Citihub Consulting is often asked to help when large financial services organisations restructure or need to replatform their trade population. This can be at the inception of a strategic simplification or consolidation exercise; in other situations, it’s to rescue a programme struggling to deliver the benefits promised many months or even years ago. Unless well-defined with strong governance and controls, such programmes often go significantly over budget or become delayed, diluting the business case and failing to deliver on the committed benefits.
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In our experience, there are 5 key areas to get right to achieve the desired goals within the timelines and budget of the programme:
- A sound business case is imperative – banks no longer have the discretionary budget for vanity programmes.
- Truly understand the trade population – savings from simplification and decommissioning typically only occur once the last trade has been migrated off a legacy platform (not the first).
- Think “front to back” – trade migrations don’t stop at the middle office. Consider all downstream participants as part of a holistic target operating model.
- Create a migration strategy that is fit for purpose – moving a desk trade by trade might be the most flexible approach but how will the desk’s risk be aggregated in the interim?
- Build the right team – internal SMEs taken from the line are important; backfill where necessary. Strong governance and controls are critical to success.