The document discusses the forces for change intensifying the transformation of banks and reshaping the banking industry. Regulation is a key force driving change as the global regulatory rulebook is being rewritten, constraining banks' profitability. Banks face rising capital requirements from Basel III, with some capital charges increasing over 300% from Basel II levels. National regulations also threaten the viability of the global banking model. Customers also demand more personalized products and digital services, while new technologies disrupt old models. All of these forces combined are prompting banks to undergo strategic transformations to comply with regulations and meet changing needs, reshaping the industry.
Investment banks face significant challenges including low returns on equity, rising costs, and cultural issues. To transform, investment banks must focus on four pillars: 1) optimize assets and operations by reducing costs and better utilizing resources; 2) transform culture by incentivizing behaviors that benefit clients and shareholders; 3) become client-centric by putting clients at the center; and 4) be technology-led by embracing innovation to improve processes and client services. Only by taking a strategic, transformative approach across these four pillars can investment banks rebuild the industry and achieve sustainable returns on equity of 12-15%.
CIS Transformation: Unlocking the Value of Utilities' Customer Information Sy...Cognizant
The customer information system (CIS) is a vital part of the meter-to-cash value chain for electric companies and other industries that provide critical commodities like water and natural gas. Yet the complex nature of CIS initiatives has left many utilities saddled with failed or underperforming CIS systems. To overcome these roadblocks, utilities must craft an approach that mitigates the risks and challenges inherent in CIS projects, delivers an exceptional customer experience, and fuels growth to support true business transformation.
BTO BSM for Wholesale Banking circa 2006djasso7494
The document summarizes an HP Business Service Management solution for wholesale payments that helps address challenges facing wholesale banking executives. The solution provides visibility into payment processes, enables customer self-service, improves operational efficiency, and reduces operational risk. It also lays the foundation for long-term transformation towards an enterprise payments strategy. The solution monitors business processes and underlying IT infrastructure from a single console.
The Indian banking sector has gone through some significant behavioural and structural changes during the COVID-19 pandemic. These changes, such as disruption of physical activities and decrease in financial flow, has brought new challenges for every vital function of the economic institutions.
https://www2.deloitte.com/in/en/misc/litetopicpage.2020-implementations.Impact-of-COVID-19-on-the-banking-sector-in-India.html
Attitudes to Core Banking Transformation in EuropeEBA-Day-IBM
This document provides an overview of the results of an IBM survey of banking technology leaders in Western Europe regarding their attitudes towards core banking system transformation. Some key findings include:
- Most banking leaders see core banking platforms as requiring a disproportionate amount of IT budgets simply for maintenance. Budgets are also heavily skewed towards mandatory and regulatory changes.
- Views are mixed on whether current core banking platforms are flexible enough to support digital front office innovations, with disagreements from both sides.
- While most leaders see the need to remain competitive, they believe the only practical approach is incremental changes rather than wholesale transformations of core banking systems.
- Current core banking platforms consist mainly of integrated systems providing most core banking capabilities
Southeast Asia Modular Data Center MarketAmit Singh
This document provides an overview of the Southeast Asian modular data center market from 2012-2017. It finds that the key drivers of growth in this market include the growing demand for data centers and cloud computing services to support increased internet and mobile device usage. Modular data centers offer cost effective and efficient solutions for data center operators compared to traditional brick and mortar centers. The Southeast Asian modular data center market was valued at $235.8 million in 2012 and is projected to reach $475.4 million by 2017, growing at a CAGR of 15.1%. Singapore is currently the largest market, making up 61.3% of regional revenues.
The Manufacturing Extension Partnership (MEP) provides business assistance to US manufacturers through a network of 59 centers across the country. MEP assesses performance at multiple levels - client impacts, center performance, and overall program performance. Key metrics include sales, cost savings, jobs created for clients. MEP evaluates centers annually based on metrics like impacts achieved and clients served relative to funding. Studies also evaluate long-term impacts on client competitiveness and regional economic effects. MEP aims to strengthen US manufacturing through improving business practices and connecting manufacturers to resources.
The document provides a summary of an EU report on retail financial services. The report examined pre-contractual information, advice provided to customers, and bank fees in EU countries. It found that pre-contractual information is often difficult to understand for consumers. Advice from banks is sometimes unsuitable and influenced by commissions. Bank fee structures are often opaque, with prices varying significantly between countries and some consumers paying much higher fees. The report ranks EU countries based on the simplicity, transparency and level of bank fees.
Investment banks face significant challenges including low returns on equity, rising costs, and cultural issues. To transform, investment banks must focus on four pillars: 1) optimize assets and operations by reducing costs and better utilizing resources; 2) transform culture by incentivizing behaviors that benefit clients and shareholders; 3) become client-centric by putting clients at the center; and 4) be technology-led by embracing innovation to improve processes and client services. Only by taking a strategic, transformative approach across these four pillars can investment banks rebuild the industry and achieve sustainable returns on equity of 12-15%.
CIS Transformation: Unlocking the Value of Utilities' Customer Information Sy...Cognizant
The customer information system (CIS) is a vital part of the meter-to-cash value chain for electric companies and other industries that provide critical commodities like water and natural gas. Yet the complex nature of CIS initiatives has left many utilities saddled with failed or underperforming CIS systems. To overcome these roadblocks, utilities must craft an approach that mitigates the risks and challenges inherent in CIS projects, delivers an exceptional customer experience, and fuels growth to support true business transformation.
BTO BSM for Wholesale Banking circa 2006djasso7494
The document summarizes an HP Business Service Management solution for wholesale payments that helps address challenges facing wholesale banking executives. The solution provides visibility into payment processes, enables customer self-service, improves operational efficiency, and reduces operational risk. It also lays the foundation for long-term transformation towards an enterprise payments strategy. The solution monitors business processes and underlying IT infrastructure from a single console.
The Indian banking sector has gone through some significant behavioural and structural changes during the COVID-19 pandemic. These changes, such as disruption of physical activities and decrease in financial flow, has brought new challenges for every vital function of the economic institutions.
https://www2.deloitte.com/in/en/misc/litetopicpage.2020-implementations.Impact-of-COVID-19-on-the-banking-sector-in-India.html
Attitudes to Core Banking Transformation in EuropeEBA-Day-IBM
This document provides an overview of the results of an IBM survey of banking technology leaders in Western Europe regarding their attitudes towards core banking system transformation. Some key findings include:
- Most banking leaders see core banking platforms as requiring a disproportionate amount of IT budgets simply for maintenance. Budgets are also heavily skewed towards mandatory and regulatory changes.
- Views are mixed on whether current core banking platforms are flexible enough to support digital front office innovations, with disagreements from both sides.
- While most leaders see the need to remain competitive, they believe the only practical approach is incremental changes rather than wholesale transformations of core banking systems.
- Current core banking platforms consist mainly of integrated systems providing most core banking capabilities
Southeast Asia Modular Data Center MarketAmit Singh
This document provides an overview of the Southeast Asian modular data center market from 2012-2017. It finds that the key drivers of growth in this market include the growing demand for data centers and cloud computing services to support increased internet and mobile device usage. Modular data centers offer cost effective and efficient solutions for data center operators compared to traditional brick and mortar centers. The Southeast Asian modular data center market was valued at $235.8 million in 2012 and is projected to reach $475.4 million by 2017, growing at a CAGR of 15.1%. Singapore is currently the largest market, making up 61.3% of regional revenues.
