Client Offboarding - Capital Resolution for a Wholesale BankGlobal Business Wind-down and Divestment
Whether it is due to regulatory drivers, shifting business strategies or profitability/revenue opportunities, there are many reasons a wholesale bank might decide to restructure its business, products and geographic client footprint. Due to a combination of regulatory drivers and a shift in business strategy, Synechron’s international wholesale banking client wanted to divest its international client network and a significant part of their Global Transaction Services (GTS) and Markets businesses globally.
This would require a large-scale, multi-jurisdictional, wind-down program to divest the business and all associated capital, clients, and costs. Synechron was selected to manage the full client offboarding and capital resolution strategy for the bank.
Synechron set up the global governance structure for the central program, encompassing 30K clients across all regions and functions within Operations and Technology to facilitate country closures and sales. The focus was to drive out capital, off board clients, reduce costs and ensure seamless divestment of any related business operations. This was achieved through:
- Regional country closures, product exits and client offboarding data centralization.
- A Tail model which was set up for specific clients & accounts whereby any long-ended trades or positions meant the client could not be unwound in the defined timeframe.
- Regional and central milestones linked to cost benefit triggers, utilizing an operational cost model with actuals and forecast based on milestones.
- Successful divestment of the GTS & Markets business
- 35% annual direct cost reduction
- Enhanced central risk and dependency governance
A global team with a laser focus