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Since the economic crisis, the standard tune has been to underline the ‘major changes’ faced by the banking and financial services sector. Yet a new and changing environment is emerging for the industry.
Mainly because of regulation, financial reports of banks have drastically changed over the last few years with a reduction in the share of results generated by Corporate and Investment Banking (CIB), a growing proportion of own funds in terms of capital, and liquid assets to satisfy the rules of Basel III, and consolidation of the staff-resource coefficient.
The operational effects of these changes involve a faster collection of deposits, the implementation of new credit policies and the pursuit of greater operational efficacy to improve the operating ratio and maintain financial performance expressed as return on equity (ROE) as high as possible.
Consequently, we can now better apprehend the transformations at work, which affect all areas from retail banking to investment banking and private banking, asset management, specialized financial services and insurance banking.
At the same time, clients (individual and corporate) and their expectations have changed. This shift has questioned the type of relationship that has so far prevailed, because of increasing digital technologies and tools, and higher loyalty requirements. The impacts of these changes affect commercial networks, front-to-back processes and the ability to manage channels simultaneously (online banking, branches, etc.). Players in the sector must also ensure that operations conform to the compliance function, while protecting social equilibriums and radically reviewing their information systems.
That is why we are keen to provide our clients with clarifications, benchmarks and forecasts that will enable them to determine their priorities and engage the right levers of transformation.