Overhauling Business Models
In continental Europe, banking strategists continue debating the pros and cons of offering the full gamut of services as opposed to focusing on one or two lines of business. For several years, financial services providers specializing on asset management, investment, corporate, private, retail or transaction banking have been growing faster than corresponding divisions of universal banks. Against this background, competition between business models is expected to intensify.
After years of concentrating on profit maximization, the current international credit crunch has brought risk management to the fore. Highly volatile markets, new business opportunities and ever shorter product cycles have turned controlling operational risks into a core business discipline.
By pursuing a portfolio policy that balances risk and income fluctuations, universal banks have been able to maintain a competitive advantage. Volatile investment earnings, for instance, can be offset by more stable proceeds from serving private and institutional investors. Universal banks have also benefited from revenue synergies between their corporate and private customer businesses.
Consileon helps financial service providers plan and carry out initiatives to boost revenue or cut costs both in their domestic and their global businesses. Our international team provides methodological and technical expertise as well as core banking and insurance know-how. Consileon’s holistic, goal-oriented design-to-implementation approach has been tried and tested in numerous financial sector projects.
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