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12 February 2007

Industries - Banking, Financial Services 

On this site you will find information about the banking and financial services industry.
The external links in our web directory will lead you to information about
- trends 
- case studies
- industry data
- management best practices and more
that are specific to the banking and financial services industry.

Miscellaneous Articles
Banking and Financial Services in the Internet Age



Miscellaneous Articles
4 ways to Improve ROI on Multi-Channel Initiatives in Retail Banking The evolution of alternate banking channels, such as ATMs, telephony, web, emails, handheld devices, kiosks, chat, video conferencing and social media has created new challenges in effectively managing the channel ecosystem, as well as handling customer preferences and expectations.  new
A Competitive Study of Retail Banking Strategies for the Future in Global Market in India Retail banking in India has fast emerged as one of the major drivers of the overall banking industry and has witnessed enormous growth in the recent past. The Retail Banking Report encompasses extensive study & analysis of this rapidly growing sector. It primarily covers analysis of the present status, current trends, major issues & challenges in the growth of the retail banking sector.  new
A Strategic Approach to Cost Reduction in Banking Achieving High Performance in Uncertain Times. Senior banking executives face a vexing dilemma. In this difficult economic environment, there is great urgency to reduce costs and improve efficiency. But cutting indiscriminately or too deeply may severely hamper the ability to grow revenues when the economic outlook improves.  new
Bank Failures in Mature Economies This Basel Committee working paper studies bank failures in eight countries: Germany, Japan, Norway, Spain, Sweden, Switzerland, the United Kingdom and the U.S. It examines the reasons for the failures, how the failures were resolved, and what regulatory changes followed from the crisis. pdf-file 519 KB. 2004  
Bank of England report on the collapse of Barings Bank The full, unedited Conclusion from the Bank of England report on the collapse of Barings.  
Bank Ratings - What Determines their Quality? This paper examines the quality of credit ratings assigned to banks in Europe and the United States by the three largest rating agencies over the past two decades. Our results suggest that rating agencies assign more positive ratings to large banks and to those institutions more likely to provide the rating agency with additional securities rating business. 2012  
Bank Regulation and Supervision in 180 Countries from 1999 to 2011 In this paper and the associated online database, we provide new data and measures of bank regulatory and supervisory policies in 180 countries from 1999 to 2011. The measures are based upon responses to hundreds of questions, including information on permissible bank activities, capital requirements, the powers of official supervisory agencies, ... 2013  
Banking Banana Skins 2012 Based on over 700 responses from 58 countries, the survey, aimed at senior executives in the banking industry, identifies high level issues where the banking industry may be vulnerable. It seems that the economic uncertainty continues to resonate most, with macro-economic risk rising to the top of the list of boardroom concerns. 2012  
Banking's Changing Dynamics The banking industry, like many others, is changing fundamentally. We see three major dynamics that pose formidable new challenges for financial institutions. One, the industry's scarcest resource has become satisfied customers. Two, value creation is switching from 'stocks' to 'flows.' Three, value is moving from the 'back end' to the 'front end' of the bank. 2003  
Causes and Management of Banking Crises The causes of banking crises can be categorised under several headings: macroeconomic instability; deficient supervision; poor strategies; weak management; inadequate control systems; operational failures; fraud. The experience of a number of countries is reviewed. Whatever the causes, the authorities need a coherent strategy for addressing such crises. Various aspects of crisis management are discussed, and recommendations made. pdf-file TOP
CBI/PricewaterhouseCoopers Financial Services Survey This quarterly survey identifies the current perceptions held by the industry and its plans for investment, human resources, marketing and other strategic developments.  
Central Banks and National Holidays  A list of the countries of the world with links to their central banks and information about their national holidays   
Closing the Productivity Gap Lean Manufacturing for Banks. Pdf-file November 2002  
Consolidation in the European Insurance Industry Do Mergers and Acquisitions Create Value for Shareholders? 2004  
Consolidation in the Financial Sector A study of financial consolidation and its potential effects, by the Group of Ten  
Cross-Border Bank Mergers The Effects of Cross-Border Bank Mergers on Bank Risk and Value. Pdf-file  
Customer loyalty in retail banking Americas 2011 To return to growth and profitability, retail banks will have to earn customer loyalty while dramatically reducing costs. 2011  
Customer Loyalty in Retail Banking: Global Edition The rewards of securing greater customer loyalty can be substantial, on the order of $10,000 more in net present value over the lifetime of an affluent US promoter customer vs. a detractor. 2012  
Customer Price Awareness Psychology & Pricing  Customers’ price awareness and perception will often effect how price changes impact revenue. Both the availability and quality of price information, such as current interest rates and charges, as well as a bank’s image amongst customers, play an important role in determining this relationship.   
Derivatives Acronyms    
Dictionary of Banking Terms    
Digital challenge to retail banks Financial institutions that successfully apply digital technologies will embrace deep strategic, operational and organizational changes. 2012  
