Transformation

Operational improvement

Business models are changing faster than ever and the need to keep control over costs and compliance matters has never been so important. Defining new target operating models, adapting to a new operating environment or revamping existing operating procedures or processes, and reconsidering IT systems and applications are permanent challenges for banks operating in Luxembourg. The questions and issues encountered during such exercises are multidimensional and wide ranging.

Regular questions to be addressed and issues to be tackled during operational improvement exercises are:

  • Are my current IT systems still fit for purpose, effective and cost-efficient?
  • Does the operating model fit my business needs or could it be improved, e.g. by outsourcing or co-sourcing?
  • Are my operating costs competitive and how could they improve?
  • How easily can the bank respond to new regulatory requirements? Are the data architecture and data processing up to date with them?
  • Am I fully exploiting the benefits of new technologies and do I know which ones are state of the art? Could I gain competitive advantages by engaging in new technology now?
  • For transformation projects: How can I keep control over the project and meet my targets, even in a complex set-up involving many different internal and external stakeholders and external providers?

Outsourcing and process automation can help you reach optimal effectiveness and cost-efficiency. However, you must not dive into the digital revolution without doing your homework first. Identifying your needs and researching the labyrinth of local and international regulations are essential for a smooth transition.

Outsourcing

In a complex and changing regulatory environment led by global competition, cost reduction and flexibility required to serve clients’ needs, outsourcing activities to service providers in Luxembourg or abroad can help a bank decrease non-value-added activities and focus on its core business. Recently implemented regulatory changes and governmental plans potentially impacting on professional secrecy requirements have further boosted the attractiveness of sourcing strategies.

Banks who are determined to engage in such delegation to a service partner will need to tackle various aspects including:
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Banks who are determined to engage in such delegation to a service partner will need to tackle various aspects.

Robotic Process Automation

Operational efficiency is a major challenge for banks. In their search to enhance service quality and reduce operational costs, banks have usually had the choice between system developments, outsourcing and offshoring.

However, recent technological developments have brought a new option that is solid, cheap and very easy to deploy: robotic process automation (RPA).

Robotic Process Automation is the new automation solution for your operations providing substantial efficiency gains to stay ahead of competition. RPA is an innovative software that automates repetitive tasks usually performed by humans. It mimics employees' actions between your different applications such as: navigating a screen, opening and closing programs, copy-pasting, sending e-mails, searching the Internet, capturing and transferring data, reading PDF files and much more!

RPA automates transactions between your different systems. It works as a cross-systems, cross-applications binder to better manage and visualise your processes with an end-to-end approach.

RPA is an agile solution operating on top of your current systems and applications landscape without changing it. Following earlier solutions for process optimisation such as Macros, ERP automation and BPM, RPA offers an even higher level of automation at lower costs and higher efficiency.

RPA's unique functionality to move between systems allows it to be implemented across departments including Back Office, Finance & Accounting, HR, IT and Customer Service among others.


What kind of tangible benefits can you expect from RPA?

Financial

  • Very fast ROIs within months (average 6-9 months)
  • One RPA software costs only a fraction of a FTE and can work 24/7/365
  • Typical cost reduction of 35-65% for onshore processing and of 10-30% for offshore delivery
  • Zero spend on customising existing or new systems
  • Better & faster service delivery (up to 100% accuracy rate & reduction of up to 90% in cycle times)

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Technological/Operational

  • Improved governance & compliance through embedded rules and controls on processes
  • Rapid non-invasive implementation (within weeks)
  • Highly scalable and flexible virtual workforce
  • Agile reporting capabilities to generate in-depth insights and analytics on visual dashboards
  • Enhanced process quality, increased capacity and productivity

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People

  • Improve customer satisfaction by improving your customer experience
  • Employees will act as virtual workforce managers, monitoring robots and handling exceptions
  • Minimize manual intervention, errors and rework to enable your employees to focus on value-added tasks
  • Decreased fluctuation rate
  • Capability to do what operational teams otherwise wouldn't

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Contact us

Jörg Ackermann

Partner, Regulatory Advisory Services, PwC Luxembourg

Tel: +352 49 48 48 4131

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Patrice Witz

Luxembourg Digital Leader, PwC Luxembourg

Tel: +352 49 48 48 3533

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