To transform finance functions and generate significant cost savings, investment banking organizations need to eliminate operational inefficiencies in product control and cost control processes. Any failure in these operations affects the company’s financial statements. Recognizing this challenge, a leading global bank approached Cognizant to evaluate and optimize its operations, focusing on finance-related processes that the company believed could be better designed and more productive.
As part of our initial assessment, we identified two primary efficiency problems. First, product control and cost control were operating in silos, even though they performed similar functions and generated similar reporting outputs. Second, these processes were manual and prone to inaccuracy. Our goal was to harmonize procedures and controls for better outcomes at every level of the organization.
Cognizant’s multi-phase solution addressed both issues by integrating the financial control processes, consolidating them under one vendor and standardizing procedures and controls. In addition, we examined each process from end to end, identifying instances of duplication and scope for process improvement. We then automated all manual operations using robotic process automation (RPA). We utilized cognitive and rules-based automation, as well as our solution designed specifically for simplifying profit and loss (P&L) tasks and processes.
Cognizant’s solution helped the bank establish a standardized operating model and generate immediate savings. The single-vendor services model has delivered significant cost and performance benefits: Operating costs are 30 percent to 40 percent lower and outputs are delivered faster. Thanks to automation, there has been an 80 percent reduction in errors, resulting in improved ledger and reporting accuracy.
decrease in risk-weighted assets
reduction in late posting
period-end close by 5 days
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