A Market Under Siege | KPMG | LU

A Market Under Siege

A Market Under Siege

Our Partner Anne-Sophie offers her opinion on the sector

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KPMG in Luxembourg

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Today’s financial services companies are operating in an increasingly complex environment, one where the fundamental definition of how customers experience banking is being challenged and changed. Leading companies also face competition from a myriad of nontraditional providers who threaten to disintermediate the traditional banking business model. Finally, in response to the most recent global financial crisis, banks of all sizes have been burdened with increasing regulations, a reduction in available capital, and mounting demands for skilled resources. One bank executive summarized the environment aptly: “We are operating in a marketplace under siege.”

The goal for leading banks is twofold: first, to proactively capitalise on disruption by growing market share and A marketplace under siege increasing margins; and second, to vigorously protect high-value segments and clients. Banks that are successful at both will create shareholder value and a long-term competitive advantage. While simple in concept, the path to achieving these objectives requires a keen understanding of digital disrupters and enablers, customer experience, and strategic value-drivers.

A theme that will additionally dominate boardroom discussions and affect clients’ business models and strategies in 2018 is the shifting sands of global regulation, especially between the United Kingdom and the European Union, and the strong possibility that Brexit will fragment the scene.

Dealing with multiple regimes will entail difficult, intense, and strenuous conversations on all sides, which must occur within, and squarely address, a regulatory environment that is still gaining in opaqueness and complexity. These regulatory conversations must be kept going in 2017 for banks’ management teams to understand the impacts on their business models.

The purpose of this edition of Banking Insights is to discuss these and other current themes, including how and why:

  • To embrace technology challenges as paths to innovative solutions for clients 
  • To rebuild trust in order to forge sustainable relationships
  • To implement efficient dashboards
  • To comply with stricter rules on tax transparency
  • To monitor and mitigate cybersecurity risks.

We hope you enjoy reading the articles and interviews in this edition, and we look forward to discussing these exciting subjects with you in the near future.

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