The Financial Services industry faces significant transformation over the next 10 years. This transformation is being driven largely by digital and regulation and will lead to a fundamental change in business models of our financial institutions.
Leading organisations recognise the strengths and weaknesses of their existing culture are actively evolving their organisation to respond to this transformation. Boards and management are reflecting on the culture and sub-cultures of their organisations more than ever before. They are assessing whether issues exist, their underlying causes and what actions can be taken to evolve their culture, including protecting those critical features that have served them well. Forward thinking leaders have identified that a positive culture can be a differentiator in a saturated financial services landscape, both for staff, customers and investors.
KPMG has recently launched a paper titled Financial services cultural assessment and transformation which reflects on the culture in financial services, how it can be understood, the case for change and the actions that can be taken to improve the culture in order to drive better outcomes for all stakeholders. Within the paper we identify the differences between culture, risk culture and conduct risk. Quite often financial services institutions refer to the three interchangeably. It is helpful to have a clearer definition and articulation of the inter-relationships. It also discusses the cultural challenge in financial services of serving the competing needs of a number of important stakeholders, including: customers, society (including via regulators), shareholders, employees and the company itself.
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