In the aftermath of the financial crisis, banks’ attention has shifted somewhat from growth to embrace a wider range of activities, from strategic planning to improved operational efficiency that will help to improve margins, profitability and return on equity (ROE). Simultaneously, regulators have introduced more onerous demands, with compliance, increasingly stringent capital requirements and risk assessment becoming a far greater influence over merger and acquisition (M&A) activity.
For the corporate development team in banking, the impact is significant. Those who have been traditionally tasked with M&A activity now find themselves needing to address a wider range of responsibilities and the need to develop new skills and new talents.
To gain a better picture of the challenges facing our clients in these roles, we spoke to senior executives from 26 corporate development teams from some of the world’s largest banking institutions.
The report provides a compelling insight into the factors that are driving change for the corporate development teams in contrast to their realities in 2010 and importantly where they see their role evolving in the years ahead.
From decreases in deal volume contrasted with increases in deal activity to an ever growing need to address the demands of regulatory insight, the report offers a window into how the corporate development role is being affected and how higher profile banks (global systemically important financial institutions, or G-SIFI) are responding to these pressures. The findings, augmented by expert comment from KPMG practitioners, paint a vivid picture of a function in the midst of a major transition, shifting from pure deals to encompass wider strategic, operational and customer issues.
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