Key Practices - Smartsourcing & Consolidation
The Issue
An overriding objective to achieve cost reduction in back office and other support functions and focus on revenue generating areas of their business has led financial institutions globally to evaluate, and in several cases, implement strategies focused on the smartsourcing and consolidation of these processes. Smartsourcing includes strategies such as insourcing, outsourcing, offshoring and centralisation of operations.
Regardless of the financial climate, these strategies are increasingly being seen as a way forward for several reasons:
- Significant capital and resources are demanded by mandatory regulatory changes such as MiFID and Basel II, increasing peer-pressure to adhere to best practice, and a need to react to market initiatives such as CLS.
- Banks are increasingly viewing outsourcing and offshoring as a relatively fast, cost-effective and flexible way of dealing with the changing demands of their business, particularly with regards to resource flexibility, time to market and ease of exit.
- There is a growing recognition that transaction processing provides little or no competitive advantage, whilst a mediocre back office can have a disastrous effect on business. This is leading to an increasing number of banks looking at outsource service providers for processing and settlement of trades.
- Equally, a decline in overall trade volumes, the corresponding squeeze on margins, and the need to maintain and grow profitability are driving some banks to look to the provision of insourced services as a way of increasing trade volumes, reducing cost per trade and ultimately adding to the bottom line.
The BRAXXON Approach
Using BRAXXON means:
- Partnering and working with individuals who have been involved in all aspects of business and technology consolidation for many years and who truly know your business.
- Having access to people who have up-to-the-minute knowledge of market trends, suppliers, and opportunities
- Working with an organisation that has a track record in delivering the benefits of operations consolidation
BRAXXON has extensive knowledge and experience of business and technology transformation including vendor and system selection, development of service level agreements, which meet both internal and regulatory requirements, and the implementation of change, all working in conjunction with a strong governance structure.
Using a well-proven approach facilitated by a set of clear and concise methodologies for each stage of the programme, we are able to guide clients from initial thoughts and concepts, helping them to choose the appropriate strategy, and partnering them through to post-implementation.
Applying these methodologies with pragmatic operational banking expertise, a thorough understanding of our clients` business, and being sensitive to the cultural and people issues, we are able to deliver a solution which enables clients to turn their vision into profitable reality.