Rückblick ASCO-Frühstückstalk bei CAPCO am 12. März 2019

R체ckblick

Fr체hst체ckstalk bei CAPCO am 12. M채rz 2019

Capco Confidential. Š 2018 The Capital Markets Company, N.V. All rights reserved.

CAPCO QUICK FACTS

CAPCO’S DNA Capco is a global business and technology consultancy focused on financial services with the following DNA: INNOVATORS: We are innovators who combine a disruptive, design-thinking approach with unrivalled, firsthand industry knowledge and technology acumen FACILITATORS: We facilitate the handshake between business and technology organizations to deliver end-to-end services & solutions, working with other consultancies to succeed in client’s best interest TRANSFORMATION SPECIALISTS: We help our clients transform and advance their businesses, increase revenue, manage risk and regulatory change OUR COMMITMENT: We consistently deliver the core pillars below as part of our brand

CAPCO’S CORE PILLARS

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CLIENT CHALLENGES

EXAMPLES OF SOLUTIONS TO SOLVE THESE CHALLENGES

• Increased global regulations and expectations, making accountabilities in risk ownership difficult • Shortage of trained and experienced topic SME such as AML officers

• Regulatory Framework and Governance: adopt robust regulatory frameworks which define responsibilities and accountabilities • AML Advisory: advise and set up sustainable culture, policies and practices

TECHNOLOGY CONSULTING

• Poor data quality leads to inaccurate information • Legacy systems with high total cost of ownership are not adaptable to changing business needs • Manual processes and low interaction between business units

• Data Governance: develop effective governance structures, policies and procedures to ensure data quality • System Integration: integrate IT infrastructure, leverage information flow and harmonize applications to align key processes with strategic objectives

BUSINESS CONSULTING

• Fragmented regional or global processes across business, technology and operations • Pressure to optimize cost efficiencies within a highly competitive business landscape

• Target Operating Model: ensure organizational setup, processes and technology are efficient, effective and aligned with business objectives • Performance Improvement: realize business and financial benefits

CHANGE SOURCING

• Strategies and improvements lack effective implementation • Evolving business processes, technologies and changing organization landscapes often increase complexity to existing issues

• Change Sourcing Solutions: access to resources with required knowledge in specific areas and skills • Aggregator Model: single point of contact for client in order to manage multiple vendors

• Sophisticated customer expectations require digital strategies or initiatives • Need for management to make timely decisions on complex business topics or questions

• Digital Architecture: establish a client-centric digital transformation framework • Business Intelligence: utilize advanced business analytics to harvest data into insights, and transform insights into value

FINANCE, RISK AND COMPLIANCE

DIGITAL

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TIME & MATERIAL

RATIONALE

SAMPLE USE CASE

VALUE

CHARACTERISTICS

FIXED PRICE

OUTCOME-BASED

• Support the client and work collaboratively towards a common goal by providing expertise • Work in a fast moving and challenging environment with a lot of changes

• Low client involvement and defined mandate • Minimize execution risk for topics that are not key to business

• Managed service • Pay per use or deliverable

• Definition of requirements for a new mobile banking application with client’s stakeholders • Test execution and quality assurance for a project • Solve incidents from a new application

• Client requests the creation of an onboarding policy to stay regulatory compliant • Client requests a market study or gap analysis for a specific topic • IT project for front office organisations

• Creation of test cases and pays per delivered test case • Creation of standized service level agreements for IT applications • PMO as a service

• Adequate workforce for defined time period • No long-term ramp-up for temporary specialists

• Delivery without execution risk • Budget control

• Transparent cost structure • Budget control

«Brains» • Advisory • Specific knowledge

• Fixed scope and deliverables • Limited number of deliverables • Possible performance based incentives

• Comparable deliverables • Large amount of standardized and comparable deliverables or services

«Arms and legs» • Extended workbench • Overcome shortage

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PROGRAM MANAGEMENT AND QA*

UPPER V-MODEL

COMPLETE COVERAGE OF DELIVERY

Program Management

Program Management

Program Management

Architecture & Business Strategy

MODEL

Requirements & Design

GOVERNANCE

Development

Testing

Rollout***

• Performing the overall steering, management and quality assurance of the deliverables • Responsible for the program goals and requirements definition as well as a timely rollout

Typical for strategic and regulatory projects

Architecture & Business Strategy

Architecture & Business Strategy Requirements & Design

Development

Testing

Rollout***

• Performing the overall and partially steering, QA, business analysis, partially testing and rollout • Responsible for the proper execution of all related tasks with little execution involvement

Typical for transformational projects

Requirements & Design

Development

Testing

Rollout***

• Performing all program related steering, quality assurance as well as executing the project streams • Responsible for the whole program while performing all needed tasks

Typical for software projects** Capco

* Quality Assurance ** MUREX *** Rollout includes Changes Management Capco Confidential. © 2018 The Capital Markets Company, N.V. All rights reserved.

