Tag: financial services

IR23

A Comprehensive Market Overview of the Global Internal Audit Services

Internal audit services comprise of an independent and comprehensive review of an organization’s internal controls, operational procedures, and accounting policies. The inferences derived from the internal audit process are then used to streamline the operations of the enterprise and enhance their overall efficiency. This market can broadly be segmented into financial audit, compliance audit, operational audit, IT audit, and special audit. One of the key role of internal audit in a company is to provide an independent viewpoint on the extent to which an organization is poised for success and advice on areas which have scope for improvement. Internal audit is vital for ensuring information security and regulatory compliance, it’s also a valuable way to evaluate company performance and manage risk.

SpendEdge’s procurement intelligence report on the global internal audit services provides in-depth insights into the growth patterns, procurement best practices, and major cost drivers in this market:

Internal audit

Top internal audit service providers in the world

Deloitte

Deloitte Touche Tohmatsu Limited popularly referred to as Deloitte is a multinational professional network with over 150 years of expertise. It is one of the “Big Four” accounting organizations and is currently headquartered in New York, United States. The company’s experienced audit professionals take a risk-based approach to internal audit with a view to help clients improve performance and overall operating efficiency. They also aim to build internal audit into a strategic and productive tool in today’s corporate governance environment. Deloitte’s internal audit services include quality assurance reviews of existing Internal audit functions, reviews of standard operating procedure or manuals of various commercial and financial processes.Get Free Sample_SE

PwC

PricewaterhouseCoopers is also commonly known as PwC is a multinational professional services network that is headquartered in London, United Kingdom. PwC’s auditing solutions claim to not improves an organizations’ internal financial, business and IT controls, but also turns their audit function into a strategic asset. PwC uses several advanced tools to guide companies in a holistic approach to governance, risk, and compliance in coordination with the second and third lines of defense.

EY

Ernst and Young is a multinational corporation that is headquartered in London. The company operates in about 700 locations worldwide spanning 150 countries. They are focused on four service lines including assurance, advisory, tax, and transaction advisory services. EY believes in technology-enabled internal audit transformation that gives an equal focus on people, process, and purpose in order to balance risk, cost, and value.Request Demo

KPMG

KPMG is a financial audit, tax, and advisory company headquartered in the Netherlands. It one of the ‘Big Four’ auditors, along with Deloitte, Ernst & Young, and PricewaterhouseCoopers. The company operates across 154 countries. The auditing experts at KPMG apply powerful depreciation and amortization routines to create better audit evidence and gain deeper insights. The company recently announced its plan to introduce the world’s first global cloud-based Big Four audit platform on Microsoft Azure.


Know more on the market trends, procurement best practices, and pricing policies in the global internal audit services market

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Will Fintech Innovations Catapult Financial Transactions to New Heights?

What is fintech? 

Financial technology, also popularly known as fintech, is essentially the intersection of financial services and technology. In simple terms, it refers to the technological innovations in the financial sector. This industry Is focused on developing new technologies that will disrupt traditional banking and financial markets. Fintech innovations are soon expected to revolutionize the entire banking and financial scenario by making transactions easier, faster, and more convenient.

Today, with significant demographic shifts in the population, people are seeking easy access, convenience, efficiency, and speed. They prefer transacting via mobile platforms or applications for activities such as tracking their overall spending, applying for a loan, or even optimizing their investment strategies. Fintech innovations provide both individuals and businesses wGet More Info_SEith scalable tools. This means that traditional banking companies (including banks, insurers, and wealth and asset management companies), the risk of disruption is real.

Fintech innovations 2018

Apart from providing convenient and faster options for undertaking financial transactions, here are some of the key use cases of fintech innovations that we can expect in the coming years:

Digital wallets

Plastic debit and credit cards seem to be slowly losing their charm among customers because now they can do it all with just a click of a button. Digital wallets are one of the prominent fintech innovations that have been gaining momentum in the past couple of years. Not just the credit and debit cards, but digital wallets can also store other important documents such as health cards, driver’s license, loyalty cards, and several other ID documents.

