Delta Capita and Fenergo partner for CLM implementation and managed services

30 May 2018 Authored by Consultancy.uk

Fast growing Irish FinTech and RegTech company Fenergo has partnered with management consultancy Delta Capita. The consultancy will serve as Fenergo’s preferred implementation partner of choice, while its launched managed service offering, labelled disruptive by the co-founders, will help financial services organisations improve how they manage their growing Client Lifecyle Management challenges.

Delta Capita is delivering the ‘Powered by Fenergo’ remediation offering to address the significant market demand for remediation services by financial institutions. “The current approach to managing the client lifecycle is now unsustainable for many medium- and smaller-sized firms. Clients are seeking to reduce the cost and complexity of ownership and are seeking new disruptive utility-style business models offering industry standardisation based on best practice and mutualised cost benefits. This partnership arrangement is a response to that demand and offers financial services organisations a real alternative to in-house managed solutions,” explained Delta Capita’s CEO, Joe Channer. 

One major area the solution will focus on is client onboarding. Due to the large number of regulatory requirements in place, including Know Your Customer (KYC), client onboarding is a major challenge for banks, with one study showing that challenger banks are (significantly) more effective and user-friendly in guiding their clients through the entire process from lead to actual customer. The offering will also address topics such as regulatory compliance (e.g. anti-money laundering [AML], data management, client risk ratings and tax reporting. 

Fenergo partners with Delta Capita

In all these areas, many banks are struggling with legacy IT – technology infrastructures that are cumbersome and insufficiently able to meet the demands of today’s business environment. Ireland-based Fenergo specialises in providing Client Lifecycle Management solutions to investment banks and capital market firms, helping them leverage intelligent digitisation to lower their total cost of ownership, while enhancing customer satisfaction. At one bank, KYC automation enabled by Fenergo’s CLM system helped the global investment bank achieve 37% efficiencies in KYC client reviews and remediation. At another client, Fenergo’s Regulatory Onboarding solution was implemented to automate, streamline and standardise regulatory onboarding processes, data and documentation across six business segments, bringing down onboarding times by over 50%.

Since launching in 2009, Fenergo has seen rapid growth to a team of over 400 employees, with its solutions currently used by 17 of the globe’s top 50 banks, including Bank of China, BBVA, BNP Paribas, Macquarie, RBS, Santander and UBS. Speaking on the announcement, Fenergo’s CEO Marc Murphy said, “We are excited to welcome Delta Capita as a strategic partner. This is a significant development for Fenergo as it allows us to service new segments of the market.”

The partnership between the two parties focuses on two key areas. First, Delta Capita, which is a consulting firm and technology provider exclusively for the financial services industry, will serve as a consulting and implementation partner for Fenergo CLM. “Delta Capita’s strong industry, technical and project experience has warranted its appointment as a Fenergo Partner,” explained Murphy. He added, “Moreover, the synergies between our two companies are apparent as we serve clients across similar markets and geographies.”

The solution could be implemented across the banking landscape – corporate, retail and private banks – asset & wealth management payers and investment companies, across all of which both parties have a track record.

Marc Murphy, Joe Channer and Tom Kastelein

KYC/ CLM as a managed service

Second, Delta Capita will be able to provide CLM and KYC as part of an outsourced packaged managed service delivered by Delta Capita. This move builds on Delta Capita’s vision that, in some key areas, collaboration between banks can lead to a more efficient organisation of resources and technology, down the line improving performance. The consultancy has in recent years applied the concept successfully in several domains – last year Credit Suisse for instance selected Delta Capita as its managed services partner for its EMEA structured products business, while the year before it was selected as the consortia facilitator and consultancy partner to the Plato partnership, a consortium of leading banks globally.

Tom Kastelein, Delta Capita’s Benelux Regional Head, commented “The managed service will be a truly global solution, servicing clients locally in established regions through our service hubs based in the UK (London), the Benelux (Amsterdam), Germany (Frankfurt), South Africa (Johannesburg), the US (New York) and Asia (Singapore and Hong Kong). The service will focus on helping Tier 2 and Tier 3 banks as well as non-bank financial service organisations that are seeking to simplify and reduce the total cost of ownership associated with operating their internal business platforms.” 

“In addition, we are making the service available to support client remediation projects under flexible terms. We see many clients struggling with remediation due to the lack of proper tooling, controls and reporting, resulting in ever escalating staff costs,” said Kastelein.

“The combined offering for helping clients meet their Client Lifecyle Management challenges will be disruptive,” concluded Channer.

Related: Tackling financial and economic crime through banking collaboration.

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