Key Findings & Highlights:

This NelsonHall assessment analyzes Capgemini’s offerings and capabilities in retail banking services. Capgemini is one of a number of retail banking services companies analyzed in NelsonHall’s comprehensive industry analysis programs.  

Capgemini has ~5k employees serving the BFSI industry, of which 740 FTEs serve the retail banking industry in BPS. Capgemini, long active in providing consulting and IT services to banks, entered the retail banking BPS business with the acquisition of iGATE in 2015.  

iGATE began providing retail banking BPS services in 2008 to the Royal Bank of Canada; the relationship started with the delivery of deposit and lending services. The engagement began with an initiative to increase the degree of automation in its data management; initial services were account maintenance and static data management. Over time, the relationship has grown to include additional services. 

Capgemini delivers services from three delivery centers:

• Bangalore 
• Noida
• Krakow.

In addition, Capgemini has a few employees on client site in Mississauga, Ontario, and other client sites. Capgemini’s retail banking BPS supports client operations in North American markets.   

Capgemini’s targets for retail banking BPS are financial institutions headquartered in the U.S., Canada, and Europe. Four types of institutions are being targeted by Capgemini:  

• Money center banks
• Regional banks
• Card issuers
• Mortgage lenders.

Capgemini positions its key differentiators in retail banking BPS as:

• A focus on transaction processing services for clients 
• A focus on platform and process modernization, by partnering with industry standard platform vendors such as Temenos for core banking, analytics vendors, and the largest three RPA solution vendors  
• Consulting for process re-engineering and governance, and client/employee training and rebadging 
• Onshore delivery capabilities: for processes which cannot be offshored or which clients do not want to offshore at this time 
• Engagement models such as BOT, vendor investment, and employee rebadging.  

Capgemini focuses on clients in Canada and the U.S., due to the legacy business of iGATE. However, it has a large ITS business with banks, which it will leverage to up-sell existing ITS banking clients to its retail banking BPS services. This will increase its currently limited focus on Europe into a strong focus on European banks. 

Capgemini is looking to grow its retail banking BPS business by:

• Up-selling existing ITS clients to retail banking BPS services  
• Creating a reconciliation utility from an existing engagement with a single client (which provided the platform) 
• Pursuing regional U.S. banks for its retail banking BPS business, especially transaction based BPS 
• Pursuing banks which require platform upgrades to respond to changed compliance requirements, as part of a BPS engagement. 

The primary focus in the next 12 months will be on:

• Enhancing RPA in its BPS delivery 
• Entering its Continental European capability with a M&L BPS shared services utility, using an existing client platform 
• Pursuing M&L prospects looking for both IT services and BPS in one engagement 
• Enhancing the command center offering (reporting on process execution) to include planning capabilities 
• Acquiring captive operations where Capgemini believes it can reengineer processes to improve efficiency.

All of Capgemini’s new engagements are expected to involve IT consulting and services support as lead-ins to the retail banking BPS relationship. Capgemini is ramping up its delivery options in non-Indian locations, in response to client requirements. This will facilitate it in targeting work supporting the U.S. It will add modest scale in the short term, but will add greater reliability and scalability in the long term (12 to 24 months).