Client Situation
Our client is a leading global financial services company. The company’s Bank subsidiary and its Travel Related Services Operations had been in India for over 40 years before eventually merging with another bank. The bank operated out of 4 locations from India employing approximately 450 people. Based on their projection of a moderate balanced sheet growth pattern, Cedar worked to redesign the client’s business processes with the objective of improving its customer service proposition.
Cedar’s Approach
In this program, Cedar was mandated to redesign the client’s business processes to improve profitability, competitiveness and provide most value to customers.
- Carried out the redesigning exercise across corporate banking, correspondent banking, global trading and PSDG functions.
- Carried out a process prioritization process, drew up a company-wide process map and reviewed key internal data.
- Conducted 15+ on-site interviews with the bank’s management and workshops for the senior management.
- Undertook a process mapping exercise and identified issues requiring improvement and further analysis.
- Conducted an activity-based costing analysis determining profitability and strategic importance based on product segments and developed a corporate process strategy.
- Restructured divisions in line with the new processes and redesigned job functions at all levels.
- Applied Cedar’s expertise and experience with best-in-class principles and practices.
Outcome
This program resulted in process improvements enhancing productivity and structural changes. The overall impact derived through these changes was a 24% reduction in the total cost base amounting to $4million.
- Conducted a restructuring of the front office, streamlined the process for CR approval and established a focus on key accounts for the corporate assets team.
- Integrated the role and account base of corporate liabilities with other businesses.
- Ensured the focus of changes in the Global Trading activities to be focused by department allowing cost savings of $150,000.
- As a result of the recommendations, carried out the centralization, rightsizing of activities with a focus on customer service as a part of PSDG operations improvements.
- Streamlined existing external service provider processes for PFS/Correspondent banking.
- The impact of the program translated into a 26-39% improvement in per transaction cost in Corporate Banking, 17% in Correspondent Banking and 10-21% in global banking.