featured posts:
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Wealth & Asset Managers Shift Focus to Serve New Customers
Jan 29, 2024, by Andy EfstathiouFinancial institutions are rapidly starting or growing existing wealth and asset management businesses. In the U.S., wealth assets under third-party management have grown over the last five years by 16.8% CAGR to 2023 (Source: Statista). Wealth advisors are looking to continue to invest in and grow their wealth management businesses because they see continued growth coming from: [...]
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How Capgemini is Tackling Transition to T+1 Capital Market Settlements
May 15, 2023, by Andy EfstathiouThe securities industry is moving towards shorter settlement cycles to reduce risk and increase efficiency. The last reduction in settlement windows in the U.S. was in September 2017 when settlements moved from T+3 (three-day settlement) to T+2. In February 2023, the U.S. SEC announced that all companies trading securities on U.S. exchanges needed to move to T+1 settlement by May 28,[...]
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How Capgemini is Targeting Improved Wealth Advisory Services
Nov 03, 2020, by Andy EfstathiouIt has been extensively reported that industries requiring in-person interaction, such as travel and entertainment, have been adversely impacted by the COVID-19 pandemic. Less obvious has been the impact on industries that are often typified by remote delivery. For example, the wealth and asset management industry is primarily driven by the long-term buildup of wealth and involves in[...]
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How Capgemini is Helping Banks Transform Trade Finance
Aug 29, 2019, by Andy EfstathiouImproving efficiency and reducing manual processing of trade finance services has been a difficult challenge for over a century. However, the industry is on the cusp of a transformation which promises to standardize and automate this highly idiosyncratic, manual ecosystem. This blog identifies some of the key trends in trade finance transformation and how one vendor, Capgemini, is su[...]
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FinTech in the Commercial Banking Sector: From Mass Market to Custom Processing Efficiency
Dec 14, 2016, by Andy EfstathiouMost FinTech engagements to date, with the exception of Blockchain, have been focused on consumer banking, a business characterized by high volume, high standardization, and low value transactions. By contrast, commercial banking is characterized by low volume, high customization, and high value transactions. And from an operational perspective, commercial banking uses higher value e[...]
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Gen 2.0 Customer Analytics in Banking: IBM Operationalizes its Capabilities
Sep 23, 2016, by Andy EfstathiouNelsonHall attended the IBM Forum for Financial Services event in New York this past week, which focused on how bank customers are using IBM’s cognitive offerings. IBM has been investing heavily in services and technologies to enable deeper insight into financial institutions’ customers, starting 18 months ago with the development of Watson-based analytic assets. IBM’s the[...]
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How Banks are Driving Down the Cost of Operations by Deepening Capital Infrastructure
Mar 16, 2016, by Andy EfstathiouFinancial institutions are seeking to deepen their operational capital in order to drive down cost of operations, increasing fixed cost and reducing variable cost (non-linear cost reduction). Here we look at two examples of how institutions are achieving this by partnering with third party operations vendors. Capital Markets Client with Broadridge In this example, Broadridge is providing a p[...]
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Capital Scarcity, Operating Leverage & BPaaS Drive Emerging Partnership Strategies in Financial Services BPS
Jan 21, 2016, by Andy EfstathiouThere has been a recent spate of acquisitions and partnerships among Financial Services BPS vendors which reveals interesting trends. These include the following deals from 2015: HCL and CSC: Two JVs were formed, whereby HCL will operate and expand the existing Core Banking business of CSC. The first JV will focus on account management and delivery governance while the second [...]
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Capital Markets Firms Look to BPS for Re-platforming, Improving Data Management & Analytics
Nov 03, 2015, by Andy EfstathiouThe major capital markets custodian firms recently reported Q3 2015 financials. The custodians provide critical operations support to global capital markets, and their performance provides an early warning measure of the state of the capital markets industry in general. Here we look at the performance indicators for BNY Mellon, State Street, and Northern Trust, reflect on the implications for the [...]
