Banking & Capital Markets

The bank of the future will integrate disruptive technologies with an ecosystem of partners to transform their business and achieve growth.

Disruption is creating opportunities and challenges for global banks. While the risk and regulatory protection agenda remains a major focus, banks must also address financial performance and heightened customer and investor expectations, as they reshape and optimize operational and business models to deliver sustainable returns. Innovation and business-led transformation will be critical for future growth. To remain competitive and relevant, every bank must embrace disruption and strategically build a better ecosystem — not a bigger bank.

Our worldwide team of industry-focused assurance, tax, transaction and consulting professionals integrates sector knowledge and technical experience. We work with clients to navigate digital innovation, new business models and ecosystem partnerships, helping banks become the nimble, responsive organizations that customers demand.

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Case study: How one of India’s largest public sector banks merged and transformed itself

EY merged three large banks with smooth Day-1 integration, minimal disruption and new operating model.

Case Study

The better the question. The better the answer. The better the world works.

Case Study

How would the bank transform its operating model amidst a merger?

Successful Day-1 integration with best-in-class operating model design led to a holistic transformation.

One of India’s leading public sector banks merged with two other banks and the combined entity resulted in one of the country’s largest banking entities. It was the largest merger in the Indian banking industry at the time.

At the time of the merger, the bank’s primary objective was to achieve seamless Day-1 integration with minimal customer disruption and smooth structural, cultural, operational, and functional integration. The bank sought support to manage the scale and complexity of this integration. It also wanted to ensure that the combined entity realized all synergistic opportunities for future growth.

EY worked with the bank to deploy a destination operating model for providing a competitive advantage across the value chain. The new operating model set a foundation for scalable growth and higher efficiencies across sales, credit, collections, and internal operations.

Case Study

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Case Study

EY led Day-1 integration and destination model roll-out to transform the bank

The transformation involved building an operating model with a revamped organizational structure, efficient operations and a culturally aligned workforce.

EY conducted a detailed diagnostic and comprehensive Day-1 readiness assessment across the business, support and control functions of the bank. The key focus areas were:

Harmonization of products, processes and policies
Ensuring minimal customer disruption
Enhancing geographical reach with an optimum product mix
Alignment and integration of unified digital platforms for customers

Subsequent to the successful Day-1 merger, EY created a destination operating model with an 18-month long transformation roadmap targeting:

A four-tiered credit operating model with specific focus on large corporates, mid and small corporates, micro, small and medium enterprises
A revamped organization structure to create specialized verticals including fintech and collections and recovery
A comprehensive assessment of potential cost and revenues synergy arising from the amalgamation and developing a 3-year roadmap for the bank for realizing the same
Seamless customer experience with inter-operability across branches and other digital and physical channels

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Case Study

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Case Study

The bank saw successful business transformation with an efficient operating model

The bank is set to continue its momentum and grow rapidly to achieve its future targets.

As the merger stabilized and concluded, the bank saw substantial improvement in its overall business and operational performance, leading to a sustainable change in the bank’s financial metrics with a significant value delivered by EY.

20%

Improvement in cost-to-income ratio

13%

Cost synergies

3.5%

Revenue synergies

The engagement was led by the EY team and senior bank leaders including the MD and CXOs. The EY team included a cross-functional mix of partners, directors, senior managers and over 40+ consultants who came together to devise the merger and integration strategy for the bank.

EY became a trusted partner for the bank by enhancing its geographical footprint, strong future roadmap and optimized target operating model. These milestones were achieved by establishing strong relationships with the senior executive management and division stakeholders.

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The EY Regulatory and Compliance Manager is a global, fully customizable regulatory inventory.

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Open banking is a disruptive force in the financial services industry. It will change how consumers engage with their banks and financial services providers, introduce new channels and promote innovation and competition in financial products.

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Our Global Regulatory Network, consisting of former regulators and bankers from the Americas, Asia and Europe, provides strategic insights on financial regulation that helps clients adapt to the changing regulatory landscape.

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NextWave Financial Well-Being

Case study: How one of India’s largest public sector banks merged and transformed itself

EY merged three large banks with smooth Day-1 integration, minimal disruption and new operating model.

How would the bank transform its operating model amidst a merger?

Successful Day-1 integration with best-in-class operating model design led to a holistic transformation.

EY led Day-1 integration and destination model roll-out to transform the bank

The transformation involved building an operating model with a revamped organizational structure, efficient operations and a culturally aligned workforce.

Related case study

The bank saw successful business transformation with an efficient operating model

The bank is set to continue its momentum and grow rapidly to achieve its future targets.

How EY can help

Transformation Realized

How EY can help

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Transformation and growth in banking

Financial services

Risk and regulatory transformation

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