Bank foundation with a slim Target Operation Model (TOM)

The global crisis in the banking sector appears to be controllable or in parts already overcome. Now, it becomes apparent that there is again an emerging interest in founding new banks. The reasons are diverse, from a changed strategic direction to the development of new products and services. Bank foundations are primarily carried out by already existing banks.

Boundaries of outsourcing and slimming-down of the TOM

The aim of this bank formation can be roughly outlined with the increase of penetration in the market cultivation, the conquest of new market shares and the establishment of a very customer-oriented business model. As a consequence of the financial crisis, this shows in many ways that market shares are reallocated and the most active banks take early actions. In addition to the strategic considerations, that must be met prior to the decision of founding a bank, particularly the decision for a future target operating model has a crucial influence on the future success of the newly formed bank

For this reason, the Tom is a critical success factor. From our practical experience, new institutes are positioned mainly as  "Lean Bank" and obtain the majority of services, which are not directly provided to the customer, through service providers. In the classical case of a bank foundation or spin-off, the existing processes and structures will very often be transferred to the new bank via contractual arrangements. Thus, the mother or the emitting institute becomes the service provider with very dedicated knowledge regarding the operations of the new bank. In case that the outplacements are very large, the resulting lean staffing level comes to regulatory limits because then  substitutions according to separation of functions, holiday and sickness as well as termination can affect the continuation of the business.

New Tasks with a clear orientation towards market cultivation

Due to the often observed reduction of the vertical range of manufacture and the consequent outsourcing of all significant processes at bank foundations, personal spaces are created that can and should be used particularly for focused market cultivation. The relation of employees to customers to employees in the back office can greatly be optimized especially in newly founded banks. This leads on one side to a support of the strategy of a strong market focus, often pursued with foundations of "Lean Banks", and on the other side to a very slim but still powerful staffing level.

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