Asian Banking Group: Mergers and Acquisitions Services

It offers consumer banking, investment banking, asset management, and insurance products and services. It has regional offices throughout Southeast Asia, more than 20,000 employees, and locations in 13 countries.

When it decided it needed to integrate all its business units, operations and information technology functions, it turned to Accenture.

An Asian banking group embarked on an ambitious transformation program that resulted in one of the fastest merger integrations in the world. In the first quarter, the group completed an integration with its sister company, making it one of the largest financial services providers in Asia with a combined staff of more than 11,000 employees. Then two months later, it acquired another bank, further strengthening its services for retail and commercial banking for small and medium-size enterprises as well as improving its credit card and wealth management capabilities.

To capitalize on the value of the impending acquisition, the banking group needed to complete the merger swiftly. Such efficiency would help realize cost savings as well as retain business value and key customers.

These goals could only be achieved by integrating the corresponding banking business units, operations and information technology functions.

The Asian banking group selected Accenture to manage and govern all integration phases, including planning, execution and a phased rollout. Overall, Accenture would define the roles and responsibilities of 16 business merger execution teams, 14 support function merger teams and 17 IT merger teams. Working with the group’s senior management, Accenture established an implementation framework to:

• Preserve value. Identify and retain valuable products, services, staff and customers.
  
  
• Maximize cost savings. Streamline and rationalize the banking group's physical and technical infrastructure, staff, delivery methods and support organizations to eliminate duplication.
  
  
• Provide revenue enhancement. Increase the sale of products and services to the expanded customer base.

Within just two months, Accenture developed the implementation plan that defined target operating models for all business, support and IT areas and in about nine months helped the banking group achieve its operational “One Bank” vision.

At its peak, integration activities involved more than 400 bank personnel, consultants and vendors, and affected all aspects of the merged banks. Beyond the functions noted above, this oversight included all internal and external communications, regulatory approval, customer retention strategies and merger synergy benefit tracking. Quick wins were also identified and implemented, including policies and procedures harmonization, staff co-location and cross-selling programs.

Within seven months—sooner than projected—the integration work was completed, making this one of the fastest mergers in the world. Issues of complexity and size were successfully managed. The integration resulted in the creation of a “One Bank” service, which was available to all previous and new customers of the Asian banking group across its expanded network.

Changes to 121 branches took place, including renovations, branding and updates to the IT infrastructure. Approximately 1,500 employees received training through the integration, which minimized disruption to the business and ensured a smooth transition for all customers.