The Manufacturing Extension Partnership (MEP) provides business assistance to US manufacturers through a network of 59 centers across the country. MEP assesses performance at multiple levels - client impacts, center performance, and overall program performance. Key metrics include sales, cost savings, jobs created for clients. MEP evaluates centers annually based on metrics like impacts achieved and clients served relative to funding. Studies also evaluate long-term impacts on client competitiveness and regional economic effects. MEP aims to strengthen US manufacturing through improving business practices and connecting manufacturers to resources.
The document provides a summary of an EU report on retail financial services. The report examined pre-contractual information, advice provided to customers, and bank fees in EU countries. It found that pre-contractual information is often difficult to understand for consumers. Advice from banks is sometimes unsuitable and influenced by commissions. Bank fee structures are often opaque, with prices varying significantly between countries and some consumers paying much higher fees. The report ranks EU countries based on the simplicity, transparency and level of bank fees.
The document provides tips for senior management at regulated firms that have been issued a Section 166 report by the FCA, advising them to hire an independent compliance consultant to help prepare and navigate the process, as the investigation can be costly and the FCA's objectives may not be clear. It warns that the FCA-appointed auditors will conduct a thorough review and firms should not see it as a fight, and that cheaper consultants may not provide a comprehensive or value analysis. Proper preparation by an experienced compliance consultant can help firms understand the FCA's perspective and significantly reduce costs.
This document discusses payment factories, which refer to centralized hubs established by companies to gain greater control and efficiency over processing payments. Payment factories can take various forms depending on factors like a company's processes, technology, bank relationships, and location. The document examines the benefits payment factories can provide, such as increased standardization, visibility, control and lower costs. It also provides examples of different payment factory models and considerations for establishing one.
This document provides an introduction and research framework for analyzing the business and financial performance of Centrica Plc over a three year period from 2011-2013. It outlines the objectives to review Centrica's profitability, shareholder returns, and performance relative to competitors. The research approach involves ratio analysis, benchmarking, and a SWOT analysis using data from Centrica's annual reports and competitor financial statements. Information sources, accounting techniques, and limitations of the analysis are also discussed.
Supplier financial stability and risk differentiation in turbulent times -sup...Thomas Tanel
There is a Darwinian effect occurring in the supply chain as Fortune 1000 companies cut weaker suppliers. The simple fact is that in today’s longer global supply chains, product
moves over greater distances and across more multinational borders than in the more localized supply chains of the past. In an era of wildly fluctuating commodity prices and security regulations, the coordination and execution required for international shipments has become
more of a challenge than in the past.
This document provides an overview of high quality management and discusses several related topics. It lists various quality management tools like check sheets, control charts, Pareto charts, scatter plots, Ishikawa diagrams, and histograms. It also discusses contents of quality management like recording, quality assurance, workforce management and more. The document examines the quality management/liability recording market trends, noting continued growth driven by new applications and migration to IP-based solutions. It outlines a future outlook with slower but still strong predicted growth over the next few years. Useful links to additional quality management resources are also provided.
This document is an investor presentation from Fairchild Semiconductor International, Inc. from April 2013 that provides an overview of the company. It notes that comments in the presentation constitute forward-looking statements and describes various risks and uncertainties. It also notes the use of some non-GAAP measures and where additional information can be found on the company's website. The presentation then provides an overview of Fairchild's business segments and product offerings as well as the markets that drive its business in wireless convergence and energy efficiency.
Banks are undergoing significant transformation due to intensifying regulatory and competitive pressures. Regulations are requiring structural reforms, such as separating investment and retail banking. Competition is increasing from regional banks, global banks, and new entrants leveraging technology. Banks are responding by streamlining operations, refocusing on core markets and customers, and forming new partnerships and alliances. The industry is reshaping as banks transition to different business models to comply with regulations and adapt to changing market conditions.
Sanjoy Sen - Lee Kuan Yew School of Public Policy - Talk on "How New Regulati...Sanjoy Sen
New banking regulations implemented since the 2008 global financial crisis are significantly shaping the future of the banking industry. The regulations focus on increasing capital buffers, improving liquidity, reforming corporate structures through ring-fencing, and enhancing customer protection. This regulatory shift has put pressure on bank profitability and forced changes to business models. Banks must now proactively seek strategic advantages through efficient compliance, developing customer-centric cultures, and optimizing business operations in the new regulatory environment.
The document discusses core banking transformation, which refers to replacing, upgrading, or outsourcing a bank's core banking systems. It addresses the drivers for transformation, including internal needs like managing legacy systems and reducing costs as well as external factors like regulations and competition. Building a strong business case is important, involving both qualitative and quantitative analysis of costs, benefits, and long payback periods of 3-5 years on average. The right transformation approach depends on factors like the bank's size and complexity, and may include a complete replacement, upgrade, or outsourcing of systems.
Swim or Sink: Essential Insights for Staying Afloat in the Banking Market PlaceCatherine Lynch
Results of a survey sponsored by SAP conducted by Pierre Audoin Conseil with global banks to highlight what innovations they are adopting to stay competitive and stay afloat.
A Framework for Detecting Macroeconomic Changes and Their Effect on a Bank's ...Cognizant
For the banking industry, we describe the relationship between changing business conditions/technologies and variances in business models - including a matrix of internal and external "fit" based on flexibility and product variety.
The document discusses the future of risk management in banks over the next decade. It states that by 2025, risk functions will need to be fundamentally different and transformed more than in the last decade. Regulations will continue expanding while customer expectations rise. The risk function of the future will have broader responsibilities, stronger collaborative relationships, and expertise in analytics and collaboration over processes. IT and data will be more sophisticated using big data and algorithms. Risk decisions may be made at lower costs while improving customer experience. Banks need to prepare and rebuild risk functions now to thrive during this period of transformation.
This document provides an overview of a presentation on core banking and channel refresh for financial institutions. It discusses macro drivers like customer experience, cost efficiency and revenue growth that are shaping the industry. Key strategic drivers for core banking refresh include enhancing the customer experience, achieving operational efficiency, meeting regulatory requirements, and supporting business innovation. Common investment areas are online and mobile platform upgrades and core banking enhancements. The presentation examines questions around bank strategy, prioritizing core versus channels, remediating or replacing existing core platforms, and how to select a new core banking platform.
Solution Providers Singapore Pte. Ltd. is a management consulting firm that specializes in defining and implementing digitization strategies for financial institutions. The document discusses their eWealth digital banking model, which aims to drive engagement between clients and banks through an integrated front-office platform. The eWealth framework consists of front-end functionalities to enhance the client experience and back-end tools to support compliance and analytics. Solution Providers helps banks assess their current capabilities, identify gaps, and formulate requirements to implement the eWealth model in a structured way. The model focuses on understanding client behavior, providing consistency across channels, and enabling relationship managers with digital tools.
Accenture Capital Markets- serving many masters - Top 10 Challenges 2013Karl Meekings
Regulators in multiple jurisdictions have implemented varying regulations in response to the 2009 financial crisis, creating challenges for investment banks operating in multiple countries. The regulations differ between countries in areas like capital requirements, derivatives trading, and separating retail and investment banking. This complex global regulatory landscape, coupled with reshuffling of financial supervisors, requires investment banks to build new relationships and change structures. To effectively manage these regulatory changes, banks must take a holistic view of regulations globally, understand the cumulative impacts, integrate stress testing into decision making, appoint a high-level executive to lead compliance, and automate regulatory processes.
