Financial services firms in Ethiopia are pursuing growth strategies to cope with increased competition. Many are looking to new products, markets, pricing structures, and distribution channels. More than two-thirds reported competition has increased over the past year. To address this, firms are focusing on technology, customer service, pricing, marketing, and adding value. This seeks to attract more customers and make existing offerings more competitive.
With this study, we distill and prescribe characteristics, practices and best-in-class methods associated with "fast growers,“ which we define as companies with GAAP revenue growth rates of 30% or higher. As discovered in previous years and validated again this year, the central driving force for fast growers is the appropriate, aligned go-to-market model executed with excellence and coupled with financial discipline and investment.
Use this report to compare your business to like companies in the Edison portfolio, as well as industry guidance. These benchmarks and advice will enable you to map your own plan and journey to becoming a fast grower, or accelerate even faster to a $100M company.
Capital Markets Strategies for Sustained Competitive Advantage, in the Jamaic...Edward Wilson
NCB Capital Markets Limited is one of the major players in the investment banking sector in Jamaica. The current economic climate threatens the viability of this industry and only the most efficient and strategic will survive as the region in general and the nation in particular rides out this economic storm. There are however, numerous opportunities that are presented within the pangs of the crisis. The leadership of NCB . ought to be aware of this and position for full advantage.
Management presentation from Thermal Energy International's 2018 Annual General Meeting of Shareholders. Provides highlights of recent growth initiatives and the growth strategy going forward
With this study, we distill and prescribe characteristics, practices and best-in-class methods associated with "fast growers,“ which we define as companies with GAAP revenue growth rates of 30% or higher. As discovered in previous years and validated again this year, the central driving force for fast growers is the appropriate, aligned go-to-market model executed with excellence and coupled with financial discipline and investment.
Use this report to compare your business to like companies in the Edison portfolio, as well as industry guidance. These benchmarks and advice will enable you to map your own plan and journey to becoming a fast grower, or accelerate even faster to a $100M company.
Capital Markets Strategies for Sustained Competitive Advantage, in the Jamaic...Edward Wilson
NCB Capital Markets Limited is one of the major players in the investment banking sector in Jamaica. The current economic climate threatens the viability of this industry and only the most efficient and strategic will survive as the region in general and the nation in particular rides out this economic storm. There are however, numerous opportunities that are presented within the pangs of the crisis. The leadership of NCB . ought to be aware of this and position for full advantage.
Management presentation from Thermal Energy International's 2018 Annual General Meeting of Shareholders. Provides highlights of recent growth initiatives and the growth strategy going forward
IB Business and Management (Standard Level)
All material taken from the IB Business and Management Textbook:
"Business and Management", Paul Hoang, IBID Press, Victoria, 2007
Honors Thesis Presentation - "An Analysis of Emerging Markets"dre101
This is a PowerPoint Presentation of my Honors Thesis. I presented this in front of three Hofstra Professors, including the chairperson of the Hofstra Finance Department. I received High Departmental Honors as a result of my research.
Each year, Tenet Partners analyzes the data in
the CoreBrand Index (CBI) to determine the US
economy’s Top 100 Most Powerful Brands based on
high awareness and positive brand perceptions. 2015
marks the eighth year of the report. The report is
unique because it is based on a single, data-driven
score that assesses each brand’s familiarity and
favorability. We call this BrandPower. Powerful Brands build and nurture their brands and in turn, their create and make it
competitive – by making investments in
innovation, R&D and strategic partnerships
to drive customer-centric experiences
Marketing Plan: Product diversification strategy - Media Strom SASpyros Langkos
MEDIA STROM: « We stay awake…so that you can sleep better »
This study concentrates on the marketing plan of the Greek company Media Strom S.A (Athenian Mattresses Industry) and the development of a new product in a new market: in the case of product diversification through innovation.
This report reviews and evaluates the marketing plan of a well known and established business, Media Strom S.A and recommends an alternative marketing strategy for the needs of product diversification strategy. We examine this proposition alongside with the ongoing marketing plan of the company, as a one to one consultation process.
The paper attempts an overall analysis of the current market, the competition and the influences of the external environment. Furthermore, presents the company‟s capabilities and internal processes, highlighting the strengths and opportunities of the organization.
The solution proposed by this paper moves to the field of product innovation (product case: sleeping pillow enhanced with internal speakers with connector for smartphones), so that it positioned as an inspirational product with distinctive quality and technological function.
It mainly focus on introducing a modern relaxing sleep session to the user, which provides affordable bed and sleep-related products to young middle age groups of people with concerns over technology and comfort.
The stated objective here, concerning price analysis, is that the above product category should reach 1/10 of the overall sales of the company, with regional targeting of the western societies, which are more technologically advanced and innovation friendly.
Supporting the above mention, the delivered profit margins are expected to be small with a rising ongoing trend, in the first semester of the launching process. But as the assembly product line grows in numbers and manufacturing experience, the business profits will accumulate as it becomes a usual business service, ensuring the smoothing between marketing and factory operations.
Company profile:
Media Strom was established in 1967 from the brothers John and Nick Niarchos, aiming to offer mattresses that improve the quality of sleep and set new standards on the market. It is thought to be the No.1 company in the mattress industry, having a presence in the field for over 4 decades. It is a 100% Greek-owned company, having offered great sleep up to 3 generations so far. They have eco-friendly facilities without gas and waste emissions due to their strict recycling and packaging program and collaboration with the Hellenic Recovery Recycling Corporation.
The history of the firm is filled with innovations that changed the way that most Greek people slept. Above 2,5 million Greek citizens today wake up in a bed or a mattress of Media Strom. The New Sophisticated Factory of Media Strom builted in 2010, is the
jewel of the world quilting, confirming entrepreneurship and healthy development.
It is now generally accepted in the M&A domain that most mergers fail. And yet despite the dangers and horror sagas associated with M&A transactions, these types of business combinations are here for good because they are now the principal route to rapid business growth for many firms.The burning question therefore is: how can firms that aspire to grow through mergers and acquisitions increase their chances of success?The point of departure for M&A should be development of an M&A strategy that is anchored on the firm‟s overall business strategy. The firm should adopt a structured approach that covers the whole M&A process; set metrics for evaluating M&A targets; and actively engage in searching for potential targets. The criteria used to spot the right target could include business strategy, potential synergies, market availability, scale of activities, geographical location, technology, market growth potential and, business and culture fit. The type of merger should be another consideration, in which case bottom-trawlers, bolt-ons, line extension equivalents and consolidation mature, all with over 50% success rate, should be prioritized.The firm should then carry out comprehensive due diligence and objectively/accurately evaluate synergies. With respect to synergies, the acquirer should establish beforehand what synergies exist, where those synergies exist and how they will be extracted. Once a deal is closed, it is necessary to establish its success or failure, post-merger.M&A success should be considered from the shareholders of the acquirer‟s perspective, and an M&A should be judged successful if Net RealisableSynergies exceed Acquisition Purchase Premium. M&A critical success factors include merger segmentation considerations, the type of acquisition, timing, APP, effective integration, economic certainty and accurate target valuation.
Looking beyond the obvious - Globalization and new opportunities for growthEY
The changing face of globalization will have a profound impact on the business landscape. A constant challenge for business leaders is to anticipate and interpret how globalization is changing, while understanding the opportunities and risks it creates. Although there may be little they can do to change global demographic shifts or capital flows, business leaders can react effectively to the forces of globalization or, even better, anticipate them to their advantage.
