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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Banking operations for a customer-obsessed industry

Let us help you find and implement the right technologies to improve your customer experience, optimize data and transform your business model.

Optimize Costs and Maximize Financial Transparency

Support your Technology Business Management journey to ensure business value is realized
Provide practical FinOps advice to drive better cloud economics
Benchmark your technology and operations costs against your peers to identify areas for improvement
Develop a new way of approaching cost optimization to make it sustainable and enduring
Design the optimal cost structure, including embedding a new cost culture and virtual cost center of excellence

Improve Employee Experience and Productivity

Measure, benchmark and track employee experience
Perform a skills assessment to identify the gaps and opportunities to improve
Enable employees and develop the optimal Learning & Development strategy, including Training-as-a-Service
Design and implement new ways of working, including the right talent strategy
Transform HR operations to improve employee engagement

Develop Next-Gen Supplier Strategy and Ecosystems

Provide insight into next-gen supplier strategies, including new ways of segmentation, tail spend consolidation, new sourcing models and innovative commercial structures
Advise on how to manage newly emerging ecosystems, including Banking as a Service, FinTechs, Big Techs, hyperscalers, niche suppliers, etc.
Provide third-party risk management assurance and optimized governance solutions
Advise on how to leverage emerging tech (such as GenAI) in contracts with suppliers for outsourcing and/or transformation
Provide insight into Global Capability Center strategy, including drivers, KPIs, commercial structures and supplier ecosystem
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.

Download the Summary      Contact Us for Full Access

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

Workforce Strategy for Swiss Investment Bank

Apr 22, 2022, 11:02
ISG developed a workforce strategy for the corporate services technology (CST) function covering its global workforce of over 1200, comprising employees, contingent workers and third-party vendor resources.
Title : Workforce Strategy for Swiss Investment Bank
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There was recognition within the senior management of the CST  of this investment bank that the current operating model and workforce distribution would not deliver the bank’s savings targets. It wanted a workforce strategy that would provide a “top down” view of overall workforce distribution by roles, capabilities, skillsets and location to inform a future state which could then be implemented. There were multiple drivers for this work:

  • A desire to secure the right balance of the right skills in the right locations to optimize performance and associated costs
  • A desire to identify hot spots in resources and skills and to split core versus non-core activities
  • A desire to create a robust business case and roadmap to required savings based on a future state that is informed by best practices as seen in peer banks
  • A desire to create a dynamic risk profile within the bank and to ensure compliance with an increasingly intrusive set of regulatory requirements

ISG adopted our proven 3-phase approach to develop the strategy. We commenced with data collection and a collaborative engagement with key stakeholders, ensuring buy-in from the beginning and on an ongoing basis.

ISG analyzed workforce data through 3 lenses: (1) location, (2) services/activities and (3) technology. ISG was then able to play back insightful facts on the current-state assessment to the bank. We identified hot spots where there was shortage of skills and sub-optimal, resource-augmentation type sourcing arrangements at high-cost locations resulting in value leakage.

We adopted a bifurcated approach for differentiating and non-differentiating services. ISG also developed future-state scenarios that were supported by a business case and a firm recommendation to the steering committee. We delivered a roadmap and transition plan to the future operating model to enable effective strategy execution.

  • The bank achieved circa 20% savings on its base costs delivered by consolidating its centers of excellence (Actimize, AML, Control Room and Trade Surveillance) based predominantly in the bank’s captive centers in Pune (India), Raleigh (USA) and Wroclaw (Poland).
  • The bank was able to convert its sub-optimal sourcing engagements to managed services and to incentivize its suppliers to put “skin in the game” to enable management via outcomes and service-level agreements (SLAs).
  • The bank received ISG’s help redefining the roles and responsibilities of personnel managing the outsourced service to drive more effective governance and reduce value leakage.
  • The recommended future workforce structure was modelled on the bank’s key design principle which was to move from siloed technology teams to DevOps -based, self-sufficient teams with full accountability.
Categories :
  • Banking & Financial Services
  • Sourcing
Article flags :
investment bank workforce strategy investment bank workforce strategy
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