Client Story

Cast a wider net, increase trustworthy credentials

KPMG helped a major commercial bank pioneer a scalable talent-resourcing approach to expand its quantitative modeling team.

Anthony Sepci

Anthony Sepci

Partner, Advisory, Modeling and Valuation, KPMG US

+1 213-955-8665

Sanjeev Mankotia

Sanjeev Mankotia

Managing Director, Risk Analytics, KPMG US

+1 415-963-8692

Client
A major U.S. commercial bank
Sector
Financial services
Project
Quantitative modeling global talent resource approach
  • Client challenge
  • Approach
  • Benefits to client
  • KPMG insights

Client challenge

For some leading companies, professional credentials are table stakes in their race for the best talent. The Risk organization of a major U.S. bank wanted to expand its quantitative modeling team, and new thinking was required. The exponential increase in the quantity, accessibility, and use of data had brought with it enormous competition for professionals in data-intensive roles. Drawing upon a culture of innovation, the bank’s Risk team sought to expand its talent search globally. They set out exceptionally high standards, meaning “hard skills” were just the recruiting baseline; the Risk organization also wanted “soft skills” that would engender daily coordination between teams, based on that elusive something called collegial “trust.”

KPMG proposed a mix of onshore and offshore talent to support our client’s quantitative modeling team provided by its KPMG Global Services (KGS) subsidiary and KPMG U.S.-based managers. Today, the bank’s Risk group is supported on mission-critical functions such as model validation and development. With the help of KPMG, this bank has pioneered a scalable talent-resourcing approach that positions it for continued competitive advantage.

Approach

KPMG helped design and implement a talent resourcing approach, delivered though KGS, which combines advanced human capital management with data security protocols. KPMG:

  • designed a hybrid offshore/onshore talent model that offers the bank access to both India-based professionals and U.S.-based senior managers
  • secured all required approvals from the bank’s own U.S. procurement and third-party risk management professionals
  • established a secured clean room to manage the transfer and handling of mission-critical data between onshore and offshore teams, leveraging offshore clean-room experience with other large U.S. and global banks
  • established talent acquisition criteria for both “hard skills”—degrees earned, risk modeling competencies demonstrated, and domain knowledge mastered—and “soft skills” such as agility, collaboration style, and cultural fit
  • used the 25-year footprint and reputation of KGS in India (e.g., multiyear ranking in “LinkedIn Top Companies: Where India Wants to Work Now”) to access specialized talent pools; co-screened an average of 20 applicants per available position to build the team
  • to support KGS team retention, designed roles with clear career paths and professional development opportunities.

Benefits to client

KPMG has successfully pioneered a talent resourcing approach that supports our client’s current and projected needs, establishing board-endorsed precedents for potential adoption by other areas of the bank. Specific benefits include:

  • talent recruitment and retention strategies implemented to expand the quantitative modeling team with high-caliber onshore and offshore talent
  • offshore clean room operations established to secure bank data, compliant with the bank’s U.S. procurement and third-party risk management requirements
  • enabled access to KPMG financial services and risk specialists for areas such as AML, Dodd-Frank, CECL, and LIBOR
  • surge capacity in place, to respond to both seasonal demand as well as unplanned events such as Federal Reserve requests for additional stress testing in light of COVID-19.

KPMG insights

Industry leaders value “next generation” global resource strategies

As the bank’s Risk organization considered global talent-resourcing options, it aimed to go beyond pure cost considerations. KPMG helped envision and implement a purpose-built approach that leverages continuous investment in leading business processes, agile technology, and specialized talent, so the bank achieved day-one business impact.

For mission-critical functions in leading organizations, behavior and culture matter

KPMG and our client forged an understanding of the sometimes subtle operational dimensions of the bank’s own behavior and culture, and worked to mirror them in the KGS team.

Domain knowledge counts

KPMG provides granular experience in every stage of the quantitative modeling development cycle, including validation, ongoing monitoring, and documentation. KPMG offers extensive experience with and relevant domain knowledge in regulatory matters such as AML, Dodd-Frank, CECL, and LIBOR.

In data-intensive sectors, established data-security experience is critical

The handling of proprietary data and modeling insights were top priorities for the bank’s Risk organization in designing and implementing a global solution. KPMG leveraged the KGS team’s experience in building mature offshore clean rooms for other large U.S. and global banks to meet this client’s security requirements.

We helped this client envision and implement a purpose-built approach that leverages continuous investment in leading business processes, agile technology, and specialized talent.