Client: Private bank
Background
Relationships between banks and their customers are undergoing dynamic change: on the one hand, customers’ demands for personal advice on complex issues in the branch are increasing, while on the other, the desire to be able to carry out banking transactions online and on the move continues to grow. A large private regional bank has set up a comprehensive future programme with Horn & Company to overcome the current challenges (keyword “low-interest phase”) in order to stabilize income and reduce costs at the same time. At the heart of the programme is the end-to-end digitalization of the entire business system and business processes.
Our value contribution
To this end, new online advisory elements and products are being developed and introduced on the market side, the infrastructure (online front end, banking app, etc.) is being fundamentally modernized and the interaction between sales channels is being further improved. However, the digitalization of processes also plays a major role in other areas: for online products, for example, automated “front-to-end” business processing is being introduced, i.e. from preparing offers to filing contracts and setting up accounts and lines. A multi-channel CRM is being established for sales management, which provides the basis for cross-channel customer support and also offers the possibility of using analytical methods to increase the accuracy of targeted customer approaches.
Client: International banking group
Background
As a consequence of EU state aid proceedings, an internationally operating banking group had to be fundamentally restructured. The specific requirement was to split the group into a part to be reprivatized and a bad bank.
Horn & Company accompanied the development of a target operating model for the bad bank as well as the operational unbundling in six countries.
The particularly challenging aspect of this task was the close operational integration of “good” and “bad” parts of the group in the various countries in which the group was active.
Our value contribution
This integration included both a predominantly shared (IT) infrastructure and operationally bundled service processes and functions at country and/or group level.
Based on an analysis of the existing operational business models, including the quantification of existing service interdependencies, target models were developed and stable, country-specific transition paths were defined. Ancillary conditions, such as appropriate governance and no increase in expenses, had to be taken into account. A large number of local projects were set up for subsequent implementation, which were managed by an overarching progress controlling system.
As a result, the project created the conditions for successful reprivatization and a stable, operational framework for the efficient and effective wind-up of the bad bank’s assets.
Client: Insurer
Background
A project to improve efficiency and customer orientation in the customer and sales service areas was carried out at a composite and life insurer with around 2,000 employees in the German market. The initial analysis by Horn & Company using a tool-supported process survey showed that a high level of sales channel complexity (exclusivity, brokers, structured sales) with individual service solutions had resulted in some significant process cost differences between the sales channels in the processing of applications, contract changes and claims/benefit cases.
Our value contribution
Instead of developing individual process improvements “bottom-up”, a “top-down” service target picture was drawn up in six weeks for life and composite with the following core organizational elements:
1. achieving low idle times and high availability in a 1st/2nd level organization with case closure and telephony/text load balancing at 1st level.
2. differentiated processing of standard and individual commercial business to reduce resource-intensive all-round processing.
In addition, for example, a desired alignment with sales channels could be implemented and thus the acceptance of the sales partners for the concept significantly increased. The two target images enabled efficiency increases of around 30% in life and around 40% in composite.
Client: Landesbank
Background
A complex support solution was designed at a political level for a Landesbank that had fallen into acute capital shortage in the course of the financial crisis, the operationalization of which was supported by Horn & Company. To implement the solution, three sub-projects were formed: treasury, business operations and guarantee management.
Within the scope of overall project management, Horn & Company provided qualified project management, including the coordination of a large number of stakeholders (ministries, supervisory authorities, auditors, lawyers, various external service providers).
Our value contribution
Two of the three sub-projects also received operational support. In addition to the basic design of business planning, the treasury sub-project also involved the development and implementation of a refinancing strategy with various instruments such as bearer bonds, promissory bills and interbank funds. In the business operations sub-project, business operations were designed and implemented for a new legal entity: a model with a lean organizational structure was implemented, with few in-house employees but intensive involvement of service providers with whom agency agreements were concluded and service level agreements negotiated.
As a result, the project successfully implemented all the necessary support measures to meet the capital requirements in a timely and operationally stable manner.
Client: Swiss regional bank
Background
The regional universal bank was seamlessly integrated into the structure of a leading Swiss universal bank, including its branding and product range. Throughout the process, great emphasis was placed on providing a seamless service to the regional bank’s customers. The aim was to reduce duplication and create a more efficient, simplified organizational structure through the integration in order to significantly increase efficiency.
Our value contribution
In our role as a partner to the project management, we made a significant contribution to central program management and effective stakeholder management. Our focus was on coordination with key committees such as the Board of Directors, the Executive Board and the business unit heads. Our expertise extended to managing and supporting various workstreams, including target design, technical integration, legal, communications, finance and HR. As project PMO, we were instrumental in developing and implementing the success factors for the integration.
Our core services included the development of the target state for the organizational structure, branding, product offering and technical platform, in close collaboration with stakeholders from both banks. We coordinated and agreed the integration concept with various internal and external stakeholders and actively supported our client in the implementation of this concept. Our role included supporting all phases of the project, from conception to the successful completion of the technical integration. Thanks to our comprehensive support, the integration was implemented efficiently and in line with the strategic objectives of the banks involved.
Client: Building society
Background
A top 3 German building society was faced with a strategic challenge: the ongoing phase of low interest rates required significant savings. At the same time, the bank was experiencing a high volume of new business, which was being processed with the support of external service providers. In addition to the use of known levers to improve efficiency, the strategic sourcing question also arose.