Cryptocurrency and blockchain

Financial transactions in the form of cryptocurrency with the help of blockchain technology are one of the most revolutionary fintech innovations. This technology has garnered immense popularity and is now considered to be one of the easiest and safest methods of transacting. This is mainly because blockchain eliminates the reconciliation of third party concept and provides additional security to the transactions.cta SE

Artificial intelligence

Fintech companies are popular for providing quick and prompt services to their customers. Unlike traditional banking facilities, fintech companies use chatbots that work on artificial intelligence to cater to customers’ queries and provide prompt responses to their queries and issues. Traditional banking companies are now considering incorporating fintech innovations such as chatbots and the use of artificial intelligence into their operations. 

Edge computing

Though cloud computing and IoT have proven to be advantageous to the business owners as well as the customers, the transfer and linking of a massive amount of data is a complicated process.  Fintech innovations like edge computing solve this problem as it processes the data near the source. Thus, the bandwidth required is reduced considerably. Furthermore, this will increase the security and privacy of the data.

Cloud computing

Although edge computing is going to be one of the revolutionary fintech innovations, this is not going to reduce the popularity of cloud computing. With a large number of companies offering cloud-based services, there is an increased potential for integrating clouds, which, in turn, will reduce the need for companies to have an in-house tech department. Also, integrating multiple cloud providers will also help in providing some complex services such as content management, data analytics, and storage.


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Contract logistics

Regulating Indirect and Direct Spend for a Financial Services Provider

Engagement Overview

A leading financial services provider wanted to enhance business efficiency. To develop a cost model for the realistic apportionment of costs incurred for each product and sub-products that are part of the operation, the financial services provider approached SpendEdge to help them leverage cost benefit analysis based solutions. Through the course of this engagement, a detailed quantitative analysis of various cost factors within the supply chain network was carried out to identify the indirect and direct spend categories.

About the Client

A leading financial services provider employing over 3500 professionals across various economies. The company is based out of the United States.request proposal

Business Challenge

The financial services provider was facing challenges in identifying the most cost-effective blend of counter-measures to save themselves from any potential loss. Additionally, they wanted to enhance value for stakeholders by discovering, acquiring, developing, producing, and marketing financial services profitably.


How SpendEdge Helped the Client?

Step 1: Identified price drivers for each cost category

Identifying and understanding the drivers for each cost category helped the client increase focus on developing a robust cost benefit analysis model that would best suit their organizational needs.

Step 2: Filtered and grouped raw data into distinctive segments

This step involved the segmentation of raw spend data into different sub-categories, which acted as a starting point to identify different spend categories.


Key questions answered in this cost benefit analysis engagement include


Benefits of the Engagement

With the help of SpendEdge’s cost benefit analysis, the financial services provider understood the economic impact of inappropriate business decisions. Additionally, the client uncovered major opportunities for improving their sourcing strategies by controlling indirect and direct spends.

Why leverage cost benefit analysis?

It is essential for financial services providers to analyze cost and inventories in today’s competitive scenario. Moreover, as businesses grow, their sourcing needs become more complex, making it a necessity to analyze delivery times, maverick spends, and cost elements across the supply chain. Cost benefit analysis helps firms make the best use of the suppliers and their capabilities.

Our Findings

Today, every business decision is greatly influenced by cost benefit analysis. Such is the importance of cost benefit analysis in identifying business risks and analyzing spend categories. However, it is up to an individual firm to decide and incorporate this capability.  Failing which, financial services providers may run the risk of wasting valuable time and money by captivating on the least profitable tasks.


To know more about our cost benefit analysis solutions

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A Leading Financial Services Provider Leveraged Supply Chain Risk Analysis to Enhance Risk Identification Capabilities

Engagement Overview

A leading financial services provider wanted to proactively address risks in their supply chain. Additionally, they wanted to enhance production and delivery capabilities across their supply network. As a result, they approached SpendEdge to devise a comprehensive risk analysis strategy for their global supply chains.