Entry into Banking Markets and the First-Mover Advantage Using a sample for 1972-2002 with over 8,000 bank entries into local markets, we find a market share advantage for earlier entrants. Pdf-file. 2003  
European Banks: The Silent (R)Evolution Recent market turmoil and its consequences will negatively impact the earnings of European banks for a considerable time. This reverses a  long period of improvement in profitability and efficiency. But: the current environment should not distract from the trends that have shaped the structure of the industry for the last 10 years and will continue to do so.: consolidation, internationalisation, convergence and deconstruction.   
Financial services' shifting profit pools How the contraction plays out will be determined by how nimbly  financial service leaders respond.  2009  
Five Forces Shaping the Banking Industry In their struggle to stay alive, many institutions turned their attention away from the forces that are shaping the economic landscape. Understanding and addressing these forces will be critical as the economy rebounds and begins its upturn.  2009  
Focus on restructuring: The drivers shaping the financial services sector This report, written by PwC in association with the Economist Intelligence Unit examines the wider issues behind the increasing focus on restructuring within the global financial services sector. Pdf-file 376 KB  
From aspiration to achievement: Improving performance in the financial services industry This briefing, written by PwC in association with the Economist Intelligence Unit, addresses the key issues that financial institutions are facing with regard to improving performance in key areas of the business. Pdf-file 571 KB. 2005  
Fx Payment Tools Expand As companies increasingly need to buy and sell in nondollar currencies, the banking infrastructure is growing, bringing economies to foreign currency payments.   
Global Corporate Banking 2005 Delivering Profitable Growth in a Crowded Market. Research report. Pdf-file 2005  
Global Financial Services Offshoring Report 2007 This report sets out the best practices that financial institutions should consider in order to be the biggest beneficiaries from offshoring.   
How Do Large Banking Organizations Manage Their Capital Ratios? Large banking organizations in the U.S. hold significantly more equity capital than the minimum required by bank regulators. We propose several hypotheses to explain this “excess” capital, and test these hypotheses using annual panel data for large, publicly traded U.S. bank holding companies. 2008  
How Europe’s banks can return to health For the European banking system to recover, each bank needs to embrace five hard lessons gleaned from experience so far. 2013  
Korean Banking Industry M&As and Competitiveness in the Korean Banking Industry since the 1997 Financial Crisis pdf. 2006  
M&A Activity in the European Financial Services Sector In 2003, over €34 billion of deals were announced in the European financial services sector. This paper looks at the deals, the players and the motivations that are currently driving merger and acquisition activity in the sector, as well as factors that may shape M&A activity in the years ahead. pdf-file 891 KB. 2004  
Managing the value of customers in the Financial Services market This report examines how major products in different customer segments and life stages generate value. The Model confirms the view that a small proportion of customers generate a disproportionate amount of value. Pdf-file  
Measuring Merger Odds for European Banks With consolidation in the European banking industry revving into high gear, A.T. Kearney has developed a methodology to predict the merger prospects for the top 50 European financial institutions—identifying which combinations could create the most value. pdf-file 2005  
Non Performing Loans in India in a Global Context A comparative study of Non Performing Assets in India in the Global context - similarities and dissimilarities, remedial measures. Pdf-file 2002  
Optimizing banking operating models From strategy to implementation. The current universal bank operating model is bordering on collapse and changes will be needed. Solutions must be found which encompass new business models, operating models, customer demands and legislative constraints.  new
Outrunning the Regulators Staying ahead of security rules can create competitive advantages. 2007  
Piecing the jigsaw: The future of financial services Piecing the jigsaw is a paper focusing on the future of the financial services industry and considers the drivers, risks and opportunities, as well as the impact and responses for existing and potential players in the industry. The study identifies five principal drivers that will affect all financial institutions  
Problem Bank Resolution: Evaluating the Options Here, we look at the various options available to deal with problem institutions and evaluate their usefulness. Beyond enumeration, and a heoretical description we present a realistic analysis of the set of options that are available, and have been available to bank regulators. Then, we examine how they have been employed in three cases in the past from different parts of the world. pdf-file 1998  
Putting the “retail” into retail banking This paper discusses how new marketing and sales approaches drawn from the retail industry—such as digital merchandising and providing virtual advice and consulting on demand—are enhancing the customer experience. pdf. 2006  
Reducing Complexity in Retail Banking: Simple Wins Every Time Banks offer a dizzying array of products and services. Many of these products require complex activities but have nothing to do with new sales. And the glut of products is limiting not only profits but also the flexibility to react to external pressures. It is time to clean out the attic and focus on products and features that your customers not only want but are willing to pay for.   
Retail Banking in Times of Crisis  Amid a slow recovery and a lack of consumer confidence in the banking system, retail banks will have to realign their business models if they hope to attain pre-crisis profitability.  
