A US-based nancial services powerhouse with a presence in wealth management,
institutional securities and investment management was working with a number of
vendors to augment its own Quality Assurance (QA) teams. Managing multiple
vendors in dierent silos led to high overhead costs.
Because the rm's QA teams operated at a relatively low level of automation, managing
testing operations involved enormous manual eorts. This in turn led to high costs and
unwanted delays each time market changes aected the rm's market facing
applications or regulatory changes aected its internal processing.
There was a denite need to automate the rm's Quality Assurance processes and reduce
its "cost of quality".
When in 2006, the corporate and investment banking arm of one of Europe's largest
banks, needed to reduce its risk prole by focusing on simpler 'vanilla' trades - they
also had to ensure the volume of such trades increased signicantly to oset the
reduced protability. With the limited back-oce capability supporting this trade
and it's obsolete systems, it was challenge for the bank to cope with the rising volume
of trades. So we partnered with Calypso to implement the Calypso trading application
and create the core of a back oce that would also meet future needs.
Since then, this engagement that has grown from 10 employees supporting a single
application to a team of 130+ consultants that support multiple business critical
applications for the client's trading operations in 5 global nancial capitals.
As the events of the financial crisis grow more distant with each year that passes, the search for a sustainable operating model for capital markets operations is intensifying. Costs are escalating while the deleveraging of the business model has stunted the growth of the industry's US$340 billion in annual revenues. As a result, the call for a transformational change in the back office have grown louder. Banks must reassess their definition of "core" operations and determine how to industrialize their current operating structure. Industrialized operations use specialized process, people, and technology practices to execute transactions more robustly with the flexibility to accommodate fluctuations in the scope and scale of a business. Global Business Services (GBS), the next step in the evolution of shared services, streamlines business functions and industrialize a firm's operations resulting in improved scalability, lower costs, and optimized processes. This facilitates better decision making, flexibility, and nimbler pursuit of growth for all firms trying to mitigate the contracting margins industry wide.