Looking beyond the obvious: globalization and new opportunities for growth, looks at the most important elements of globalization for business. Drawing on three sources of research, including Ernst & Young’s 2012 Globalization Index, we explore the trends and issues business leaders must consider to move ahead.
In this uncertain world, companies will need to look for growth in new ways and from new places. The businesses that will ride the next wave of economic growth will be those that understand the significance of globalization and tailor their strategies accordingly.
www.ey.com/globalization
An overview of 2010 market trends for Stage 2 small businesses. Stage 2 is marked by the realization among a company’s leadership team that something monumental within the business needs to change in order for growth to ensue or continue. It is characterized by recognizing that something that was once relatively simple – a fledgling business – is becoming complex as it evolves. It is an understanding that a firm has evolved from survival mode into a sustainable enterprise that marks Stage 2.
Phimation has identified that Stage 2 companies are faced with one or more of three
main business challenges:
o They’re trying to grow.
o They’ve stagnated.
o They’re transitioning leadership.
The problems are more complicated, your team is bigger, and the stakes are higher. As a Stage 2 leader, your company’s success hinges on your ability to implement unfamiliar management and strategy techniques into your business, and you need some guidance to learn how to do just that.
IB Business and Management (Standard Level)
All material taken from the IB Business and Management Textbook:
"Business and Management", Paul Hoang, IBID Press, Victoria, 2007
Honors Thesis Presentation - "An Analysis of Emerging Markets"dre101
This is a PowerPoint Presentation of my Honors Thesis. I presented this in front of three Hofstra Professors, including the chairperson of the Hofstra Finance Department. I received High Departmental Honors as a result of my research.
Each year, Tenet Partners analyzes the data in
the CoreBrand Index (CBI) to determine the US
economy’s Top 100 Most Powerful Brands based on
high awareness and positive brand perceptions. 2015
marks the eighth year of the report. The report is
unique because it is based on a single, data-driven
score that assesses each brand’s familiarity and
favorability. We call this BrandPower. Powerful Brands build and nurture their brands and in turn, their create and make it
competitive – by making investments in
innovation, R&D and strategic partnerships
to drive customer-centric experiences
Marketing Plan: Product diversification strategy - Media Strom SASpyros Langkos
MEDIA STROM: « We stay awake…so that you can sleep better »
This study concentrates on the marketing plan of the Greek company Media Strom S.A (Athenian Mattresses Industry) and the development of a new product in a new market: in the case of product diversification through innovation.
This report reviews and evaluates the marketing plan of a well known and established business, Media Strom S.A and recommends an alternative marketing strategy for the needs of product diversification strategy. We examine this proposition alongside with the ongoing marketing plan of the company, as a one to one consultation process.
The paper attempts an overall analysis of the current market, the competition and the influences of the external environment. Furthermore, presents the company‟s capabilities and internal processes, highlighting the strengths and opportunities of the organization.
The solution proposed by this paper moves to the field of product innovation (product case: sleeping pillow enhanced with internal speakers with connector for smartphones), so that it positioned as an inspirational product with distinctive quality and technological function.
It mainly focus on introducing a modern relaxing sleep session to the user, which provides affordable bed and sleep-related products to young middle age groups of people with concerns over technology and comfort.
The stated objective here, concerning price analysis, is that the above product category should reach 1/10 of the overall sales of the company, with regional targeting of the western societies, which are more technologically advanced and innovation friendly.
Supporting the above mention, the delivered profit margins are expected to be small with a rising ongoing trend, in the first semester of the launching process. But as the assembly product line grows in numbers and manufacturing experience, the business profits will accumulate as it becomes a usual business service, ensuring the smoothing between marketing and factory operations.
Company profile:
Media Strom was established in 1967 from the brothers John and Nick Niarchos, aiming to offer mattresses that improve the quality of sleep and set new standards on the market. It is thought to be the No.1 company in the mattress industry, having a presence in the field for over 4 decades. It is a 100% Greek-owned company, having offered great sleep up to 3 generations so far. They have eco-friendly facilities without gas and waste emissions due to their strict recycling and packaging program and collaboration with the Hellenic Recovery Recycling Corporation.
The history of the firm is filled with innovations that changed the way that most Greek people slept. Above 2,5 million Greek citizens today wake up in a bed or a mattress of Media Strom. The New Sophisticated Factory of Media Strom builted in 2010, is the
jewel of the world quilting, confirming entrepreneurship and healthy development.
It is now generally accepted in the M&A domain that most mergers fail. And yet despite the dangers and horror sagas associated with M&A transactions, these types of business combinations are here for good because they are now the principal route to rapid business growth for many firms.The burning question therefore is: how can firms that aspire to grow through mergers and acquisitions increase their chances of success?The point of departure for M&A should be development of an M&A strategy that is anchored on the firm‟s overall business strategy. The firm should adopt a structured approach that covers the whole M&A process; set metrics for evaluating M&A targets; and actively engage in searching for potential targets. The criteria used to spot the right target could include business strategy, potential synergies, market availability, scale of activities, geographical location, technology, market growth potential and, business and culture fit. The type of merger should be another consideration, in which case bottom-trawlers, bolt-ons, line extension equivalents and consolidation mature, all with over 50% success rate, should be prioritized.The firm should then carry out comprehensive due diligence and objectively/accurately evaluate synergies. With respect to synergies, the acquirer should establish beforehand what synergies exist, where those synergies exist and how they will be extracted. Once a deal is closed, it is necessary to establish its success or failure, post-merger.M&A success should be considered from the shareholders of the acquirer‟s perspective, and an M&A should be judged successful if Net RealisableSynergies exceed Acquisition Purchase Premium. M&A critical success factors include merger segmentation considerations, the type of acquisition, timing, APP, effective integration, economic certainty and accurate target valuation.
Looking beyond the obvious - Globalization and new opportunities for growthEY
The changing face of globalization will have a profound impact on the business landscape. A constant challenge for business leaders is to anticipate and interpret how globalization is changing, while understanding the opportunities and risks it creates. Although there may be little they can do to change global demographic shifts or capital flows, business leaders can react effectively to the forces of globalization or, even better, anticipate them to their advantage.
Looking beyond the obvious: globalization and new opportunities for growth, looks at the most important elements of globalization for business. Drawing on three sources of research, including Ernst & Young’s 2012 Globalization Index, we explore the trends and issues business leaders must consider to move ahead.
In this uncertain world, companies will need to look for growth in new ways and from new places. The businesses that will ride the next wave of economic growth will be those that understand the significance of globalization and tailor their strategies accordingly.
www.ey.com/globalization
An overview of 2010 market trends for Stage 2 small businesses. Stage 2 is marked by the realization among a company’s leadership team that something monumental within the business needs to change in order for growth to ensue or continue. It is characterized by recognizing that something that was once relatively simple – a fledgling business – is becoming complex as it evolves. It is an understanding that a firm has evolved from survival mode into a sustainable enterprise that marks Stage 2.
Phimation has identified that Stage 2 companies are faced with one or more of three
main business challenges:
o They’re trying to grow.
o They’ve stagnated.
o They’re transitioning leadership.
The problems are more complicated, your team is bigger, and the stakes are higher. As a Stage 2 leader, your company’s success hinges on your ability to implement unfamiliar management and strategy techniques into your business, and you need some guidance to learn how to do just that.
Healthcare marketing the optimization scenario1Nirmala N
In recent times Marketing Management is becoming more challenging and highly expensive. Organizations are realizing that internal resources are not enough to produce measurable results in a consistent manner. They face hardcore challenges in standardization and corporatization. The bare minimum fact in an Organization is that they are unable to fix the GAP between Operations and Marketing.
