Commerce strategy and post-merger integration for payments

Situation

The banking industry is undergoing rapid transformation within the commerce landscape. Increasing regulations intensify competition while consuming valuable resources. New players, equipped with advanced technologies and innovative business models, are disrupting the market. The traditional commerce value chain is evolving as both traditional banks and newcomers expand their service offerings. Concurrently, consumer preferences are shifting towards secure and convenient payment services across all channels, leading to a steady transition from point-of-sale (POS) to digital commerce. Moreover, the acquiring and payment solution providers sector is witnessing consolidation. Tier 1 merchants, new and existing, demand comprehensive commerce solutions, including Omni and I&I.

Solution

Avanti collaborated with the client to formulate a groundbreaking Commerce Strategy. This encompassed:

  1. External Analysis: In-depth examination of the payment value chain, rigorous screening of potential acquisition candidates, and a thorough SWOT analysis.

  2. Internal Investigation: Identifying the necessary capabilities and conducting a gap analysis to bridge existing shortcomings.

  3. Stakeholder Management: Prioritizing stakeholder involvement and garnering support for the new Commerce Strategy.

The resultant strategy was built upon strategic alternatives aimed at enhancing and securing a leading market position. The screening process assessed potential acquisition targets to address capability gaps. Additionally, Avanti played a pivotal role in overseeing the Program Management Office during the integration phase of the acquisition.

Result

The project yielded significant outcomes, including:

  • A robust Commerce Strategy with a clear strategic direction, a refined business model, defined objectives, a comprehensive assessment of required capabilities, and an evaluation of future business value.

  • A redefined value proposition and operating model. Recommendations for potential acquisition or joint venture candidates were provided to expedite capability scaling.

  • A high-level roadmap outlining the steps necessary to build or acquire essential business and technology capabilities.

  • Successful post-merger integration of the acquired entity.

This case study showcases how Avanti's expertise in Commerce Strategy and post-merger integration significantly impacted the client's position in the evolving banking industry landscape.