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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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Banking operations for a customer-obsessed industry

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Improve Employee Experience and Productivity

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Perform a skills assessment to identify the gaps and opportunities to improve
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Design and implement new ways of working, including the right talent strategy
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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.
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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

Re-imagining ADM To Drive Value – Large Financial Services Firm

Jul 14, 2021, 16:58
The collaborative ISG FutureSource process and a target operating model helped a large financial services firm prepare for a future.
Title : Re-imagining ADM To Drive Value – Large Financial Services Firm
Alternate title : How ADM Can Drive Value
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The separation of its General Insurance business as a result of an acquisition was the catalyst for an unprecedented strategic challenge for our Financial Services client. 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 centre 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 client’s technology estate (apps and infra), including base costs, operating model, process maturity, skills & capabilities and proposed a comprehensive Sourcing Strategy to establish up a future IT organisation that is based on an outsourced model.
We developed a future state vision to take advantage of new/emerging technologies (including cloud adoption) and leveraged the scale and expertise of external service providers.
We ran an agile, collaborative sourcing process (FutureSource™) with Tier 1 Service Providers taking the client 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 organisation with the functions and roles to effectively manage the To-Be outsourced environment and realise 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 – 22% savings over a 5-year period
  • Data Centre exit – Migration of 750+ Applications from current Data Centres to new facilities and Cloud (Azure & Oracle) which was a huge driver of flexibility and savings
  • Target Architecture and TOM: We developed a retained organisation that is aligned with “future states” and infrastructure hosting options (including cloud) over a 1, 3 and 5 year period, along with associated Target Operating Model and retained organisation designs
  • Agility – Whereas traditional approaches don’t offer buyers any insights into cultural fit, appetite and chemistry, ISG FutureSource™ Collaboration & Alignment Sessions (CAS) with gave our client 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 & Infrastructure of the Life business from the acquired GI business 
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  • Banking & Financial Services
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