Banking
Excellence in client and segment selection is at the center of corporate banking skills and translates into higher return on capital, as a result of lower cost of risk and higher revenues over assets.
Understanding client sensitivities and profitability drivers
Roughly one-third of the total bank lending and 20% of the total asset base are dedicated to corporate banking activities. The activities of corporate banks are a cornerstone of the economies in which they operate.
Embrace emerging technology to adapt to changing consumer expectations and reduce technical debt.
Increased requirements for capital and liquidity
As many corporate banking services center around the use of balance sheet and the provision of liquidity, all those regulatory initiatives which require banks to either hold more capital, observe certain limits in their balance sheet structure or hold liquidity buffers, will increase the costs for corporate banking businesses and decrease profitability.
New scrutiny on client treatment
Various regulatory initiatives aim to better protect clients from unfair treatment by financial service providers. The greater regulatory focus on conduct, stricter rules on cross-selling, harsh punishment for mis-selling and greater documentation requirements has created operational barriers for banks at the same time as clients are complaining about too much red tape.
