Ce diaporama a bien été signalé.
Le téléchargement de votre SlideShare est en cours. ×

Structural Reform for Improved Financial Performance and Innovation

Publicité

Plus De Contenu Connexe

Publicité
Publicité

Livres associés

Gratuit avec un essai de 30 jours de Scribd

Tout voir

Livres audio associés

Gratuit avec un essai de 30 jours de Scribd

Tout voir

Structural Reform for Improved Financial Performance and Innovation

  1. 1. Structural Reform for Improved Financial Performance and Innovation February 2015
  2. 2. Overview GSR is re-writing the financial services landscape, enacting lessons learned from the crisis and creating strategic implications for financial institutions Demonstrating value to key stakeholders GSR is re-writing the financial services landscape • Re-shaping institutions to be more resilient • Implications for geographies, products and client mix • Need for investment and hiring Organizing a longer term response • Success through proactively organizing the response • Major themes of GSR can provide a framework for the response Unlocking potential in a new ecosystem • Local not global • Market-driven specialization • Start with compliance and efficiency • Innovation mindset Solving the strategic conundrum • Macroeconomic disruptions and unique industry challenges • Institutions needing to remain focused on three key imperatives within the new ecosystem Copyright © 2015 Accenture All rights reserved. 2
  3. 3. GSR is re-writing the financial services landscape Rule making has been prolific as regulators have sought to add greater resilience, leaving institutions faced with making hard choices about their post- crisis business model Key GSR regulations Early trends in responses • Basel III • Enhanced Prudential Standards • Volcker Rule • Title I Resolution Plans • OCC Heightened Expectations • Swaps Push-Out Rule • Total Loss Absorbing Capacity • GSIB Capital Surcharge Proposal • CCAR and Stress Testing Standards • Ring Fencing • Banking Reform Act 2009 • Bank Recovery and Resolution • Structural Reform • MiFiD II BIS US UK EU Geography: Developing tailored propositions by market whilst seeking to ring-fence more operational activities for efficiency Products: Developing offerings that enable more efficient use of capital or better align to core competency Client mix: Targeting clients based in more profitable jurisdictions and/or who demand more profitable offerings Copyright © 2015 Accenture All rights reserved. 3
  4. 4. Institutions are securing significant sums of investment… The stakes are high for senior management to make the right choices given the significant investment being made in their post-crisis institutions as a result of GSR 4% 10% 23% 16% 17% 18% 20% 27% 20% 16% 16% 13% Technology Spend Non-Technology Spend >$500M $250M - $500M $100M - $250M $10M - $100M $1M – $10M $0 – $1M Forecasted spending related to GSR Commentary • Over half of survey respondents are spending $100M+ in both technology and non-technology efforts • Insurance institutions are generally spending the greatest amounts, with Capital Markets firms spending the least Copyright © 2015 Accenture All rights reserved. 4
  5. 5. …and hiring the required talent In addition, a substantial effort is underway to hire and maintain the skills and workforce required to manage the changes demanded by GSR 4% 3% 25% 5% 10% 22% 18% 11% 8% 16% 15% 17% 20% 25% Technology FTEs Non-Technology FTEs >300 250-300 150-250 100-150 50-100 25-50 1-5 Commentary • Over 40% of survey respondents in North America indicate they are ramping up over 300 FTEs in the next year • The largest numbers of FTE hires will be concentrated in the non-technology groups of Capital Markets firms Forecasted additional FTEs to address GSR Copyright © 2015 Accenture All rights reserved. 5
  6. 6. Solving the strategic conundrum Publication of GSR regulations is adding further disruption to the financial services industry. Financial institutions must remain focused on three key imperatives to navigate the challenges ahead Industry Dynamics Declining margins Disintermediation of customer relationships Macroeconomic disruptions Changing customer expectations Technology innovation Ongoing publication of GSR regulations across each jurisdiction Solving the strategic conundrum Organize a long term response around major themes Continue to demonstrate valuable return on investment to all stakeholders Unlock potential through innovation and focus in client offerings Copyright © 2015 Accenture All rights reserved. 6
  7. 7. Organizing a longer term response Successful institutions will proactively organize their response to the new financial services ecosystem. Accenture sees seven major themes of GSR that can provide a framework for developing a longer term response Home/host regulatory frameworks Governance of legal entities Enhanced risk governance Capital & liquidity adequacy Recovery & resolution planning Separation of cessation of activities Geography focused finance Copyright © 2015 Accenture All rights reserved. 7
  8. 8. Unlocking potential in a new ecosystem GSR drives a need for compliance, though within the new ecosystem there is also a clear opportunity for innovation and improved financial performance Survey respondentsOpportunities Local, not global Market-specific specialization Focus on compliance & efficiency Innovation mindset Developing operating models that have the agility to run locally relevant businesses in each jurisdiction Maintaining relevance through specializing in certain customer, product, or geographic market segments Treating reputational risk management as a competitive advantage, making trust your currency Driving innovation in product offerings, and in establishing leaner ways of working 57% will tailor their geographic footprint 48% plan to focus on core competencies 95% feel equipped to comply with GSR requirements 62% plan to launch new products or services 57% 48% 95% 62% Copyright © 2015 Accenture All rights reserved. 8
  9. 9. Continuing to demonstrate value to key stakeholders Demonstrating value in the near term will require focus on regulatory compliance, whilst laying the foundations for the changes required to achieve the longer term operating model Initial Compliance New Operating Model Establish compliance and communicate future strategy and operating model Develop foundational enhancements to address new structural reforms Deliver ongoing enhancements Design and early Implementation Embedding and Tuning Establish revised steady state governance, processes, technology, and talent management Copyright © 2015 Accenture All rights reserved. 9
  10. 10. Continuing the discussion Accenture will soon publish “Unlocking the Potential of Global Structural Reform” – a point of view regarding the industry response to structural reform A global quantitative online survey which explores Global Structural Reform at financial institutions across North America, Latin America, Europe, and Asia-Pacific The survey was conducted in late 2014, and issued to 131 Chief Risk Officers, Director / SVP / VP Leads of Regulatory Structural Reform Programs, Heads of Regulatory Structural Reform / Capital or Prudential Programs Copyright © 2015 Accenture All rights reserved. 10

×