Competition and financial sector regulation in Malawi: to whom it may concern...IFPRIMaSSP
The study is premised on the central hypothesis that high market concentration in the banking sector can facilitate collusive pricing outcomes which can adversely impact the low-income and important but low-return segments of the economy and activities. The empirical results reported here are based on the period from January 2005 to March 2014 i.e. long after financial sector liberalization and after much new bank entry. From a policy and regulatory perspective there is no support for the expectation that market de-concentration would moderate margins as a result of competitive pricing on both the lending and deposit sides. The two-bank dominance in the sector and non-requirement for posting maximum lending rates have facilitated collusion on lending rates through price-leadership while smaller banks seeking market footholds have been leading the competition on deposits rates. In this context an environment of already high bank rates has moderated margins from the deposit side, which is good for the low-income. Other results also suggest non-price “monopolistic” competitiveness service provision and extension which would also be beneficial to consumers. But even the trend on lending rates is breaking away from leadership-followership as banks are compelled towards the Basel II standards and their tougher risk management and transparency requirements. Although margins do not appear to respond to inflationary tendencies, the actual spreads do so positively, inflicting a double blow on consumers through higher lending rates and/ suppressed deposit rates. From the banks’ side the major hurdles are seen as lack of a long-term securities market to provide bench marking especially for deposit rates and that the push towards the Basel II is itself unnecessary at this stage as it raises both costs and liquidity risk.
North America Mortgage Banking 2020: Convergent Disruption in the Credit Indu...accenture
To further compound lenders’ challenges to rebuild growth, profitability and efficiency following the recent credit crisis, convergent disruption is leading to a structural change in the industry; multiple disruptive forces are converging, creating an increasingly complex and highly dynamic future environment. Accenture examines the building blocks and roadmap to success in 2020.
The document provides tips for senior management at regulated firms that have been issued a Section 166 report by the FCA, advising them to hire an independent compliance consultant to help prepare and navigate the process, as the investigation can be costly and the FCA's objectives may not be clear. It warns that the FCA-appointed auditors will conduct a thorough review and firms should not see it as a fight, and that cheaper consultants may not provide a comprehensive or value analysis. Proper preparation by an experienced compliance consultant can help firms understand the FCA's perspective and significantly reduce costs.
This document discusses payment factories, which refer to centralized hubs established by companies to gain greater control and efficiency over processing payments. Payment factories can take various forms depending on factors like a company's processes, technology, bank relationships, and location. The document examines the benefits payment factories can provide, such as increased standardization, visibility, control and lower costs. It also provides examples of different payment factory models and considerations for establishing one.
This document provides an introduction and research framework for analyzing the business and financial performance of Centrica Plc over a three year period from 2011-2013. It outlines the objectives to review Centrica's profitability, shareholder returns, and performance relative to competitors. The research approach involves ratio analysis, benchmarking, and a SWOT analysis using data from Centrica's annual reports and competitor financial statements. Information sources, accounting techniques, and limitations of the analysis are also discussed.
Supplier financial stability and risk differentiation in turbulent times -sup...Thomas Tanel
There is a Darwinian effect occurring in the supply chain as Fortune 1000 companies cut weaker suppliers. The simple fact is that in today’s longer global supply chains, product
moves over greater distances and across more multinational borders than in the more localized supply chains of the past. In an era of wildly fluctuating commodity prices and security regulations, the coordination and execution required for international shipments has become
more of a challenge than in the past.
This document provides an overview of high quality management and discusses several related topics. It lists various quality management tools like check sheets, control charts, Pareto charts, scatter plots, Ishikawa diagrams, and histograms. It also discusses contents of quality management like recording, quality assurance, workforce management and more. The document examines the quality management/liability recording market trends, noting continued growth driven by new applications and migration to IP-based solutions. It outlines a future outlook with slower but still strong predicted growth over the next few years. Useful links to additional quality management resources are also provided.
This document is an investor presentation from Fairchild Semiconductor International, Inc. from April 2013 that provides an overview of the company. It notes that comments in the presentation constitute forward-looking statements and describes various risks and uncertainties. It also notes the use of some non-GAAP measures and where additional information can be found on the company's website. The presentation then provides an overview of Fairchild's business segments and product offerings as well as the markets that drive its business in wireless convergence and energy efficiency.
Banks are undergoing significant transformation due to intensifying regulatory and competitive pressures. Regulations are requiring structural reforms, such as separating investment and retail banking. Competition is increasing from regional banks, global banks, and new entrants leveraging technology. Banks are responding by streamlining operations, refocusing on core markets and customers, and forming new partnerships and alliances. The industry is reshaping as banks transition to different business models to comply with regulations and adapt to changing market conditions.
Sanjoy Sen - Lee Kuan Yew School of Public Policy - Talk on "How New Regulati...Sanjoy Sen
New banking regulations implemented since the 2008 global financial crisis are significantly shaping the future of the banking industry. The regulations focus on increasing capital buffers, improving liquidity, reforming corporate structures through ring-fencing, and enhancing customer protection. This regulatory shift has put pressure on bank profitability and forced changes to business models. Banks must now proactively seek strategic advantages through efficient compliance, developing customer-centric cultures, and optimizing business operations in the new regulatory environment.
The document discusses core banking transformation, which refers to replacing, upgrading, or outsourcing a bank's core banking systems. It addresses the drivers for transformation, including internal needs like managing legacy systems and reducing costs as well as external factors like regulations and competition. Building a strong business case is important, involving both qualitative and quantitative analysis of costs, benefits, and long payback periods of 3-5 years on average. The right transformation approach depends on factors like the bank's size and complexity, and may include a complete replacement, upgrade, or outsourcing of systems.
Swim or Sink: Essential Insights for Staying Afloat in the Banking Market PlaceCatherine Lynch
Results of a survey sponsored by SAP conducted by Pierre Audoin Conseil with global banks to highlight what innovations they are adopting to stay competitive and stay afloat.
A Framework for Detecting Macroeconomic Changes and Their Effect on a Bank's ...Cognizant
For the banking industry, we describe the relationship between changing business conditions/technologies and variances in business models - including a matrix of internal and external "fit" based on flexibility and product variety.
The document discusses the future of risk management in banks over the next decade. It states that by 2025, risk functions will need to be fundamentally different and transformed more than in the last decade. Regulations will continue expanding while customer expectations rise. The risk function of the future will have broader responsibilities, stronger collaborative relationships, and expertise in analytics and collaboration over processes. IT and data will be more sophisticated using big data and algorithms. Risk decisions may be made at lower costs while improving customer experience. Banks need to prepare and rebuild risk functions now to thrive during this period of transformation.
This document provides an overview of a presentation on core banking and channel refresh for financial institutions. It discusses macro drivers like customer experience, cost efficiency and revenue growth that are shaping the industry. Key strategic drivers for core banking refresh include enhancing the customer experience, achieving operational efficiency, meeting regulatory requirements, and supporting business innovation. Common investment areas are online and mobile platform upgrades and core banking enhancements. The presentation examines questions around bank strategy, prioritizing core versus channels, remediating or replacing existing core platforms, and how to select a new core banking platform.
Solution Providers Singapore Pte. Ltd. is a management consulting firm that specializes in defining and implementing digitization strategies for financial institutions. The document discusses their eWealth digital banking model, which aims to drive engagement between clients and banks through an integrated front-office platform. The eWealth framework consists of front-end functionalities to enhance the client experience and back-end tools to support compliance and analytics. Solution Providers helps banks assess their current capabilities, identify gaps, and formulate requirements to implement the eWealth model in a structured way. The model focuses on understanding client behavior, providing consistency across channels, and enabling relationship managers with digital tools.
Accenture Capital Markets- serving many masters - Top 10 Challenges 2013Karl Meekings
Regulators in multiple jurisdictions have implemented varying regulations in response to the 2009 financial crisis, creating challenges for investment banks operating in multiple countries. The regulations differ between countries in areas like capital requirements, derivatives trading, and separating retail and investment banking. This complex global regulatory landscape, coupled with reshuffling of financial supervisors, requires investment banks to build new relationships and change structures. To effectively manage these regulatory changes, banks must take a holistic view of regulations globally, understand the cumulative impacts, integrate stress testing into decision making, appoint a high-level executive to lead compliance, and automate regulatory processes.
