For a European Regional Bank, development of a Documentary Trade Sourcing Target Operating Model

Client Situation

The client wanted to investigate how sourcing could be used to lower operating costs, increase quality of service, mitigate operating risks and facilitate business requirements of wholesale banking clients. As a starting point the client requested Capco to develop a Target Operating Model (TOM) for their trade services operations coping with a given multi-country setup. This included also the implementation path and the economic model (cost & benefit analysis) for the Target Operating Model using different sourcing options.

Approach

• A very consultative business requirements phase to establish the client requirements of the Target Operating Model and the strategic principles that would guide it
  
• An understanding of the As Is model for the operational functions, IT architecture, organisational model and cost base of the entire operations
  
• Development and syndication of the logical ‘To Be’ Operations Blueprint against the requirements and strategic principles developed
  
• Identification of individual implementation options (including sourcing) and the business case for each of these

Deliverables

• Detailed business requirements for Wholesale banking clients using Trade services products and services
  
• Clear understanding of the As-Is environment (Business, Ops, IT)
  
• Future state Target Operating Model – a Trade Services Operations Blueprint facilitating the defined business requirements, using a segmented service approach
  
• Phased implementation approach, including options for sourcing, each with a detailed business case (costs, benefits, risks, etc)
  

• Syndication and agreement to progress towards inception of the project that will implement the TOM and associated recommendations

Key Benefits

Capco enabled the client to build a clear picture of how their operations needed to be organised to meet the requirements of the different markets and client segments that they served.  In addition, a clear implementation path was identified that included a sourcing approach that was appropriate for the client’s sourcing experience