Gone are the days when financial services institutions could manage infrastructure, operational and business change through large-scale investment and personnel expansion.
The current economic environment requires a "do more with less" approach with an increased focus on cost optimization while still aggressively pursuing operational efficiencies and business growth.
How can banks weather industry change, capitalize on industrialization and fuel return on equity growth? Through a transformation process known as "Change Sourcing," which helps banks make the business and technology changes they need to drive development of new capabilities, products and services. Change Sourcing also creates a mechanism for financial institutions to access the industry-focused capabilities of project professionals via an external service provider. These change-management professionals have specialized domain expertise and are available on demand. Through Change Sourcing, banks can periodically tap into the high-caliber talent they need to spur innovation while improving execution quality, service quality and return on equity.
Financial institutions that embrace Change Sourcing can benefit in four key areas:
1.) Cost base transformation: By leveraging onshore and offshore resources and facilities, banks can gain cost variability and resource flexibility.
2.) Talent retention and development: Maintaining and developing talent within a professional services firm allows banks to provide focused training and skills development for employees, leading to more consistent, high-quality personnel and service.
3.) Innovation and service quality: Partnering with a professional services firm can help organizations better manage and improve best practices and gain access to a broad range of change-management expertise at all levels of the enterprise.
4.) Improved execution quality: Quick and more accurate alignment of resources with projects can improve execution and time to market for products and services.
Financial institutions are managing business and technology change within a new market paradigm but one that still follows the same basic principles -- improving processes and controls via operational efficiencies and technological advancements to expand business and reduce costs.
Embracing transformation through Change Sourcing can help financial services organizations achieve these goals.
About The Author:
Daniel Hu is a Partner at Capco in the Capital Markets group.