Creation of “Mid and Back Office” Shared Services to Improve Efficiency and Compliance

Challenge

A major international bank operating in multiple markets was faced with tightening margins, flat-lining economic activity, and unsatisfactory productivity ratios. Each of the bank’s operations was standalone, with branches carrying out the majority of their own mid- and back-office functions. Regulation differs and is evolving in each of the bank’s markets, making it increasingly complex to stay up-to-date and ensure compliance.

Result

A successful reorganization transformed processing into a centralized function and eliminated redundancy in similar functions to attain greater efficiencies. The introduction of new technology, including a cutting-edge transaction validation platform, enhanced compliance and risk management responsiveness. The restructuring led to a positive bottom line contribution of more than 10% as well as greater capacity in front-line branches to engage with existing and prospective customers.

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