Payments and Cards Practice Case

Payment transaction tracking case study

Payments and Cards Practice Case Problem statement: Develop end-to-end Payment Transaction tracking and monitoring strategy for Worldwide Bank Information: Worldwide bank is one of the top 5 tier-1 banks, having presence in more than 100 countries across 5 continents and revenue of 10 Trillion USD. Bank is one of the leading service providers in all verticals of banking with clientele including most of the fortune 500 companies. S V Iyer, head of Global Transactions Banking BU, needs to define strategy of incorporating end-to-end Payment Transaction traceability strategy. At present, bank has more than 75 applications across all countries of operations processing transactions. Some of the applications are doing more than one countries payment processing, while others are processing for single country. Hence tracking any transaction from its initiation to completion poses challenge for operations staff, especially for cross border transactions. This adds to delays in customer response time and eventually to customer dissatisfaction in the area of exceptions & investigations. Recent trend based on last 2 customer satisfaction survey has clearly indicated exceptions & investigations as the weakest area across multiple countries and multiple services offerings. Worldwide bank needs to fix this on priority to ensure less impact on growth. So far the tracking and monitoring strategy has been application centric and teams are facing challenge in moving from one application to another application for tracking payments. My Iyer wants to look at the option of transaction-centric approach to application management that will help Operations and Support teams to look at holistically at entire landscape and pin-point where the payment transaction is and why it is there. Apart from this the expectation is also to have pro-active monitoring strategy in place to identify and try to avoid potential issues. Expected outcome: Help Mr Iyer in defining overall strategy for correcting end-to-end transaction tracking and monitoring to real-time / near real time response time, with focus on but not limited to below areas: IT strategy to implement end-to-end transaction tracking and monitoring system Operations effectiveness Cost benefit analysis for new systems Define features of proposed system [key features]

Key tangible expectations from proposal: Transaction banking business is expected to grow 5% in next year IT expenses for transaction banking business to be reduced by 25% Operations response time needs to improve by 60% from current response time of 2 days

Payments and Cards Practice Case

Appendix Key financials for Worldwide bank Revenue: $32.2 billion

By Region

By Business
16%

24% 36% 50% 34% 21% 19% Consumer banking NA EMEA LATAM Asia Transaction banking Securities & banking

Net income: $5.8 billion Total IT expenses: $ 378 million Total transaction banking operations expenses: $ 28.6 million Transaction banking business showed 1.03% increase compared to last year.

IT Expense Breakup ($ million)

IT Expense Breakup by business ($ million)

60

90 70

50 178

198 110

Hardware (new purchase) Internal Maintainance

Software (new purchase) Vendor expenses

Consumer banking Transaction banking

securities & banking

Payments and Cards Practice Case

Operations expenses by region ($ million)

6.4

8.2

5 9

NA

EMEA

LATAM

Asia

You can use feasible assumptions to develop your solution/POV.