Valorant helps you unlock savings on your third party spend, keeps you protected against third party risks and fuels innovation with your third party suppliers by nurturing supplier relationships, so that you always stay ahead of competition

Procurement can help banks boost profitability, reduce risk and ensure compliance to stay ahead in this challenging business environment

  • A decade after the global financial crisis, growth within the banking industry is slowing. In 2018, banks experienced a loan growth of just 4% - the lowest in the last five years. This trend, along with a flattening yield curve, deteriorating global trade conditions and the emergence of numerous non-traditional financing companies has put profitability under pressure and led investor confidence within the banking space to weaken. The global financial crisis of 2008 led to the introduction of stricter regulatory norms and compliance requirements which has kept banks in check throughout the economic expansion phase that followed. Now, as the banking industry enters the late phase of the economic cycle in a low growth environment, banks are increasingly finding it difficult to maintain profitability, as they navigate through the complex regulatory environment.
  • Emergence of new age fintech companies are also slowly eating away banks’ market share. These companies are nimble, agile and can often offer a seamless customer experience using the latest technologies. To be able to compete with such companies, banks must invest carefully in strategic areas and ensure to maximize value from every dollar they spend.

Valorant follows a structured approach to mitigate Procurement challenges faced by banks

  • To combat the economic downward trend and futureproof their business model effectively, banks must first invest in a function that has traditionally been overlooked – Procurement. By empowering procurement with the right resources and investment, banks can not only drive cost savings, but also reduce risk and fuel innovation through strategic partnerships. Strategic procurement in banking can help drive a bank’s goals by helping them overcome the following challenges


Lack of visibility into enterprise-wide spend due to multiple different business units and associated accounts payable systems

No centralized repository to store and retrieve all contracts

Multiple contracts with the same vendor or its subsidiaries, leading to inefficiencies as aggregate purchasing power is not being fully leveraged

No standard process to engage suppliers and monitor performance through specific SLAs and KPIs

Vulnerability to third-party risks including cyber, digital, reputational, and compliance as outsourcing operations to third party suppliers requires sharing of sensitive business and customer information

Lack of critical procurement resources like market intelligence, pricing benchmarks, RFP templates and negotiation toolkits

Third-party vendors are tightly integrated into core business processes which can make switching vendors difficult

Business unit stakeholders driving procurement conversations with suppliers leading to inherent biases and skills mismatch

Valorant’s services helps banks in establishing a strategic Procurement function with best-in-class processes and tools

  • Valorant is experienced in working with banks across the globe to help them overcome these challenges. We work closely with the business to analyze the current state and develop a tailored strategy to establish best in class procurement processes for our clients enabling them to maximize value, reduce risk and fuel innovation with their third-party suppliers

Various Phases of Procurement Maturity for Banks

Valorant recommends the following steps that any bank needs to take to start building an industry leading Procurement function

  • 1) Get Enterprise-Wide Spend Visibility: Through a spend analysis exercise, the third-party spend data is collected, cleansed, enriched, categorized and finally analyzed with a company-wide perspective to enable identification of strategic cost reduction initiatives. Our proprietary spend taxonomy developed over years of experience in key banks’ categories helps organize your data to reveal critical business insights.

  • 2) Systematic Collaboration between Procurement & Business Teams: Procurement must take a proactive approach in developing a clear understanding of the business’s strategies, goals and plans. At the same time, the business must appreciate the role that procurement can play in driving its objectives. The business should include Procurement in key meetings relating to budgets, vendor management and upcoming projects.

  • 3) Establish a Supplier Relationship Management (SRM) Program: Banks need to fundamentally alter their approach of working with third-party vendors. An effective SRM program identifies strategic & non-strategic vendors and creates a suitable engagement plan for both the groups. Monitoring performance through specific SLAs & KPIs and incentivizing top performers is a proven approach to transform supplier relationships from transactional to strategic.

  • 4) Third-Party Risk Management (TPRM): Banks should set up a comprehensive TPRM program which extends beyond initial vetting of third parties during on-boarding. Throughout the supplier engagement lifecycle, suppliers should be monitored based on a predefined governance structure (with a clearly defined risk approach and model) and clear policies around stakeholder responsibilities.

An effective Procurement program can empower banks to identify and deliver savings opportunities across business unit boundaries. As Procurement at banks evolves from a transactional function to a strategic value-creator, it will not only drive operational cost savings, but also preserve the bank’s overall reputation and help increase customer satisfaction.

2020 Procurement Outlook for the Banking Industry

A detailed analysis of key industry trends for the banking sector and what to expect in 2020 from a procurement perspective

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