How the centralisation of financial functions in German banks is succeeding

Germany's banks currently have the adaptation and reorganisation of their financial architecture on the agenda. The financial institutions are developing new target operating models (TOM) for their financial functions. The aim is to become faster, more cost-effective and qualitatively better.

The current reorganisation of financial infrastructures is being used to consider the possibilities of (further) centralising financial functions. The need for this will increase in the future due to several industry trends: Cost pressure and data quality requirements are increasing in equal measure, while a shortage of skilled labour and increasing regulation are putting companies under pressure. The result: a wide-ranging, continuous transformation process.

In the current white paper "The centralisation of finance functions: Scenarios, phases, success factors", our experts provide impulses and solutions for the successful implementation of centralisation options.  

Centralised finance functions have several advantages:

• They can make a significant contribution not only to increasing transparency and better controlling processes, but also to increasing efficiency and utilising synergies.
• They make it possible to minimise the challenges in the search for qualified personnel.
• They support the implementation of specific transformation strategies, as they facilitate M&A activities or the establishment of foreign branches.
• Outsourcing solutions or setting up or expanding your own shared service centres can lead to greater staff flexibility as well as cost savings.

In the white paper, our authors analyse the opportunities and risks of three specific implementation scenarios and explain how institutions can proceed in several phases. They also show which success factors are particularly important - from IT architecture to employees and governance.