Overview of the Banking Sector Industry
With the rising global economic uncertainty, banking sector players are starting to look beyond compliance to improve their financial performance while focusing on the business outcomes. The global banking sector is highly fragmented and comprises of retail, corporate, and investment banking, and asset and wealth management companies. The banking sector is currently dominated by Europe, which accounts for approximately 43% of the market share across the globe.
Although the banking sector is expected to showcase promising growth, several factors are expected to hinder the growth of this space. These factors include:
- Stringent government regulations: Leading companies within the banking sector are facing relentless pressures to enhance their service offerings across niche market segments due to the fluctuating rules from governments across the globe. Additionally, leading establishments in this space are looking for effective ways of managing risks and meeting the capital and the liquidity ratio requirements.
- Weak global economy: With the fluctuations in the global economy, the overall consumer spending is reducing, and consumers are looking to invest tactically and reduce their spending.
These factors are compelling firms in the banking sector to leverage the use of robust spend analysis solutions. Spend analysis solutions help companies quantify and improve their business decisions, which would subsequently help them cut down on maverick spends. These solutions also help firms meet the business needs and demands of their customers seamlessly while being cost-effective.
The Business Challenge and Journey
The client, a leading player in the banking sector with business operations spread across the globe, wanted to standardize systems, processes, data related to customers, employees, partners, products, and vendors as their data was spread across various systems with no proper spend visibility. Additionally, they wanted to devise a common shared-services platform to enhance their efficiencies and effectiveness of their business while reducing the overall costs.
SpendEdge’s spend analysis experts tailored a comprehensive research methodology to provide better visibility into the banking sector client’s procurement data. The research approach comprised of primary and secondary research coupled with qualitative and quantitative data collection methods.
During the course of this engagement, the banking sector client re-evaluated and enhanced their purchasing activities and aligned them with their business strategies. The client also reduced costs and strategically improved supplier relationship as they gained a better spend visibility across products, services, and suppliers.
Key questions answered in this spend analysis engagement
This spend analysis engagement assisted the client with easy and quick access to relevant data within the banking sector through various spend reports. Additionally, the client improved their overall procurement efficiency and reduced procurement lead-time by automating all of their procurement activities.
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