Financial Economic Crime / Client Lifecycle Management: Target Operating Models within Delta Capita

The effective management of CLM (Client Lifecycle Management) and Financial Crime is vital to our client's operations, carrying substantial reputational and regulatory risks if mishandled. As such, optimising the strategic operational framework for this function stands as a top priority, given its profound implications not only for our clients but also for their end customers if executed inaccurately. We have been engaged in Operating Model activity in several different modes depending on client needs. These have included:

1.   Holistic TOM Design across lenses of people, process, data, and technology:
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The pure approach to operating models: landscape assessment across key business infrastructure (governance, organisation, location, processes, technical architecture) and ensuring a link back to business strategy. This involves creating a realistic and measurable roadmap to future model including incremental delivery of value and “quick wins” as well as strategic funded larger-scale change.

Delivery is often supported by our proprietary tool DC/MODUS which allows us to visualise and traceback TOM design and deliverables.

2.   Implementing a pre-defined model with skilled delivery practitioners:

Supporting implementation of changes with skilled project resources from an internal or vendor designed model. This includes both cultural people change (e.g. globalising approaches, simplifying processes, removing waste) and technology & data implementation delivery (e.g.workflow tools, automation, data mapping and migration).

We also utilise our in-depth FEC/CLM knowledge to translate the model to implementation, as well as drawing on our own experience of delivering controls, efficiency and client service within our own CLM business.

3.   Data and Technology review of solution provision:

Vendor reviews are used to ensure the appropriate solutions are chosen to solve the client's business problem (e.g. review of CLM Workflow vendor providers such as Fenergo, iMeta or Pega). This also includes support of tool integrations such as a Client Relationship Management (CRM) Tool (e.g. Salesforce) to a CLM Workflow Tool (e.g. Fenergo), or integration with data aggregation or specific data providers.

4.   Design Validation of another internal or external design:

We support our clients to look across functional siloes for commonality, assess proposed designs across peer organisations (industry benchmarking) or best in class approaches. We link proposed model to business structure (client, functional & collaboration models) and ensure that solutions cover people change as well as process and technology. Fundamentally, you must make sure that the target design covers the specific desired outcomes from the client and the end customer experience (e.g. control/efficiency/client service measures).

In this article we have highlighted two client engagements which align to our delivery of modes 1 and 4.

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‍Client Engagement 1: Holistic TOM Design

‍This year, Delta Capita was approached to build a Target Operating Model and design an implementation roadmap for a bank’s Financial Crime Operations and Client Lifecycle journey.

The objective was to forecast a set of scenarios to assist the scalability of the bank’s operational capability to support their aggressive growth targets. In particular, the concern was around the large-scale onboarding of customers and their ongoing monitoring.

Delta Capita was engaged on a four-month project to map the client’s target state functionality across people, process, data, and technology. This involved drawing out Functional, Data and Actor models as well as Logical and Solution Application Architecture. Validation of this model then fed into a creation of several scenario driven business cases which demonstrated the cost of not implementing the model if the firm continued its projected revenue path.

Delta Capita delivered a 2-year implementation roadmap for the client to scale its operations economically. Through the implementation of the TOM versus the client projected growth scenarios, we projected a significant 3-year cost save of ~£300m if they met their vision target, or a ~£40m 3-year cost save if they delivered a 10% growth target. This was overlayed with the cost and benefit analysis of a buy, build or managed service solution architecture scenarios.

Delivery of our Target Operating Model came from the utilisation of our proprietary tool DC/Modus, which allowed us to trace, connect and visualise our TOM concepts efficiently and effectively.

‍Client Engagement 2: Design Validation‍

Delta Capita was approached to undertake a peer benchmarking review of their proposed CLM TOM.

Delta Capita validated the Bank’s target state, assessing internal and vendor technology, data management against industry approaches and regulatory expectations, identifying areas of deviation and suggesting amendments to the proposed target state model by leveraging our in-house CLM expertise. 

Our approached involved:

• Reviewing the current and target state documentation.
• Stakeholder engagement through workshops and interviews.
• Playback of our findings to client stakeholders and senior project sponsors.
• Peer review sessions with our Senior Leadership Advisory and Oversight.
• Gathering an aligned set of recommendations and proposed next steps.

These were subsequently drawn up and presented to our client alongside an indicative roadmap for resolution and corrective action.

Overall, Delta Capita provided a presentation of 20+ high level recommendations alongside a detailed inventory of ~80 specific recommendations. This included front to back orchestration layers, functional realignment of roles, single view of a client and globalisation of policies, which provided a pathway for the client to align to industry best practices.
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Learn more about how Delta Capita can help
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If you are interested in learning more about how Delta Capita can support your delivery or assessment of CLM Target Operating Models, please get in touch today.

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