Insourcing Advisory Services

The continuing consolidation of trade banking operations into the hands of a small number of banks is dramatically reshaping the trade banking landscape. A two tier industry structure is quickly developing. The top tier being major insourcing banks who will provide processing and technology services to the next tier, who in effect become a reseller of those services. The second tier banks retain sales, relationship management, and credit - essentially a sales organization. The top tier banks have assumed a much larger and challenging role.

Predictably, the increased volume of transaction through-put will increase stress on operations and technologies, requiring vigilance and constant improvement. Allowing bottlenecks or poor performance will threaten service level agreements and customer satisfaction, with the attendant negative  impact on reputation. 

Operational excellence though is not enough, the greater challenge will be one of leadership. The top tier banks, who are proven industry leaders on their own behalf, now have growing communities of insourced banks who have tied their banks future to their insourcer. To be successful the insourcer must succeed as the leader of its community, meeting the needs of the community's customers as well as its own.

How well insourcing banks balance their roles as innovator, competitor, service provider, and community leader will differentiate the winners and the losers. As the community scales, insourcing banks must ensure that strategic leadership, community leadership, operations and technology stays aligned, efficient, effective and profitable.

TradeEvolution consultants have the experience and ability to provide advice and practical assistance for the bank's success. TradeEvolution has extensive and unique experience in establishing effective insourcing solutions for Banks.

The following are some of our key Insourcing Advisory services:

4 Insourcing Strategic Readiness

4 Technology Insourcing Assessment

4 Operational Insourcing Assessment

4 Integration of Insourced Banks

Insourcing Strategic Readiness

Conduct an insource readiness review of the bank's trade business to determine the viability of an insourcing strategy. Does the bank have the right technology in place? Is the bank's operations environment robust enough to support the demands of new banking customers? Is executive management aware of the resources required to adequately run an insourcing organization? What hidden costs does the bank need to be aware of when putting together a business plan?

Technology Insourcing Assessment

Assess the bank's current technologies readiness for insourcing. Does the bank's existing systems support white-labeling of documents and customer systems effectively? What capabilities are there for imaging and workflow management? How will bank data be segmented? Is the bank's reporting architecture able to produce reports by banking client without risk of co-mingling their data? Does the bank's system capture data needed to track SLAs? Is the bank's interface architecture flexible enough to bring on new banks quickly? Will the bank's environment scale? Is the bank's environment secure enough for processing other bank transactions? Will the technology support the operating models that insourcing will require?

Operational Insourcing Assessment

Assess the bank's current operations readiness for insourcing. Is the bank's current operational infrastructure efficient for insourcing? Does the bank effectively support a hub and spoke processing model? Is the bank's back-office operations able to support factory based processing? Does the bank  have framework and legal infrastructure in place to get through the legal process required to integrate new banks?

Integration of Insourced Banks

Insourcing can be a highly complex process with many components to oversee (legal, technology, operations, business). The process requires strong engagement management ideally from experts that have been through the process before. How will the bank's existing systems be integrated? Are your prospective clients willing to go forward with a standard solution or are there customizations that have to be made? How does the bank manage this integration process and project without using so much internal capacity that it cannot bring on other banks in a timely manner? TradeEvolution can help banks bring on insourcing clients more quickly and provide an independent presence to help mitigate issues that can often develop with any complex in/outsourcing initiative.

See our Integration Services page for additional information on our integration services.