Business Process outsoucing helps CaixaBank ride out banking crisis

1. Case study
Businessprocessoutsourcing
helpsCaixaBankrideoutbankingcrisis
HP BPO partnership centralizes control to
lower costs and quicken integration
Industry
Banking
Objective
Drive continued efficiencies in back office process
Approach
Outsourced service provider must absorb new
acquisitions, cope with new government regulations
and deliver annual cost savings
IT matters
• Aligned business process with HP hardware,
improving interoperability and lowering
supplier costs
• Created a roadmap of new business process
innovation, keeping CaixaBank ahead of
the competition
Business matters
• Delivered annual savings of 3 percent,
as per contract
• Maintained operations within Spain, meeting
CaixaBank’s social responsibility commitments
• Provided the capacity to absorb new acquisitions,
allowing the business to consider new projects
“The branch will play a different role in the future.
It may be a home for commercial conversations, not
transactions. We’re working with HP to look at how we
can migrate branch operations to the back office, and then
to HP. There is an opportunity to reinvent what a bank
looks like.”
– Beatriz Kissler, bank services operations director, CaixaBank
Central control and standard processes provide
solid base for CaixaBank
The Spanish banking sector is suffering a slump. To get through
the crisis, banks have to cut costs and drive efficiencies
throughout their operations. Working with HP Business Process
Outsourcing, CaixaBank has lowered the cost of its services and
facilitated the integration of new acquisitions. The partnership
is looking to reinvent how a bank of the future will operate.

2. 2
Challenge
Consolidation and cost-control
CaixaBank is Spain’s leading bank. It is a sector
under much strain, having to cope with the
fallout from a collapse in the real estate market
and a recession across the European Union.
Theresponsehasbeenconsolidationandcost
control.AcrossSpainbranchesareclosing,smaller
banks havebeenacquiredbylargerplayersand,
insomecases;thegovernmenthasbeenforced
tobail-outthemostseverelyaffected.
CaixaBank,whilenotimmunetothebroader
difficulties,remainsbuoyant.Ithasacquireda
numberofregionalbanks,includingBancaCivica,
arivalsavingsbankandBancodeValenciain2013.
The challenge now is to integrate the new
acquisitions as efficiently as possible, lower the
cost of operations and rebuild confidence in the
banking sector.
Solution
Central control, standard process
Interms ofemployees,branchesand
administration,theacquisitionshaveswollen
CaixaBankatatimewhentheSpanishbanking
sectoris cuttingback.Thebusinessnumbers
6,400branchesand34,000employeesat
present.CaixaBankgeneratesapproximately
600milliontransactionsayear,afigureexpected
toriseby20percentwiththeadditionofBanca
Civica andafurther10percentwithBanco
deValencia.
While the acquisitions boost CaixaBank’s national
coverage (it had previously been strong in its
home territory of Catalonia) it needs to integrate
the new additions quickly and cost effectively.
To help do this efficiently, while retaining a focus
on service integrity, it needs to outsource much
of its banking operations. This would enable
the bank to focus its talent and resources on
value-added business objectives.
Being a hands-on operation, CaixaBank also
wanted greater visibility into banking operations.
A near real-time control platform would give
employees anytime; anywhere access to
complete, up-to-date data enabling employees
to make knowledgeable and informed business
decisions. Beyond enhancing visibility, a robust
new platform would also modernize the bank’s
critical back office operations, such as payment
processing and issue resolution. Both directly
impact CaixaBank’s profitability, as well as its
corporate image and level of social trust.
Near real-time business monitoring
HPbeganbydefiningabusinessmodelfor
CaixaBank,andthenworkedwiththebank
todevelopbusinessindicatorstofocus
informationgathering.
Thisinvolvedadaptingacommercial,real-time
systemsmonitoringproductforreal-time
businessmonitoring,whilecapturingdatafrom
disparatesources.
Case study | CaixaBank

