Fostering Growth Through Operational Transformation · technology, processes, people utilization & practices • Manual and paper-based processes • Absence of workflow management

DESIGN ∙ TRANSFORM ∙ RUN DESIGN ∙ TRANSFORM ∙ RUN

Diwakar Singhal Senior Vice President & Business Leader

Fostering Growth Through

Operational Transformation

Date: 27 November, 2014

PROCESS • ANALYTICS • TECHNOLOGY 2 © 2014 Copyright Genpact. All Rights Reserved.

Where is the financial Services industry heading?

The Road we are on…..

SLOW ECONOMIC &

CREDIT GROWTH

• Dynamic & Increasingly

complex regulatory

environment

• Europe based companies spend > 50% of their

operations budgets on

compliance

TIGHTENING

REGULATIONS

• Rapidly changing

technology pushing

e-contracting & new

mobility solutions

INCREASING

DIGITALIZATION

• EU 2020 projected GDP growth ~1.37%

• Margin pressures,

Capital constraints &

demands for improved

ROE

2 2


Relentlessly evolving business models and disruptive

technologies are transforming the industry landscape…..

laggard incumbents will disappear but the nimble will prosper

MARKET SHIFTS

Global footprint/

expansion; Emerging

market set-up

PRODUCT

DIVERSIFICATION

Captives turning into banks;

diversification into special

service & insurance

packages

NEW

TECHNOLOGIES

Plug & play business

Models; Big Data &

Advanced Analytics


Managing Complexity & Change in a new landscape: Top

Challenges on Executive’s Minds

4 most significant challenges for

meeting priorities for companies % of respondents

Lack of quality data to inform business

decisions

Business processes too inflexible to

take advantage of new opportunities

Organizational structure not designed

appropriately

Difficulty finding talent

4 most significant challenges to

meeting priorities for companies Total

% of respondents Top Challenge

<$1 billion in revenue >$1 billion in revenue

By Company Size

Our first action is strengthening the whole

data governance area. Our key stakeholders

are fully engaged; we set up a steering

group and sub-working groups where each

owns its data. Our focus is on strengthening

this with the right governance. COO, Europe,

US$100b–US$500b AUM

Our focus is to make our technology

environment more robust, trying to reduce

the number of applications we’re using,

while at the same time making our data

consistent across the organization.

Director of Operations, Europe

US$100b—US$500b AUM

Source: Proxy data based on McKinsey Global Survey

“

”

“

” 4 Source: EY Global Survey on Asset Management Investment Operations


Emerging trends are rewriting the rules of the game….are you ready?

“Everyone thinks of changing the world, but no one

thinks of changing himself” Leo Tolstoy- Russian Novelist

Are your processes

& systems adept to

dynamic regulatory

environment?

How to

enhance

operational

efficiencies?

How to rationalize

existing systems

& embrace new

technology?

Do you have the

right metrics for

robust reporting &

risk management?

Picture Source: McKinsey Insights


Ahead of the game…Building

Organizational Agility can pave the

way for Revenue Growth…..

Innovative Operating Models aligned to support

changing business requirements

Define & Implement your Globalization Strategy

Differentiate Customer Experience…Innovate in

Mobile Solutions to increase customer engagement

Strengthen Reporting Infrastructures & Analytics for

robust risk management

Leverage Technology for real-time processing,

tracking, and decision-making

6


Global finance & leasing companies can accelerate

speed-to-market & enhance operating efficiencies through

Agile Delivery Models, Nimble Technology , Process

Transformation & Intelligent Analytics 7


Case in Point: A Global Vendor Finance Company

looking to improve Deal Conversion through increasing

efficiencies in their Pipeline Management process

1

Process Transformation through Realigning Service

Delivery Model, Standardization, Consolidation &

Technology

Solution

8


A comprehensive assessment of client’s originations (Quote to Payout)

process reflected significant variations across business units in

technology, processes, people utilization & practices

• Manual and paper-based

processes

• Absence of workflow

management tool

• Multiple Disjoint systems

– manual entry of data

into multiple applications

• Siloed Organization

• Lack of clear roles &

responsibilities

• Performance management

system not well defined

• Minimal/ No cross utilization of

resources across business units

• Lack of clearly defined

procedures

• Absence of Metric

Measurement system

• Duplication of Activities/

Rework

• Knowledge Management-

Absence of structured process

People Technology Process


Metrics, Measurement & Reporting – Defined SLAs & established metric

definitions

Robust Knowledge Management – through detailed process maps, SOPs,

training manuals etc.