Competition and financial sector regulation in Malawi: to whom it may concern...IFPRIMaSSP
The study is premised on the central hypothesis that high market concentration in the banking sector can facilitate collusive pricing outcomes which can adversely impact the low-income and important but low-return segments of the economy and activities. The empirical results reported here are based on the period from January 2005 to March 2014 i.e. long after financial sector liberalization and after much new bank entry. From a policy and regulatory perspective there is no support for the expectation that market de-concentration would moderate margins as a result of competitive pricing on both the lending and deposit sides. The two-bank dominance in the sector and non-requirement for posting maximum lending rates have facilitated collusion on lending rates through price-leadership while smaller banks seeking market footholds have been leading the competition on deposits rates. In this context an environment of already high bank rates has moderated margins from the deposit side, which is good for the low-income. Other results also suggest non-price “monopolistic” competitiveness service provision and extension which would also be beneficial to consumers. But even the trend on lending rates is breaking away from leadership-followership as banks are compelled towards the Basel II standards and their tougher risk management and transparency requirements. Although margins do not appear to respond to inflationary tendencies, the actual spreads do so positively, inflicting a double blow on consumers through higher lending rates and/ suppressed deposit rates. From the banks’ side the major hurdles are seen as lack of a long-term securities market to provide bench marking especially for deposit rates and that the push towards the Basel II is itself unnecessary at this stage as it raises both costs and liquidity risk.
North America Mortgage Banking 2020: Convergent Disruption in the Credit Indu...accenture
To further compound lenders’ challenges to rebuild growth, profitability and efficiency following the recent credit crisis, convergent disruption is leading to a structural change in the industry; multiple disruptive forces are converging, creating an increasingly complex and highly dynamic future environment. Accenture examines the building blocks and roadmap to success in 2020.
EY Investment bank transformation: from ideas to actionRoy Choudhury
An investment bank is transforming its operations to improve regulatory compliance and reduce costs. The Chief Operating Officer plays a key role in overseeing changes across business lines, legal entities, and locations. These include optimizing collateral management, legal entity structure, and outsourcing functions. Successfully implementing structural reforms requires balancing regulatory expectations with business priorities, and increasing coordination across the bank.
The document proposes an alternative model for transforming the UK banking industry by separating it into three components based on business lifecycle roles: banking business managers, transaction processing factories, and deal origination entities. This would reframe the operating model to increase transparency, competition, and customer choice. It outlines how each component could function and the IT implications, arguing the proposed new construct is feasible given existing industry practices, solutions, and regulatory support.
This document discusses 10 trends in the wealth management industry in 2017. It provides an overview of each trend, including background information, key drivers, and implications. Some of the major trends discussed include the continued focus on cybersecurity due to increasing digitization, the growing prominence of fiduciary duty due to regulatory focus, and increasing collaboration between incumbent wealth management firms and FinTech startups. The document aims to outline the strategic trends that will be critical for firms in the wealth management industry.
Similar to 201402 Transforming Banks, Redefining Banking (20)
Este documento proporciona una guía sobre computación en la nube para clientes que contraten servicios. Explica brevemente qué es la computación en la nube, los actores involucrados, los tipos de modelos de nube, las modalidades de servicios y algunos riesgos y consideraciones de protección de datos para los clientes.
El documento describe los cuatro pilares clave para construir una cultura digital dinámica y exitosa en las empresas: 1) Forjarse para el cambio continuo, adoptando nuevas habilidades, procesos y formas de trabajo ágiles; 2) Basarse en los datos para tomar decisiones en todos los niveles; 3) Abrazar la disrupción como parte fundamental de la estrategia de negocio; y 4) Estar alerta a los nuevos riesgos digitales como la seguridad y privacidad de datos. También destaca la importancia de poner a las personas en el
This document summarizes the key findings of a study on IT management trends in Europe in 2015. The top 5 IT management concerns for European organizations are: 1) business and IT alignment, 2) business agility, 3) business cost reduction/controls, 4) business productivity, and 5) infrastructure capability. Alignment and business agility have consistently ranked as top concerns globally and in Europe. The document also discusses trends in IT spending, workforce, the role of the CIO, and skills needed for IT professionals. Overall, IT is becoming more strategic and focused on business priorities like innovation and digital transformation.
201310 Risk Aggregation and Reporting. More than Just a Data IssueFrancisco Calzado
Many banks feel overwhelmed by the sheer volume of regulation that is coming their way. It is not surprising, therefore, that when the Basel Committee on Banking Supervision (BCBS) consultative paper, “Principles for effective risk data aggregation and risk reporting” was published in June 2012 it raised a number of concerns
This document summarizes the 10th edition of the World Economic Forum's annual Global Risks report. It was published to shed light on major global risks and help create shared understanding of challenges to build resilience. The report is based on a survey of almost 900 Forum members and identifies the top economic, environmental, geopolitical, societal and technological risks. It includes deep analyses of risks from interconnected geopolitics/economics, rapid urbanization, and emerging technologies. The report aims to inspire multistakeholder collaboration on risk mitigation and resilience practices.
201502 accenture automatic exchange of information regime an emerging compl...Francisco Calzado
publicación acerca de la norma internacional sobre el intercambio automático de información, elaborada por la OCDE junto con el G20 y la colaboración de la Unión Europea.
Este informe pone de manifiesto los nuevos retos en materia regulatoria a los que se enfrentan las entidades financieras tras la adopción de la norma, con especial foco en el impacto que supondrá el cumplimiento de los requerimientos exigidos por el CRS.
201501 Dynamic Pricing Policies and Active LearningFrancisco Calzado
El big data y la minería de datos son términos que están de moda y que básicamente reflejan la capacidad que se tiene en la actualidad de recopilar cantidades ingentes de información y extraer datos relevantes. Es una de las grandes tendencias que están transformando el mundo pero pocas veces se ve sus aplicaciones prácticas. Una de ellas es el establecimiento de precios dinámicos.
El dynamic pricing consiste en el ajuste dinámico de los precios de acuerdo con el valor que los clientes atribuyen a un producto o servicio, con el objetivo de maximizar los ingresos y el beneficio. Se trata de aprovechar la disposición al pago de ciertos clientes en determinadas situaciones para obtener mayores ganancias, y de aplicar descuentos en otras situaciones para generar crecimiento. Esto, que en principio parece una aplicación simple de la ley de oferta y demanda, hoy en día puede sofisticarse gracias a la informática y a las matemáticas para que las compañías logren la mayor eficiencia posible. Un artículo académico firmado por expertos de la consultora Conento explica los factores que se tienen que tener en cuenta para definir una estrategia de precios dinámicos y la base matemática que debe configurarse para hacer simulaciones y comprobar que funciona.
Ver informe
Hay una línea difusa entre lo que puede tener éxito en términos de precios dinámicos y lo que puede generar rechazo. Las cinco condiciones siguientes pueden ser determinantes a la hora de aumentar el beneficio de las compañías:
Los clientes tienen una disposición al pago variada. La disposición al pago (en inglés, willingness to pay, o WTP) es la cantidad máxima que el cliente está dispuesto a pagar por el producto o servicio. No es fácil de estimar.
Es posible segmentar el mercado, identificando diferentes grupos de clientes. En un evento deportivo o en un concierto, hay clientes que priman la localización de su entrada y otros que elegirían la entrada de menor precio.
El arbitraje debe ser limitado. Es decir, la posibilidad de reventa debe ser lo más reducida posible, como ocurre por ejemplo con los billetes de avión.
