Shared Services in european FS market

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Shared Services in European FS Market; what has not yet been achieved? …

Shared Services in European FS Market; what has not yet been achieved?

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  • 1. Shared Services in European FS Market What has not yet been achieved?Client Name Here © 2010 BearingPoint INDUSTRY 1
  • 2. The Financial Services industry is facing drastic changesClient Name Here © 2010 BearingPoint INDUSTRY 2
  • 3. The Financial Services industry is facing drastic changes; first SharedServices steps has been taken Current situation: € Business models are being challenged € Increase regulation € Decreased customer loyalty € Margin erosion € Further consolidation Challenges: € Improve efficiency € Improve operation readiness Shared Services initiatives to bring: € Efficiencies of scale € Synergy realisations € Improved quality of servicesClient Name Here © 2010 BearingPoint INDUSTRY 3
  • 4. This study examines what has been attained in the field of Shared Services and what has not yet been achieved! Source: Shared Services Industry Specifics and Trends in the European FS Market, BearingPoint study 2010Client Name Here © 2010 BearingPoint INDUSTRY 4
  • 5. Implementation of Shared Services within the Financial Services industry is lagging compared to other industriesClient Name Here © 2010 BearingPoint INDUSTRY 5
  • 6. Implementation of Shared Services within the Financial Services industry is lagging compared to other industries Shared Services are just recently an accepted organisational and strategic model in the Financial Sector > 40% of the FS SSCs established for more than 3 years (=relatively young compared with other sectors) Just 28% of the centres employ > 500 FTE (=low compared with other sectors) Majority of FS companies that do operate SSC are implemented for one or a few processes Cross business centres or cross functional centres are not very common in FS sector Only 20% of FS SSCs are managed by a dedicated SSC leader and focussing on continuous professionalism of service delivery Source: Shared Services Industry Specifics and Trends in the European FS Market, BearingPoint study 2010Client Name Here © 2010 BearingPoint INDUSTRY 6
  • 7. 1st conclusion: Implementation of Shared Services within the FS industry, compared to other industries, is still at the beginning of the journey of reaching a higher degree of efficiency and integration Source: Shared Services Industry Specifics and Trends in the European FS Market, BearingPoint studyINDUSTRYClient Name Here © 2010 BearingPoint 2010 7
  • 8. FS core processes with potential for shared services Credit management Customer care Payment Services Custody & claims management Dunning & collections Security transactions 50% of customer care and payment services are already or will be soon be offered in SSCs due to low complexity and high standardisation Source: Shared Services Industry Specifics and Trends in the European FS Market, BearingPoint studyINDUSTRYClient Name Here © 2010 BearingPoint 2010 8
  • 9. Hence the opportunity of potential SSC processes is underestimated … “ … The high rating of N/A (not applicable) for all FS processes indicates that the opportunity of using SSC is rather underestimated considering the number of companies that have successfully implemented SSCs for these processes …” Source: Shared Services Industry Specifics and Trends in the European FS Market, BearingPoint study 2010Client Name Here © 2010 BearingPoint INDUSTRY 9
  • 10. 2nd conclusion: The FS industry concentrated so far on “the low hanging fruit”; extending the focus of SSC’s will add more value Source: Shared Services Industry Specifics and Trends in the European FSClient Name Here Market, BearingPoint study 2010 © 2010 BearingPoint INDUSTRY 10
  • 11. There is significant potential in the Financial Accounting processes, not been realised so farRealised versus planned finance/risk processes Realised Planned Not applicableFinancial accounting 29% 25% 46%Controlling, financial analysis, planning, budgeting 27% 15% 58%Treasury, asset-liability management 27% 8% 65%Regulatory reporting 25% 4% 71%Risk and management reporting 23% 8% 69% Our focus should be on changing the focus from the core banking & insurance processes to the more transactional ones Source: Shared Services Industry Specifics and Trends in the European FS Market, BearingPoint studyINDUSTRYClient Name Here © 2010 BearingPoint 2010 11
  • 12. 3rd conclusion: There is significant potential in bringing the Financial Accounting processes into a Shared Services environment Source: Shared Services Industry Specifics and Trends in the European FS Market, BearingPoint study 2010Client Name Here © 2010 BearingPoint INDUSTRY 12
  • 13. 4th conclusion: A Shared Services organization enables the implementing of new regulationClient Name Here © 2010 BearingPoint INDUSTRY 13
  • 14. Summarizing the conclusions: 1. Implementation of Shared Services within the FS industry, compared to other industries, is still at the beginning of the journey of reaching a higher degree of efficiency and integration 2. The FS industry concentrated so far on “the low hanging fruit”; extending the focus of SSC’s will add more value 3. There is significant potential in bringing the Financial Accounting processes into a Shared Services environment 4. A Shared Services organization enables the implementing of new regulationClient Name Here © 2010 BearingPoint INDUSTRY 14
  • 15. Curious? Do you want to know more or willing to read the full report?Client Name Here For more information check: http://www.bearingpoint.nl/en-nl/ INDUSTRY © 2010 BearingPoint 15