Financial Services Foresight

Our latest thinking addressing the challenges and opportunities in the financial services industry.

June 2016

Beyond doom and gloom - New opportunities for financial services

For the past 7 years, nearly all banks have taken steps to de-risk, de-lever, refocus, simplify, and reduce costs. Yet our analyses show that the need for fundamental reforms is still unaddressed.

Our international wealth management study indicates that more than 20 percent of wealth management business might be at risk if wealth managers miss the digital wave. The European Banking Outlook found that only ten out of 46 European banks achieved a positive economic spread in 2015. And our insights in investment banking show that this segment — despite being restructured and reorganized — is still far from being stable.

The quest for sustainable strategies is on. We believe that the future is not all doom and gloom, but that it may in fact hold many opportunities for those banks that turn challenges into strategic opportunities. In our latest publications, we analyze the current situation and chances in wealth management and investment banking, we take a closer look at the role that new technologies like blockchain could play, and we show three innovative, strategic options for what traditional banks could become in future.

Featured Foresights

Sink or swim
Strategy& viewpoint
The world is undergoing one of the most transformative times in human history. The rise of technology has altered how we live and the speed with which we engage with one another. But how does this impact wealth management — a proposition predicated on personal service, yet that is one of the least tech-literate sectors in the financial services market?
Strategy& viewpoint
The regulations that followed the financial crisis have changed the investment banking industry, making it difficult to profit from many traditional lines of business. Although investor confidence and deal flow have recovered somewhat, the trading environment for previously profitable business lines in fixed income, currencies, and commodities has remained challenging. Investment banks can regain profitability and competitiveness, but only by transforming their business and operational strategies from within. We identify five fronts that we believe will be the source of a winning strategy for most investment banks in the years ahead.
Strategy& European Banking Outlook 2016
Strategy& viewpoint
European banks continue to struggle from the ripple effects of the financial and debt crises of the past decade. According to a recent Strategy& study, 80 percent of European banks demonstrated significant profitability gaps in 2015, with a total earnings shortfall that amounted to a stunning US$125 billion (€110 billion). Business as usual will not fix the structural problems plaguing these institutions; what the industry needs is fundamental transformation. We explore three innovative models that embrace digitalization and position banks for sustainable profitability.

Financial Services Foresight archive

December, 2016
With the next Basel Committee meeting just a few days ahead and yesterday's publication of the CRR proposals, the recalibration of Basel III - called "Basel IV" in the industry - is taking another step towards becoming reality.

Contact us