- Language: English
- Published: December 2014
- Region: Canada, United States
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 available and the multi-channel strategy.
- Compliance drivers – ‘compliance fatigue’ amongst organizations, regulatory activity, and regulatory initiatives such as MiFID in Europe and Reg NMS in the US.
- Hedge funds – formulation and execution of investment strategies.
- Outsourcing – cost cutting, transformation and growth enablement.
This New Report Will Enable You To:
- Gain in-depth market insight using this report’s analysis of the retail banking, insurance and financial market sectors.
- Determine your go-to-market strategy based on this report’s assessment of the financial service institutions’ priorities IT spending results and predictions across retail banking, insurance and financial markets.
- Talk the language of financial services institutions when presenting your technology solutions using the analysis of the value and volume sizing for select IT markets in Europe and North America contained in this report.
- Identify where partnerships and relationships with systems integrators can benefit your business objectives by reviewing the best practice advice and guidance for IT vendors targeting the market included in this report.
- Increase market share by identifying where the major growth opportunities lie through this report’s examination of external factors impacting IT spending and the drivers and inhibitors to IT investment.
Key Questions Answered in this Report:
- What are the main challenges facing financial services institutions?
- Which areas of IT are financial services institutions investing in?
- What’s driving core systems investment?
- Are financial services institutions interested in outsourcing?
- What regulatory pressures do financial services institutions face?
- How are insurers modernising their policy administration systems?
- What do banks want their core systems architecture to look like in the future?
- What opportunities do hedge funds offer technology vendors? SHOW LESS READ MORE >
Balance future growth with short-term efficiencies
Focus on business goals, not technology
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?
Regulations affecting financial services institutions
Capital Requirements Directive (CRD)
Financial markets terms
Assets under management
Policy processing (Life) claims processing (non-Life)
Policy processing (Life)
Chapter 2 Market outlook
Chapter 3 Balance future growth with short term efficiencies
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
Chapter 4 Focus on business goals, not technology
Case in point: financial services investment in contact centers
Productivity and profitability
Key tactics to maximize a go-to-market strategy
Chapter 5 Encourage standardization
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
Chapter 6 Avoid a ‘big bang’ approach
Case in point: IT investment strategies in insurance
IT spending outlook
Legacy system investment remains key challenge
Claims remains the focus in Non-life
Chapter 7 Compliance is still a top priority
Information lifecycle management
Case in point: growth of legislation affecting insurers
Chapter 8 Exploit new market opportunities
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
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
Case in point: outsourcing in insurance
Application services outsourcing
Business process outsourcing
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