El coste asociado a la segmentación del mercado y a la diferenciación de precios no debe ser muy elevado. Así ocurre en el comercio electrónico.
Los clientes o compradores deben percibir equidad en el vendedor.
Un buen ejemplo del uso de precios dinámicos es Uber, startup que conecta pasajeros con conductores en más de 200 ciudades del mundo a través de una aplicación móvil. Según New York Magazine es una de las compañías que crecen más deprisa a nivel mundial y podría llegar a ser más valiosa que Facebook, y según MIT Technology Review su principal innovación es la utilización de un robusto sistema para establecer los precios de forma dinámica (por ejemplo, subió los precios en una tormenta de nieve en Nueva York durante las pasadas Navidades).
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The document summarizes the key findings of the Deloitte 2014 CIO Survey. It finds that while CIOs continue to prioritize supporting core IT services over growth initiatives, budgets are shifting slightly more toward change and growth activities. Adoption of technologies like analytics, mobile apps, and social media is increasing. However, innovation funding remains limited and CIOs have capability gaps in areas like emerging technologies and data monetization that inhibit strategic portfolio management and assessing investments based on risk versus reward. While delivery of IT services remains a top priority for CIOs, the survey suggests they could do more to drive technology-led growth.
The document summarizes key dynamics shaping the banking industry in a post-crisis environment. It discusses five dynamics banks must understand: changing regulatory frameworks and risk cultures, the digital and data revolution, shifting client behaviors, new competitors, and a multispeed world. It then outlines a seven-point tool kit for banks to adapt, including enabling the CEO as an investor, simplifying all dimensions of the bank, reinventing the client experience, ensuring built-in compliance and risk management, embracing data centricity, driving digital transformation, and adapting preemptively.
This document provides an overview of the Human Capital Index, which measures human capital development around the world. The index covers four pillars: health and wellness, education, workforce and employment, and an enabling environment. It uses 51 indicators to measure these pillars, capturing factors like education levels, health, employment rates, and the context in which human capital operates. The document explains the methodology and indicators used in the index and aims to provide a framework for benchmarking and discussing human capital across countries. It also introduces the country profiles included in Part 2 which provide more detailed analysis of human capital for each country.
201312 World of Work Report - Repariring the Economic and Social FabricFrancisco Calzado
The document is a summary of the World of Work Report 2013 published by the International Labour Organization. It finds that while emerging economies are recovering better than advanced economies from the global financial crisis, income inequalities continue to widen in most countries. The report examines trends in employment, income distribution, the role of minimum wages, and investment needed for job creation. It aims to analyze challenges in the labour market and discuss policies to promote social justice and economic recovery.
201404 Como aportar argumentos empresariales para Invertir en los DatosFrancisco Calzado
El documento describe 3 formas en las que los arquitectos empresariales pueden mejorar la presentación de propuestas de inversión en datos: 1) enfocarse en cómo los datos pueden impulsar los objetivos y resultados empresariales en lugar de reducir solo los costes de TI, 2) entender los planes de negocio para alinear las inversiones en datos, 3) utilizar el pensamiento de diseño para destacar cómo los datos pueden resolver desafíos empresariales.
201404 The global long term interest rates, financial risks and policy choice...Francisco Calzado
This document discusses three key trends related to emerging market economies (EMEs) and global financial markets:
1. EM corporations have increasingly relied on international bond markets rather than banks for financing over the past few years, issuing over $700 billion in bonds from 2010-2013. This has increased currency risk exposures.
2. International corporate bond issuance by EMEs has grown much faster than cross-border lending by international banks to EMEs. Bond financing of non-banks now dwarfs bank lending.
3. The expansion of EM corporate bond issuance means indicators based only on bank lending do not fully capture financial stability risks, as corporate debt held offshore is important to consider as well.
This document summarizes findings from a white paper about the growth of the digital universe and opportunities from analyzing large amounts of data, especially from sensors and embedded systems known as the Internet of Things. Some key points:
1) The digital universe is growing rapidly, doubling in size every two years, and will reach 44 zettabytes by 2020, driven by more people and devices connected to the internet.
2) Data from sensors and embedded systems, which enable the Internet of Things, will grow from 2% to 10% of the digital universe by 2020, creating new opportunities for businesses.
3) Only a small fraction of the data in the digital universe is currently analyzed, but opportunities exist for companies
201407 Riding a Wave of Growth -´Global Wealth 2014Francisco Calzado
- Global private wealth grew 14.6% in 2013 to $152 trillion, driven by strong equity market performance and wealth creation in rapidly developing economies.
- The number of millionaire households reached 16.3 million globally in 2013, with the largest numbers in the US, China, and Japan.
- Wealth held by those with over $1 million is projected to grow over 7.7% annually through 2018, compared to 3.7% for those under $1 million. Ultra-high-net-worth households holding over $100 million grew 19.7% in 2013 and are projected to grow 9.1% annually.
The document discusses how megatrends around demographics, technology, environment, and social values are reshaping the future of the investment management industry. It notes that an aging population, low birth rates, and high debt levels are creating challenges for retirement systems. Technological advances are impacting all aspects of life and disrupting business models. Resource constraints are altering investment opportunities. Younger generations want more transparency and personalization from financial services. The implications of these trends include changes to investor needs, opportunities for asset managers to expand their roles, and the need for flexibility and data-driven operations to serve a more diverse client base.
201407 Global Insights and Actions for Banks in the Digital Age - Eyes Wide ShutFrancisco Calzado
According to a survey of 157 senior banking IT executives from around the world, digital channels are expected to continue growing in importance over the next few years. While branches will still be used, respondents anticipated a 25% decline in branch customers by 2016. Mobile banking is expected to see the largest growth of any channel at 64% over the same period. The survey found that banks have made progress in integrating digital channels but still have work to do - 43% had integrated online and mobile, while only 19% had fully integrated online, mobile, and social media. When asked about barriers to achieving digital objectives, executives most commonly cited legacy core banking systems and regulatory challenges. Improving the customer experience was the second most important factor cited for driving
201407 Digital Disruption in Banking - Accenture Consumer Digital Banking Sur...Francisco Calzado
Banks are facing disruption from new digital entrants and changing customer behaviors. A survey of 4,000 banking customers found that over a quarter would consider a branchless digital bank, and nearly half would bank with non-financial companies they do business with like Amazon or Apple. Younger customers especially want banking services that are convenient and integrated across digital and traditional channels. To respond, banks need to become truly omnichannel, extend their ecosystem of services, and offer digital personalized financial advice to stay relevant and build loyalty as customer needs evolve.
The document discusses the findings of the 10th edition of the EY Global Capital Confidence Barometer survey. Key points include:
- 60% of executives see the global economy improving and have confidence in corporate earnings, despite economic shocks. Executives have resilient confidence in the face of challenges.
- The "future of work" trend around skills shortages and changing employer-employee relationships is expected to most impact business and acquisition strategies over the next year.
- Executives in countries like Australia and France have the most positive views of the global economy. Confidence in indicators like credit availability and earnings are at high levels.
- While deal volumes may remain modest, increased deal values and
201404 Fit for the Future, Capitalising on Global TrendsFrancisco Calzado
The document summarizes the key findings of PwC's 17th Annual Global CEO Survey. It finds that CEOs are more optimistic about the global economy and their own growth prospects than in previous years. However, CEOs still have concerns, such as overregulation and government responses to fiscal issues. The survey also finds that three major trends - technological advances, demographic shifts, and changes in economic power - will significantly impact businesses in the coming years. CEOs recognize the need to adapt their strategies and leadership styles to address these trends.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
The Impact of Generative AI and 4th Industrial RevolutionPaolo Maresca
This infographic explores the transformative power of Generative AI, a key driver of the 4th Industrial Revolution. Discover how Generative AI is revolutionizing industries, accelerating innovation, and shaping the future of work.
