Providian Trust case memo
Providian Trust: Tradition and Technology Business Context
Providian Trust provided financial and fiduciary services through 216 branches
Headquartered in New York with a staff of 840 full-time employees.
Managed $49.4 billion assets through three divisions - Pension and Institutional Trust Services, Personal Trust Services, and Trust Operations.
Only Personal Trust Services division was profitable with $6.7 billion of assets.
Key Business Drivers
Due to significant competitive situation and need to satisfy clients’ demands improvement in quality of trust services was required.
Lack of control in the trust division, no collaboration between “front” and “back” offices.
Initiative Objectives/Benefits
Objectives
Benefits
To revise business processes based on effectively using technology as an enabling mechanism and propose how the software would streamline information flow for each of the 17 processes
Cycle time for information processing would be reduced, resulting in faster and improved service for the customer
Annual savings of approximately $9.2 million
FTE reduction from 840 to 660
To centralize administration decentralize trust officers, sales teams and portfolio managers Operations group in charge of trust account administration
Transformation of trust officers’ role into “client relationship managers” who provide a full range of fiduciary services and retail banking products to their existing and future client base
To change trust managers’ approach to clients by making them more sales and service oriented
Initiative challenges
Challenges
Solutions
“Directions and instructions are coming from too many sources”
Creation of Implementation Committee
Lack of necessary skills among employees in order to use new software system
Select One’s training sessions for project team members and operations eight months before the first conversion of accounts.
External firm training on the Microsoft
Providian Trust provided financial and fiduciary services through 216 branches
Headquartered in New York with a staff of 840 full-time employees.
Managed $49.4 billion assets through three divisions - Pension and Institutional Trust Services, Personal Trust Services, and Trust Operations.
Only Personal Trust Services division was profitable with $6.7 billion of assets.
Key Business Drivers
Due to significant competitive situation and need to satisfy clients’ demands improvement in quality of trust services was required.
Lack of control in the trust division, no collaboration between “front” and “back” offices.
Initiative Objectives/Benefits
Objectives
Benefits
To revise business processes based on effectively using technology as an enabling mechanism and propose how the software would streamline information flow for each of the 17 processes
Cycle time for information processing would be reduced, resulting in faster and improved service for the customer
Annual savings of approximately $9.2 million
FTE reduction from 840 to 660
To centralize administration decentralize trust officers, sales teams and portfolio managers Operations group in charge of trust account administration
Transformation of trust officers’ role into “client relationship managers” who provide a full range of fiduciary services and retail banking products to their existing and future client base
To change trust managers’ approach to clients by making them more sales and service oriented
Initiative challenges
Challenges
Solutions
“Directions and instructions are coming from too many sources”
Creation of Implementation Committee
Lack of necessary skills among employees in order to use new software system
Select One’s training sessions for project team members and operations eight months before the first conversion of accounts.
External firm training on the Microsoft