Financial Services

Business Improvement Within Financial Services

The challenges facing contemporary Financial Services are complex and evolving, with model disruption, technological innovation, changing channel preferences, as well the spectrum of ever-present competitive and regulatory pressures. Institutions looking to break through are driving strategic gains in the customer experience, improving operating efficiency and profitability, differentiating their product and channel strategies, and overhauling technology platforms to enable scale and agile growth.

We consult to many diverse Financial Services organisations across banking, funds management, consumer lending, payment services and more. Our core capability remains Process and Operational Excellence augmented with deep process automation, and operating model redesign – to create step changes in cost base and agility.

We bring a highly pragmatic approach to transformation that moves beyond mere domain knowledge to identify break-out improvements for wholesale process and operations redesign, creating agility and reduced time to serve through niche process automation & streamlining, and transform workforce culture and capability to drive better customer experience, proactive and continuous improvement, and a knowledge enterprise.

Retail Banking
Investment Banking
Insurance
Funds Management / Superannuation
Asset-Based Finance & Leasing
Payment Systems, Clearing & Settlement

Our Track Record

Optimising Middle & Back Office

Implementation of a scalable, efficient and cost effective middle and back office platform for a major fund manager to support the global growth strategies of it’s investment boutiques. This included full outsourcing of all commoditisable functions.

Transforming Loan Origination

Delivered strategic transformation of end-to-end loan origination for mid-market regional bank, including process re-engineering, automation, operating model re-design, and new technology platform for major cost-to-serve and time-to-yes uplift.

Funds Management Process Outsourcing

Management of a business change portfolio to outsource Investment Operations, Fund Accounting and Transfer Agency services for a UK fund manager from existing provider to a new provider, including a lift out of some internal functions.

Industry Background

The financial services industry is the fourth largest sector of the Australian economy, accounting for more than 8 per cent of GDP. Its relative global strength has been underpinned by a resilient economy; sophisticated, deep and liquid financial markets; a world-leading regulatory system; compulsory superannuation savings; a highly skilled workforce and strong business infrastructure.

Much of Australia’s financial services strength is down to the growth of its investment funds sector. Australia has one of the largest pools of contestable funds under management globally, valued at about A$2 trillion.

The key financial industry sectors are:

Asset-based Finance and Leasing
Australia’s asset-based finance and leasing industry is a dynamic part of the country’s financing market with equipment leasing facilitating approximately 40 per cent of the nation’s equipment capital expenditure.

Funds Management/Superannuation
Australia has one of the largest and fastest growing funds management sectors in the world. The sector is driven largely by the country’s government-mandated retirement scheme and continues to create new opportunities for fund managers, service providers and related entities

Hedge Funds
Australia’s hedge fund industry, underpinned by Australia’s globally significant investment management industry, has grown rapidly in recent years to become the largest in the Asia-Pacific region. Australia’s hedge funds industry has attracted, and is supported by, strong service providers. Their provision of risk assessment, unit pricing and operational procedures within the sound regulatory and governance framework that underpins Australia’s financial services industry is an important aspect of the Australian hedge funds industry.

Insurance
Australia has a developed, sophisticated, well-regulated and highly competitive insurance sector. Australia’s insurance market is generally segmented into three sectors:

  • Life insurers – offering risk related insurance and pension products (referred to as superannuation products)
  • Health Insurers – offering private health insurance to compliment Medicare, the Australian government health care scheme
  • General insurers – offering all insurance other than life and health insurance.

Investment Banking
Most of the world’s leading institutions offering investment banking services have a presence in Australia, with several using Australia as a base for activities within the Asia-Pacific region. These institutions offer the full range of investment banking services and products, including corporate finance, capital markets, private infrastructure financing, structured finance, offshore funding, derivative markets, underwriting, securitisation, and corporate advisory services. The Australian Prudential Regulation Authority (APRA) provides information on licensing and the regulation of banking businesses in Australia.

Payment Systems, Clearing and Settlement
The Australian payment, clearing and settlement systems contribute to the smooth functioning of the economy by providing a service that is safe, efficient, and reliable.

Private Banking
Despite its relatively small population, Australia has one of the world’s largest private wealth markets. And this market is growing at a rate that outpaces many of the world’s most affluent nations. Australia has more high net worth individuals than Hong Kong and Singapore combined and demand for private banking services is on the rise.

Private Equity / Venture Capital
Australia’s venture capital industry has grown significantly in recent years driven by increased demand from emerging and expanding businesses for equity funding. Private equity bids are becoming more innovatively structured and the average bid size is continually rising. An increase in institutional investors seeking alternate investment options is also seeing an increased flow of funds into private equity.

Retail Banking
Posting a string of strong profit announcements in recent years, Australian retail banks have enjoyed a period of ongoing prosperity. The four largest domestic banks in the sector are ANZ, the Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corporation.  A number of mid-tier banks operate in the space including St George, Bendigo Bank, the Bank of Queensland, Adelaide Bank, and Suncorp.  There are a number of foreign retail banks operating in Australia that have been gaining market share. These include ING Bank, HSBC, Citigroup and Rabobank.  The market is also comprised of a number of non-bank financial institutions including building societies, credit unions, mortgage originators and money market corporations.

Our Capability

Across Financial Services we offer a complete range of consulting, resourcing and capability uplift solutions.

Industry Challenges

Disruption from new digital technologies like blockchain, peer-to-peer lending, niche players who can bring services to market quickly and cheaply without the legacy overheads of the traditional institutions

Operating costs, process efficiency and customer experience – existing players need to look at new and creative ways to reduce their operating footprint, streamline middle and back office, and out-compete in a more dynamic market.

The move to digital distribution and self-service beyond branch and physical footprint paradigms as well as integrated omni-channel serivce delivery and customer acquisition. Adoption of better practice customer relationship management to provide single view of customer and common experience.

An ever more complex regulatory environment in a post-GFC world, whether for deposit-taking institutions or lenders of all varieties.