Written by Martyn Evans on 21 October 2014
Altus and Old Mutual Wealth have been shortlisted to the final round of the Financial World Innovation Awards 2014 for their ‘Operational Cost Model’. They will contest the new ‘most innovative use of data’ category alongside some of their leading industry peers, including Barclays and HSBC.
The model, built by Altus for Old Mutual Wealth, provides a single source of truth for technology operating costs and transformation savings. The model turns the traditional IT Total Cost of Ownership (TCO) approach on its head: rather than focussing on individual IT systems, the operational cost model looks at the entire technology estate and uses baselined total run costs as the starting point for calculations. The net result is a powerful new type of model that accounts for all technology operating costs and accurately pin-points the systems and areas of the business that these are really applicable to.
The model’s greatest strength is its predictive capability, automatically producing detailed and auditable projections of future run costs. At Old Mutual Wealth the model has reduced the time required to produce this type of analysis by approximately 70%, as well as improving the quality and consistency of the output. Old Mutual Wealth announced last year that it was outsourcing a large part of its administration to global IT and outsourcing firm International Financial Data Services (IFDS). The model has been used extensively to project run costs based on this change.
Martyn Evans, Head of Altus Consulting says: “In line with our core philosophy, Altus takes a methodical and architected approach to building operational costs models for clients such as Old Mutual Wealth. In my experience it is rare for financial services companies to fully understand the complex spread of data that supports their business, in particular the structure and true operating costs of their technology. The model simply takes the disparate sources of business and IT data which proliferate in all FS companies and uses a new approach to make sense of these and build a concise, useful picture.”
Paul Penney, Chief Information Officer at Old Mutual Wealth says: “The model that Altus has built for us has allowed Old Mutual Wealth to understand run costs like never before. We now have a clear, visual picture of our cost base and an auditable data set compiled from the numerous data sources which sit behind it. The model has helped us drive strategic thinking and gives us a tangible benchmark to check our long term strategic aims against. Major transformational decisions can now be assessed and understood before projects are underway, and savings projected from a basis of real estate data.”
Following the success of the operational cost model in Old Mutual Wealth in the UK, the exercise has been expanded with Altus into their European businesses, where it is being used to design major transformational change. The awards ceremony is taking place on the 27th November at the Grand Connaught Rooms in London.
Improving treatment of vulnerable customers
Written by Sam Turner on 14 March 2019
The financial services industry is lagging when it comes to identifying and servicing vulnerable customers, putting them at risk of both regulatory and reputational damage. While some businesses seem to be making progress – writing vulnerable customer policies, training staff and adopting front-line techniques – there is still a lot to be done.
Altus Consulting joins Insurtech UK as consultancy partner
Written by Mark Andrews on 12 March 2019
Altus Consulting, a leading financial services consultancy, has officially become a partner of Insurtech UK, joining the first wave of associate members and partnership sign-ups of 2019. With the aim of becoming the definitive voice of the InsurTech community in the UK, the alliance has welcomed over 40 InsurTech start-ups since its launch in November 2018.