Dr. Alyce Su Cover Story - China's Investment Leadermsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
New Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy VisaAmit Kakkar
Discover essential details about Thailand's recent visa policy changes, tailored for tourists and students. Amit Kakkar Easy Visa provides a comprehensive overview of new requirements, application processes, and tips to ensure a smooth transition for all travelers.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
Enhancing Asset Quality: Strategies for Financial Institutionsshruti1menon2
Ensuring robust asset quality is not just a mere aspect but a critical cornerstone for the stability and success of financial institutions worldwide. It serves as the bedrock upon which profitability is built and investor confidence is sustained. Therefore, in this presentation, we delve into a comprehensive exploration of strategies that can aid financial institutions in achieving and maintaining superior asset quality.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
3. 2 Executive summary
4 Part One: The story so far
8 Part Two: Forces for change intensify
16 Part Three: Banks transformed, an
industry reshaped
28 Final thoughts: an industry rehabilitated?
Global banking outlook 2014–15 |
3
4. Executive
summary
Banks have been trying to restructure
themselves and rehabilitate the industry
regulatory rulebook is being completely
severely constrained by regulation in
see more banks transition from planning
banking industry should be able to return
to its core functions and support global
potentially counterproductive march to
on those aspects of the value chain that
clarity in key areas and this certainty should
prompt more banks to embark on muchneeded strategic transformation programs
measure but crucial to sustainable success
developing a strategy around remaining
the global economy is bracing itself for the
2
5. Chart 1
Economic context — global, local, developed, emerging
Forces for change
Regulation
Customer
Technology
Competition
Society
• New global standards
challenge the profitability of
business lines, particularly
within corporate and
investment banking divisions
• Retail customers require
greater transparency,
personalized products
and seamless transition
between channels
• Siloed, legacy systems
struggling to cope with
scale of regulatory change
and an increasingly digital
business environment
• Regulatory requirements
intensify the battle
for scale and market
leadership
• Industry damaged by
the cumulative impact of
regulatory and compliance
failures
• Resolution plans and ringfencing require wholesale
structural reforms, with
regulators prioritizing
stability over growth
• Business customers
expect banks to replace
outdated systems and
processes and to focus
on solutions instead of
“product push”
• Exponential growth of data
collection, analysis and
storage requirements
• Increased product
competition from shadow
banks as they exploit new
technology and banking
regulation
• Banks struggling to embed
cultural and behavioral
change
• National regulations
threaten viability of global
banking model
• Uncertainty remains but
tactical responses no
longer viable
• Markets forcing changes
to product and service mix
• Disruptive technologies
challenging old models and
providing customers with a
greater choice of services
and providers
• All customers increasingly
concerned about data
privacy and cyber security
• New entrants bring service
and experience innovation
to a range of banking,
payment and lending
products, threatening
primacy of traditional
banking relationship
• End of “caveat emptor”
as consumer protection
legislation shifts full
burden of responsibility for
product suitability onto banks
• Shareholder pressure
to implement business
models that deliver
sustainable returns and
reward investors
Regulatory constraints — global and local
Striving to comply with requirements for capital, liquidity, leverage, recovery and resolution planning, etc.
Strategic assessment
Transformational change required
under regulatory constraints
Customer relationships Organizations
Infrastructure
• Shift from product-centric to
customer-centric models as banks
strive to restore confidence
Responses
Business models
• Greater targeting of defined
customer segments that align with
a bank’s competitive advantage and
offer revenue growth opportunities
• Processes redesigned and “leanmanufacturing” techniques adopted
to deliver standardized systems and
procedures across the bank
• Further exits of business lines and
geographies as banks streamline
operations and strengthen balance
sheets, leading to fewer genuinely
global banks
• Emergence of strong regional
institutions, particularly across
rapid-growth markets
• Increased focus on scale and
efficiency by banks in both
developed and emerging markets
• Universal banking redefined as more
organizations explore alliances and
partnership opportunities to deliver
growth
• Focus on rebuilding trust; new
performance goals and reward
strategies that reflect a more
customer-centric culture
• In recognition of balance sheet
constraints, further collaboration
with institutional customers to
combine their funds with banks’
loan distribution and credit risk
capabilities
• Transition to a “digital first”
strategy, harnessing new
technology that enables customers
to personalize solutions whilst
ensuring data security
• Tactical fixes replaced by integrated
reforms that are transformational
and cuts across the organization
• Group structure, location strategy,
booking models and legal entities
reconfigured to comply with
resolution requirements, optimize
efficiency of capital, liquidity
allocation and reduce costs
• Silos and duplicative structures
dismantled to improve customer
focus and operational efficiency;
further right-shoring likely
• New processes and procedures to
monitor successful embedding of
cultural and behavioral changes,
and to minimize risk of further
conduct issues
• Data systems reconfigured to meet
regulatory challenges and provide
business lines with customer data
analytics
• Additional outsourcing and greater
sharing of non-core infrastructure
across the industry to reduce costs
and improve efficiency
• Further investment in digital
channels to reflect customer
preferences; rationalization of
physical real estate footprint
Global banking outlook 2014–15 |
3
6. Part one:
The story
so far
also initiated some reforms of the banking
emerging markets or the scale and intrusive
enough for outgoing Federal Reserve
industry’s recovery took place amid a
political crises and concerns about the
But it is possible that the implementation
scale and scope of regulatory reform also
sent returns tumbling — particularly among
by the success or failure of negotiations in
Global economy — mostly
on track?
about beginning tapering had an almost
Fears of a hard landing in China have
4
7. begins has provided time for many
economies to enact structural reforms
damaging the more effective aspects of the
the numbers
have been pressured to provide commentary
faced by the banking industry have been
regions have also been hit by a series of
an impact on bank customers’ spending and
settlements already running into the billions
Regulation: bite worse than bark
the comprehensive regulatory reform of the
banking industry that resulted in the Basel
for politicians and regulators to translate
those global standards into national
rules and implement other aspects of
losses have enabled some banks to release
local interpretation and implementation
should have been a globally consistent
also been distinct regional differences in
of the domestic recovery and opportunities
a block on efforts by banks to begin
the arduous process of structural
the threat of overreach by home and host
authorities incorporating extraterritorial
in the developed and emerging markets
Global banking outlook 2014–15 |
5
8. Chart 2. Average ROE among top 50 global banks, 2008–13
2008
2009
2010
2011
2012
1H13
20%
18%
16%
14%
sponsored investment programs have strengthened cross-sector
12%
10%
8%
6%
4%
2%
0%
Europe
Asia Pacific
Americas
further infrastructure investment is needed to reduce reliance on
Chart 3. Average RWAs as a percentage of total assets for
top 50 global banks, 2008–13
2008
2009
2010
2011
2012
1H13
70%
60%
50%
40%
30%
20%
customers across many developed markets have continued to
10%
0%
Europe
Asia Pacific
Americas
there are concerns that the threat of higher interest rates once
6
9. Chart 4. Total advisory and origination revenues for global
investment banks, 2009–13 (US$b)
48
46
44
43
24
FY09
FY10
FY11
FY12
1H13
Advisory and origination revenue (US$ billion)
Chart 5. Total FICC and equities revenues from selected
global investment banks, 2009–13
FICC (US$b)
58
52
45
48
155
125
114
98
Global
Financial Stability Report noted that market losses on bond portfolios
of the challenges facing banks and make the case for structural
FY09
FY10
Equities (US$b)
FY11
FY12
28
60
1H13
page 29
Chart 6. Y-o-Y growth in non-compensation costs vs. revenues among top
50 global banks, 2009–12
Growth in non-comp costs
60%
Growth in revenue
50%
40%
30%
20%
10%
0%
European banks
–10%
Asia-Pacific banks
Americas banks
–20%
2009
2010
2011
2012
2009
2010
2011
2012
2009
2010
2011
2012
Global banking outlook 2014–15 |
7
10. Part two:
Forces for
change
intensify
structure and strategy of both banks and
of banks and the products and services
Responses in the industry have been
differentiator and disruptor
over the next couple of years and beyond?
