Future-proofing asset management, capital markets, and beyond
A guide to respond and emerge stronger from the COVID-19 crisis
With digital entrants and emerging technologies, the financial services industry is facing an onslaught of new challenges and opportunities: Artificial intelligence and machine learning. Blockchain. Cybersecurity risks. Disruption from new fintech players and new deals. How do you find your strategic advantage?
As the only at-scale strategy business that’s part of a global professional services network, Strategy& advises leading financial services firms around the world. Working with clients to articulate a cohesive vision, we're experts in aligning strategy, capabilities, and products and services. Strategy& shows what’s possible and how to get there. This is strategy, made real.
When a digital bank had the opportunity to bid for £120m of funding to build out its SME customer proposition, the leadership engaged Strategy&. In six weeks, we helped identify and design a compelling proposition, service blueprint, and underlying business case for the £120m by forecasting costs and revenue in relation to its SME proposition. This work then informed the bank’s application for funding, and helped leadership address some of its previous assumptions and thoughts about the SME proposition. As a result, the bank asked Strategy& to support it in further developing its SME proposition.
In the span of 12 weeks, Strategy& led one of America's multiline banks through developing a revamped corporate portfolio and line of business strategies. Existing business priorities included personal banking, wealth management, and corporate banking. Over the course of the engagement, Strategy& identified brand, market, cost, and revenue opportunities exceeding $100 million, effectively doubling the bank's profitability. Because of our 100+ years of strategy experience and highly skilled teams, we were able to build winning capabilities systems to maximise the bank's potential and outcomes.
Strategy& advised a major Australian bank that wanted to align various business units and distribution channels around customer needs and future high-value opportunities. After conducting interviews with internal stakeholders and external competitors to baseline current distribution capabilities, we assessed results to identify where the client had a 'right to win.' Surfacing 20 distribution opportunities (including new products, new platforms, optimisation of existing channels, and formation of distribution alliances), the bank prioritised the most promising ones and we developed a more sustainable distribution strategy. Acting upon the top-ranked options, the bank then began executing a plan for growing their market share.
Strategy& managed the post-merger integration of two banking IT providers with more than 5,500 employees. To ease the transition, we began working through a target organisation model and harmonising their banking-IT product offering. We also adjusted key management processes and integrated internal IT systems. As a result of these and other changes guided by Strategy&, the firm realised an annual savings of more than 20%.
A leading global bank headquartered in the UK brought in Strategy& to help redefine the role of group central functions. First, we began working with the client to develop their understanding of what type of corporate core they required (from highly involved management to remote portfolio management). From there, we presented two guiding principles: (1) Decisions are best taken close to the customer, and (2) The corporate core should primarily exercise governance and control responsibilities. Defining these priorities enabled the client to clarify controls exercised by the group centre. In so doing, the client eliminated duplications by devolving more than 75% of group personnel to the businesses. The outcome was better understanding across all teams of their own responsibilities and those of other business groups.
Supporting the post-merger integration of a leading European bank and a large local retail bank in Brazil was a complicated, rewarding undertaking. The European bank enjoyed a strong, existing presence in Brazil. The local bank was of similar size and branch network. In merging, the banks were creating one of the largest local financial conglomerates with 12% market share and more than 2,100 branches across the country. However, the two banks had significant differences in corporate cultures, client perception, and brand recognition. Strategy& was responsible for conducting legal, accounting, strategy, and IT due diligence. We were also tasked with developing integration strategy and process as well as creating processes and tools for programme planning, coordination, and control. Additionally, Strategy& supported the wholesale banking and middle market segments in creating the baseline, strategy definition, integration planning, and execution.