Dealer/ Vendor Performance Management by measuring Key performance

indicators to increase dealer effectiveness

Efficient Pipeline Management – Implemented a new front end system for

paperless originations

Point of Sale (POS) solution for faster quote & proposal generation

Digitization– Automated document generation; digital signatures & e-docs

Activity alignment per business discipline - Defined clear segregation of

roles & responsibilities:

Reduce admin to sales work ratio: for increased focus on new client

relationships

Integrated teams to generate additional capacity

Enhance

process

effectiveness to

maximize

efficiencies

Organization

Redesign to

exploit full

potential

Transform through

Technology

Reengineered core business processes across the client’s

Originations value chain…


The Result: Improved Deal Conversion, Scalable Operations,

Reduced Cost-to-Serve, Standardized , Efficient & improved

processes….

~3%

Deal

Conversion

~14%

Cycle Time

Reduction

~25%

Reduction in

Cost to Serve Additional Booked Volume:

~€60MM* * Indicative impact for a company with annual new proposal volume € 2 BN

UK, Germany, France* India*, China, Korea Australia #

Successful Implementations across the globe and the journey continues…..

*Implementations in progress #Under Discussion


2 Case in Point: A leading US based Laundromat company

looking to set up & rapidly scale up operations in Europe

Robust, Scalable Operating Model with minimal upfront

investment 12

Solution


Develop more

efficient leasing

policies and

procedures

Delivered an end to

end operating solution

& support across all

originations, servicing

and F&A activities

Provide a state of art

technology platform

with flexible hosting

solutions and a

variable pricing

structure

The delivery team leveraged 15 years of process and industry

experience to:

An innovative new solution: Develop a new industrialized option via a global

partnership with a single end to end provider of leasing operations

Delivered as a service, the new model was designed to reduce costs and provide

variable pricing for servicing operations quickly across the globe

Solution

Business Challenge

Scale leasing

operations to capture

growing demand

Build an innovative new

operating model to

radically lower costs

Setup operations

quickly within a five-

month timeline

1

5

2 3


5

Months

The Result: Full Service globally scalable Operating Model

with radically low set-up time & costs

Phase I

Operations set up for 2 European countries in 5 months with minimal

resources at client end (1 MD + 3 Sales/ Finance)

Phase II

3 Europe countries set up in 3 months


Shifting Geographies… “Think Global – Act Local”

Model applicable to

any industry or

business unit

planning to gain entry

to an emerging

market

Genpact today

operates in most of

the 21 emerging

market countries

Right partnership

accelerates growth by

~ 55%…We can

collaborate

with you to make this

a success!

USA

Mexico

Delivery Centers

Guatemala

Colombia

Brazil

South Africa

Kenya

India UAE Philippines

The Netherlands

China Japan

Czech Republic

Poland

Hungary

Romania Ireland


Case in Point: A global financial conglomerate looking to

reduce cost of compliance and get access to right talent

pool

3

Build “Center of Excellence” for Regulatory Reporting

function through standardization, consolidation and

automation

Solution

16


Leverage GENPACT’s Global

Risk Academy and global

talent

Solution

Build a “Center of Excellence”

for Risk and Regulatory

Reporting

Lack of

resources

with “niche

skill sets”

Significant

variance across

business units

Highly manual

process : ~80% of

time on report

preparation &~ 20%

on analytics/reviews

Rising

compliance

costs

Create a common

processes across risk,

finance, and

operations teams

Simplify & standardize

technology by

adopting common

systems, tools and

platforms

Flexible staffing

model to optimize

cost & delivery

Standardize data

collection, aggregation,

validation, and

governance processes

across all business units

Business Challenge


Increased

productivity and

compliance driven

by a unified and

integrated systems

& applications

Greater business

agility through

advanced

reporting &

Analytics

Standardization of

processes across

business units to

leverage synergies

Cost Optimization: ~25-

30% cost savings with

efficient processes,

lower cost of compliance

BUSINESS IMPACT And the result was a “future-ready” risk regulatory

organization with access to ready global talent pool and

technology enabled, scalable & standardized processes

Thank you

Diwakar Singhal Senior Vice President & Business Leader

[email protected]

mailto:[email protected]

Documents

Fostering Growth Through Operational Transformation · technology, processes, people utilization & practices • Manual and paper-based processes • Absence of workflow management