28 September 2021
Topics in this article
  • Finance & Procurement
  • Financial Services
  • Strategy & Planning
  • Sustainability

Global disruption has caused the financial services sector to rapidly evolve. The pandemic has not only accelerated the digital spending habits of consumers but also prompted Financial Services (FS) organizations to consider how they communicate, sell, and operate digitally where they see a shift in customer expectations and behaviors.

Adapting to change, whether it be rapid digitalization or an increasingly dispersed workforce, presents opportunities and challenges which may differ depending upon the specifics of what the FS organization does, and how it does it.

Proxima’s latest report focuses on the key changes facing the Financial Services sector, how to meet the challenges head-on, and how to leverage your supply chain for the future success of your business.

Click on the image for full access to the report.

So how does the financial services industry adapt?

One lens is through their suppliers. On average, half of the costs of FS organizations are external costs, which translates to money paid to suppliers for goods and services. Logically, this means that a lot of the operational performance, change and innovation capability sits in the “extended enterprise” i.e. suppliers.

It also means that when looking for operational and financial efficiencies that could fund transformation, the majority of cost reduction opportunities are in the supply base.

The Post Pandemic (Procurement) Challenge: Change acceleration

It has been well documented that the adoption of many digital trends has accelerated during and post-pandemic. The sudden shift in customer trends and the corresponding desire or need to recalibrate operations means thinking differently about commercial and operational partnerships with key suppliers.

Put simply, it means updating procurement strategies, supplier selection, and ongoing management to reflect the revised needs of the organization.

Currently, three key platforms are working together in modern FS organizations: business platforms, enterprise platforms, and UX (end-user facing) platforms. These platforms interact to deliver data that power the consumer experience within the framework of regulation. When looking for the most exciting, cost-effective, and innovative tech, financial services leaders should look to the supply chain. 

With the right platform architecture, suppliers are delivering innovation, scalability, and efficiency, while allowing organizations to migrate ideas and learnings across their business

Wider benefits to harnessing supply chain spend

In addition to helping the Financial Services industry address key challenges with changing customer behavior, platform needs, and finding the revenue to finance change – the supply chain will also be key to driving broader business value across several key areas, including:

  1. Innovation – In simple terms, the combined R&D budgets of an organization’s supply chain will far outweigh its own. So how do you access that innovation, and focus it on your challenges?
  2. Digitalization – For some time now it has been known that organizations can no longer think of a technology strategy as separate from business strategy; it is now even clearer that it is indeed an enabler, and an accelerator of it.
  3. Agility – With the pandemic still wreaking havoc on inflation and customer behavior, procurement teams must introduce suppliers that can roll with the rhythms of the business helping the organization to lead, bring about, and quickly capitalize on change.
  4. Environmental Social Governance (ESG)– As ESG rises up the corporate, investor and customer agenda, businesses that wish to drive greater environmental and social value will also need to look towards their supplier base to deliver against their goals.
  5. Risk and trust – In a heavily regulated environment, managing supplier risk and performance will be key to being complaint and to ensuring customer trust and loyalty. FS businesses today face risks that extend beyond their depositors’ balances and loan portfolios.

If you are interested in reading more about the power of suppliers within the Financial Services supply chain, please download the full report by clicking below.

How Proxima can help

Proxima delivers procurement solutions for a range of global Financial Services clients. Which range from cost savings to innovation, and digital to sustainability, we offer a suite of sourcing, transformation, and delivery services that address today’s commercial and business challenges.

Faster. More agile. More innovative. More sustainable. Lower cost. Improved EBITDA. It is more important than ever that businesses harness the power of suppliers.

When it comes to procurement, the world’s leading businesses trust Proxima.

Please fill in the form to access your copy or get in touch to discuss how we can help you meet today’s commercial and business challenges.

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