Coupled with the bank’s data risk concerns was the worry of concentration risk – meaning too many people in one place. However, based on previous crisis events – particularly in the aftermath of the 11 September attacks where much of New York City physically shut down – the EY organization had already acted to create service delivery teams located across different geographies. “My thinking never went to a worldwide pandemic, but after 9/11 we built a robust business continuity process program so that people could operate in different cities globally,” says Thomopoulos.
This meant the EY organization could quickly offer the bank real-time information about the stress-testing of EY services’ teams in different locations. For example, if issues arise in the India office, the EY organization can rapidly offer the bank the option of dispersing work between teams based in Indiana, South Carolina, Texas and New York.
As a result, EY managed services approach has demonstrated its value via its advanced technology and business continuity readiness, both of which reinforce and enhance the bank’s own continuity processes during this crisis.
Building a more agile, adaptive, resilient bank
The versatility of the EY team’s approach to managed services means that with the transition phase complete, the team and the bank can enter the transformation phase of the work in complete alignment and with greatly enhanced agility.
Overall, COVID-19 is likely to serve as a major tipping point for banks to increasingly adopt managed services – the main reasons being access to talent and technology. Managed services can serve as an important extension of banks’ business continuity plan – and its benefits are not going unnoticed by the banks, their customers, and regulators alike. Managed services have become increasingly significant in enabling companies to maintain their competitive advantage and transform.
In a crisis – as the world found with COVID-19 – maintaining the stability of the banking system is in the interest of all stakeholders. As the pandemic hit, banks were keen to ensure strong business as usual practices, albeit in a virtual environment. Stabilizing their support functions and assessing how their risks have changed because of COVID-19 were urgent priorities for banks’ leaders.
Managed services providers that have the right secure technology platforms, with multi-access pipes pre-built to receive data from different sources from a bank’s wider business ecosystem, can be vital cost-saving and continuity-enabling channels for these banks. But more than just outsourcing and cost-saving, it’s the most effective and value-added way of running an organization, and all it entails.
And, crucially, at the heart of any managed services relationship is a deep sense of trust and collaboration – especially due to the highly sensitive financial data transactions that banks must track for tax reporting and regulation purposes.
In a tough marketplace and increasingly competitive sector, banks can use managed services to build offerings that are truly unique.
