Banking: Service Provider Opportunity Analysis

In this report, we analyse the opportunities for top service providers in the BFSI industry and the outsourcing intensity across emerging technologies and associated service opportunities. The top 5 BFSI service providers – Accenture, TCS, Cognizant, Capgemini, and Infosys account for 50% of the near $50 bn revenue generated by the industry. TSPs are leveraging on their expertise in banking technologies such as RPA and analytics.
Service providers are cashing in on the wave of technology opportunities the industry has to offer. Banks and financial institutions are scaling capabilities in Mobility, Analytics, Cloud, Blockchain and RPA by partnering with niche service providers to achieve a high level of digitization.
Outsourcing Intensity: App development, analytics, and RPA have a higher pool of addressable opportunities. These are areas that service providers can tap into as they reflect a higher competitive intensity and future growth potential thereby presenting service providers with a wave of opportunities.
Robotic Process Automation: Manual and legacy processes are being replaced by RPA-enabled processes which include report generation, order processing, and data entry tasks. Key engagement areas include account verification, AML and fraud detection, application processing, and document preparation. A case-in-point is Accenture’s partnership with JP Morgan Chase with the service provider using RPA tools to replace the manual process of yearly financial statement generation.
Data Analytics: Banks and financial institutions are collaborating with service providers having complete analytics workflow expertise to enable digital processes. Key engagement areas include risk analytics, regulatory analytics, core process automation, and overhaul of the lending process. Tata’s partnership with the Citi Group focuses on creating a central data repository for customer complaints across consumer businesses and migrating their existing database from Oracle to HBase.