Our value contribution
After evaluating the various options, the management opted for an intragroup solution: a service company was to be created on a greenfield site, which would ensure the same high level of productivity but with lower factor costs by deploying specialists within the group and gradually take over the production tasks. Horn & Company supported the client from the strategic evaluation of the options for action, through the institutional structure and company formation, the determination of the location and definition of the business processes to the operational “going live”. Only ten weeks passed from the decision in the management board to the start of operations of the new service company. Support from external service providers was scaled back as planned, reducing costs. The basis for utilizing further strategic options in the service area was created.
Client: Austrian regional bank
Background
In a strategy review, the central institution of a regional banking association identified an earnings gap of almost EUR 25 million. Horn & Company was commissioned to design a program to close this gap in two years.
The project analyses showed that income and costs had to contribute almost equally to the targeted improvement in earnings: In a first step, the realistic revenue increases in the customer segments were determined, after which central cost reduction measures were derived in order to completely close the earnings gap.
Our value contribution
The fact that, for the first time in its history, the central institution chose to reduce costs in addition to increasing earnings as a lever for improving results “in good times” made proactive and intensive communication of targets and framework conditions necessary in order to achieve a high level of acceptance.
In order to reduce costs, measures were primarily identified and described in detail for staff services, back office (personnel costs in each case) and material costs. A corresponding, socially responsible program was designed together with the HR department to implement personnel management measures.
The implementation status was continuously transparent thanks to close controlling accompanying the implementation and the targeted improvements in results were even exceeded over the two-year period.
Client: Private bank
Background
A renowned German private bank wanted to prepare the processes and organization in the lending business for the planned growth course. The lending business under consideration was the business with corporate clients, mostly with a focus on foreign trade and export financing.
Horn & Company supported the concept of “further development of the lending business”, which was supported internally by four divisions, including the front and back office. The subsequent implementation was accompanied by regular reviews by Horn & Company.
Our value contribution
In the project, the bank’s master loan process was revised and around 120 efficiency- and quality-enhancing as well as risk-reducing optimization measures were identified.
In addition, a pragmatic KPI concept was developed for consistent, effective and future-oriented management of the front and back office areas, which, from the point of view of all those involved, provides a high practical benefit for the corporate client business under consideration and is ultimately not seen as a “bureaucratic superstructure”.
Adjusting the organizational structure and adapting existing, sometimes encrusted employee roles were particularly important for future viability in order to actively promote “change from within”.
Ongoing reviews during the implementation phase allowed Horn & Company to see the success of the concept for itself.
Customer: Federal state
Background
Due to the heterogeneous funding landscape of a federal state with many funding programmes and different funding institutions, the state government was commissioned to optimize the existing funding activities and bundle them in a new state funding institute. The main requirement was that the existing funding volume should not be increased in future and that any new funding programs should therefore only be financed from existing funds.
Our value contribution
Horn & Company was able to support the conception and implementation preparation for the new state development institute. The project was structured into five working groups: (1) Promotion, (2) Financial Planning, (3) Organization, (4) Personnel and (5) Institutional Framework. In the first two groups, the future funding activities were designed and financially underpinned (including a funding map, gap analysis, funding strategy/objectives, business plans), while the future development of the new institute was defined in the third and fourth groups. The new legal and regulatory framework was developed in the fifth working group. Possible resistance to introduction was overcome by involving all those involved and through professional communication with stakeholders (ministries, committees, chambers, …), so that the implementation plan developed was approved by the state government and parliament. The new development institute has now successfully commenced its work.
Client: Large regional bank
Background
As part of a holistic realignment of the retail business of a large German regional bank, the existing branch system was reviewed and further developed. The objectives of the project were to adapt the branch system
(around 200 branches and 2,500 employees) to the changing needs of bank customers in the
PK business and to focus the branches more strongly on high-quality customer advice. In addition, the aim was to significantly increase profitability in branch sales.
Our value contribution
To achieve the project objectives, the customer, resource, revenue and cost structures of all branches were analyzed first. Region-specific criteria were also evaluated. Based on this, the management structure in branch sales was streamlined and the number of sales regions was halved. A branch concept differentiated according to performance with different branch types was also introduced: Self-service branches, advisory boutiques and flagship full-service branches with affiliated satellites. Checkout functions were centralized, service times were adapted to customer flows, the network of vending machines was expanded, the range of advisory services was further developed and the video link-up of experts to advisory meetings was made possible. The entire project was underpinned by a marketing and communication concept. As a result, the costs of branch sales were reduced by around EUR 10 million in the short term and the earnings base of branch sales was significantly improved.
Client: Bank
Background
The client’s goal was to make the bank’s resolution plan more action-oriented and feasible. It was crucial to ensure that all relevant functions not only understood the implementation of the resolution plan, but also actively supported it. A key aspect of the project was to demonstrate the credibility of the resolution plan to senior management and the domestic regulator.
Our value contribution
Our service involved using our in-depth banking expertise to create a comprehensive universe of more than 40 interlinked playbooks. These playbooks, totaling around 1,200 action steps, were developed and thought through in close collaboration with subject matter experts. We identified all relevant functions and onboarded them to ensure a holistic understanding of functional competencies. We also conducted over 30 dedicated and interdisciplinary dry run workshops, utilizing our extensive experience in workshop facilitation with senior participants. These workshops were used to review and supplement the playbooks. Our work led to the successful engagement of all relevant functions in the review of the playbooks and obtaining their sign-offs, which was critical in demonstrating the credibility and viability of the resolution plan to senior management and the regulator.