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HCL Targets Industry-Specific Processes with RPA - Significant Presence Developing in Banking Sector
Sep 17, 2015, by John WillmottHCL began its robotics program in late 2013. Since then HCL has invested ~$1.5m in robotics, (ToscanaBot Automation Framework), via its HCL ToscanaBot center of excellence, which currently employs a team of ~25 personnel and is planned to grow to 50+ personnel by 2016. HCL estimates that its robotics practice currently has an FTE impact of around 2,000 with this expected to grow to ~8,000 FTE impa[...]
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Capital Markets Firms Must Turn to Managed Services to Tackle Trading Cost Pressure
May 13, 2015, by Andy EfstathiouToday’s capital markets industry is severely capital constrained, and this is likely to get worse over the next few years. Internal deployments of new or improved solutions will become harder to resource (both in terms of cash and manpower), and managed services will be the preferred way to improve operations. Furthermore, managed services that offer to improve process and/or vendor manageme[...]
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HCL Launches Enterprise Function as a Service to Support Financial Services Firms in Creation of Utility Models
Apr 07, 2014, by John WillmottHCL has launched a service called EFaaS, Enterprise Function as a Service, to address reducing the operations costs of organizations through creation of specialized utilities. The service is initially targeted at capital markets firms, retail banks, and insurance companies and at the finance, procurement, HR, risk & compliance, legal and marketing functions. The EFaaS service has arise[...]
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WNS’ Banking BPS Strategy Focused on FinTech Service Enablement for U.S. Regional Banks
Apr 21, 2017, by Andy EfstathiouNelsonHall attended the WNS analyst conference in New York last week for a business update and to hear about their current initiatives. Here I take a quick look at WNS’ banking industry business specifically, and at how it is focused on applying FinTech to BPS delivery to support large productivity gains for its U.S. regional banking clients. Market conditions are driving c[...]
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Top 3 Predictions for Banking BPS & ITS in 2017
Jan 13, 2017, by Andy EfstathiouBased on NelsonHall research conducted during late 2016, I have identified three key predictions for business process services (BPS) and IT services (ITS) in the Banking sector in 2017. 1. Compliance initiatives move from industry headwind to tailwind The first prediction is that compliance operations change initiatives will decline, and the resources released from th[...]
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Payments Processing Services Market Heats Up: Financial Results of Six Key Vendors Show What it Takes to Win
Nov 06, 2014, by Andy EfstathiouChanges in banks’ regulatory capital requirements for businesses are leading banks to exit or downsize lines of business and increase the focus on other lines of business. Payments is an area where banks and non-banks are significantly increasing their commitments. Over the next five years the payments industry will change its entire shape, structure, and offerings. In the past, the complexi[...]
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Wipro Partners with London Stock Exchange to Launch Hosted Multi-Tenant Reconciliation Utility: The First of its Kind
Jul 09, 2014, by Andy EfstathiouWipro has partnered with the London Stock Exchange Group (LSE) to launch a hosted multi-tenant reconciliation utility. Each partner will provide: LSE: UnaVista platform (proprietary platform which provides transactions, reconciliations, reporting, etc.) The platform overs all instrument types and is used by ~1,000 financial institutions Data center hosting[...]
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J.P. Morgan Exits U.K. Fund Transfer Agency Business to Reduce Unprofitable Operations
Jan 31, 2014, by Andy EfstathiouJ.P. Morgan has decided to exit its unprofitable U.K. fund transfer agency business. The exit will take place in 2014. The impact of the exit will be that funds currently with administration fee pricing as low as 0.04% will face pricing closer to 0.15 % (an increase of 375). Transfer agency services include: Recording changes in share ownership Canceling and issuin[...]
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Genpact and Markit Partner to Offer Centralized Client On-boarding Solution for Capital Markets Firms
Sep 16, 2013, by Andy EfstathiouChanges in compliance requirements are the highest priority right now at capital markets firms. To date little has been done to address the required changes anticipated. This initiative to address KYC and client on-boarding is one of the earliest attempts to implement a response to the changing regulatory requirements. This announcement of cooperation with two of the largest global banks is a[...]