Banking businesses, whether NZ owned, or part of global banking groups need to think and act both within New Zealand and across borders.
Banks need to think and act both within New Zealand and across borders.
KPMG’s Retail and Corporate & Investment Banking teams banking teams are led by partners with a wealth of client experience and relationships with many of the banking leaders in New Zealand and Australasia, regulators and key industry bodies. They are well versed in the RBNZ’s regulatory framework.
Global investment banking businesses need to think and act across borders. We can coordinate our services internationally to assist in addressing these global challenges, while helping you meet your New Zealand obligations.
The GFC impacted on investment banking in terms of both finance and reputation and while New Zealand’s banking industry had been relatively unscathed there is a much tighter focus on risk management, cost control initiatives and the evolution of regulatory regimes. By far, some of the biggest market impacts we are seeing are from culture and conduct.
We listen to our clients and focus on the issues that really matter to their business.
How KPMG can help
Growth - Branch banking is being revitalised and multi-channel delivery continues to evolve. Mobile payments and digitisation are taking off and changing demographics are helping to drive demand for new and different products. While there have been some recent mergers and acquisitions, one of the main competitive threats is from disruptors/enablers and their new technology.
Performance - retail banks face some specific performance challenges. They must efficiently manage a range of different distribution channels; branch, telephone, and increasingly mobile and internet banking platforms are all in demand, often by the same customer. They must get a balance between in-sourcing and outsourcing and build effective relationships with suppliers. They must remain vigilant against financial crime and cyber theft, which can adversely affect the bottom line and their reputation in the market. Whilst doing all this they must continue to improve customer satisfaction. At the same time they must innovate and keep ahead of the disruptors in their space
Governance - generally speaking, governance, internal control and risk management in the New Zealand retail banking industry is strong. Basel III is having a significant impact on the industry but, in New Zealand, its effects and requirements are generally well understood and the techniques for management control and trading of credit risk are well advanced. But the liquidity crunch during the GFC has demonstrated the need for constant vigilance to test all possible credit risk scenarios and to build strategies for survival. Quality governance, internal controls and reporting are critical in an industry where risk is a constant. There continue to be well publicized examples of catastrophic breakdowns in controls, leading to major trading losses in the banking sector. These reiterate the need to effectively manage risk and this is even more important with the advent of culture and conduct reviews.
Get in touch to discuss how we can help your business achieve your objectives.