The supply chain risk analysis enabled the client to integrate risk prioritization as a core strategy in their current risk management system. Additionally, a detailed quantitative supply chain risk analysis was carried out to identify, assess, and prioritize each risk frequest proposal actor based on their impact. This further helped the client redesign their risk management system to leverage and embrace proactive risk mitigation strategies.

About the Client

A multinational financial services company headquartered in the US with offices spread throughout the country. They are one of the world’s top banks in terms of market capitalization.

Business Challenge

The client was facing difficulties in enhancing their risk management capabilities.


How did SpendEdge Help the Client?

Step 1: Devised an exclusive risk mitigation procedure to reduce supply-side risks

The risk management strategies had to be redefined due to the dynamic nature of supply chain risks and their influence on supply chain efficiency, visibility, and operations.

Step 2: Enhanced risk identification capabilities

Reducing the rigidity caused by an obstinate supply chain and regulatory requirements, which required the incorporation of significant changes in risk analysis, identification, and management.


Key questions answered in this supply chain risk analysis

Benefits of the Engagement

Supply chain risk analysis helped the financial services provider diversify their sourcing strategies and minimize the risk of supply chain failure. They also help firms establish backup arrangements by qualifying additional suppliers.

SpendEdge’s supply chain risk analysis also the financial services provider account for changes in organizational operations and data governance to address market trends including globalization and regional demands. Moreover, the risk analysis solution offered firms with superior visibility of supply chain processes by establishing a unified relationship between all tiers of the supply chain

Why incorporate supply chain risk analysis?

With sophisticated technologies now being available easily at fingertips, risk analysis managers are now in a pole position to bring in a cultural revolution towards adopting and implementing risk analysis as an integral part of business operations. Furthermore, to deal with all the deficiencies of traditional supply chain management systems, companies are now recognizing the need to incorporate risk analysis to identify and evaluate supply-side risks.

Our Findings

Supply chain risk analysis is a process, which not only highlights the shortcomings in various segments of a supply network, but also between the supply chain and the end-users. Moreover, devising a precise risk management strategy is the next big step towards accomplishing organizational goals. Also, the importance of risk analysis will continue to increase with the risks becoming more complex and costlier.


To know more about our supply chain risk analysis

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IR24

Spend Analysis for a Prominent Financial Services Provider Helps Analyze their Marketing Spend

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.request free proposal

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:

Spend analysis01

The Results

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.


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3 Easy Steps for Financial Institutions to Reduce Procurement Spend

Currently financial institutions are more inclined to rely heavily on outside entities even for overseeing core activities such as engaging with customers through contact centers. Although the current growth rate of financial institutions looks promising, several uncertainties can pose as threats. In this scenario, players in the financial space need to analyze ways in which they can minimize risk and simultaneously maximize their revenues.

For several years financial institutions primarily viewed procurement as a source of savings. The outbreak of the outsourcing revolution further amplified savings opportunities as these companies shifted more work to third-party specialists. However, these moves raised new operational and strategic dangers, which called for the implementation of robust management for financial institutions. As a result, the procurement functions of several financial institutions focus on balancing the twin priorities of value and risk. Here, we unravel three critical steps that financial institutions should consider for streamlining its procurement process and reduce costs:SE_Demo2

 Step 1: Classify spend data

It is imperative for banks and other financial institutions to maintain an accurate, clean and unduplicated source of data before proceeding with analyzing the spend. As far as data management is concerned, companies face numerous challenges. Some of these challenges typically include lack of standardized data, too much data, and substandard quality of data. Having a clear record of data helps financial institutions to classify data accurately and get a better picture of their average spend.

