Is Business Process Outsourcing the right strategy and which BPO provider fits best?

Securities processing is commonly considered as a back office activity with high suitability for Business Process Outsourcing (BPO). Due to the non-strategic nature of this business process, outsourcing of securities processing normally does not affect the bank’s competitive advantage and offers the possibility to benefit from significant economies of scale (transferred by the BPO provider).

However, private banks – defined as banks specialised on portfolio management and investment advisory services for wealthy individuals – have to consider additional aspects when taking their “make or buy” decision (e.g. product and process flexibility, confidentiality of customer and transaction data, individualisation of customer reporting).

In order to gain insight into the sourcing decision of private banks, METIS Management Consulting conducted a market survey complemented by a series of explorative interviews in the beginning of 2008. Based on these data, the sourcing strategies of 54 private banks in Germany were examined and the business models of 6 BPO providers were analyzed which currently offer BPO of securities processing for this market segment.

The market analysis by METIS was guided by the following questions:

 

For further information please do not hesitate to contact:

Andreas Bornemann
Telefon:         +49 89-520389-20
Telefax:         +49 89-520389-29
E-Mail:           a.bornemann@metis-mc.com