Risk and the Corporate Structure of Banks Banks organize their foreign affiliates as separately incorporated subsidiaries, or as branches whose liabilities represent claims on the parent institution. Different risks influence this decision.   
Securitization Encyclopaedia Topics: Concept of securitisation, Benefits of securitisation, History of securitisation, Sad episodes of Global securitization, Legal issues in securitization, Accounting issues in securitization, Taxation issues, Stamp duty issues, Regulatory capital and banking supervision  
Should banks be diversified? Evidence from individual bank loan portfolios We study empirically the effect of focus (specialization) vs. diversification on the return and the risk of banks using data from 105 Italian banks over the period 1993–1999. Pdf-file. 2002  
SME Clients: Do It Smart, Win Their Hearts How the banking industry can appeal to small and medium-sized enterprises. To win them over, banks must win their hearts, not just their minds, to create valuable, long-lasting relationships. 2012  
Strategies against Price Wars in the Financial Service Industry  As many industries, the financial service industry –specifically in private banking - is currently in a ”price war”. Competitors battle it out with one another using price as their weapon. At the same time, however, they fail to differentiate their products or services sufficiently. This price war leads to enormous value losses. But why do price wars develop? And what strategies can financial institutions pursue to end, or even avoid, a price war? pdf  
Striving for Organic Growth in Retail Banking This report from BCG, using findings from their survey, briefly discusses the process of growth through institutional acquisition, but it primarily focuses on mechanisms for organic growth. Pdf-file 2005  
The customer-led bank Retail banks have long flourished by following a business approach that would spell trouble in virtually any other competitive industry: paying scant regard to the care and nurturing of their best customers. But that charmed existence is coming to an end. Customer defection rates are up, as are the costs of acquiring and retaining new customers. October 2005  
The future of banking Returning stability to the banks and the banking system. Concentrating on the short-term responses to the exclusion of actions, which will affect the medium and long term is a mistake. It is precisely because economic conditions are so dire that management must rise above the distractions to take an uncompromising look at their businesses and not let long-term economic stability be consumed by crisis management.  
The International Private Banking Study 2005 Covering the period from 1990 to 2004, the sample includes banks from Austria, Benelux, France, Germany, Italy, Liechtenstein, Switzerland, the UK and the US. The intention is to compare the relative strength and competitiveness among all banks by measuring a multitude of ratios of operational efficiency, size, growth and investment performance. pdf-file  
The Limits of Lawyering: Legal Opinions in Structured Finance To what extent should lawyers be able to issue legal opinions that create negative externalities? What should differentiate the roles of lawyers and accountants in disclosing information to investors? Doc-file  
The paradox of Banking 2015 Through market research and interviews with industry executives, the IBM Institute for Business Value identified five major industry trends that will impact the retail banking industry. pdf  
Trends in Competition and Profitability in the Banking Industry: A Basic Framework This paper brings to the forefront the assumptions that we make when focussing on a particular type of explanation for bank profitability. pdf available for download. 2004  
Visible and Hidden Risk Factors for Banks This paper examines the common factors that drive the returns of U.S. bank holding companies from 1997 to 2005. Abstract, pdf-file available for download. 2006  
Want to Know How to Keep Expenses Low? Think Loyalty In financial services, a 5% increase in customer retention produces more than a 25% increase in profit. Pdf-file 2003  
Wealth Management Richer Prospects in Wealth Management, traditional financial institutions should learn to cater for the needs of the "army of instant millionaires", made by the new economy; article by Chuck Callan, Christian de Juniac, Bruce Holley, and Claus Michalk; PDF file  
Banking and Financial Services in the Internet Age
Customer Retention in On-line Retail By Dr. Gaby Wiegran and Hardy Koth; Success factors in on-line retail, Customer Retention Website Features, Incorporating A Customer Retention Focus into the Website Design  
E-Banking in Malaysia A Note on Evolution of Services and Consumer Reactions  
How Banks fit in an ... ... Internet Commerce Business Activities Model; article by Dr.D.S.Stamoulis; paper describes an Internet market chart where it is shown where and how banks are involved in this new market and which areas have not yet been exploited  
Incorporating the Dual Customer Roles in e-Service Design A distinguishing feature of e-service is the active and significant participation of customers in the service co-production process. With increasing customer participation in the e-service co-production process, it is important to incorporate customers’ needs both as a co-producer and as a patron into the design of e-service systems. January 2003. pdf-file available for download  
Mobile Financial Services The internet isn't the only digital channel to consumers; by David G.W. Birch  
Online Investment Banking The evolution of - article by Troy J. Strader and Richard B. Carter  
Retail banking via internet Banking online boosts and curbs customer loyalty. By Deutsche Bank Research. 2006  
The Impact of Electronic Commerce on the Retail Brokerage Industry This paper reports on an experiment to examine whether order handling practices by traditional voice brokers and online brokerage firms lead to differences in the quality of trade execution. Pdf-file 160 K  
Value-based e-pricing in the banking sector More a vision than reality  

