The document highlights the reliance on legacy systems in the banking back office, which consumes 90% of technology budgets and leads to inefficient processes and high paperwork rejection rates. Customer dissatisfaction is significantly influenced by back-office issues, with only 30% of bank executives feeling their operational processes can adapt quickly. Automating back-office functions could yield cost savings of 30% for banks.

1. The State of the Banking Back Office
Back-end Systems Continue
to be Legacy Based
Maintaining legacy systems consume
of technology budgets
90%
Legacy Systems have Resulted in
Inefficient Manual and Paper-based Processes
Paper consumption of
10,000 pages per
person per year
50%
of submitted paper
work in account
opening gets rejected
Top 10 global investment banks
=
1 front-line staff
2 middle/ back-office staff
These Inefficiencies Have a Significant
Impact on Customer Experience
60%
of customer
10-20% of contact center
dissatisfaction sources
volumes are a result of execution
originate in the back office issues in the back office
Only 30% of banks’ executives
feel that their operational processes
can adapt quickly to external changes
Automating Back-Offices can help banks
realize overall cost savings of 30%
9% Core Banking
replacement
6% Document Systems
Management
15%
BPM
Sources
1. JWG, “FS infrastructure: ready for G20 Reform?”, March 2012
2. Idatix, “Financial Services: Helping the Environment & Going Paperless, Properly”, July 2012
3. Quadron Data Solutions, “Operational Inefficiencies—Horror in the Front, Middle and Back Office”, December 2012
4. Financial News, “Back office pushed to the front of the cost-cutting queue”, December 2012
5. Verint, “The Back Office: The Next Competitive Battlefield”, 2008
6. Capgemini and MIT Center of Digital Business, “The Digital Advantage: How Digital Leaders Outperform Their Peers
in Every Industry”, November 2012
Reach out: Interested in reading the full report?
Head to http://www.capgemini-consulting.com/backing-up-the-digital-front-digitizing-the-banking-back-office
Follow us on Twitter @capgeminiconsul or email dtri.in@capgemini.com
#digitaltransformation