Automating a manual outreach process can substantially reduce the average cost of service. TowerGroup estimates that an inbound call connected with a bank’s call centre costs an average of $2.77 to handle. By contrast, automated proactive alerts can cost as little as $0.10 to $0.15 for an informational alert and up to $0.40 for a more complex, two-way alert – an average of about $0.25 is standard globally.
Frances Maguire profiles JPMorgan Chase’s ITS division. Newly renamed and empowered in 2001, it is set to grow organically and inorganically. Peter Lighte, head of Europe and Asia, believes that “being joined at the hip to the investment banking sector” is the secret of success
External IT spending consumes 57% of total IT expenditure in the global financial services industry. TowerGroup expects IT budgets to shift further towards external IT spending, as internally developed legacy systems are replaced with third-party solutions. As outsourcing consumes a growing percentage of IT budgets, TowerGroup estimates that external IT spending will increase from 57% in 2004 to 59% by 2006 – seeing total IT spending grow globally from $198bn to $224bn.
The explosion of customer communication channels was intended to cut costs and increase efficiency. However, with cracks appearing in some systems and technology improving to allow face-to-face contact, banks may have to reverse their position on self-service. By Chris Skinner.
Till Guldimann, vice-chairman of financial services solutions provider SunGard, outlines the major changes in capital markets and the accompanying technology trends. Interview by Parveen Bansal. With a focus on the company’s long-term strategy, Till Guldimann sees a dynamic future for the capital markets. Each of the three main market segments – institutional asset managers, intermediaries (brokers, dealers and some corporate treasuries) and private investors – faces a number of key inter-related challenges.
In the wake of banking sector liberalisation in the 1990s, Alain Law Min, head of retail at MCB, tells Parveen Bansal how and why the bank has restructured and how it has improved its business. Established in 1838, Mauritius Commercial Bank (MCB) is one of the oldest banks in the region. The bank’s performance has been driven by strong growth in the economy, which, once highly dependent on sugar, is now well diversified.
Packaged solutions are making headway as the best approach to replacing legacy core-banking infrastructure, but organisations should look to current trends when planning their system migrations. By Peter Middleton, VP financial services, Oracle EMEA, and Andre Loustau, CTO, Temenos