These latest findings in the SunGard ePI research series reflect how institutions in the outsourcing market are accelerating their success and competitive positioning through automated transaction processing. Automation is providing them with productivity efficiencies and, therefore, extra capacity to in-source additional business. Some of the automation banks are gaining is through straight-through exception processing and web-based customer self-service. By providing customers with interactive access to transaction information and the ability to launch investigations themselves, banks improve customer service, reduce operations risk, achieve volume insensitivity, and contain costs.
Key findings from the survey, completed in April 2003:
- Outsourcing of transaction processing in FX and securities has achieved considerable presence in the global banking marketplace: over 46% of transactions processed are currently outsourced
- Over the next two years, growth in outsourcing, or white labelling, is expected to remain strong, rising to almost 68% of transactions processed by early 2005
- Securities transaction processing, traditionally regarded as a less mature white labelling market than FX, appears to have quietly caught up, with little gap between the two. However, anecdotal feedback shows that levels of possible automation in securities transaction processing still lag behind FX, owing mainly to less mature market standards.
Matt Mandalinci, president, SunGard eProcess Intelligence, commented, âThese latest findings from our regular research series provide another key benchmark statistic about the global banking industryâs implementation of STP solutions, and the way organizations are extracting value from their related systems investments. This report is particularly topical with the consistent success of CLS, an initiative that creates a de facto layer of white labelling providers in the form of the Settlement Members.
"Perhaps the most startling finding is the sheer scale of further development that our respondents believe is still to come in the outsourcing market, despite the substantial level of business already achieved. As a result, outsourcing providers will have a focus on competitive differentiation and enhanced service levels for some time. Indeed, we know from previous research findings that customer access to transaction information and exception management capabilities are increasingly seen as an important factor in achieving this competitive lead."
Sample â Global Top 500 Banks, senior-level management
Date â April 2003
Fieldwork â LMR