An international banking and markets organisation looking to create a data management and reporting shared service utility, as part of a group wide investment in data remediation and control.
The international banking and markets organisation had initiated a data remediation initiative, in direct response to commercial and regulatory pressures. This included creating a new global shared data and reporting services function.
The primary motive was to consolidate activities from finance, risk, technology and operations that were providing data (trade, transaction, balance) and reporting services to the business, to increase consistency, control, standardisation and efficiency.
Our team was engaged to assess the candidate functions and create a target operating model for our client’s new Data & Reporting Services facility.
We deployed a small team that blended post-trade operations, technology and operating model development expertise with change management and people expertise. Our team approached their task like this:
- We designed and ran a management workshop to create a common understanding of the purpose, scope, vision and goals for Data & Reporting Services.
- We assessed a range of functions including Nostro and Cash Management, Reference Data Management, Intercompany Reconciliations, Source System to Ledger Reconciliations, Trade Data Exception Management.
- We defined a phased plan, and all of its constituent elements and we executed a detailed landscape review to provide insight and transparency into exactly what activities and which people would be moving in to Data & Reporting Services.
- For each function, we reviewed processes, locations, spans of control and management layers, volumes, support technologies and existing change initiatives.
- We analysed all in-bound operations to determine the opportunities for gains in efficiency and control. Based on our findings, we then created a detailed benefits release plan built around increased control and headcount savings.
- We defined a target operating model based around four core services. We discounted centralised and decentralised models for a hybrid version to balance control and cost. A sourced model was deferred for 18 months to achieve a degree of stability and consistency. A more detailed investigation on sourcing options was also conducted in parallel with the transition plan.
- We developed an 18 month roadmap, focusing on building-out the required assets (locations, control frameworks, improved processes) and operationalising the new services and operations teams.
Our enduring effect
As a result of our work, the Head of Data and Reporting Services has confidence in a benefits delivery plan, with efficiency saves that are now included in bank-wide budget commitments.
The Head of DRS also created a new management team who understand, are aligned behind, and committed to, a new target operating model. When the scope of this new function was extended, the Operating Model provided the framework for planning the change