Future-proofing asset management, capital markets, and beyond
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.
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.
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.
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%.