Optimize offers to undertake areas of challenges in an Organization and help Organizations to get optimized results even with minimal resources. Resources need to be optimized and not just utilized, and we empower you to achieve those results.
2014 Property & Casualty Insurance Industry Outlook: Innovation leading the wayDeloitte United States
On the surface the property and casualty sector appears to be doing quite well, but running an insurance carrier is rarely smooth sailing. The last few years have been particularly difficult for those occupying C-Suite positions, as more fundamental issues are threatening not only short-term results on their balance sheets, but challenging the long-term viability of their operating models as well.
For example, a growing number of insurers are facing significant organizational disruption. Many have made large-scale investments in technology, replacing core systems for claims, policy administration and finance. Their chief challenge now is how to effectively leverage the new systems they’ve put in place and maintain their momentum with additional innovations in personnel, products and culture.
Additionally, ongoing political gridlock in Washington could undermine an already unsteady economic recovery. Not to mention regulatory uncertainty that makes it difficult for carriers to plan ahead and determine operational priorities.
Innovation may ultimately be the key to keep insurers growing regardless of shifting economic and insurance market conditions, as they devise ways to thwart ongoing and emerging competitive threats as well as capitalize on new opportunities.
For more - visit http://www.deloitte.com/view/en_US/us/Industries/Insurance-Financial-Services/039bdd0819e23410VgnVCM3000003456f70aRCRD.htm
Content marketing isn’t a new strategy for the finance industry. For many financial institutions, the value of content marketing is the same today as it was 130 years ago: It strengthens relationships with prospects and customers by building trust. But what, specifically, are financial institutions doing when it comes to content marketing — and, more importantly, what do they need to be doing to evolve and stand out? This industry has its own unique considerations, as well, such as the fact it operates in a heavily regulated industry and its customers can no longer be categorized as being interested in only business finance or only personal finance. This white paper provides an overview of the current state of content marketing in the finance industry and explores key examples that can show you ways to evolve your own program.
@CMIContent Study | Conent Management in Financial IndustryEl Cabell
@anngynn complied fantastic insights in this new analysis that are applicable & incredible insights across all industries when it comes to Content Marketing
When it comes to scrutinizing costs, most insurance companies can say “Been there, done that. Got the t-shirt.” Managers are familiar with the refrain from above to trim here and cut there. The typical result is flirtation with the latest management trends like lean, outsourcing and offshoring, and others. However, the results tend to be the same. Budgets reflect last year’s spend plus or minus a couple of percent in the same places.
1. Ethiopia Focus 2015
Engaging title in Green
Descriptive
element in
Blue 2 lines if needed
Elements for successful
growth in financial services
Poised for growth
Ethiopia Focus 2015
2.
3. Contents
Foreword
Profile of Survey respondents
Getting fit for growth
Managing for growth
Controlling for growth
Staffing for growth
Conclusion
Elements for successful growth in financial services Poised for growth 3
4. 4
Foreword
Banks, securities firms, insurance companies, and investment managers around the world have spent much time over
the last few years protecting their businesses from the shockwaves of economic crises.
Many of these companies put growth and expansion plans on hold during this time, preferring to conserve what
share of the market they could until more favorable business conditions emerge. For many financial services
companies, that time is now.
This latest annual research report by Deloitte Touche Tohmatsu Limited’s Global Financial Services Industry group
examines four elements that contribute to successful growth:
• Getting fit for growth;
• Managing for growth;
• Controlling for growth; and
• Staffing for growth.
Through telephone interviews with 200 senior executives on six continents, we explored a number of key themes:
• What steps are financial services firms taking in Europe, Africa, Asia, Australia, North America, and South
America to expand their products and markets?
• How much competition are they facing?
• What issues do they face regarding infrastructure, data analytics, and talent?
By focusing on these and other questions against a strategic framework of products and markets, we believe many
global financial services firms will be well-positioned to win the race for more customers and more business in the
months and years ahead.
Regards,
Chris Harvey
Global Financial Services Industry Leader Deloitte Touche Tohmatsu Limited (DTTL)
5. Elements for successful growth in financial services Poised for growth 5
Profile of survey respondents
Figure 1: Headquarters location
Figure 2: Primary sector (global)
Figure 3: Primary sector (Ethiopia)
Banking
Insurance
U.S., Canada
Europe, Middle East, Africa
Asia Pacific, Australia
Mexico, Central and South America
Banking
Investment Management
Insurance
Securities
24%
76%
15%
15%
20%
20%
30%
30%
35%
35%
6. 6
Many of the world’s leading financial services companies
attained their prominence and scale through mergers
and acquisitions. In many cases, the acquisitions that
organizations made were not always a perfect fit, and
eventually, those business units became outliers that
either required too much capital, failed to generate
sufficient revenues, posed regulatory challenges, or did
not align with corporate strategy.
Following the global economic crisis, financial services
companies began to scale down their organisations,
both to become more efficient and to comply with
regulatory mandates, such as Basel III, the Solvency II
Directive, and the Dodd-Frank Wall Street Reform and
Consumer Protection Act.
By divesting non-core activities and restructuring their
business models, financial services companies began the
process of getting fit for growth.
Products and markets
An integral part of this process is the assessment or
multiple product and market strategies (Figure 4).
The most common product and market strategy is to
offer existing products in existing markets by increasing
share of wallet, acquiring more customers, and
addressing both pricing and channel strategies. While
companies may achieve additional organic growth
in existing markets, the saturation of those markets,
coupled with a high level of competition, could make
the path of least resistance also the path of least reward.
The next most likely alternatives are to introduce new
products in existing markets and/or offer existing
products in new markets. The former requires a focus
on new product development, channel strategies, and
customer analytics, while the latter requires a focus
on market entry strategies, M&A, and new client
acquisitions. Both approaches offer higher risk and
higher rewards.
The final product and market strategy is to offer new
products in new markets, where the company is
unknown to potential customers and where the market
is unknown to the company. Here companies would
focus on M&A, market entry strategies, and alliances or
joint ventures.
According to our study, financial services companies’
plans for growth mirror the possibilities in this matrix
(Figure 5). Specifically, more companies are selling
existing products in existing markets, fewer are
introducing new products in existing markets or selling
existing products in new markets, and even fewer are
introducing new products in new markets.
Existing products New products
Existing markets • Share of wallet
• Pricing strategy
• Channel strategy
• Customer acquisition
• New product development
• Channel strategies
• Customer analytics
New markets • Market entry strategy
• M&A
• New client acquisition
• M&A
• Market entry
• Alliances/joint venture
Figure 4: Product and market growth strategies
Emerging markets New markets
92%
69%
85%
69%
85%
46%
77%
31%
Existing products
New products
Existing channels
New channels
75%
Emerging
markets
New
markets
57%
35%
58%
Existing products
New products
Figure 5a: What growth strategies, if any, is your firm currently pursuing (global)
Figure 5b: What growth strategies, if any, is your firm currently pursuing (Ethiopia)
7. Elements for successful growth in financial services Poised for growth 7
While most financial services companies are sticking
with the products and markets they know best, many
are also venturing into new territory in their quest for
growth, as the following comments from our survey
respondents show:
• “To be competitive in the market, we are reviewing
our pricing structure and trying to provide new
products in the market.”
• “To counter increased competition we have
diversified our product portfolio, and increased our
distribution channels and geographies.”
Competition is surging
Rising competition is one of the big reasons financial
services companies are looking for growth in new
products and new markets. More than two-thirds of our
respondents say that competition in their industry sector
has increased over the past 12 to 18 months (Figure 6).
