When in 2006, the corporate and investment banking arm of one of Europe’s largest banks, needed to reduce its risk prole by focusing on simpler ‘vanilla’ trades - they also had to ensure the volume of such trades increased signicantly to oset the reduced protability. With the limited back-oce capability supporting this trade and it’s obsolete systems, it was challenge for the bank to cope with the rising volumeof trades. So we partnered with Calypso to implement the Calypso trading application and create the core of a back once that would also meet future needs.
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Genpact sets up and runs an investment bank’s “virtual captive”, delivers 600% greater trade throughput at 20% lower cost
1. C ASE ST UDY
Genpact sets up and runs an investment bank’s
“virtual captive”, delivers 600% greater trade throughput
at 20% lower cost
About the client
The Corporate and Investment Banking group
of one of the top 5 banks in Europe, amongst
the top 10 banks in the world, with operations
in more than 70 countries
Industry
Capital markets
When in 2006, the corporate and investment banking arm of one of Europe’s largest
banks, needed to reduce its risk profile by focusing on simpler ‘vanilla’ trades - they
also had to ensure the volume of such trades increased significantly to offset the
reduced profitability. With the limited back-office capability supporting this trade
and it’s obsolete systems, it was challenge for the bank to cope with the rising volume
of trades. So we partnered with Calypso to implement the Calypso trading application
and create the core of a back office that would also meet future needs.
Since then, this engagement that has grown from 10 employees supporting a single
application to a team of 130+ consultants that support multiple business critical
applications for the client’s trading operations in 5 global financial capitals.
Business need addressed
• Centralize all trade processing: the bank
needed to centralize all trade processing to
ensure independence between ‘booking’
and ‘processing’ trades
Business challenge
• Rationalizing: the bank had multiple
international platforms and its accounting
systems had to be rationalized
• Inability of the systems to cope with a significant increase in trading volumes
• High cost and complexity of maintaining obsolete systems in the back office
• Scarcity of skilled Calypso experts needed to scale up delivery
• Process trade volumes cost effectively: the
bank needed a back office suite that could
process higher trade volumes at a significantly
lower cost per trade
• Unavailability of a partner with experience in supporting multiple platforms like
Misys Summit, Kondor+, Murex and IntelliMatch in addition to Calypso
Business impact
Genpact approach
• Cost and margin pressure: Delivered upfront
cost savings of 40% by setting up an offshored
Calypso service center operating in managed
services mode
• Standardization and simplification: Year
-on-year productivity gains delivered 20% cost
savings over 3 years
• Growth and scalability: Delivered the ability
to process a 600% greater trade throughput
• Setting up a ‘virtual captive’: Genpact set up a virtual captive center delivering
Calypso services in managed services mode, allowing the bank the benefits of scale
not previously achieved in such a specialized area.
• ‘Follow the sun’ location strategy: Genpact set up operations in four locations
(New York, London, Paris, Hong Kong) to provide live on-site support for the
investment bank’s traders on a 24*7 basis. This on-site support was available in
French as well. Apart from the live on-site support delivered from these four global
locations, all other services were delivered from the virtual captive based in India.
• Lean Six Sigma approach: Genpact streamlined the process flows involved in back
office trade processing and automated manual activities. This led to productivity
improvements that minimized human intervention and increased the back office’s
capacity to process trades.