Providian Trust:"Tradition and Technology
Providian Trust: Tradition and Technology Business Context
Providian Trust Company provided financial and fiduciary services with 216 branches.
Headquartered in New York, with $49.4 Bn. trust assets and staff of 840 Full-time Employees.
Residential mortgages, commercial mortgages, consumer and corporate loans were the principles sources of revenue for Providian Trust.
Providian Trust business was mainly into:
Pension and Institutional Trust Services (PITS) – Tenth largest Provider.
Personal Trust Services – Administration of estates, trust and agencies, will and estate planning, self-directed registered savings plan and dealer trustee services.
Trust Operations – 10000 personal trust clients.
Key Business Drivers
Providian trust officers often spend a large amount of time correcting statements, costing the company between $2 Million to $5 Million because of the inaccurate statements.
Providian is confronted with an outdated information system causing undue advantage to more technologically advanced competitors.
Financial performance pressure: Net income reduced from $63.5 M in 1994 to $35.6 M in 1995
LeBlanc, the senior VP of Trust and advisor proposed that the existing systems be upgraded with modern technology to reduce cycle time.
Initiative Objectives/Benefits
No
Objectives
Benefits
1.
Better Technology – Equip outdated systems with better technology.
Update existing outdated reporting systems in order to make larger operations more effective.
Reduce unnecessary expenses due to inaccurate statements caused by relaying on outdated systems.
2.
Enable Management to centralize and control the client Accounts.
Achieve discipline that had been lacking.
Having clear Accountability.
3.
Reduce lead time to process reports
Faster & Accurate reports sent to client
Reduce cost and thus increase revenue.
4.
Installation of Access Plus software
Reduce Cost by $9.2 Million.
Reduce Full time employees from 840 to 660.
Providian Trust Company provided financial and fiduciary services with 216 branches.
Headquartered in New York, with $49.4 Bn. trust assets and staff of 840 Full-time Employees.
Residential mortgages, commercial mortgages, consumer and corporate loans were the principles sources of revenue for Providian Trust.
Providian Trust business was mainly into:
Pension and Institutional Trust Services (PITS) – Tenth largest Provider.
Personal Trust Services – Administration of estates, trust and agencies, will and estate planning, self-directed registered savings plan and dealer trustee services.
Trust Operations – 10000 personal trust clients.
Key Business Drivers
Providian trust officers often spend a large amount of time correcting statements, costing the company between $2 Million to $5 Million because of the inaccurate statements.
Providian is confronted with an outdated information system causing undue advantage to more technologically advanced competitors.
Financial performance pressure: Net income reduced from $63.5 M in 1994 to $35.6 M in 1995
LeBlanc, the senior VP of Trust and advisor proposed that the existing systems be upgraded with modern technology to reduce cycle time.
Initiative Objectives/Benefits
No
Objectives
Benefits
1.
Better Technology – Equip outdated systems with better technology.
Update existing outdated reporting systems in order to make larger operations more effective.
Reduce unnecessary expenses due to inaccurate statements caused by relaying on outdated systems.
2.
Enable Management to centralize and control the client Accounts.
Achieve discipline that had been lacking.
Having clear Accountability.
3.
Reduce lead time to process reports
Faster & Accurate reports sent to client
Reduce cost and thus increase revenue.
4.
Installation of Access Plus software
Reduce Cost by $9.2 Million.
Reduce Full time employees from 840 to 660.