Increased Remained the same Decreased
Increase significantly
6%
22%
72%
Figure 6a: How has the competition in your industry
segment (retail banking, life insurance, mutual funds,
etc.) changed over the last 12–18 months? (Global)
Elements for successful growth in financial services – Ethiopia Focus 2015
While most financial services companies are sticking with the
products and markets they know best, many are also venturing into
new territory in their quest for growth, as the following comments
from our survey respondents show:
• “To be competitive in the market, we are reviewing our
pricing structure and trying to provide new products in the
market.”
• “To counter increased competition we have diversified our
product portfolio, and increased our distribution channels
and geographies.”
Competition is surging
Rising competition is one of the big reasons financial services
companies are looking for growth in new products and new markets.
More than two-thirds of our respondents say that competition in their
industry sector has increased over the past 12 to 18 months (Figure
6).
To cope with heightened competition — which is
coming from both domestic and foreign entities as
well as financial and non-financial companies —
financial services firms are addressing a variety of
strategic and tactical issues:
Technology: “Competition has become a bit sharp
as the technological offerings are increasing and
many of our competing banks are offering e-
banking solutions, which requires heavy funding.
The challenge is to keep the shareholders happy.
We are using an advanced platform to be ahead o
our competitors.”
Service: “We are concentrating more on customer
service. We are following good market practices
and are keeping in constant touch with our
customers to make them feel valued. We are also
coming up with strategies to attract more
customers, like offering them products at better
rates and pricings.”
Pricing: “We are competing with lower fees on
some products. In some areas we have changed
the incentive structures, and we have tried to bring
in new products in the markets. From an
organizational side more push has been given to
advertising and branding.”
Marketing: “We do a lot of business through
intermediaries who refer transactions, so we just
have to be more active in interacting with them. W
are constantly in touch with them and update them
about what we are doing on product strategies and
how we can make our marketing practices more
effective.”
Value: “Our main focus is to enhance the product
line and add value to our existing value chain.
Today customers are more concerned about the
value that they could derive out of their money
spent on a particular product. So, if we can give
additional value at the same price, then we can
attract more customers.”
72%
22%
6%
Increased
Remained the same
Decreased
- 1 2 3 4 5 6 7 8 9 10 11 12 13
International banking
Retail banking
Trade finance
Corporate banking
Money markets
Life insurance
Capital markets
Wealth management
Health insurance
Retirement products
Short term insurance
Increased significantly Increased marginally Remained the same
Figure 6b: How has the competition in your industry
segment (retail banking, life insurance, mutual funds, etc.)
changed over the last 12–18 months? (Ethiopia)
Figure 6a: How has the competition in your industry
segment (retail banking, life insurance, mutual funds, etc.)
changed over the last 12–18 months? (Global)
International banking
Retail banking
Trade finance
Corporate banking
Money markets
Life insurance
Capital markets
Wealth management
Health insurance
Retirement products
Short term insurance
Figure 6b: How has the competition in your industry
segment (retail banking, life insurance, mutual funds,
etc.) changed over the last 12–18 months? (Ethiopia)
Increased marginally Remained the same
8. 8
To cope with heightened competition — which is
coming from both domestic and foreign entities as well
as financial and non-financial companies — financial
services firms are addressing a variety of strategic and
tactical issues:
Technology: “Competition has become a bit sharp as
the technological offerings are increasing and many of
our competing banks are offering e-banking solutions,
which requires heavy funding. The challenge is to keep
the shareholders happy. We are using an advanced
platform to be ahead of our competitors.”
Service: “We are concentrating more on customer
service. We are following good market practices and are
keeping in constant touch with our customers to make
them feel valued. We are also coming up with strategies
to attract more customers, like offering them products
at better rates and pricings.”
Pricing: “We are competing with lower fees on some
products. In some areas we have changed the incentive
structures, and we have tried to bring in new products
in the markets. From an organizational side more push
has been given to advertising and branding.”
Marketing: “We do a lot of business through
intermediaries who refer transactions, so we just have
to be more active in interacting with them. We are
constantly in touch with them and update them about
what we are doing on product strategies and how we
can make our marketing practices more effective.”
Value: “Our main focus is to enhance the product
line and add value to our existing value chain. Today
customers are more concerned about the value that
they could derive out of their money spent on a
particular product. So, if we can give additional value at
the same price, then we can attract more customers.”
Balancing growth with cost and profitability
Growth requires investment, and investment impacts
profitability. When asked how their companies plan to
balance growth with cost and profitability, our survey
respondents have a wide range of views:
• “We are focusing on selling non-core assets,
increasing capital ratios, building liquidity and
reducing risk. We’re in a competitive marketplace,
and we have to win business by understanding
customers’ needs and offering the best
combination of products, service and value. The
balance of cost and profit is there when business
has its return on investment.”
• “In the long term, profitability is not the major
concern, I think sustainability of our business and
not doing anything wrong is more important,
because we are willing to pay the cost in the short
term if it can give us long-term sustainability.”
• “Growth at an additional cost is not the strategy.
The idea of growth is to do more business and at
the same time reduce cost. We cannot grow by
increasing the costs. Our focus is to grow in the
areas of our choice.”
In order to implement their growth strategies,
respondents believe their companies need to continue
to comply with recent and impending regulation,
ensure that their cost models are optimized, and ensure
that their operating models, processes, and business
architecture are optimized as well (Figure 7).
9. Elements for successful growth in financial services Poised for growth 9
Elements for successful growth in financial services – Ethiopia Focus 2015 9
Figure 7a: Of the following, which are the top activities you feel your company needs to address in order to implement its growth
strategy? (Global)
Figure 7b: Of the following, which are the top three activities you feel your company needs to address in order to implement its
growth strategy? (Ethiopia)
81% 76% 76%
65%
57% 54% 54%
48% 43% 43%
20%
Optimizebusiness
model(customers,
products,channels)
Optimizeoperating
model,process,&
businessarchitecture
Improve&automate
businessprocesses
Restructureto
accommodategrowth
requirements
Optimisecostmodel
Continuetocomply
withrecent&impending
regulation
Improveperformance
managementprocesses,
incentives&reward
Improverisk
managementpractices
andmethods
Upgradeorreplace
corebankingsystems
Developtalent,
increasestaffretention,
refinesuccession
planning
Consideracquisitions,
mergers,strategic
alliances
70%
65%
55%
43%
34%
28%
11%
Continue to comply
with recent &
impending
regulation
Ensure that our
cost model is
optimized
Ensuring that our
operating model,
process, and
business
architecture are
optimized
Continue to
restructure to
accommodate the
effects of the recent
crisis/recession
Conducting
activities to make
up for
decificiencies
Looking to
upgrade our core
systems
Other
Balancing growth with cost and profitability
Growth requires investment, and investment impacts
profitability. When asked how their companies plan to
balance growth with cost and profitability, our survey
respondents have a wide range of views:
• “We are focusing on selling non-core assets,
increasing capital ratios, building liquidity and
reducing risk. We're in a competitive
marketplace, and we have to win business by
understanding customers' needs and offering
the best combination of products, service and
value. The balance of cost and profit is there
when business has its return on investment.”
• “In the long term, profitability is not the major
concern, I think sustainability of our business
and not doing anything wrong is more important,
because we are willing to pay the cost in the
short term if it can give us long-term
sustainability.”
• “Growth at an additional cost is not the strategy.
The idea of growth is to do more business and at
the same time reduce cost. We cannot grow by
increasing the costs. Our focus is to grow in the
areas of our choice.”
