Supporting a leading merchant banking group to deliver customer service improvements and providing a repeatable approach to operational risk reduction in a continually evolving regulatory environment
Our client, a FTSE 250 leading merchant banking group, provided lending, deposit taking, wealth management services, and securities trading to their customers. Their strategy focused on their relationships, services and expertise through which they aimed to build leadership in specialist markets. We supported our client to deliver a Customer Service Programme (CSP), helping them to identify and address known issues and risks within Premium Finance. This was to mitigate any negative impact on customers and improve overall customer service.
Our client was finding it increasingly difficult to effectively manage their relationships and maintain service levels due to the increase in regulatory requirements and a subsequent increased risk of financial losses, regulatory fines, and reputational impacts.
The CSP encountered three specific challenges – all common to the delivery of projects in the financial sector:
The scope of the programme was required to flex over time to stay current and relevant to meet the needs of the business. This resulted in some workstreams being brought into scope late on during the programme, only providing time for quantification and qualification of the issues, not necessarily the required remediation. For this small number of issues, the relevant analysis and options were successfully handed over to BAU systems to progress as required.
The objective of the programme was to improve customer outcomes at the same time as decreasing operational and regulatory risk by addressing known issues and risks within the business."
The programme addressed each issue in scope following the approach below:
For each issue identified one of the following responses was undertaken:
The key business driver for the CSP was to increase positive outcomes for customers by addressing specific risks within the business relating to regulatory requirements. This meant that the benefits were not expressed in monetary terms but in terms of reduction in operational risk. The benefits being tracked on a monthly basis in the steering committee level were:
As well as assessing whether the intended benefit was achieved by the CSP we also recommended that an evaluation as to whether all of the risk and issues identified against each of the benefits had been mitigated and this would safeguard future operations within Premium Finance. We also gathered data to identify the common reasons other financial organisations had been issued with fines by the FCA and incorporated these into the risk and issue identification for our client.
Berkeley supported our client to successfully identify and mitigate the Top 20 issues and complete all associated projects.