Related Information
Knowledgebase - Management - Risk Management
Knowledgebase - Management - Risk Management in Financial Services Organizations


The side effects of Basel III on banks
by Dagmar Recklies
Much has been written about the effects of the new Basel III / CRD IV regulation on Banks.  My focus in this article will be a slightly different one: Besides the primary effects of Basel III like tighter equity requirements and implicit restrictions for business models, there will be some side effects on banks. As I see it, these secondary effects of the new regulatory requirements too may have a significant impact on banks' profitability and agility – at least for the implementation period.

Practice of strategic planning in German retail banks
by Oliver Recklies
This paper analyses the practice of strategic planning of two major player groups within retail banking business in Germany. Both types of banks face a set of burdens to organise their strategic planning processes. To discuss strategic planning approaches within these organizations the author uses a three step framework of (1) strategic analysis, (2) strategy finding and (3) strategy assessment. Key factors influencing the planning processes will be identified. For each element of the framework the author discusses tools and methods which are employed by bank managers to overcome existing barriers. For strategy assessment two benchmarking approaches are analysed. The author argues that approaches of these banks give an example how small organisations might address the issues of strategic planning.

Eddielogic - The Blog on Strategy - Financial Services Industry
On Eddielogic, our blog on strategy and strategic thinking, our team has written some posts which discuss strategic issues of the automotive industry. So we gave them their own category - Financial Services Industy



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Status: 03. Juli 2015