Banking-Finance

Finance Department or how projecting into the future with confidence?

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The Finance Department plays a key role, it is at the heart of the transformation of companies, which are facing many challenges including the ecological transition, the transformation of business models to meet customer’s needs such as multi-channel and personalized services. In addition to regulations, various and unprecedented crises, as well as the challenge of profitability and operational efficiency.

For the past 15 years, Clemence Consulting, a business consultancy firm (Marketing, Commerce, Finance), has been supporting Finance Departments on their key issues, by optimizing and digitizing their processes and making better use of data.

Clemence Consulting works with Beyond Horizons – New Finance to help Finance Departments be change leaders projecting themselves into the future with confidence.

Together, we help our customers to accelerate transformation in a focused and paced way over time, to manage performance by using the levers of the ” numbers’ functions”, and to improve and sustain operational efficiency and profitability. Here are 2 examples of our collaboration.

CONTROL THE PRICING POLICY & MAKE THE PROCESSES WORK AT ITS OPTIMUM

–  Case study of a customer specializing in Asset and Wealth Management, resulting in additional profitability and self-financing of the transformation.

To position the Group’s prices compared to competitors, we carried out an external and internal benchmark in Europe and Asia. Which prices? Which profitability? Which operating efficiency?

Return On Assets (ROA) combined with other indicators made it possible to determine whether what cost the least was more profitable and whether what cost the most was less profitable. At several points in the process, the best performing entity was identified.

The alignment of all entities on the best process, regardless of its original location (Europe, Asia, etc.) made it possible to achieve the additional profitability and gains that had been quantified. As a bonus, the savings made it possible to self-funding the transformation and its implementation, and the sustainable process spreading over several geographies.

ABILITY TO AGGREGATE KEY DATA TO ENSURE REPORTING, HELP THE BUSINESS AND PREDICT PROFITABILITY OR HOW TO TURN A CONSTRAINT INTO AN OPPORTUNITY

– Case of a client in the Banking & Insurance sector, resulting in the definition of business indicators, reporting and profitability forecasts harmonized within the Group

We worked on regulation regarding the aggregation of risk data and risk reporting linked to BCBS 239. We focused on helping managers to collect and store outstanding data properly, and how to ensure reporting capacity. We defined indicators and set up reporting.

We also took advantage of the reflection on norms and data to work on the optimization of the technical management of Risk-Weighted Assets (RWA) with the IT department, which generated a significant gain in capital consumption.

Other topics covered: “Transformation, why and in what?”, “Operational efficiency and profitability”, “Transformation through Finance and the figures functions”, “Talents & Artificial Intelligence”, “Banks and Insurance and GAFAMI/BATX”, “Regulation, a real opportunity.”

NB: text also published in the French version on the Clemence Consulting website: clemenceconsulting.fr

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