 Step 2: Collect and analyze data

Several financial institutions still rely on manual processes or basic excel sheets to tackle their data despite understanding the value of spend analysis. What these companies need is a classified structure to group and manage their spend data. An ideal spend analysis solution would automate the process of collating geographically disperse data and assigning them in a uniform scheme across the organization. The data classification should be combined with analytics tools that not only read the data but also gives a full picture to the financial institutions regarding their spend. It should also provide companies with suggestions on areas where savings opportunities can be utilized to their advantage. If done in a desired manner, spend analysis offers organizations with item-level visibility that would assist them to create a spend portfolio. The primary function of a spend portfolio is to identify the amount of money spent, in what category and with which suppliers; identify savings opportunities and devise future procurement strategies.

 Step 3: Execute on the identified opportunities

Once financial institutions have analyzed their spend data and determined the categories to target for cost savings, they have to prioritize those opportunities and conduct procurement initiatives for each. It is highly recommended that financial companies start sorting their procurement issues with a category where achieving success is easier and has minimum risk. After the procurement department in financial institutions gets through the easy categories and identifies areas for savings, they can expand their efforts and look for new opportunities to employ procurement strategies to save money.

To know more about how financial institutions can streamline their procurement operations and reduce costsGet More Info


IR31

SpendEdge’s Cost Model Analysis Helps a Renowned Insurance Provider Identify the Key Cost Elements

Overview of the Insurance Industry

The insurance industry plays a pivotal role in the sustenance of the global economy by covering personal and business risk. Amid the variations in the growth rate, the insurance industry witnessed a considerable growth in the insurance premiums by an increase of 3.8% in 2015. Markets in Asia, North America, and Western Europe has been some of the major contributors towards this growth. Also, insurers are taking effective measures to re-orientate their offerings to rebalance their product portfolios and enhance their business offerings. Although the insurance industry is witnessing a promising growth owing to the increasing rates and reducing regulatory hurdles, several factors may challenge the growth of this market in the coming years. These include:

Relative advances in technology: New technologies may disrupt the traditional model of insurance. With rapid changes in innovations, insurers are under pressure to revise their internal operations and business strategies to stay relevant inspite  of the competitors.

High penetration of cyber risks: One of the biggest challenges for the insurers is to assess the impact of threats on the company. As cybersecurity breaches can remain undetected for a considerable time frame, it will further affect the customers and other stakeholders. The growing concerns on the concentrations of cyber risk and further, the ability to offer real protection to the clients will affect the growth of the industry over the years.

Aging workforce: The average age of the workforce has increased, and organizations are witnessing a large number of retirees within a stipulated time. To counter this, prominent organizations are facing immense pressure to invest in talent and further manage age concentrations to ensure stability and maintain balanced production.

To address these challenges and optimize their service offerings, leading organizations in the insurance industry are utilizing a cost model analysis engagement.request free proposal

The Business Challenge and Journey

The client, a leading insurance company, wanted to draft a cost-model analysis model to identify the cost elements for the services rendered. The client also wanted to assess the impact of each cost driver on the overall cost of the services. Moreover, with the help of cost model analysis solution, the client wanted to point out the gaps that need to bridged to increase the uptake of costs. The primary concern for the client was to compare the costs of the services and efficiently utilize their resources to meet the needs of the target audiences. The cost model analysis should also focus on the comparison of models to improve the competitive position of businesses.

To help the client evaluate the potential costs and revenues, the cost model analysis experts at SpendEdge carried out an extensive research methodology comprising interviews and discussions with prominent stakeholders in the insurance industry. To gain a comprehensive edge on the costs, SpendEdge’s cost model analysis experts also compiled information across a wide array of secondary information including company presentations and industry forums in the insurance industry.

SpendEdge’s cost model analysis helped the company in the insurance industry effectively assess the impact of each cost driver on the overall cost. The client was able to collect data based on pricing through quantitative cost modeling and scenario-based cost modeling. The client was further able to recommend on the lowest cost mix and reduce insurance operation costs to the minimum.

Key questions answered in this spend analysis engagement include:

Sp-cost model analysis

The Results

The cost model analysis offered by SpendEdge helped the client gain a comprehensive image of the cost developments in the insurance industry. The client was able to consistently reduce costs over time and enhance their operational efficiency. Moreover, the engagement also had a significant impact on the policy issuance, administration, and claims in the insurance industry.

