Gavin Neilson, PA financial services expert, addresses trends affecting purchasing in the sector.
Gavin says that the regulatory change is placing a cost burden on the financial services firms just as they are trying to rebuild their business: “Procurement is trying to handle that demand and engage supply chain with it. That is an enormous challenge.”
As part of a case study on Canada’s TD Bank, Gavin comments on the bank’s decision to standardise its procurement tools across the company. “Developments in information technology are also putting added pressure on procurement departments, in particular how they work with IT suppliers. The biggest game-changer in the industry has been the unprecedented growth in online and mobile banking,” says Gavin.
“From a procurement perspective that presents a challenge. Dealing with double-digit volume growth, means that instead of focusing on traditional measures such as costs and service quality, you need to focus on flexibility and stability,” he continues.
Gavin goes on to say: “You can see in the press the impact on reputation of a service outage on a mobile app or an inability to access online banking. Procurement needs to get more sophisticated in dealing with the new demands that digital and mobile has placed upon the business. Our role above that is to provide oversight and ensure that we are complying with our policies and standards.”