Operational Efficiency / Process Excellence
See below for a list of independently written IBS Journal news and feature articles and IBS Intelligence Research vendor profiles, case studies and market analysis related to Financial and Banking Operational Efficiency in order of publication date.
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Operational efficiency refers to the degree of efficiency of a process (or set of processes) whether it relates to the level of success of processing within an organisation, the cost effectiveness of a market, or the erosion of income by expense.
A commonly used ratio that bankers use to measure the overall cost effectiveness (or the operational efficiency) of an organisation is the cost/income ratio (a.k.a. expense/income ratio or, as often termed in the US, the efficiency ratio). This is a measure that broadly expresses the total operating costs incurred by an organisation as a percentage of its operating income. The general intent is that if an organisation has a cost/income ratio of, say, 48 per cent, then for each 100 units of operating income, 48 units go out in overall operating costs – with only part of those costs representing back office expenses or IT specific costs.
The cost/income ratio can be applied to any entity but when it is specifically applied to a bank, it is an expression of the bank’s total operating costs over its net interest income (the difference between its interest earned on investments less the interest paid out to depositors) plus any other operating income such as fees and commissions. As a result, the ratio measures not simply the efficiency of its back office and its IT strategy but the efficiency of the whole bank, including its interest management policy, its investment policy and its investment in new products or delivery channels.
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06 February 2013
US-based Libertyville Savings Bank has chosen the hosted version of Jack Henry's Core Director to replace its 25-year-old onsite system from a Nebraska-based supplier, Modern Banking Systems. Worksheets for the deployment are now being drawn up and...
30 January 2013
Rizal Commercial Banking Corporation (RCBC) in the Philippines took a different approach to most when it selected its core system and this had benefits and challenges further down the line when it came to the implementation. However, it...
09 October 2012
Last month's Eurofinance gathering of corporate treasurers was relatively upbeat, with many of the attendees basking in more of a spotlight within their organisations than in days gone by. IBS reports from Monaco.
31 August 2012
ITV, the home of X-Factor, connected to Swift via a bureau service and implemented a new treasury management solution last year. Karen Fagan, head of the treasury department, talks to IBS about the experience.
07 June 2012
New members are waiting in the wings as BIAN forges industry partnerships. It is set to deliver its latest Service Landscape later this month.
Article: Banks and vendors put system implementations at risk by not linking contracts to business objectives
09 May 2012
All too often during a banking system selection, the contracting and negotiation stages are detached from the overall project, sometimes being delegated to a separate purchasing department. What is often forgotten, however, is that contracts are...
03 May 2012
Over the next few editions of the IBS Journal, we will look in detail at a range of topics that have a crucial influence on the success or failure of major banking system projects. They will draw on the extensive experience of the authors, Eddie...
21 March 2012
It is in every bank's (and vendor's) best interest to negotiate and agree the best contract possible, and to maintain continuous financial and operational significance for all key stakeholders involved, with clearly communicated actions, updates...
07 March 2012
In payments the big numbers are in the corporate space. What are the issues faced by businesses? Are developments in the industry meeting their needs? Bank of America Merrill Lynch talks to IBS about its response.
01 March 2012
Swift invites stakeholders to build upon a vision of correspondent and transaction banking.
02 November 2011
Gérard Ruffault, former head of IT governance at Crédit Agricole group, talks about how the group chose a new debt collection system as part of its response to the financial crisis.
05 October 2011
What is the most appropriate way to measure bank efficiency and what factors have a part to play in this? IBS took a group of similar banks – the Swiss cantonal banks – and went looking for answers. This free summary provides an introduction to the...
05 October 2011
What is the most appropriate way to measure bank efficiency and what factors have a part to play in this? IBS took a group of similar banks – the Swiss cantonal banks – and went looking for answers. This article provides the full analysis including: The...
29 September 2011
When selecting a system, don't overestimate the scope of your activities. Having gone large for too long, Heptagon Capital has now right-sized its IT operations.
22 July 2011
With over two decades of expertise and an international reputation for independence, IBS Intelligence is offering a new in-house training course for financial institutions large and small. Our two-day interactive workshop is designed to ensure a...
01 June 2011
When one of Skipton Building Society's subsidiaries needed re-housing, the whole UK-based group took the opportunity to take the strain off its network. Dark fibre made the connection.
25 May 2011
When failed UK financial institutions Northern Rock and Bradford & Bingley were taken under government control, the rough ride was over. Stability and efficiency were the order of the day, with Unisys applying the soothing technological balm.
28 March 2011
When Mashreq Bank decided to change systems, it changed pretty much all of them...at the same time. Was it a wise move?
09 March 2011
Pave, Spain's first multilateral trading facility (MTF), has selected a clearing house, EuroCCP, and is now finalising the corporate governance structure. It will then apply for a licence and, subject to approval, will commence trading in H2 2011.
21 February 2011
Bourse Group in Trinidad and Tobago has gone live on the International Private Banking Systems platform. The integrated system replaces a variety of manual and semi-automated processes.
10 February 2011
Bank of China's London branch and subsidiary are automating the collation, distribution and recall of Swift messages with a bespoke system from IBM technology partner, Centric iSolutions.
22 November 2010
IBM-owned Sterling Commerce, a business-to-business (B2B) data management and integration software company, is bringing together the disparate Swift traffic flows of a large multinational bank onto a single centralised platform.