8
11. Chart 7. Issues identified as most important when
considering structural changes
27
Regulatory reform
Capital and/or
liquidity restrictions
16
Changing customer
expectations
14
12
Supervisory pressure
Unclear and/or contradictory
regulatory requirements
10
Number of participants ranking issue in the top 5
Chart 8. Percentage increase in capital requirements
for trading book from Basel II to the combined Basel
2.5 and Basel III
Remaking financial services: risk
management five years after the crisis
17%
0%–50%
15%
50%–100%
38%
100%–200%
21%
200%–300%
10%
Over 300%
Remaking financial services: risk management five years after the crisis
the banks surveyed also expected capital charges on derivatives to rise by at
Chart 9. Percentage increase in capital charges on
OTC derivatives for CCR alone (i.e., Basel III CCR
charges, including CVA charge relative to CCR
charges under Basel 2.5)
20%
0%–50%
23%
50%–100%
100%–200%
41%
16%
200%–300%
Over 300%
0%
Remaking financial services: risk management five years after the crisis
Global banking outlook 2014–15 |
9
12. by the increasing preference for subsidiaries over branches by
Balkanization
may be reluctant to rely on a single point of entry approach and
Many of these regulatory initiatives illustrate the seemingly
10
13. payments direct from the customer’s account to a merchant’s
assessment of the banks’ balance sheets than the previous exercise
key issues to protect both the relationship and the stability of their
conduct is becoming a considerable force for change as many banks
issue of business conduct is becoming a
considerable force for change as many
banks continue to reel from the effects of
Under attack
attacks and so they must focus on securing the data and systems
and a lack of skilled staff are preventing many from delivering those
Suitability
customers are looking to use smartphones for a range of banking
Global banking outlook 2014–15 |
11
14. Chart 10.
Most important key features or
benefits sought from primary
financial service providers
35%
35%
31%
Keeps your personal information safe
Protects your financial information
their customers as a result of multiple business and regulatory
Provides easy access to branches
and ATMs
29%
Is transparent about what they charge
for and makes it clear to you how to
avoid paying fees
26%
Offers excellent online banking
features
24%
Reaches out to you as soon as possible
if they believe a problem may exist
with your account
24%
24%
Has an excellent reputation
20%
19%
Works with you when you need help
or encounter a problem
Offers low cost banking options
Handles your request quickly
Chart 11. Top challenges dealing with banks
Inconsistent service and
pricing across geographies
Outdated processes
and systems
Bureaucratic
and inflexible
56%
35%
30%
Successful corporate banking: focus on fundamentals
12
Successful corporate banking: focus
on fundamentals
most important issue as banks consider structural changes to their
15. savings from driving more activity to
need to be part of the broader business
raised above and it becomes clear that
the competitive landscape is likely to look
customers to buy banking products and
customers and merchants to exchange
losing transaction fees and prominence in
competitive and regulatory pressures must
lead to further reshaping if recent revenue
trends are to be avoided in the future
economies are attracting deposits from
technology is being used to disrupt other
derivatives reforms have proved to be a
longer able to offer the same product range
products to be traded on exchange and
in emerging markets are also likely to face
Chart 12. Total revenues from top 50 global banks, 2008–13
2008
US$b
800
2009
2010
2011
2012
1H13
700
600
500
400
300
200
100
0
Europe
Asia Pacific
Americas
Global banking outlook 2014–15 |
13
16. more severe competition in areas such as
from regional banks looking to broaden
their reach and from global banks in search
Capital and regulatory reporting
to thrive and the funds to invest in the
sells to customers
also becoming an increasingly competitive
and outsourcing arrangements to offer
customers or the media — that has helped to
create the environment for the other forces
hope of becoming a customer’s primary
the scope of their services to include more
leaks and benchmark rate manipulation is
Customers expect change and investors
are looking for credible and sustainable
of that advantage over time as they are
they are distracted by the regulation and
and shareholders is on the rise in both
Regulation is already driving some change
likely to see much more intense competition
as technology and telecommunications
14
17. Remaking financial services: risk
management five years after the crisis
increasingly focused on operational and
banks that are more transparent and bankers
above, the rate of economic growth — or
lack of it — will continue to be a catalyst for
products and markets upon which individual
banks will focus. However, while the
economic outlook and opportunity will
important in setting the overall strategy in
the coming years. The responses that banks
need to consider, and that we expect to see
over the next 12-24 months and beyond,
are outlined in Part Three.
Global banking outlook 2014–15 |
15
18. Part three:
Banks
transformed,
an industry
reshaped
challenges and issues forcing the need for
and beyond?
challenge of compliance has already forced
banks to rethink their business models
to senior banking executives across
right business and operating models
much more selective about the services
change must go to the core of the business
universal banking service to their customers
technology and distribution capabilities
transformed as a result and the industry
16
19. Rush to execution?
for fear of missing a product recovery or underestimating the
Bank
Governance Leadership Network (EY/Tapestry Networks)
the increasing costs of complying and competing and by falling
Chart 13. Consolidation within the European banking
sector 2011–13, EU27
8167
8105
8019
7965
7812
7761
2011–03
2011–09
2012–03
2012–09
2013–03
2013–09
No. of credit institutions
Global banking outlook 2014–15 |
17
20. Banks in emerging markets are also suffering the effects of a
competition is intensifying and banks remain under political
pressure to reduce spreads on credit products to retail customers
Banking in emerging markets
Chart 14. Loan-deposit ratio for top 50 global banks, 2008–13
2008
2009
2010
2011
2012
abroad to support their corporate customers and serve key capital
1H13
140%
120%
100%
Regulation as inspiration
80%
60%
40%
exit business lines and geographies as they streamline operations
20%
0
Europe
Asia Pacific
Americas
Full service
Chart 15. Universal banking redefined — seven potential future models as alliances become more important
Selectively Presence across global financial centers,
international but restricted product range outside
home and other core markets
Strong Major business lines across multiple
regional countries within a region, focused on key
customer segments elsewhere
Solid Full-service “universal” offering in home
national market, increasingly limited operations
internationally
Local Small and mid-sized domestic banks
retailers serving retail and business customers,
primarily within part of home country
Focused Core focus on particular segments e.g.,
specialist wealth manager, broker dealer, niche
investment bank and credit cards
Innovative New entrants leveraging technology and
disruptors exploiting evolving industry landscape
18
Selectively
international
Genuinely
global
Strong
regional
Solid national
Local retailer
Innovative disruptor
Focused specialist
Niche
Genuinely Truly international in coverage and
global product depth, though less full-service
and globally universal than pre-crisis
Range of offerings/services
Seven potential future models
Size of bubble reflects number of institutions
Local
National
Regional
Scale of coverage
Global
21. emerging markets are approaching the
some struggle to meet customer demand for
recover some lost margin from an increase
rather than retaining sub-par business units
Universal 2.0
Japanese banks taking strategic stakes in
selectively international banks in markets
management into more vanilla savings and
genuinely global or strong regional banks to
partnership to emerge across all markets as
become solid national banks are less able to
and support their customers across different
to those local or national banks that are
adopted this approach and focus on the
and exploit their competitive advantages
to satisfy every aspect of customer demand
Chart 16: Effect of combined liquidity and capital changes under Basel III on business models
2012
2013
62%
Evaluating portfolios
81%
43%
Shifting out of complex less
liquid instruments
44%
29%
Exiting lines of business
44%
13%
Exiting geographies
None of the above
17%
17%
8%
Remaking financial services: risk management five years after the crisis
Global banking outlook 2014–15 |
19
22. are already examples of banks partnering
consider these alternative
that variable bonuses are not replaced by
are opportunities here to develop much-
of the value chain they
to see more banks looking at opportunities
elements of the overall
customer relationship
on restoring credibility and regaining
and ensuring that adoption of the broader
regulatory agenda supports efforts to
Which customers?
