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    Banking Operations in Search of Effectiveness, Efficiency, and Sustainability

    Andreas Mulchi - Friday, March 13, 2015

    Today’s infrastructural issues in financial services operations are a major part of increased operating costs, inaccurate or time-delayed reporting, and less-than-ideal operational risk performance.

    banking operations

    Without a solid, well-built, and well-maintained infrastructure, there would be no cities, no international economy, and certainly no small- to midsized financial institutions. Unfortunately, infrastructure issues in banking operations are a major part of increased operating costs and lowered revenues in most financial service organizations today. Issues such as expensive back-office costs, inaccurate reporting, and the failure to assess future expense and risk properly are rampant in the financial industry. CEOs often step in to resolve these issues themselves because of the lack of internal expertise to do so. They look to utilize what they remember as tried-and-true measures to resolve issues that, regrettably, may just not work anymore. These methodologies can no longer adequately address the root cause of the problem or present short- and long-term solutions. Bringing in a professional financial consultancy can make all the difference when implementing a strategic solution.

    The Most Common and Underwhelming Solution

    One of the first things that executives tend to do is jump to an ill-informed conclusion about what the problem is and how it should be fixed. When a financial institution is hemorrhaging money and its margins are deteriorating, a CEO often immediately believes that the issue is about a lack of staff. This is an easy conclusion to draw because it is often the case that the data flow from the front to the back office is broken. Breaks in the data flow lead to simple and repeatable mistakes that cost money and can often be misunderstood and, worse, difficult to repair properly.

    The common solution? Hiring more people to fill the perceived gaps in the ailing data-flow chain. At best, this unsustainable solution may help in the short term but not in the long term. At its root, the problem is not necessarily caused by a lack of staff but by a lack of a fail-safe process. In other words, the processes going on in the back office simply aren't scalable. The sustainable solution to this problem, as proposed by our professional team, is threefold. First, design and document a best-of-breed and benchmarked solution and process. Second, adjust the structure and methodology to new processes. Third, update technology (if necessary) to support new processes and structures. Notably, education and training of staff members must be completed alongside each update.

    Other Benefits of Banking Operations Consulting

    CEOs and financial services executives are often focused on implementing less-than-optimal solutions because their day-to-day responsibilities continue to occupy their time. They simply don't have the time it takes to thoroughly inspect, research, and understand the problem. That is where professional financial services operational consulting comes in. After all, you cannot properly resolve a problem if you do not have the time to formulate a thoughtful resolution. Fenerate Consulting has helped and supported many clients with its hands-on, customizable systems solutions. Whether the client’s situation is urgent and severe or simply in need of an outside opinion, Fenerate Consulting is ready to step in with tried and true methodologies and proven risk-assessment strategies.

    The Resolution Process (The Way Forward)

    A detailed analysis is first and foremost in solving infrastructural issues. It is here that our consultants can identify the root cause of the breaks, the lost data, the fund leaks, and other issues. Once the root cause or causes have been properly identified, we help our clients to define and implement an organizational process improvement plan aligned with the overarching objectives of the organization. Improvement measures are planned with strategic imperatives for short-, medium-, and long-term goals. Measurement of the deployment of such initiatives, as well as measurement of their effectiveness, is vital. Based on these measurements, the plans must be adjusted to better meet the specific circumstances.

    At Fenerate, we are experts. We have helped and supported many executives to succeed in banking and financial services, and we look forward to doing the same for you. Please contact us for a no-obligation consultation today.

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