John Byrne, CEO of Information Mosaic, the world’s most trusted post-trade software company, believes that the right outsourced technology and operations capability enables banks to focus on their core strategic initiatives and enhance and evolve their business models. Advances in post-trade technology and analytics also deliver cost efficiency, high service quality, risk mitigation and compliance to financial institutions.
Outsourcing in its many forms continues to be a viable option for banks. Enabling them to focus on the business function without having to manage and maintain the technology or the operation to support it. The financial services outsourcing market is robust, averaging over $18 billion in total contract value per year since 2008, however we believe that it will grow strongly and in a more fundamental form. Cost efficiency continues to be one of the primary goals, but the drivers to outsourcing have shifted over the past few years and increased investment required due to the regulatory burden is proving to be a major factor. As a result, new technology based utilities are springing up, that are transformational, rather than simply moving old processes to lower cost locations. Due to the volume of regulatory change, this approach is becoming less viable.
John Byrne commented, “The banking sector is under tremendous pressure to transform. They require better returns on capital; clients are seeking greater transparency and quality; and regulators are mandating improved risk mitigation. The benefits financial institutions gain from wholesale outsourcing of business lines and greater use of industry utilities that are setting up allows them to focus on greater transformation and industrialization, moving beyond regulatory compliance.”
John will moderate a conference panel discussion on Outsourcing, Offshoring & Technological Challenges and Innovations at the NeMa Conference on June 18th. The panelists joining John for the topical discussion are Ben Parker, head of EMEA clearing and settlement at UBS, and Clive Triance, regional head of banks and broker dealers, and global head of broker dealer outsourcing at HSBC.