Overview of the Financial Services Industry
Amid the growing concerns about regulatory changes, banks and financial institutions are facing the need to realign their businesses processes to respond to the increasing demand for transparency. Leading business organizations are investing heavily in technological capabilities to remain abreast of the competition and bring the most value to the customers. The growth of the financial services industry can be marked by frequents shifts in technology and organizations are looking to create a resilient, accessible financial system to meet the growing demand among the consumers. Although the financial services space is witnessing a stipulated growth, owing to the presence of numerous competitors, several factors may influence the growth of the market. They include:
Digitization: In this technology-driven environment, prominent financial services providers are finding it difficult to stay relevant owing to the relentless competition. With advances in technology such as mobile services, customers are looking for convenience in their transaction capabilities. To counter these challenges, organizations are relying on advanced technology platforms such as big data and analytics to sharpen risk assessment and drive revenue growth.
Stringent government regulations: Post the financial crisis, financial services providers are facing challenges to control risk and maintain compliance while offering services at comparable lesser costs. To go on par with the rising customer expectations, leading organizations are facing the need to reduce short-term costs and manage capital and risk while meeting the compliance standards.
To counter these challenges and analyze their spend in a seamless manner, organizations are utilizing the need for a spend analysis solution. A reliable spend analysis solution provides better insights into the spend data and helps companies identify the potential opportunities. The spend analysis solution also helps businesses manage the organizational spend and help companies identify the critical saving opportunities in a seamless manner.
The Business Challenge and the Journey
The client, a renowned financial services provider, wanted to gain an accurate, consistent, timely, and detailed visibility into the spending patterns and find prominent ways to reduce maverick spend. With the help of a spend analysis solution, the client wanted to easily identify the savings opportunities to accelerate the decision-making process. The primary objective for the client was to identify the potential bottlenecks in terms of savings leak, prices vary, and purchasing overlaps and compare the spend of the company with that of the industry competitors.
To gain better visibility into the spending patterns, SpendEdge’s spend analysis experts carried out an extensive research methodology with procurement experts in the financial services space. To detect fraud and other-complaint activity, the experts also compiled information across a wide array of proprietary sources such as paid industry databases, industry forums, and company presentations in the financial industry.
The spend analysis solutions offered by SpendEdge helped the financial services client compare the spend profile and related measures to aggregate peer group data and drive more informed business decisions. The solution also helped the client organize all the spend data from company’s different systems and gain better visibility to prioritize sourcing opportunities. Moreover, the spend analysis solution also sought ways for the client to accurately correct errors in descriptions and transactions as well as categorize the spend based on the priorities.
Fundamental questions answered in this spend analysis solutions include:
During the course of the engagement, the spend analysis solution helped the client to monitor and update date to ensure adherence to the contract terms. Moreover, the solution also helped the client decrease procurement costs and improve efficiencies through advanced real-time data and analytics. Through the spend analysis solution, the financial services provider was able to compare results and monitor the change in the process.