Operational efficiency and performance improvement
In recent years financial institutions have exploited a variety of business models in their drive for operational excellence. Looking to the future, innovation in the way institutions deliver services and products will extend the range of models used. Yet, whether operations are centralized, distributed or taken offshore, the objectives of high-performing financial institutions remain the same: to grow market share and increase operational efficiency.
Successfully achieving growth and efficiency objectives requires a competitive business system because it is this system that enables a financial institution to deliver its services and products. Back-office processing typically accounts for at least 20 - 25 percent of a financial services company's costs, and IT and corporate overheads for up to another 25 percent.
As well as cost, customer service is increasingly driving success in the market. Proven differentiated service levels add value to a brand, whereas failure to meet service expectations results in customer attrition and negates marketing investment. However, operations managers at financial institutions are still too focused on running operations effectively on a business-as-usual basis, and too rarely strive to achieve step-change improvements in operational performance.
PA has worked with financial institutions around the world, and pioneered many of the most radical options for improving operational effectiveness. We pull down organizational prejudices through data-driven, bottom-up understanding of cost and performance drivers, and help our clients to transform the scale, speed, scope and cost of their operations.
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