Banks Look to Indian Captive Operations to Drive Consistency of Global Brand and Operational Execution
Analyst: Andy Efstathiou
Today, banks need to be able to support brand consistency and quality operational execution in order to drive global business performance. Captive operations can support these objectives when run effectively, yet only 10% of captives are run with sufficient scale and effective workforce management techniques to consistently address these goals.
NelsonHall's latest Banking BPO study, entitled 'Banking Industry Indian Captives Assessment and Forecast' is a comprehensive assessment of the market for captive operations based in India serving the banking industry, covering processes in retail banking, capital markets, and insurance.
The study's findings include the following:
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Addressing operational risk is the biggest concern for managers considering moving a process to a captive. Key issues include: processs migration, consistency of execution, governance, regulatory scrutiny, responsiveness to business changes, and business continuity
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Most captives provide services to support parent products. Developing operational flexibility to introduce new products rapidly to drive revenue generation is critical to overall success
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Geographical targeting of captives is currently localized, focused on the U.S., U.K., and English speaking countries, but that is changing as banks are expanding into new countries
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Risk control and reduction is an increasingly important feature of service offerings as global financial institutions continue to expand across geographies, face increasing regulation, operate on new exchanges, and adopt shorter process execution cycles
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Bankers need to be able to manage workforces much more effectively; high turnover and attendant loss of experience has rendered many captive operations only marginally productive
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Some geographies have low adoption rates of captive delivery services. Achieving economies of scale in a captive operation requires broad adoption by lines of business across geographies of the captive model
The study utilizes a combination of user interviews and vendor research to address topics such as process migration issues and challenges faced by organizations, organization usage of captive processing services and the benefits sought from captive processing services, and location selection criteria. The report is written specifically for financial institution managers developing strategies to target segments of their operations for shared service environments and executives researching captive strategies before making business decisions.
The study 'Banking Industry Indian Captives Assessment and Forecast' is published within NelsonHall's Banking Sourcing subscription program, and is also available for separate purchase. For more information, contact Paul Connolly.