In order to implement their growth strategies,
respondents believe their companies need to
continue to comply with recent and impending
regulation, ensure that their cost models are
optimized, and ensure that their operating models,
processes, and business architecture are optimized
as well (Figure 7).
Figure 7a: Of the following, which are the top activities you feel your company needs to address in order to implement its growth
strategy? (Global)
Figure 7b: Of the following, which are the top three activities you feel your company needs to address in order to implement its
growth strategy? (Ethiopia)
81% 76% 76%
65%
57% 54% 54%
48% 43% 43%
20%
imizebusiness
l(customers,
ucts,channels)
izeoperating
process,&
ssarchitecture
ve&automate
sprocesses
ctureto
modategrowth
ments
misecostmodel
etocomply
nt&impending
performance
entprocesses,
s&reward
erisk
mentpractices
hods
deorreplace
nkingsystems
talent,
staffretention,
ccession
racquisitions,
strategic
70%
65%
55%
43%
34%
28%
11%
Continue to comply
with recent &
impending
regulation
Ensure that our
cost model is
optimized
Ensuring that our
operating model,
process, and
business
architecture are
optimized
Continue to
restructure to
accommodate the
effects of the recent
crisis/recession
Conducting
activities to make
up for
decificiencies
Looking to
upgrade our core
systems
Other
Figure 7a: Of the following, which are the top activities you feel your company needs to address in order to
implement its growth strategy? (Global)
Figure 7b: Of the following, which are the top three activities you feel your company needs to address in order to
implement its growth strategy? (Ethiopia)
10. 10
Most respondents say that their core systems — which
process daily transactions, and post updates to accounts
and other financial records — can support their growth
strategies (Figure 8). Only one-fourth expect to upgrade
or replace these key resources (Figure 8).
By taking a balanced approach to growth, and investing
in core systems to help carry out their strategies,
financial services companies can position themselves to
compete effectively in the coming years.
0% 50% 100%
Workforce information
Cost analysis and attribution
Profitability analysis
Credit risk management
Asset & liability management
Channel integration
Total customer view
Management information
Channel monitoring
Process automation
Customer communication
Financial control
Statutory reporting
Customer service
Regulatory reporting
Customer needs information
Transaction processing
Inadequate or very (1 or 2
Inadequate or very (1 or 2)
Adequate 3
2%
26%
72%
Figure 8a: How well do your company’s core systems (e.g. back-end systems that process daily transactions, and
post updates to accounts and other financial records) support your growth strategy? (Global)
Figure 8b: How well do your company’s core systems (e.g. back-end systems that process daily transactions, and
post updates to accounts and other financial records) support your growth strategy? (Ethiopia)
Very Inadequate Inadequate Adequate Supportive Very Supportive
11. Elements for successful growth in financial services Poised for growth 11
Figure 9a: How important are the following focus areas that management in your company looks at when
accessing one of the growth strategies? (Global)
Figure 9b: How important are the following focus areas that management in your company looks at when
accessing one of the growth strategies? (Ethiopia)
Managing for growth
As companies are preparing themselves for growth,
having the right financial and other management
information in place is of top importance. Ensuring that
data can be translated into real intelligence is needed
to enable targeted growth, and today many firms are
operating on systems, which do not enable the level of
data management that would ideally be needed.
Without the proper management information, firms can
face a number of damaging issues when implementing
a growth strategy. While a number of factors are
important when assessing growth strategies, it is not
surprising that two stand out ahead of all others,
according to our research: reputational impact and
return on investment (Figure 9).
61%
62%
66%
75%
78%
79%
87%
90%
0% 50% 100%
Degree of competition
Risk appetite
Prospects for market leadership
Core capabilities & competitive advantage
Capital requirements
Return on investment
Reputational impact
Risk appetite
Branding & advertising
Degree of competition
Reputational impact
Prospects for market leadership
Return on investment
Risk profile
Capital requirements
Core capabilities & competitive advantage 47%
53%
59%
60%
63%
65%
65%
77%
84%
0% 50% 100%
12. 12
Without sufficient ROI, organizations cannot continue
to grow. However, in the wake of the recent economic
crisis, reputation is just as important. Executives today
recognize that they need a strong brand if they are to
expand both within and beyond their current markets.
Respondents also acknowledge that the risk profile of
possible growth strategies is also important, followed
by the capital they require, and how well the strategies
match their core capabilities.
As financial services companies consider new growth
initiatives, respondents believe they have been most
effective in adapting to market conditions, which
have certainly presented challenges as the financial
services industry has recovered from economic stress
over the past several years (Figure 10). Executives
also give themselves high marks for goal setting, risk
management, and execution related to their growth
strategies.
Figure 10a: Of the following, which would you rank as the top-three most effective
areas your company's leadership has used to manage their growth strategy? (Global)
Figure 10b: Of the following, which would you rank as the top-three most effective areas your company’s
leadership has used to manage their growth strategy? (Ethiopia)
Without sufficient ROI, organizations cannot continue
to grow. However, in the wake of the recent economic
crisis, reputation is just as important. Executives
today recognize that they need a strong brand if they
are to expand both within and beyond their current
markets.
Respondents also acknowledge that the risk profile of
possible growth strategies is also important, followed
by the capital they require, and how well the
strategies match their core capabilities.
As financial services companies consider new growth
initiatives, respondents believe they have been most
effective in adapting to market conditions, which have
certainly presented challenges as the financial
services industry has recovered from economic stress
over the past several years (Figure 10). Executives
also give themselves high marks for goal setting, risk
management, and execution related to their growth
strategies.
Figure 10a: Of the following, which would you rank as the top-three most effective areas your company's
leadership has used to manage their growth strategy? (Global)
Figure 10b: Of the following, which would you rank as the top-three most effective areas your company's
leadership has used to manage their growth strategy? (Ethiopia)
64%
54% 54%
47%
41%
22%
2%
Adapting to
changing
market
conditions
Goal setting Risk
management
methods &
practices
Execution Resource
allocation
Resource
acquisition &
resource
retention
Other
85% 82% 80%
70% 69% 66%
Goal & target
setting
Strategy
execution &
programme
implementation
Adapting to
changing market
conditions
Resource
allocation &
trade-offs
Risk
management
methods &
practices
Resource
acquisition &
resource
retention
Elements for successful growth in financial services – Ethiopia Focus 2015 12
Without sufficient ROI, organizations cannot continue
to grow. However, in the wake of the recent economic
crisis, reputation is just as important. Executives
today recognize that they need a strong brand if they
are to expand both within and beyond their current
markets.
Respondents also acknowledge that the risk profile of
possible growth strategies is also important, followed
by the capital they require, and how well the
strategies match their core capabilities.
As financial services companies consider new growth
initiatives, respondents believe they have been most
effective in adapting to market conditions, which have
certainly presented challenges as the financial
services industry has recovered from economic stress
over the past several years (Figure 10). Executives
also give themselves high marks for goal setting, risk
management, and execution related to their growth
strategies.
Figure 10a: Of the following, which would you rank as the top-three most effective areas your company's
leadership has used to manage their growth strategy? (Global)
Figure 10b: Of the following, which would you rank as the top-three most effective areas your company's
leadership has used to manage their growth strategy? (Ethiopia)
64%
54% 54%
47%
41%
22%
2%
Adapting to
changing
market
conditions
Goal setting Risk
management
methods &
practices
Execution Resource
allocation
Resource
acquisition &
resource
retention
Other
85% 82% 80%
70% 69% 66%
Goal & target
setting
Strategy
execution &
programme
implementation
Adapting to
changing market
conditions
Resource
allocation &
trade-offs
Risk
management
methods &
practices
Resource
acquisition &
resource
retention
13. Elements for successful growth in financial services Poised for growth 13
Financial services companies also recognize the need
to reward investors for their patience and support
throughout the economic crisis and subsequent
recovery. Nearly three-quarters of our respondents say
that they will return cash to shareholders once their
new growth strategies have become profitable, while
about one-quarter intend to retain profits for future
acquisitions or other purposes (Figure 11).