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IR16

Enhancing Contract Visibility and Productivity with the Help of Supply Chain Analysis

The Business Challenge

The client, a leading financial services provider with business operations spread across the globe, wanted to streamline their procurement function to improve productivity, compliance, and inter-department supply-demand visibility as their existing procurement function was highly decentralized and required an innovative solution to make use of its full potential. Additionally, the client wanted to enumerate key supplier performance metrics and categorize high-performance suppliers to build better relationships.

Engagement Overview

To help the financial services industry client streamline their sourcing abilities and boost cross-functional visibility the supply chain analysis experts at SpendEdge tailored a comprehensive research methodology. This in-depth research approach included primary and secondary research coupled with qualitative and quantitative data collection procedures.banner SE (2)

Through the course of the supply chain analysis engagement, the financial services client gained superior visibility of the supply chain and determined their supply chain capabilities. The client also gained enhanced visibility and control, particularly in supplier relationships; identified the value-add services they could offer to the right sub-contractors to strengthen their delivery capabilities.

Key Findings

With the help of thus supply chain analysis engagement, the financial services client was able to ensure quality and compliance across the entire supply chain. This helped them achieve better ROI and boost sales.

Financial Services Industry Overview

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ir10

Supply Market Intelligence Helps a Leading Consumer Financial Services Client Achieve an Annual Savings of $40 Million

The Organization for Economic Co-operation and Development (OECD) suggests that financial services typically comprise 20%-30% of the total service market’s revenue across the globe.

Despite the existing regulations in the banking sector, the global financial industry is optimizing their service offerings to pursue new challenges for sustainable growth. With rapid innovations and disruptions, companies in the financial services space are planning to increase their competitiveness and offer an array of financial instruments and products to the customers to manage risks and meet their financial needs. Due to the ongoing financial crisis, the financial services space is shifting to a more customer-centric environment to offer reliable and affordable services to the customers. Although the financial services industry is witnessing a promising growth, certain factors may influence the growth of the industry. These include:

Digitization: With the advances in the technology, customers have become more informed and are looking for agility and convenience in their banking possibilities. With the relentless growth in competition, leading banks are facing pressures to stay relevant and updated with innovations such as mobile services. Moreover, some banks are teaming up with digital firms to drive revenue growth and enhance the risk assessment process.

Regulations: In the recent years, there have been fluctuations in the regulatory environment with the entry of nonbanks into financial services. The banks are uncertain about meeting the regulatory compliance in terms of redesigning products and incentive policies and accordingly forecasting their business plans. Moreover, banking organizations are focusing entirely on driving efficiency of their risk and compliance programs to meet the applicable laws and supervisory expectations.

To counter these challenges and offer reliable solutions, leading organizations are insisting on the need for supply market intelligence solutions.

The Business Challenge and Journey

A leading financial services provider was looking for effective ways to operate more cost-effectively and boost their savings. Moreover, their procurement team wanted to improve supplier performance, mitigate supply risks, and drive innovation. The client also wanted to seek ways to meet government, market, as well as management expectations and further boost their return on equity. The primary concern for the client was to embrace technology to achieve savings targets and enhance their return on investment.

To assess the spending patterns and keep track of the essential data, the supply market intelligence specialists at SpendEdge tailored an extensive research methodology. The methodology in the approach comprised of primary and secondary research coupled with qualitative and quantitative research techniques.

The supply market intelligence solution offered by SpendEdge helped the client maximize the value from spend and gain detailed insights into the pricing and the procurement strategies specific to the financial services space. Moreover, the engagement also helped the client gain deep-dive insights into the recent trends and growth drivers and accordingly allocate their resources to meet the business requirements.

Fundamental questions answered in this supply market intelligence engagement include:

SP- supply market intelligence

The Results

The supply market intelligence engagement offered by SpendEdge assisted the client to gain better visibility into the procurement process. The client was able to profile and shortlist the key risks in the financial services space and apply the procurement best practices to remove the bottlenecks and improve service efficiency.


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