shared services in european fs market
DESCRIPTION
Shared Services in European FS Market; what has not yet been achieved?TRANSCRIPT
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Shared Services in European FS Market
What has not yet been achieved?
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The Financial Services industry is facing drastic changes
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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
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Challenges:
€ Improve efficiency
€ Improve operation readiness
Shared Services initiatives to bring:
€ Efficiencies of scale
€ Synergy realisations
€ Improved quality of services
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This study examines what has
been attained in the field of
Shared Services and what has
not yet been achieved!
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Source: Shared Services Industry Specifics and Trends in the
European FS Market, BearingPoint study 2010
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Implementation of Shared Services within the Financial
Services industry is lagging compared to other industries
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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)
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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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1st conclusion:
Implementation of Shared
Services within the FS
industry, compared to
other industries, is still at
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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 study 2010
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FS core processes with potential for shared services
Credit management
Customer care
Payment Services
Custody & claims management
Dunning & collections
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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 study 2010
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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
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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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2nd conclusion:
The FS industry concentrated
so far on “the low hanging
fruit”;
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fruit”;
extending the focus of SSC’s
will add more value
Source: Shared Services Industry Specifics and Trends in the European FS
Market, BearingPoint study 2010
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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%
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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 study 2010
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%
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3rd conclusion:
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There is significant potential in bringing the
Financial Accounting processes into a Shared
Services environmentSource: Shared Services Industry Specifics and Trends in the European FS Market, BearingPoint study 2010
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4th conclusion:
A Shared Services
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A Shared Services
organization
enables the
implementing of
new regulation
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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
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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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