Figure 11a: What is your company’s plan of action once the growth strategies in
place have been profitable? (Global)
Figure 11b: What is your company’s plan of action once the growth strategies in
place have been profitable? (Ethiopia)
Financial services companies also recognize the need
to reward investors for their patience and support
throughout the economic crisis and subsequent
recovery. Nearly three-quarters of our respondents say
that they will return cash to shareholders once their
new growth strategies have become profitable, while
about one-quarter intend to retain profits for future
acquisitions or other purposes (Figure 11).
Figure 11a: What is your company’s plan of action once the
growth strategies in place have been profitable? (Global)
Figure 11b: What is your company’s plan of action once the
growth strategies in place have been profitable? (Ethiopia)
100% 100%
Return cash to
shareholders (e.g.
increase dividends)
Re-invest in
infrastructure and
capacity for further
growth
17%
Stockpile cash / capital for
mergers and acquisitions
73%
4%
Return cash to
shareholders (e.g.
increase dividends)
23%
Stockpile cash /capital
for mergers and
acquisitions
Other
Financial services companies also recognize the need
to reward investors for their patience and support
throughout the economic crisis and subsequent
recovery. Nearly three-quarters of our respondents say
that they will return cash to shareholders once their
new growth strategies have become profitable, while
about one-quarter intend to retain profits for future
acquisitions or other purposes (Figure 11).
Figure 11a: What is your company’s plan of action once the
growth strategies in place have been profitable? (Global)
Figure 11b: What is your company’s plan of action once the
growth strategies in place have been profitable? (Ethiopia)
100% 100%
Return cash to
shareholders (e.g.
increase dividends)
Re-invest in
infrastructure and
capacity for further
growth
17%
Stockpile cash / capital for
mergers and acquisitions
73%
4%
Return cash to
shareholders (e.g.
increase dividends)
23%
Stockpile cash /capital
for mergers and
acquisitions
Other
14. 14
21%
11%
16%
16%
18%
18%
Attitudes towards analytics
Having a robust technological and operational
infrastructure is another important factor for growth.
Nearly all respondents have an infrastructure that
provides a comprehensive view of revenues business by
business, while slightly fewer have an infrastructure that
provides a holistic view of revenues country by country
(Figure 12).
Like retailers and other consumer-focused businesses,
financial services companies are employing data
analytics when making key business decisions. Half of
all respondents use analytics to either create a complete
view of the customer or manage customer relationships
(Figure 13).
Another one-quarter of respondents say they use
analytics principally for marketing purposes or just in
certain business units. Only one-fifth report that they do
not use data analytics.
Figure 12a: Is your company using customer analytics tools to gather data on
customer behaviour to help make key business decisions? (Global)
Figure 12b: Is your company using customer analytics tools to gather data on
customer behaviour to help make key business decisions? (Ethiopia)
28%
22%
18%
16%
12%
Yes, for complete view of the customer
Yes, for customer relationship management
Yes, a bit for marketing purposes
Certain businesses are using analytics
No
Not sure
Customer relationship management
Customer profitability
Marketing purposes
Complete view of the customer
Risk management purposes
Customer preferences and buying behaviour
15. Elements for successful growth in financial services Poised for growth 15
Compliance with new regulations
Brand risk from negative customer reactions to data collection
Quality of the data analytics themselves to drive growth
Privacy and security
Flexibility and adaptability of our systems
Other
Quality of the data analytics themselves to drive growth
Flexibility and adaptability of our systems
Brand risk from negative customer reactions to data collection
Compliance with new regulations
Privacy and security
Financial services companies share several concerns
about using data analytics to drive profitable growth.
Three-quarters cite compliance with new regulations and
potential brand risk from negative customer reactions
to data collection/analytics as concerns (Figure 14).
Slightly more than half say that the quality of the data
analytics themselves and privacy/security issues are on
their radar. In an age when organizations in virtually
all sectors are relying more and more on the power of
information systems to help generate growth, financial
services companies are wise to employ the power of
data analytics prudently and carefully.
Figure 13a: What are your three biggest concerns of using customer analytics to drive
profitable growth? (Global)
Figure 13b: What are your three biggest concerns of using customer analytics to drive
profitable growth? (Ethiopia)
Financial services companies share several
concerns about using data analytics to drive
profitable growth. Three-quarters cite compliance
with new regulations and potential brand risk from
negative customer reactions to data
collection/analytics as concerns (Figure 14). Slightly
more than half say that the quality of the data
analytics themselves and privacy/security issues are
on their radar. In an age when organizations in
virtually all sectors are relying more and more on the
power of information systems to help generate
growth, financial services companies are wise to
employ the power of data analytics prudently and
carefully.
Figure 13a: What are your three biggest concerns of using customer analytics to drive profitable growth?
(Global)
Figure 13b: What are your three biggest concerns of using customer analytics to drive profitable growth? (Ethiopia)
78%
77%
69%
67%
50%
Quality of the data analytics themselves to drive growth Flexibility
and adaptability of our systems
Brand risk from negative customer reactions to data collection
Compliance with new regulations
Privacy and security
74%
74%
63%
62%
49%
5%
Compliance with new regulations
Brand risk from negative customer reactions to data collection
Quality of the data analytics themselves to drive growth
Privacy and security
Flexibility and adaptability of our systems
Other
Financial services companies share several
concerns about using data analytics to drive
profitable growth. Three-quarters cite compliance
with new regulations and potential brand risk from
negative customer reactions to data
collection/analytics as concerns (Figure 14). Slightly
more than half say that the quality of the data
analytics themselves and privacy/security issues are
on their radar. In an age when organizations in
virtually all sectors are relying more and more on the
power of information systems to help generate
growth, financial services companies are wise to
employ the power of data analytics prudently and
carefully.
Figure 13a: What are your three biggest concerns of using customer analytics to drive profitable growth?
(Global)
Figure 13b: What are your three biggest concerns of using customer analytics to drive profitable growth? (Ethiopia)
78%
77%
69%
67%
50%
Quality of the data analytics themselves to drive growth Flexibility
and adaptability of our systems
Brand risk from negative customer reactions to data collection
Compliance with new regulations
Privacy and security
74%
74%
63%
62%
49%
5%
Compliance with new regulations
Brand risk from negative customer reactions to data collection
Quality of the data analytics themselves to drive growth
Privacy and security
Flexibility and adaptability of our systems
Other
16. 16
Growth results when reward outweighs risk. In any
product and market strategy, it is essential to have
appropriate controls in place to manage the broad
range of risks that financial services companies face,
both within their organizations and among their
customers, their counterparties, and the countries where
they operate.
Our survey respondents recognize the importance of
having these controls in place to help manage risk:
• “We have a rigorous risk control and capital
requirement function, as regulation is notgoing
to get easier in the near future. Any new initiative
has to be aligned with the risk management of our
parent company.”
• “We are improving risk controls andmonitoring
systems at the bank. Moreoverfinalizing our
systems rationalizationprocesses is necessary to
improve our riskmanagement.”
• “We fully support an overall riskmanagement
objective, which includes ashift away from capital-
intensive andnonadjustable products.”
