Genpact Survey Results: Retail and Commercial Bank COOs Say Firms Can Unleash Over 500 Million A Year Through Advanced Operations
238 senior banking executives polled in independent research commissioned by Genpact reveals untapped potential
NEW YORK, NY, January 15, 2015 – Genpact Limited (NYSE: G), a global leader in designing, transforming, and running intelligent business process operations, has released findings on how retail and commercial banking executives are tackling critical strategic challenges through operational excellence. These insights come from operations leaders at banks in North America –predominantly large companies with more than 10,000 employees.
According to the sample of senior operations executives, the two most commonly-reported challenges for both retail and commercial banks were ensuring compliance to regulations and managing risk, cited by 73% and 71% of respondents, respectively, while increasing customer satisfaction took the third spot. Notably, cost reduction took the fourth spot, with less than half of retail bankers and less than a third of commercial bankers responding that it was one of their top three challenges. This may indicate a shift in priorities from the trends triggered by the 2008 financial crisis.
Respondents noted that certain functions have a greater impact across all challenges, such as payments processing and mortgage servicing on the retail side and business banking originations / servicing on the commercial side. Other functions have a larger impact on single areas such as the Anti-Money Laundering (AML) function and its direct effect on compliance.
The majority of respondents believe new operating levers such as the radically improved use of technology, business process reengineering, and advanced organizational structures such as shared services and Business Process Outsourcing (BPO) can create a sizable dollar impact for their organizations. In the survey, 60% of retail banking operations executives believe that advanced organizational structures have a material impact on functions such as payments processing. On the commercial side, the same percentage saw shared services and BPO materially impacting origination and servicing activities. On average, retail bankers estimated that cumulatively these levers can have an average impact of $680 million per firm on an annual basis. For commercial bankers, that number rose to over $730 million per firm on an annual basis.
“The banking industry is redefining the way it looks at both risk and compliance by focusing on building controls and strong frameworks as a top priority,” said Mohit Thukral, senior vice president and business leader, Banking and Financial Services, Genpact. “In doing so, banks are also seeing improvements in customer experience and reductions in cost, enabling an even greater investment in their risk and compliance programs.”
For more information from this survey, interested parties may access the following links:
- Executive summary: genpact.com/docs/resource-/executive-summary-transforming-banking-operations-through-advanced-operating-models
- Retail banking infographic: genpact.com/docs/resource-/ig-advanced-operating-models-retail-banking
- Commercial banking infographic: genpact.com/docs/resource-/ig-advanced-operating-models-commercial-banking
- Full report: go.genpact.com/COO-banking-finance-advanced-operating-models-research14-reg.html?source%3D=Gbanner
Genpact (NYSE: G) stands for “generating business impact.” We design, transform, and run intelligent business operations including those that are complex and specific to a set of chosen industries. The result is advanced operating models that foster growth and manage cost, risk, and compliance across a range of functions such as finance and procurement, financial services account servicing, claims management, regulatory affairs, and industrial asset optimization. Our Smart Enterprise Processes (SEPSM) proprietary framework integrates effective technology and data-driven insight into the fabric of enterprise processes to help our clients be more competitive. Our hundreds of long-term clients include more than one-fourth of the Fortune Global 500. We have rapidly grown to over 67,000 people in 25 countries with key management and corporate offices in New York City, but our global critical mass doesn’t dilute our flexible and collaborative approach and our management team still drives client partnerships personally. Our clients attribute much of our success to our unique history – behind our passion for process and operational excellence is the Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for more than 16 years. genpact.com. Follow Genpact on Twitter, Facebook, LinkedIn, and YouTube.
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For more information:
Gail Marold (Genpact Media Relations)
Dan Wilson (For Genpact U.S.)
Quintin Keanie (For Genpact Europe)
+44 (0)207 309 1053