Financial Services

Current situation in the industry

Customer Retention and Revenue Potential Through Customer Experience

Customers may have varying perceptions and perspectives regarding the performance and quality of financial advice. Recurring discussion points, particularly in retail banking, often involve pricing, transparency, advisory expertise, the service and product offering, as well as the quality of consultation and support.

Our Approach
Customer-centric management of all touchpoints along the value chain ensures a consistent and seamless experience. Understanding customers' product and quality expectations in advisory and service offerings enables tailored, target group-specific solutions. Data patterns and AI-based analyses support this process.
The customer experience is positively enhanced through the coordinated interaction of the front office, customer service center, mid-office, and back office, creating a comprehensive 360° view. This allows customers to be addressed more effectively and segment-specifically over the long term, while revenue potential can be tapped more efficiently.

Service Operations as a Key to Efficiency and Productivity Gains

The profitability of many financial institutions remains under pressure, with the average return on equity for German banks below the European average. The primary causes are high costs and low margins in core business areas, exacerbated by intense competition, particularly in the fiercely contested retail banking sector.

Our Approach
Structural consolidation and further optimization of internal processes can help banks unlock cost-saving potential. Processes are customer-oriented, simple, efficient, and frictionless. Key elements include reducing complexity in the product portfolio and automating processes.
Digitalization is a core theme for the industry—not only for cost reduction but also for enhancing the customer experience. Efficient and transparent processes in the operating model are supported by adequate and flat hierarchies, appropriate spans of control, and committee structures. A consistent, performance-oriented management approach extending to the operational level and individual teams is critical. Efficiency and cost management are ongoing tasks embedded in the organizational structure.

Effective Management of Regulatory Requirements for Sustainable Success

In recent years, the density of regulations has increased significantly. The transition to Basel IV, enhanced requirements for anti-money laundering (AML), and data protection (GDPR) add to the complexity and costs of compliance functions. Collectively, these regulations place greater demands on capital and risk management, complicating capital planning and allocation.

Additionally, customers and investors are placing growing importance on ESG (Environmental, Social, Governance) criteria. In 2023, the volume of sustainable financial products grew by 12%. At the same time, banks are obligated by the EU Taxonomy and the Sustainable Finance Disclosure Regulation to provide detailed reports on their sustainability efforts. Integrating ESG criteria into all business practices requires substantial investments in reporting and evaluation processes.

Our Approach
ESG should be seen not just as a regulatory requirement but as a strategic growth opportunity. Banks can develop their sustainability strategies, integrate them into product development, and align them with corporate management practices.
The increasing regulatory complexity necessitates the use of modern RegTech solutions to reduce compliance costs. These technologies enable automated compliance with regulatory requirements while enhancing transparency and efficiency. