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Banking and Financial Services Transformation

 

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Three Predictions that Will Power the Banking and Financial Services Market in 2024

It’s time to look forward for the Banking & Financial Services (BFS) industry. What can we expect in 2024?

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Improve Employee Experience and Productivity

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2023 Banking Industry Study

ISG Banking Industry Study

ISG's recent study shows the banking industry's top priorities are operational efficiency and customer experience.

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Reinventing Bank Branches

Will most people go back to purely in-person banking? No. But the demise of bank branches is greatly exaggerated - a recent Celent report says that 77% of customers want to be face-to-face for substantive discussions about their finances.

Read ISG’s whitepaper to learn how to reimagine your #branchstrategy for the future of banking.

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Client Stories

Large Financial Services Firm Navigates Divestiture & Acquisition

Jul 12, 2023, 11:40
A recent engagement with a large financial services firm realized multiple benefits, both financial and non-financial.
Title : Large Financial Services Firm Navigates Divestiture & Acquisition
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The separation of a large financial services firm's general insurance (GI) business as a result of an acquisition was the catalyst for an unprecedented strategic challenge. A new operating model had to be designed and created to be fit for the future, including a requirement to reduce the cost base by more than 20% and delivery of increasing member value through faster digital channels.

The new business faced immediate practical challenges: a transition services agreement (TSA) to be delivered, a data center to exit (lease expiry), a legacy applications technology estate and growing complexity in terms of ensuring secure and compliant infrastructure services.

ISG conducted a current-state assessment of the company's technology estate (including applications and infrastructure), assessing base costs, operating model, process maturity, and skills and capabilities. We proposed a comprehensive sourcing strategy to establish up a future IT organization that is based on an outsourced model.

We developed a future-state vision to take advantage of new and emerging technologies (including cloud adoption) and leveraged the scale and expertise of external service providers.

We ran an agile, collaborative sourcing process using ISG FutureSource™ with Tier 1 service providers taking the company from strategy through to contract execution within 6 months.

As sourcing agreements cannot exist in isolation, we also designed a target operating model and the future retained organization with the functions and roles to effectively manage the to-be outsourced environment and realize benefits.

We also built a comprehensive business case, provided support and advice to the CIO in preparing and presenting the business case for Board approval.

  • Business case – The company achieved 22% savings over a 5-year period.
  • Data center exit – The company was able to migrate over 750 applications from its current data centers to new facilities and the cloud (Azure and Oracle), which was a huge driver of flexibility and savings.
  • Target architecture and TOM – We developed a retained organization that is aligned with the desired future states and infrastructure hosting options (including cloud) over a 1-, 3- and 5-year period, along with associated target operating model and retained organization designs.
  • Agility – Whereas traditional approaches don’t offer buyers any insights into cultural fit, appetite and chemistry, ISG FutureSource™ collaboration and alignment sessions (CAS) with gave our financial services company a very early and clear indication of the above, and key differentiation between a set of capable service providers
  • Separation and self-sustenance – ISG’s approach enabled separation of applications and infrastructure of the life business from the acquired GI business.
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  • Banking & Financial Services
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Large Financial Services Firm Navigates Divestiture & Acquisition Large Financial Services Firm Navigates Divestiture & Acquisition
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