Article: New report sheds lights on how to achieve successful customer outcomes in financial services
15 September 2010
The essence of being customer-centric in any industry is to look at the customer as central to an organisation's actions. Banks have invested in trying to be customer-centric, but the weak results are far too apparent. In this new 2nd edition of...
08 September 2010
An early adopter of Oracle FSS's Flexcube in the US, Silicon Valley Bank (SVB), is halfway through its four-stage deployment of the system, to cover domestic and global operations. Flexcube is at the heart of SVB's major IT modernisation project to...
20 August 2010
For Kenya-based MFI, Jamii Bora Trust, rapid growth brought a need for automation and reach. The latter stemmed from mobile communication with the back office combined with biometrics.
29 July 2010
Temenos acquired Viveo late last year and has since been working to integrate the French core vendor. Its efforts have been resisted by the employees of Viveo, who have demonstrated a number of times against the proposed changes, including the...
25 May 2010
Faxes, spreadsheets and complex documents abound in the unregulated but big ticket world of the syndicated loan. The Loan Market Association is the trade organisation trying to bring it to order in EMEA.
25 May 2010
Euroclear and DTCC are both user-owned and user-governed organisations specialising in the settlement of domestic and international securities transactions.
06 May 2010
Whitney National Bank has undertaken a major process mapping and reengineering using IBM tools ahead of its current core systems replacement. Has all the upfront work been worth the effort?
04 May 2010
Cole Taylor Bank, a commercial bank in Chicago with assets of $4.4 billion, has selected a new outsourced core offering, Integrated Banking Services, from FIS. The decision comes before the expiry of the bank's contract with its existing processor,...
30 March 2010
Rabobank is to pull the plug on its internet bank for Dutch entrepreneurs, Bizner. It was part of Rabobank's International Direct Banking (IDB) division, launched in 2007 and dedicated to enabling small businesses and the self-employed to manage...
27 November 2009
Process excellence starts with tight change control says the former head of operations at the UK's Bradford & Bingley. IBS finds out what happens next.
18 November 2009
Egypt-based The United Bank is set to go live with TLM Corona, the back office reconciliation system from Smartstream Technologies. The go-live is scheduled for late December 2009, says Mohamed Mostafa, the bank's CIO.
02 October 2009
'Under pressure' and 'on the back foot' were two of the phrases used to describe Swift at this year's annual gathering, Sibos. In IBS's 18 years of attendance at the show (it was Hong Kong first time around, in 1991), this was unprecedented.
22 September 2009
Last year at Sibos, the storm was an economic one, with the collapse of Lehman Brothers on the eve of the show; while that storm has by no means blown out (and slumps in Swift's volumes again in July and August look to be more than seasonal dips),...
17 September 2009
Electricity generator, British Energy, has undergone a triple selection project based around electronic invoicing, to boost the efficiency in its accounts payable department. James Ling spoke to the firm before its big switch-on.
16 September 2009
CfC Stanbic Bank in Kenya, a member of the Standard Bank Group, is implementing T24, the core banking system from Temenos.
28 May 2009
Co-operative Financial Services (CFS) was one of the UK mid-tier players to come up with a core system selection last year, opting for Infosys' Finacle.
28 May 2009
ING is weathering the storm better than some but its head of IT and ops, Steve Van Wyk, has plenty on his plate. There are a couple of major undertakings, an overall transformation project including some serious process reengineering, and the need to...
28 April 2009
Swiss banking systems vendor, ERI, and Swift have completed a pilot for automating the operations for cross-border funds distribution, and are now one step closer to launching the offering worldwide.
20 February 2009
To many corporates, signing up for Swift connectivity is an aggravation they could do without. HiFX talks to CFS about its service bureau experience, giving its full approval.
02 February 2009
Risk management systems are sure to be increasingly prioritised when the financial system stabilises. How much is a failure of risk management to blame for the recent catastrophe, and how does it need to adapt?
02 February 2009
A concerted but 'technology light' process reengineering effort is reaping benefits at Co-operative Financial Services. IBS reports from its Manchester HQ on what has been achieved and what is still to be done.
20 January 2009
A new Academy of excellence lies at the heart of growth plans for IT2. The project has been created to ensure IT2 customers, staff and partners better understand the IT2 product-set and how it can drive technological efficiencies.
20 January 2009
As a Shell primary bank, Citi paints a picture of the kind of landscape in which its client is constructing a world class cash operation. In March 2008, the Economist Intelligence Unit surveyed around 370 executives – roughly half of which...
28 November 2008
Australia-based investment bank, Macquarie, has gone live on a streamlined fixed income platform, created by interfacing Omgeo's middle and back office software with Yieldbroker's front-end system.
28 November 2008
Two years in, how is HSBC faring with its ambitious strategy to standardise its platform and processes across the globe? There have been wrong turns but the man responsible, Ken Harvey, believes the bank is gaining important benefits.
28 November 2008
Since being acquired by Société Générale, the business of what was Hambros has had a complete system overhaul centred on solutions from ERI, Touchstone and Odyssey, on a centralised basis.
20 November 2008
Bedford Hospital NHS Trust has gone live with Collaborative Planning, a budgeting and forecasting tool sold by COA Solutions.
20 November 2008
When a business goes stratospheric how on earth does its treasury operation keep up? CFS caught up with Google's US treasurer at this year's Eurofinance in Barcelona to find out.
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