Regulation, technology and management are the three key words of today’s and tomorrow’s banking transformations. Eurogroup Consulting supports players in the banking and financial sector (retail banking, corporate and investment banking, specialized businesses). With nearly forty years of experience in advising these players, the firm deploys skills adapted to their challenges.
To date, in addition to Brexit, the French banking sector is facing three major challenges.
First, the regulatory constraints are tending to become much stringent. In addition to that, the sector must adapt to the acceleration of the transformations brought about by digital technologies, which are profoundly reinventing customer experience and banks’ internal processes. Finally, the renewal of generations and the craving for new ways of working in particularly standardized environments are deeply affecting HR management for financial services.
From an extensive European regulatory framework to an international “standards war”
The European regulatory framework
Market organization, customer knowledge and information, risk management, personal data protection, insurance distribution and investment product remuneration… The many compliance issues are at the root of many new banking regulations. Among them: Basel III, IFRS 9, AnaCredit, MIFID2, PRIIPs, IDD, GDPR, PSD2, Sapin II. They are also coupled with various resulting reforms led by the European supervisory authorities.
European banking markets versus US markets
This abundant banking regulation, particularly in Europe, is being implemented in parallel with an ongoing deregulation in the United States (relaxation of the Dodd-Franck Act). There is no doubt that this contrast may be the cause of long-term competitive distortions between European and American banks.
A banking market transformed by digital acceleration
The French players in the banking sector started late in digitizing their activities. Despite this, projects are multiplying around the optimization and automation of internal processes, the modernization of relationships and customer services.
The development of online banking
In response to new uses such as instantaneous or contactless payment, but also the 24/7 availability of information, online banking is developing rapidly. This growing trend concerns both the retail and corporate markets (open-banking, bank as a platform etc).
The AI in the service of the bank
Artificial intelligence can also be used by the bank. Robot advisors in private banking are key example of successfully integrating AI within banking. The advent of blockchain and ledger technologies has been also considered in the short term as an opportunity by banks. The sector wishes to use it to accelerate and secure some of its processes. For example, this is the case for the transfer, storage, exchange and management of financial assets.
New managerial practices in response to market transformations
Banking sector employees aspire to greater flexibility and freedom of action despite a working framework where norm and control dominate.
A more agile management
At the same time, the greater volatility of the markets, the capping, the rise of Fintechs, are pushing the sector to evolve towards more agility but also proactivity. In addition, managerial postures and practices, teamworking or project modalities are all issues that banks must address now.
Deploy and manage regulatory compliance and risk management projects.
Design, manage and implement changes in strategy, organization, processes and tools. These changes are needed to answer new customer needs, uses and evolutions in the ecosystem (market supervision, consolidation, etc.).
Support major digital transformations and their strategic, organizational and information systems impact, especially thanks to our partnership with La Javaness, an accelerator of digital innovation and the deployment of artificial intelligence.
Deploy innovative managerial performance approaches through agile change methods. But also, individual and collective support as well as animation mechanisms dedicated to the mobilization of all stakeholders.
Define and implement new working methods in line with ongoing managerial transformations and the needs and uses of teams and clients.