• “We remain committed to forecasting
andsustaining a strong, flexible, and productiverisk
management framework, one that willallow us to
respond to market forces in atimely fashion while
fulfilling our highestcommitment to customer
service.”
• “We have initiated a major transformation,designed
to reduce risk and repositionbusinesses for
continued growth in thecurrent environment.”
Looking for sustainable growth
Financial services companies need to have governance
structures and risk management policies in place so
that when ideas for sustainable growth emerge, there
are controls in place that enable management to assess
and implement those ideas effectively — whether they
involve new products, new markets, or both.
Regulatory compliance and relationships with
supervising agencies consume much management
attention among global banks, securities firms,
insurance companies, and asset managers. According to
our study, financial services companies say that ensuring
adequate compliance processes, embedding leading
risk management processes in their organizations, and
ensuring that they have effective relationships with their
regulators are important steps for sustainable growth
(Figure 15).
Controlling for growth
17. Elements for successful growth in financial services Poised for growth 17
Figure 14a: In the current environment, what are the three most important steps your
company is taking to prepare for growth? (Global)
Figure 14b: In the current environment, what are the three most important steps your
company is taking to prepare for growth? (Ethiopia)
Figure 14a: In the current environment, what are the three most important steps your company is taking to prepare for growth?
(Global)
80%
75%
72%
70%
65%
56%
55%
51%
48%
37%
Promote a strong sustainable growth culture Increase sales
capacity
Modernise existing channels
Expand geographical footprint
Develop new channels
Embed leading risk management processes Ensure
appropriate reward and incentive structures Ensure that we
have the right boards
Ensure adequate compliance processes
Ensure that regulators are happy with us
Figure 14b: In the current environment, what are the three most important steps your company is taking to prepare for growth?
(Ethiopia)
62%
60%
56%
44%
29%
29%
1%
Ensure adequate compliance processes
Embed leading risk management processes Ensure that
regulators are happy with us Promote a strong sustainable
growth culture Ensure appropriate reward and incentive
structures Ensuring that we have the right boards
Other
Elements for successful growth in financial services – Ethiopia Focus 2015 17
Figure 14a: In the current environment, what are the three most important steps your company is taking to prepare for growth?
(Global)
80%
75%
72%
70%
65%
56%
55%
51%
48%
37%
Promote a strong sustainable growth culture Increase sales
capacity
Modernise existing channels
Expand geographical footprint
Develop new channels
Embed leading risk management processes Ensure
appropriate reward and incentive structures Ensure that we
have the right boards
Ensure adequate compliance processes
Ensure that regulators are happy with us
Figure 14b: In the current environment, what are the three most important steps your company is taking to prepare for growth?
(Ethiopia)
62%
60%
56%
44%
29%
29%
1%
Ensure adequate compliance processes
Embed leading risk management processes Ensure that
regulators are happy with us Promote a strong sustainable
growth culture Ensure appropriate reward and incentive
structures Ensuring that we have the right boards
Other
Promote a strong sustainable growth culture
Increase sales capacity
Modernise existing channels
Expand geographical footprint
Develop new channels
Embed leading risk management processes
Ensure appropriate reward and incentive structures
Ensure that we have the right boards
Ensure adequate compliance processes
Ensure that regulators are happy with us
Ensure adequate compliance processes
Embed leading risk management processes
Ensure that regulators are happy with us
Promote a strong sustainable growth culture
Ensure appropriate reward and incentive structures
Ensuring that we have the right boards
Other
18. 18
Mandates for regulatory compliance are increasing in
markets around the world, yet relatively few financial
services companies see these new requirements as
barriers to growth (Figure 16). On the contrary, nearly
half of our respondents say increased regulations will
not affect the growth of their companies and nearly
one-third say that the greater government oversight will
actually help their companies achieve growth.
Figure 15a: There have been a number of new government regulations that financial services companies need to
comply with in the coming years. How do you think these will affect growth in your company? (Global)
Figure 15b: There have been a number of new government regulations that financial services companies need to
comply with in the coming years. How do you think these will affect growth in your company? (Ethiopia)
45%
53%
35%
6%
6%
30%
13%
7%
5%
Will help our organisation to achieve growth aspirations
Will prevent growth in the near-term
Will prevent growth overall
Will not have an effect on organisation’s growth
Will not have an effect on organisation’s growth
Will help our organisation to achieve growth aspirations
Will prevent growth in the near-term
Will prevent growth overall
Not sure
19. Elements for successful growth in financial services Poised for growth 19
Among the relatively few companies that view greater
regulation as an impediment to growth, most cite either
cost or the impact on specific products as their leading
reasons (Figure 17).
With proper controls in place, financial services
companies can implement their growth plans confidently
and effectively.
Figure 16a: What are the three most important potential obstacles to growth from
new regulations and compliance issues? (Global)
Figure 16b: What are the three most important potential obstacles to growth from
new regulations and compliance issues? (Ethiopia)
Among the relatively few companies that
view greater regulation as an impediment
to growth, most cite either cost or the
impact on specific products as their
leading reasons (Figure 17).
With proper controls in place, financial services
companies can implement their growth plans
confidently and effectively.
Figure 16a: What are the three most important potential obstacles to growth from new regulations and compliance
issues? (Global)
89%
79%
68%
63%
New regulations costing us an enormous amount
New regulation impacting specific product areas
Need help understanding impact of regulation on
growth opportunities
Inability to comply with all of them soon enough
Figure 16b: What are the three most important potential obstacles to growth from new regulations and compliance
issues? (Ethiopia)
78%
76%
71%
65%
New regulations costing an enormous amount
New regulation impacting specific product areas
Need help understanding impact of regulation on
growth opportunities
Inability to comply with all of them soon enough
Among the relatively few companies that
view greater regulation as an impediment
to growth, most cite either cost or the
impact on specific products as their
leading reasons (Figure 17).
With proper controls in place, financial services
companies can implement their growth plans
confidently and effectively.
Figure 16a: What are the three most important potential obstacles to growth from new regulations and compliance
issues? (Global)
89%
79%
68%
63%
New regulations costing us an enormous amount
New regulation impacting specific product areas
Need help understanding impact of regulation on
growth opportunities
Inability to comply with all of them soon enough
Figure 16b: What are the three most important potential obstacles to growth from new regulations and compliance
issues? (Ethiopia)
78%
76%
71%
65%
New regulations costing an enormous amount
New regulation impacting specific product areas
Need help understanding impact of regulation on
growth opportunities
Inability to comply with all of them soon enough
New regulations costing us an enormous amount
New regulation impacting specific product areas
Need help understanding impact of regulation
on growth opportunities
Inability to comply with all of them soon enough
New regulations costing an enormous amount
New regulation impacting specific product areas
Need help understanding impact of regulation on
growth opportunities
Inability to comply with all of them soon enough
20. 20
No discussion of growth would be complete without
addressing the role of talent. As members of a service
industry, financial services companies rely on the skills
of their people to prosper. New business models, new
products, and new markets require managers and
employees who can not only develop strategies for
growth, but also execute them effectively.
Comments from our survey respondents reflect the
importance of attracting and retaining valued staff:
• “We have geared ourselves to tackle competition
byhiring more talent and training the staff to
improve theproductivity.”
• “Our focus has also moved towards recruiting
professionals, high caliber people, and retaining
them.”
• “Experienced people are very tough to find and
thesepeople can solve tough issues very easily.”
• “We are continuing to recruit more people and
we aredoing what is required. The changing
technology andcustomer demand is building up
pressure on our product pipeline.”