3. Case study | CaixaBank
“HP providedacompletesolutionfromconsulting
tosystemsoperation,”saysLuisRamos,
IS projectmanager,CaixaBank.“Itwasdedicated
tounderstandinghowCaixaBankworks.The
solutionplatformandinterfaceadaptedto
thebusinessneedsofbusinessoperatorsand
managers.HPalsostreamlinedcommunications
withIS andinfrastructuregroupsatCaixaBank.”
Today,40usersinCaixaBank’sBankingBusiness
Operationsrelyonthesystemtomonitorand
manageoperationalcontrol.Thesystemis
displayedonseveralgiantprojectionscreens,
providing up-to-the-minuteoperationalstatus
across thebank’sheadquarters.Employeesthen
takeactionontheirownscreensassoonasan
alarm is raised.
Not all banks are equal
“From theoutside,abankisabank,justabank,”
says BeatrizKissler,bankservicesoperations
director,CaixaBank.“Itisn’t.Eachbankhas
differentcustomers,servicesandprocesses.
Eachhas developeddifferently.”
HP is oneoftwoBusinessProcessOutsourcing
partners workingwithCaixaBank(Kisslersays
shelikes toretainacompetitivebalance).Itplays
a crucialroleintheintegrationandtheincreasing
needtocopewithnewgovernmentregulations.
“Allourprocessesarenowcentralized.Weneed
tobringineveryoneofthenewbanks’services,
spotthedifferencesandstandardizethem.
Inaddition,theregulatoryenvironmenthas
changedcompletely.Therearenewlawsevery
twoorthreemonths.Thereisfarmorerisk
analysisandtransparency–andwe’redoingthis
becausewewantto,notjustbecausewe’rebeing
toldto.It’sgoodforbusiness.”
Kisslersays,whilemanyoftheprocesseshave
beenoutsourcedtoHP,thejobsremaininSpain:
“Wehavenotoffshoredthiswork–andthatis
averyimportantsocialresponsibilityforus
rightnow.”
Benefits
Automation and technology roadmap
ThankstoHP’sleading-edgebusinessmonitoring
solution,CaixaBankhasbeenabletobetter
maintainandcontrolbankingoperations,as
wellasoutsourceitsmostimportantbusiness
processeswithconfidence.
Inaddition,thebankhasgainedthetoolsitneeds
toperformin-depth,thoroughbusinessanalyses
toenhancebackofficeoperationalcontrol.
“Thenewoperationalbusinesscontrolcenterhas
transformedCaixaBank’sbackofficeoperations,
makingthemmoreeffective,whilereducingthe
numberofprofessionalsinvolved,”saysKissler.
3

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© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only
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Java is a registered trademark of Oracle and/or its affiliates.
4AA4-8939ENW, October 2013
Case study | CaixaBank KisslerwantedaBPOpartnerwithatechnology
roadmap.SincestartingworkwithHPin2006,
shehas pushedmoreworkouttotheBPO
provider,cuttingcostswithinthebankandplacing
theonus onHPtofindinnovativewaysofrefining
processes.“Ourmarginsarelower,itisonlyrightto
expectourserviceproviderstohelpus.Weexpect
3percentsavingseachyear,andwantHPtouseits
technologyadvantagetohelpfindefficiencies.”
Itis win-win,shesays,asthemoresavings
HP cangeneratethemoreservicesCaixaBank
willoutsource.
Byreassigningmorethan20employeesto
value-addedtasks,thebankhasimproved
productivityperoperatorby50percent.
Thisreallocationofresourcescreatesexciting
newopportunitiesforemployeedevelopment,
improvingemployeesatisfactionand,asaresult,
CaixaBank’soverallcustomerserviceexperience.
HPmaintainstheplatformandcontinually
enhancesthesolutionbyaddingnewbusiness
indicatorsandnewinfrastructurefunctionality.
Indeed,thesolutionhasprovenitselfthrough
theunprecedentedflexibility,availabilityand
automatedreportingcapabilitiesitbringsto
CaixaBank’sbusinessvision.
KisslersaysitisonlythroughtheHP’sautomation
andabilitytotakeonmoreservicesthatthe
businesshasbeenabletorideoutthestorm.
“It’sfairtosaysomeofthemosttroubledbanks
weretheoneswithdecentralizedprocesses,with
lessstandardization.Wehaveareputationfor
tightcreditandtightsystems.”
TherelationshipwithHPbeganwithoutsourcing
headofficefunctions,butthefocushasnow
shiftedtobranches:“Thebranchwillplaya
differentroleinthefuture.Itmaybeahomefor
commercialconversations,nottransactions.
We’reworkingwithHPtolookathowwecan
migratebranchoperationstothebackoffice,and
thentoHP.Thereisanopportunitytoreinvent
whatabanklookslike.”
Learn more at
hp.com/go/BPO
Customer solution
at a glance
Hardware
• Mid-range servers integrated to
Mainframe servers
Software
• Open systems, Linux, Java™ on virtualized
environment
HP services
• Business Process Outsourcing (BPO)
• Applications development to support
BPO and centralized control