The much-discussed global talent shortage for analytics skills can be observed quite evidently in the banking and financial services industry. The sector continues to undergo more regulatory change and reform, coupled with greater scrutiny from major financial regulatory bodies. The acronyms CCAR, FATCA and BCBS239, among countless others, are creating a sense of urgency and overburdening for risk and compliance heads in global banks and financial institutions. Timelines for model validation are growing shorter, governance and compliance requirements are growing stricter, and the list of monthly/quarterly/annual reports to regulators is growing longer every passing month.
Meanwhile, the talent pool required to do these jobs is limited, given the level of domain knowledge required (e.g., local jurisdictional requirements) along with technical expertise (e.g. model development, platform experience). It is no wonder that we see more banks today turning to third party service providers to supplement their capacity for data, reporting and analytics in the area of risk and compliance.
In our HfS Blueprint for BFS Analytics Services, we placed Genpact in the As-a-Service Winner’s Circle, partly because of its steps to address this talent gap by “creating talent” instead of buying it. For one, the service provider is partnering with universities, contributing to curriculum development to create a more “industry ready” workforce for niche specializations (e.g., ICFAI in India for commercial credit reviews and financial spreading). This approach complements the Risk Academy that Genpact developed in-house, with career paths for risk, compliance, and financial crimes, as well as a risk certification program with GARP. It just announced a partnership with the Institute for Certification of Computing Professionals (ICCP) for co-developing programs that will certify data scientists to address BFS regulatory compliance requirements. Additionally, Genpact is hiring industry experts to expand its pool of SMEs and consultants in the U.S., which will help it work with BFS clients to set long-term risk strategy.
Due to this strong focus from Genpact in BFS analytics talent development, coupled with other factors like its industry-specific technology accelerators in the areas of model governance, regulatory gap analysis and stress testing, we see it as a great fit for BFS clients that need to scale risk and compliance operations.
HfS scored Genpact highly against its peer set of BFS analytics service providers for the following HfS Blueprint evaluation criteria:
- Delivery of services across the analytics value chain
- Experience in delivering industry-unique solutions in BFS
- Vision for and investments in the evolution of BFS analytics solutions
- Multi-disciplinary talent acquisition and development framework
- Incorporation of alliances and partnerships in BFS analytics