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Read how Accenture helped a large global bank in developing a streamlined new operating model that is expected to generate savings and enable high performance.
Our client is one of the largest banking and financial services organizations in the world. Its workforce of more than 300,000 professionals occupies more than 9,000 offices spanning five continents. The bank invests primarily in faster-growing emerging markets and in established international businesses within developed markets. It assists about 128 million customers worldwide and had assets of $2 billion in 2007. The bank’s comprehensive range of financial services includes commercial banking; corporate, investment banking and markets; private banking and personal financial services. Advanced technology, including a rapidly growing e-commerce capability, links its international network.
By successfully leveraging global operation centers and Six Sigma initiatives, our client had centralized processing to lower-cost locations. This strategy improved its operational capacity, but the bank nevertheless continued to face key challenges:
The bank sought Accenture’s financial services experience to help it develop a new operating model for improving client satisfaction and operational efficiency. This model was a front-to-back joined up and industrialized back-office operating model that connected branch and back-office processes in a seamless, end-to-end workflow. It aimed to provide improved service traceability, resulting in a superior customer experience. Enhanced operational performance would become more efficient and less costly.
Accenture assembled a team skilled in financial services and system integration. Team members were broadly experienced in guiding customer relationships and deeply knowledgeable in finance and performance management. The team also leveraged its knowledge of Accenture’s groundbreaking research into the characteristics and practices of high-performance businesses.
The search by Accenture’s specialists for potential problem areas led them to analyze call volumes, satisfaction surveys and complaint trends.
Accenture concluded that several factors had been responsible for blocking the bank’s growth and restricting its ability to reward valued customers:
Accenture used these findings to tailor a solution that met the bank’s needs—transforming the end-to-end customer experience and improving operational efficiency. Metrics for assessing success would include greater economies of scale, lower costs, operational agility and improved service quality. Bank management was impressed with a strategy that aimed at high performance through simplified internal operations, rationalized workforce requirements and process automation and consolidation.
As a result of applying the industrialized back-office operating model that Accenture recommended, the bank is on track to realize its goals as a high-performance business—generating financial returns of as much as $70 million, including additional revenue, cost savings and cost avoidance. The company expects as much as 20 percent savings overall by handling higher business volumes more accurately, while using fewer, lower-skilled employees.
The new model will remove the impact of peak loading on customer service levels and enable truly differentiated service-level improvements of 30 to 50 percent on average. The processing center will now be able to share resources across processes to achieve synergy and save costs. For example, managers are able to cope more easily with peak and non-peak times by adjusting accordingly the number of individuals with different skills who need to be present in the shared pool.
Inquiries at any touch-point will be quicker and will provide more consistent responses. Frontline staff will be able to devote more than 90 percent of their time to customer service and sales.
Instant loan application processes can be delivered without increasing branch headcounts. Precious frontline time spent on resolving customer questions and investigations will be reduced and service lead-time shortened—improving the overall customer experience. And because customer inquiries regarding processing status will be reduced, freed-up resources will be able to engage in business-generating activities.
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