• “We are doing a lot to cut costs and aim to
maintainproductivity, so we are recruiting more
people andproviding training to our staff.”
Having the right people doing the right things in the
right way ranks high in the opinion of financial services
executives. Well over three-quarters of our respondents
believe that improving operating effectiveness,
increasing performance for growth, and creating a
desirable culture for talent retention are important
drivers of their workforce agendas (Figure 18).
Staffing for growth
Figure 17a: How important are the following drivers of your workforce agenda? (Global)
No discussion of growth would be complete without
addressing the role of talent. As members of a service
industry, financial services companies rely on the skills of
their people to prosper. New business models, new
products, and new markets require managers and
employees who can not only develop strategies for growth,
but also execute them effectively.
Comments from our survey respondents reflect the
importance of attracting and retaining valued staff:
• “We have geared ourselves to tackle competition by
hiring more talent and training the staff to improve the
productivity.”
• “Our focus has also moved towards recruiting
• “Experienced people are very tough to find and these
people can solve tough issues very easily.”
• “We are continuing to recruit more people and we are
doing what is required. The changing technology and
customer demand is building up pressure on our
product pipeline.”
• “We are doing a lot to cut costs and aim to maintain
productivity, so we are recruiting more people and
providing training to our staff.”
Having the right people doing the right things in the right
way ranks high in the opinion of financial services
executives. Well over three-quarters of our respondents
believe that improving operating effectiveness, increasing
performance for growth, and creating a desirable culture
for talent retention are important drivers of their workforce
Staffing for growth
Figure 17a: How important are the following drivers of your workforce agenda? (Global)
91% 89%
80%
71% 67%
49%
24%
1%
Improving
operating
effectiveness
Increasing
performance
for growth
Creating a
desirable
culture for
talent
Reducing
costs
Developing
metrics for
hiring the
right kind of
talent
Building
shared
services
Increasing
outsourcing
Other
89%
84%
78%
70% 68%
63%
47%
Improving Increasing Creating a Developing Reducing Building Increasing
21. Elements for successful growth in financial services Poised for growth 21
Figure 17b: How important are the following drivers of your workforce agenda? (Ethiopia)
Elements for successful growth in financial services – Ethiopia Focus 2015 20
• “Our focus has also moved towards recruiting
performance for growth, and creating a desirable culture
for talent retention are important drivers of their workforc
Figure 17a: How important are the following drivers of your workforce agenda? (Global)
91% 89%
80%
71% 67%
49%
24%
1%
Improving
operating
effectiveness
Increasing
performance
for growth
Creating a
desirable
culture for
talent
Reducing
costs
Developing
metrics for
hiring the
right kind of
talent
Building
shared
services
Increasing
outsourcing
Other
89%
84%
78%
70% 68%
63%
47%
Improving
operating
effectiveness
Increasing
performance
for growth
Creating a
desirable
culture for
talent
retention
Developing
metrics for
hiring the
right kind of
talent
Reducing
costs
Building
shared
services
Increasing
outsourcing
Many financial services companies were forced to
reduce headcount and make other changes to their
business models over the past few years. Now that they
are adopting new product and market strategies to
resume growing, some organizations are facing hurdles
as they look to hire staff to help carry out their plans.
More than half of the companies we surveyed say
that finding talent with appropriate qualifications
and developing the right incentives to keep turnover
at appropriate levels are important challenges to
perpetuating their growth models (Figure 19).
Staffing is a key requirement for strategic growth. Hiring
motivated employees, tasking them with challenging
responsibilities, and rewarding them for meaningful
performance can help financial services companies reach
their goals.
22. 22
Elements for successful growth in financial services – Ethiopia Focus 2015 22
Planning for growth is a continuous process. At
various points in its lifecycle, a financial services
company will find itself needing to focus on various
aspects of a growth strategy — getting fit, managing,
controlling, and staffing — for multiple products,
businesses and markets. It is the balance of
managing these four elements that will lead a
company to profitable growth.
As evidenced in this survey, companies are working
toward growth in a conservative, sustainable way.
It is important that orga
governance model that allows them to focus on these
strategies for growth and maintain an appropriate
level of attention among them.
Practically speaking, this means providing business
units with adequate resources to foster growth and
providing employees with challenging responsibilities
to keep them motivated and engaged.
Through this combination of resources and people
within a manageme
organizations can create an environment for
innovation that can lead to further sustainable growth
as they focus on the development of new products
and markets.
There is no single recipe for success, but by
maintaining a balanced approach to growth, financial
services companies will be ready to take advantage
of business opportunities that they create.
Conclusion
Balancing for growth
92%
77%
54%
38%
Finding talent in the right location
Finding appropriately qualified talent
Developing right incentives to keep turnover levels
appropriate
Finding enough people to fill positions
0% 20% 40% 60% 80% 100%
Figure 18b: How important are the following difficulties you have encountered in trying to obtain the
right kind of talent to help perpetuate your growth models? (Ethiopia)
Finding talent in the right location
Finding appropriately qualified talent
Developing right incentives to keep turnover levels
appropriate
Finding enough people to fill positions
Figure 18a: How important are the following difficulties you have encountered in trying to
obtain the right kind of talent to help perpetuate your growth models? (Global)
Finding talent in the right location
Finding enough people to fill positions
Developing right incentives to keep turnover levels appropriate
Finding appropriately qualified talent
Other
Elements for successful growth in financial services – Ethiopia Focus 2015 21
Many financial services companies were forced to reduce
headcount and make other changes to their business
models over the past few years. Now that they are
adopting new product and market strategies to resume
growing, some organizations are facing hurdles as they
look to hire staff to help carry out their plans.
More than half of the companies we surveyed say that
finding talent with appropriate qualifications and
developing the right incentives to keep turnover at
appropriate levels are important challenges to perpetuating
their growth models (Figure 19).
Staffing is a key requirement for strategic growth. Hiring
motivated employees, tasking them with challenging
responsibilities, and rewarding them for meaningful
performance can help financial services companies reach
their goals.
Figure 17b: How important are the following drivers of your workforce agenda? (Ethiopia)
Figure 18a: How important are the following difficulties you have encountered in trying to obtain the right kind of
talent to help perpetuate your growth models? (Global)
5%
47%
53%
62%
66%
Other
Finding talent in the right location
Finding enough people to fill positions
Developing right incentives to keep turnover
levels appropriate
Finding appropriately qualified talent
0% 10% 20% 30% 40% 50% 60% 70%
Figure 18b: How important are the following difficulties you have encountered in trying to obtain the right kind of
talent to help perpetuate your growth models? (Ethiopia)
23. Elements for successful growth in financial services Poised for growth 23
Conclusion
Balancing for growth
Planning for growth is a continuous process. At various
points in its lifecycle, a financial services company will
find itself needing to focus on various aspects of a
growth strategy — getting fit, managing, controlling,
and staffing — for multiple products, businesses and
markets. It is the balance of managing these four
elements that will lead a company to profitable growth.
As evidenced in this survey, companies are working
toward growth in a conservative, sustainable way. It
is important that organizations develop a governance
model that allows them to focus on these strategies for
growth and maintain an appropriate level of attention
among them.
Practically speaking, this means providing business units
with adequate resources to foster growth and providing
employees with challenging responsibilities to keep
them motivated and engaged.
Through this combination of resources and people
within a management and governance framework,
organizations can create an environment for innovation
that can lead to further sustainable growth as they focus
on the development of new products and markets.
There is no single recipe for success, but by maintaining
a balanced approach to growth, financial services
companies will be ready to take advantage of business
opportunities that they create.
