Information technology is a key ingredient in improving the competitiveness of the financial services sector..

Today, technology and telecommunications are key enablers in financial services for improving products, processes, and services; getting closer to customers; and generating new business opportunities. Information technology is enabling the re-engineering of all key processes within depository institutions, consumer finance companies, insurance firms, and securities organizations.

Hardware, software, consulting, outsourcing and other types of services delivery are all participating in the dynamic and growing financial services area. Depository institutions and other types of financial services companies are using information technology for a range of activities: check and payment processing, account processing and reconciliation, credit card authorization and processing, loan processing and servicing, and automated teller machine functioning .

Virtually no transaction is accomplished in these organizations without some information technology interface.

Two dimensions of technological progress affect competition in financial services. While better technology may result in improved information processing, it might also lead to low-cost or even free access to information through, for example, informational spillovers. In the context of credit screening, we show that better access to information decreases interest rates and the returns from screening. However, an improved ability to process information increases interest rates and bank profits. Hence predictions regarding financial claims' pricing hinge on the overall effect ascribed to technological progress In the insurance field, information technology is used in claims processing, risk management, premium collection and fraud detection. The evolution of robust telecommunications has been particularly important in the insurance area as a means of linking far-flung agent networks into the home company providing a tighter relationship with the home companies and enhanced services to the customers .

The securities industry is also a massive user of information technology. Virtually all back office processing as well as settlement are fully automated. Increasingly, trading itself is becoming dependent on information technology and promises to be a large and rapidly growing market in the future .

Finally, all of the financial services sectors discussed above are dependent on information technology for communications worldwide, payroll and accounting, reporting and compliance, decision support, and customer analysis and care. The increasing globalization of this important industry sector will only increase the need for the products and services of the information technology industry.

A liberalized financial services market will increase the pace of information technology growth in the sector. Institutions entering new markets will bring new information technology providers with them, while incumbent institutions will seek increased efficiency and competitiveness through the use of enhanced technology. This activity will also spur the growth and expertise of the local information technology industry. Thus, liberalized financial services will provide unimaginable benefit and growth to the information technology industry.

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In an increasingly complex environment of competing demands on capital, our client solutions are unwaveringly developed to generate positive shareholder returns and true economic value.

The nature of our financial services consulting assignments is as varied as our customers, and includes: strategies for growth; product, channel and customer management; operational efficiency and performance improvement; project management and organizational effectiveness; information systems and technology; and risk and capital management.