For banks that need to consider these
have tried to be all things to all customers
are investing in data analytics to develop
value of a customer’s overall relationship
collaborative approach is a strategy that
take that step and focus on a smaller
on a technology-enabled self-service
20
23. Solutions, not products
Growth from digital
customers have much more freedom to
sponsored agenda that many banks have
is recognition that too many sales staff
focus on articulating and embedding a more
banks ensure that internal target-setting and
record than most banks of using customer
trust and developing long-term relationships
experiencing better complaints handling
from other sectors; improving effectiveness
the priority should be on enabling more
compliance as long as it resulted in a better
Chart 17. Percentage of customers
willing to provide their bank with more
personal information
also expect banks to learn from others and
Yes
70%
Global Consumer Banking Survey: The customer
takes control
yet many lack the data analytics capabilities
to turn this into a competitive advantage
the security of personal information is a
Global banking outlook 2014–15 |
21
24. examples of asset managers establishing
convince them that data is handled
pension fund or insurance company may be
Restructuring for business
customers
multinational corporations are concerned
about consistency of service across markets
Banks have the customer base and the
skills in loan origination and credit risk
customers rather than products and
the speedy and effective resolution of
to lend or the capacity on the balance
became clear during that survey that many
of these customers don’t expect a single
expect to see more examples of banks
become more targeted in both their product
companies secure funding from debt and
and services from both sides of a potential
Customers as collaborators
location strategy in the coming months and
Chart 18. Does your company plan to refinance loans or other debt obligations in the next 12 months?
Yes 26%
October 2012
22
Yes 29%
April 2013
Yes 35%
October 2013
25. permanent step-change in the cost of doing
the ultimate parent should be a bank or a
shift of emphasis as banks transition from
separate operating entities to manage
to streamline legacy — and often overly
Banks must also adapt to restrictions on the
ensure resolution plans can be executed
unnecessary entities to improve capital
comply and the cost implications may
Streamlining structures
able to remove duplicate management
be restricted to capital markets and
Chart 19. Potential global capital requirements*
19
6
20
3
20
3
Resolution buffer (including bail in bonds)
Additional loss absorbing capital (including bail in bonds)
Progressive buffer (low triggering co-cos)
High triggering co-cos
Non-equity capital (T1+T2)
3.5
15.5
3.5
10.5
3.5
13
3.5
2.5**
2.5
2.5
2.5
4.5
4.5
4.5
Basel 3
minimum
Basel G-SIB
CRD IV
Additional common equity (systemic/ring-fence buffer)
Common equity capital conservation buffer
Minimum common equity
3
5
4
10
2
2.5
5.5
India
3
3.5
3
13
3.5
3.5
2.5
9.5
2.5***
2.5
2.5
2.5
2.5
4.5
4.5
4.5
4.5
Switzerland
ICB Proposal
UK
ICB Proposal
UK G-SIB group
(UBS and
Credit Suisse)
(ring fenced)
US
10.5
3.5
2.5
2.5
5
China
8
3.5
4.5
Japan****
2.5
4.5
Australia
(non ring fenced)
Bank for International Settlements, national regulators
Global banking outlook 2014–15 |
23
26. Transforming cultures
necessarily have been tactical as banks try to understand the scale
there are common core values but cultural variations among
process is ensuring that changes have been embedded throughout
on this area to strengthen internal transparency and thereby reduce
Connecting to shared services
24
27. large competitors may be reluctant to use another bank’s operating
processes and controls across the bank and increasing levels of
Silos dismantled
Emerging markets not exempt
Banks across a number of emerging markets have embarked
become much more common if costs are to be brought under
be a crucial investment area in the short to medium term to
architectures and an army of staff to
Global banking outlook 2014–15 |
25
28. strategy for the development and support of systems and
of suppliers around a core group of vendors that provide both
Sharing is good
and use more sophisticated data analytics to strengthen customer
Chart 20. Breakdown of bank IT spend
Maintainance
Investments
51.3
7.7
2012
51.5
7.7
2013
51.8
7.7
2014
51.9
7.7
Europe
2011
52.2
2015
2011
Asia
2012
2013
39.5
16.5
41.5
17.8
43.7
Americas
2013
2014
2015
26
19.6
49.7
2015
2012
19.2
46.9
2014
2011
7.7
40.7
20.5
12.8
41.5
42.8
43.9
45.1
13.2
14.1
15.5
16.8
29. industry utilities should also be explored by banks in emerging
expressing a preference to manage certain transactions digitally
obviate the need for investment in physical servers and storage
for advice on complex solutions rather than to manage simple
providers and industry utilities may also be more secure than
Chart 21. Smartphone penetration by region (as percentage of population)
2011
2012
2013F
2014F
2015F
2016F
2017F
120%
100%
80%
60%
40%
20%
0
North America
Latin America
Europe
Middle East and Africa
Asia Pacific
“Mobile phone and Smartphone forecast 2013–2017,”
Global banking outlook 2014–15 |
27
31. on the cost of doing business is even more
severe and regulatory constraints have
rendered many current business models
Responses necessarily cut across business
to redesign compensation models as banks
Customers expect to be treated fairly but
industry that can generate sustainable
economic recovery in both developed and
banks to develop mechanisms and tools to
tangible aspects of reform such as culture
are bringing to banking the sort of change
strengthen their reputations and recover
Banks don’t necessarily need to imitate in
an attempt to compensate for not being a
advantage by developing an understanding
markets and functions as universal banking
Methodology
EY maintains a database of banking key performance indicators. The database covers the top 50 banks by assets,
as listed by The Banker Database at July 2013. Data is drawn from company reports. Data for revenues, costs, loan
loss provisions, net interest margins, earnings per share and core tier one capital are as reported. Other figures are
calculated to ensure a consistent methodology. Where no data is recorded, the reporting bank is excluded for that
metric. Major outliers are also excluded to avoid distortion. Where necessary, balance sheet and income statement
data have been converted to US dollars using exchange rates from OANDA (oanda.com).
The following banks were included in the analysis of investment banking revenues: Barclays, BNP Paribas, Bank of
America, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan Chase, Morgan Stanley, Nomura,
Royal Bank of Scotland, Société Générale and UBS.
Global banking outlook 2014–15 |
29
32. EY | Assurance | Tax | Transactions | Advisory
About EY
Contacts
Bill Schlich
John Keller
Capital Markets Leader
Capital Markets Leader
Ian Baggs
Steve Ferguson
Capital Markets Leader
London
deliver help build trust and confidence in the capital
Capital Markets Leader
+61 2 9248 4518
About EY’s Global Banking & Capital Markets Center
Jan Bellens
Robert Cubbage
Markets Leader
Capital Markets Leader
London
array of divergent stakeholders is a key goal of banks and
Noboru Miura
Steven Lewis
Capital Markets Leader
Capital Markets
London
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