have been added, including:
- Data validation: 2009
- Closing: 2010
- Set-ups: 2010
- KYC/AML: 2011
- Account funding based on pre-instructions: 2013
- Suspicious transaction investigation: 2014
- Entire account processing responsibility: 2015.
NIIT Technologies’ retail banking BPS unit has 100 FTEs and delivers services from one delivery center in Gurgaon, which covers all processes.
It will soon be adding retail banking BPS delivery from its existing Bangalore center to provide operational backup to the Gurgaon center. NIIT Tech runs two shifts from India, which overlap and start four hours prior to opening in the U.S., ending four hours after the U.S. closes. Over time, NIIT Tech expects to expand delivery to 24 hour coverage.
NIIT Tech’s retail banking BPS supports client operations in the U.S. and U.K.
NIIT Tech’s BPS delivery is built on three tenets:
- Standardization of processing
- Aggregation and consolidation of data
- Platform implementation support (ITS).
NIIT Technologies is targeting tier 2 U.S. financial institutions with asset bases of between $10bn and $50bn, and tier 2 U.K. financial institutions with asset bases of under $40bn.
Current engagements are:
- Direct clients:
- Financial industry services vendor
- Regional U.S. banks
- Indirect clients:
- Regional banks
- Retail banking units within wealth managers/family offices.