Shared Services in European FS Market; what has not yet been achieved?

1. Shared Services in European FS Market
What has not yet been achieved?
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2. The Financial Services industry is facing drastic changes
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3. The Financial Services industry is facing drastic changes; first Shared
Services steps has been taken
Current situation:
€ Business models are being challenged
€ Increase regulation
€ Decreased customer loyalty
€ Margin erosion
€ Further consolidation
Challenges:
€ Improve efficiency
€ Improve operation readiness
Shared Services initiatives to bring:
€ Efficiencies of scale
€ Synergy realisations
€ Improved quality of services
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4. This study examines what has
been attained in the field of
Shared Services and what has
not yet been achieved!
Source: Shared Services Industry Specifics and Trends in the
European FS Market, BearingPoint study 2010
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5. Implementation of Shared Services within the Financial
Services industry is lagging compared to other industries
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6. Implementation of Shared Services within the Financial
Services industry is lagging compared to other industries
Shared Services are just recently an accepted organisational and
strategic model in the Financial Sector
> 40% of the FS SSCs established for more than 3 years (=relatively
young compared with other sectors)
Just 28% of the centres employ > 500 FTE (=low compared with
other sectors)
Majority of FS companies that do operate SSC are implemented for
one or a few processes
Cross business centres or cross functional centres are not very
common in FS sector
Only 20% of FS SSCs are managed by a dedicated SSC leader and
focussing on continuous professionalism of service delivery
Source: Shared Services Industry Specifics and Trends in the European FS Market, BearingPoint study 2010
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7. 1st conclusion:
Implementation of Shared
Services within the FS
industry, compared to
other industries, is still at
the beginning of the
journey of reaching a
higher degree of
efficiency and integration
Source: Shared Services Industry Specifics and Trends in the European FS Market, BearingPoint studyINDUSTRY
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8. FS core processes with potential for shared services
Credit management
Customer care
Payment Services
Custody & claims management
Dunning & collections
Security transactions
50% of customer care and payment services are already or will be soon be offered
in SSCs due to low complexity and high standardisation
Source: Shared Services Industry Specifics and Trends in the European FS Market, BearingPoint studyINDUSTRY
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9. Hence the opportunity of potential SSC processes is
underestimated …
“ … The high rating of N/A (not
applicable) for all FS processes
indicates that the opportunity of
using SSC is rather underestimated
considering the number of
companies that have successfully
implemented SSCs for these
processes …”
Source: Shared Services Industry Specifics and Trends in the European FS Market, BearingPoint study 2010
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10. 2nd conclusion:
The FS industry concentrated
so far on “the low hanging
fruit”;
extending the focus of SSC’s
will add more value
Source: Shared Services Industry Specifics and Trends in the European FS
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11. There is significant potential in the Financial Accounting
processes, not been realised so far
Realised versus planned finance/risk processes
Realised Planned Not applicable
Financial accounting 29% 25% 46%
Controlling, financial analysis, planning, budgeting 27% 15% 58%
Treasury, asset-liability management 27% 8% 65%
Regulatory reporting 25% 4% 71%
Risk and management reporting 23% 8% 69%
Our focus should be on changing the focus from the core banking & insurance
processes to the more transactional ones
Source: Shared Services Industry Specifics and Trends in the European FS Market, BearingPoint studyINDUSTRY
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12. 3rd conclusion:
There is significant potential in bringing the
Financial Accounting processes into a Shared
Services environment
Source: Shared Services Industry Specifics and Trends in the European FS Market, BearingPoint study 2010
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13. 4th conclusion:
A Shared Services
organization
enables the
implementing of
new regulation
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14. Summarizing the conclusions:
1. Implementation of Shared Services within
the FS industry, compared to other
industries, is still at the beginning of the
journey of reaching a higher degree of
efficiency and integration
2. The FS industry concentrated so far on “the
low hanging fruit”; extending the focus of
SSC’s will add more value
3. There is significant potential in bringing the
Financial Accounting processes into a
Shared Services environment
4. A Shared Services organization enables the
implementing of new regulation
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15. Curious? Do you want to know more or willing to read the full report?
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