Client/specialist vendors

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SEED FUNDING & START-UP SUPPORT

PLATFORM FOR KNOWLEDGE EXCHANGE

CONSULTING AS SOURCING PLATFORM

Product assessment via coaching

Thought leadership

Marketplace

Governance & steering for go-to-market

Joint presentations

SME offering

Sales support via established network

Public events

Agencies representation

DRIVERS

• Need for agile speed boats to develop new ideas • Existing consultancies are too big and too slow • Shorter innovation cycles demand flexibility

• Knowledge not exclusive to consultants anymore • Level of knowledge on customer side is increasing • Complexity cannot be managed solely

VALUES

• • • •

FORMS

EXAMPLES FROM CAPCO

Shape the solution with Capco‘s expertise Trim the business case for market-fit Provide door openers to the industry Active coaching to pitch the business case

• Direct start-up coaching such as Crypto Valley • Incubator participation such as F10

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• • • •

Create industry wide working groups Exchange of best practices Evaluate new innovative ideas Provide point of views as well as market overviews

• Capco Institute • SFI – Capco Institute Banking & Finance Forum • RegTech events for interest groups

• Appearance of proprietary resourcing & subcontracting platforms from EY, KPMG,...

• Incumbents entering the consulting market e.g Adecco, Manpower Group,...

• • • •

Self-service market place to deliver expertise Select among the best on the market Increased demand for topic SME Supplementing the traditional consulting approach

• Capco UK model with subcontracting • Provide ondemand UX designers and application developers 6

CAPCO SEES THE FOLLOWING TRENDS IN THE MARKET

CONSULTING BUSINESS

The lifecycle of trends is decreasing which results in lower return on investment

Margins are decreasing due to industrialized sourcing via companies like ChainIQ

CONTRACTING MODELS

Client uses standard methodologies (like Prince 2) and consultants execute accordingly

Lower average daily rates due to long-term engagements and offer bundling

EXPERTISE

Senior SME with specific knowledge and expertise are requested

Decreasing client demand for general consulting profiles

Client is defining project setup and environment and consultancies are filling the gaps based on specific roles

Complete teams from one vendor are replaced by single individuals in a multi vendor setup e.g.

«Cherry-picking»

DELIVERY MODELS

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ANDREA HOFFMANN

INGO RAUSER

ANDRE BRUNNER

DISCUSSION & NEXT STEPS

• How do we collectively, as an industry, shape the future?

• What trends do you see across the industries we consult?

Partner

Partner

Partner

Elias-Canetti Strasse 2 8050 Zürich

Elias-Canetti Strasse 2 8050 Zürich

Elias-Canetti Strasse 2 8050 Zürich

+41 44 434 35 15 andrea.hoffmann@capco.com

+41 79 203 58 85 ingo.rauser@capco.com

Capco Confidential. © 2018 The Capital Markets Company, N.V. All rights reserved.

+41 44 434 35 69 andre.brunner@capco.com

• What challenges do you see in today’s consulting market?

• What changes do you notice when working with your clients?

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Capco is a global technology and management consultancy dedicated to the financial services industry.

Our professionals combine innovative thinking with unrivalled industry knowledge to offer our clients consulting expertise, complex technology and package integration, transformation delivery, and managed services, to move their organizations forward.

Through our collaborative and efficient approach, we help our clients successfully innovate, increase revenue, manage risk and regulatory change, reduce costs, and enhance controls.

We specialize primarily in banking, capital markets, wealth and investment management, and finance, risk & compliance. We also have an energy consulting practice.

We serve our clients from offices in leading financial centers across the Americas, Europe, and Asia Pacific.

To learn more, visit our website at www.capco.com or follow us on Twitter, Facebook and LinkedIn.

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Capco is submitting this document subject to the express condition that any terms and conditions incorporated in the provided information shall not be binding on Capco. If Capco is awarded any of the work subsequent to providing this information, Capco and the client will execute a consulting agreement containing terms and conditions mutually acceptable to both parties. Capco makes no representation or warranties in relation to information contained in this document and shall have no liability or responsibility for any actions taken by the client in reliance on such information. The proposal (including, without limitation, its contents and any related information and documentation) is Capco proprietary and confidential information and may not be disclosed outside or duplicated, used, or disclosed without consent for any purpose other than to evaluate Capco. This document is protected under the copyright laws of the Switzerland and other countries.

© 2018 The Capital Markets Company, N.V. All rights reserved.