Trust Company Case Study: Providian Trust

Business Context:

• Providian Trust is a trust company headquartered in New York that provided financial and fiduciary services. It has a network of 216 branches with a staff of 840 full time employees.

• Providian Trust managed $49.7 billion in trust assets. Of this, $42.7 billion are in regard with Pension & Institutional Trust services and $6.7 billion in Personal Trust services. Personal Trust Services has over 10,000 clients.

• The company’s lending products like residential and commercial mortgages, and consumer and corporate loans are the key sources of revenues.

Key Business Drivers:

In 1994, Michael Leblanc, the senior vice president of Trust, Treasury & Investment, believed that the company is losing money because of intense competitive pressures. Leblanc argued that the client demands were driving the need for improvement and Providian’s clients are getting concerned with the companies outdated reporting systems. He noticed three key drivers to achieve competitive advantage.

• Revenue Generation through new sustainable efficient systems.

• Cost Reduction through reengineering business processes and increasing operational efficiencies.

• Increasing Stakeholder Expectations by maintaining competitive business practices.

Initiatives:

Objectives Benefits

Upgrade of the Trust’s old legacy mainframes systems to convert to a more efficient software system called “Access Plus”, an asset management system developed by Select One. • Provide management the control over Clients accounts.

• Centralize the administrative functions.

• Improve operational efficiency in both the front & back offices of Operations department.

• Enforce discipline in the Trust division.

• Reduce costs by decreasing the discrepancies and maintaining t...

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...ke them feel that they own the project rather than work for it.

• Proper chain of command should be implemented and communication should be effective across all levels and the issues must be immediately noticed and addressed.

• Regular reviews and checkpoints must be made and the results should be effectively communicated and informed with all the involved teams.

• Proper metrics must be in place to measure the progress of each step along the project.

• Planning of infrastructure and training schedules should be done before time.

An efficient Project manager should be aware of the necessary critical skills, Should learn to communicate effectively with every level, manage the resources in the right way, put strict processes in place, delegate tasks accordingly, do adequate testing, keep realistic expectations, never assume and don’t be afraid of what might go wrong.