business process model in banking example

It has also unveiled revised financial targets, including a target 45% cost-to-income ratio and the resumption of dividend payments. It has reaffirmed its focus as a Nordic bank with specific commercial, retail, and private banking propositions for Denmark, Norway, Sweden, and Finland. 2023 is a new chapter, and Danske Bank is ready to move on with its new Forward ‘28 strategy and financial targets for 2026. For Danske Bank, the “why” is less of a digital catch-up and more of a next-chapter strategy after settling its money laundering fraud debacle and implementing a massive overhaul of its risk and regulatory compliance protocols. In other recent big banking, financial services, and insurance (BFSI) deals we’ve written about, such as Vanguard, State Farm, or Core Logic, the “why” is almost always a palpable need to modernize or risk irrelevancy-or at least minimize disintermediation. Those metrics are tied firmly to the technology and talent (aka “digital”) capabilities Infosys can bring to the table to make Danske a more innovative, efficient, competitive-and ultimately profitable bank.ĭanske Bank pivots with new “Forward ‘28” strategy and financial targetsĪny enterprise that engages in a “big” outsourcing engagement, defined as $100 million+, does so for specific reasons. So rather than basing the deal’s value on tangible cost takeout from onshore–offshore employee displacement, firms like Danske have to look to other metrics to justify the cost.

However, when you venture into regions like the Nordics, the whole premise of cost-to-value differs from deals in the US or UK, as it’s very expensive to displace people. A few weeks later, it announced the deal with Infosys for “digital and technology transformation,” including the sales of Danske IT, the Bangalore-based captive of Danske Bank that provides IT development and operations. As the IT services industry braces for a slowdown in 2023 with large deals taking eons to get completed, Infosys adds some renewed hope to ambitious service providers that big, meaty deals can still get thrashed out, with a 1,400 employee $450 million outsourcing engagement with Danske Bank.ĭanske Bank, a Danish multinational banking and financial services corporation founded in 1871, recently announced a new strategy to drive its cost-to-income ratio down to 45% from ~60% by 2026.

Business process model in banking example