Cedar Consulting helps banks with enterprise course of re-design
Cedar Consulting has an extensive track record of helping clients redesign their operating models and business processes. A look at two of the firm’s most recent cases – for major banks in the United Arab Emirates and India.
A leading bank in the United Arab Emirates tried to increase the competitiveness of the market and hired Cedar Consulting to redesign their business processes towards customer focus and profitability. The bank in question has over 30 branches in 12 countries in the Middle East, Europe, the USA, Asia and Africa and looks after corporate and private customers as well as treasury and capital market services.
Cedar has explored and defined the status quo using a top-down map of existing protocols. The company then zoomed in on problem areas; performed an activity-based cost analysis of products and services using proprietary expertise; and finally a strategy developed – complete with a set of recommendations, all checked for feasibility and compliance.
The specific improvements included a realignment of the areas of trade finance, contracting and real estate finance as well as a redesign of the loan application and administration processes. In addition, a new structure and a new team were created to look after wealthy private individuals.
Since the introduction of the new way of working, the bank’s corporate division has reduced operating costs and expenses by 37%.
In India, Cedar Consulting was selected to support the Indian subsidiary of a global bank with a customer-focused process overhaul at its four locations, 450 employees and corporate, correspondent and commercial functions in India.
The joint customer-advisor team started with a process mapping and prioritization exercise to identify important areas and areas for improvement. More than 15 interviews and workshops with management and executives were included in this process, followed by cost mapping across the product segments.
The results were used to restructure service areas, redesign roles and processes and ultimately achieve a cost reduction of 24% or $ 4 million, spread over a cost improvement of up to 39% per transaction in corporate banking. 17% in correspondent banking and 21% in global banking.
Details of the transformation include the integration of the corporate liability line with other business areas; a cost-cutting plan in the global commercial division aimed at savings of $ 150,000; and other right sizing initiatives to improve the customer experience.
Cedar Consulting is a global strategy and management consulting, research and analysis company with a 35-year track record and clients from multiple industries. In the Middle East, the consultancy is based in Dubai, while in India the company operates from offices in Mumbai and Bangalore.