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Best Practices in Financial Services Technology: Effective Vendor Strategies, Opportunities and Pitfalls Product Image

Best Practices in Financial Services Technology: Effective Vendor Strategies, Opportunities and Pitfalls

  • ID: 354632
  • September 2006
  • 137 Pages
  • Scripp Business Insights

The financial services sector is still the one industry that vendors recognise as offering lucrative returns - two of the three largest software vendors (SAP and Oracle) have been heavily targeting this area in recent years - however, it is also one of the hardest to break into for outsiders.

‘Best Practices in Financial Services Technology’ is a new management report that provides best practice advice and vital insight into the retail banking, insurance and financial markets sectors across Europe and North America. It also provides an in-depth analysis into IT spending by sub-sector.

Develop your market presence, strategic planning and go-to-market approach for higher profitability, using the in-depth analysis in this report.

Hot Issues Covered in This Report:

- Balance future growth with short-term efficiencies – the end of cost restructuring projects, the intensification of competition and the increasing need to achieve operational efficiency.
- Core systems renewal – the replacement of core systems, investments in re-engineering and the replacement cycle.
- Standardisation – customers’ use of the different channels READ MORE >

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Executive Summary
Market outlook
Balance future growth with short-term efficiencies
Focus on business goals, not technology
Encourage standardization
Avoid a ‘big bang’ approach
Compliance is still a top priority
Exploit new market opportunities
Create infrastructure efficiencies

Chapter 1 Introduction
What is this report about?
Who is this report for?
Definitions
Tiers
Regulations affecting financial services institutions
Basel II
Capital Requirements Directive (CRD)
IFRS/IAS
MiFID
Regulation NMS
Sarbanes-Oxley
Banking terms
Core systems
Financial markets terms
Policy administration
Hedge fund
Assets under management
Insurance terms
Policy acquisition
Policy administration
Policy processing (Life) claims processing (non-Life)
Policy processing (Life)

Chapter 2 Market outlook
Summary
Introduction
Retail banking
Europe
North America
Insurance
Financial markets

Chapter 3 Balance future growth with short term efficiencies
Summary
Introduction
Case in point: core systems renewal in retail banking
What are core systems?
Banks’ core systems strategies
Drivers behind investment in core systems platforms
Core systems technology
Architecture standardization – the rise of the integration layer
Wrapping the core systems as temporary relief for core system pain points
Re-engineering core systems for greater componentization
Service-Oriented Architecture – the next big leap towards process excellence
Event Driven Architecture – a step ahead of Service-Oriented
Architecture

Chapter 4 Focus on business goals, not technology
Summary
Introduction
Case in point: financial services investment in contact centers
Overview
Background
Productivity and profitability
Outbound services
Compliance
Key tactics to maximize a go-to-market strategy

Chapter 5 Encourage standardization
Summary
Introduction
Case in point: multi-channel distribution in retail banking
Importance of channel strategy
Need for a multi-channel strategy
Delivering multi-channel distribution
Security is increasingly an issue
Channel orchestration for a seamless customer experience
Decomposition of channel silos
Channel architecture

Chapter 6 Avoid a ‘big bang’ approach
Summary
Introduction
Case in point: IT investment strategies in insurance
IT spending outlook
IT objectives
Legacy system investment remains key challenge
Claims remains the focus in Non-life
Policy administration

Chapter 7 Compliance is still a top priority
Summary
Introduction
Data management
Information lifecycle management
Email management
Security
Case in point: growth of legislation affecting insurers
US insurers
European insurers

Chapter 8 Exploit new market opportunities
Summary
Introduction
Case in point: hedge funds
Business issues for hedge funds
Hedge funds are beginning to focus on cost control and competitive pressures
Corporate governance is a growing concern as investor base expands
Competition sparks increased capability demands on service providers
Technology opportunities
Rationalization of a hedge fund manager’s desktop
Pressure to improve trade and portfolio analytics
Improvement in execution quality
Integrating execution management into order management
Prime brokers must focus on robust operational technology solutions
Opportunity for vendors to service larger funds
Institutional clients drive customizable reporting functionality
Consolidated views in demand

Chapter 9 Create infrastructure efficiencies
Summary
Introduction
Case in point: outsourcing in insurance
Outsourcing spend
Network outsourcing
Desktop outsourcing
Datacenter outsourcing
Application services outsourcing
Business process outsourcing
Global sourcing
Index

List of Figures
Figure 3.1: Application architecture view of generalized integrated core system
Figure 3.2: Business environment for core system strategy
Figure 3.3: Benefits of real-time processing
Figure 3.4: Core systems development trajectory in retail banking industry
Figure 3.5: Process-centric service-oriented architecture within retail banking institutions
Figure 4.6: Financial service agent positions
Figure 5.7: European retail banks’ distribution channel project priorities
Figure 5.8: Banks’ progression towards a predictive approach to customer service
Figure 5.9: Multi-channel architecture
Figure 6.10: Drivers dictate IT mindset
Figure 6.11: Differing approaches to systems simplification
Figure 6.12: Critical strategic drivers and implications in policy administration systems
Figure 7.13: Regulatory IT spend is more focused on the Patriot Act, Basel II and SOX in 2006
Figure 7.14: Regulatory compliance IT spend (Europe) 2005 – 2009
Figure 7.15: Summary of regulation affecting L&P insurers
Figure 8.16: Hedge fund strategies have outperformed the market over the last few years
Figure 8.17: European Hedge Fund Industry IT spend 2005-2009
Figure 8.18: A hedge fund’s investment cycle
Figure 9.19: How are your IT and outsourcing budgets changing from 05 to 06?
Figure 9.20: Interest remains relatively high, but no individual service is universally accepted across the sector
Figure 9.21: What are the benefits of business process outsourcing?
Figure 9.22: 1) What is your current strategy with regards to offshoring and 2) are you increasing your use of offshore in 2006?

List of Tables
Table 4.1: Contact center IT spend in North America, 2005 – 2009
Table 4.2: Contact center IT spend in Europe, 2005 – 2009
Table 9.3: Infrastructure outsourcing by line of business, 2002-2008
Table 9.4: The changing face of offshore outsourcing

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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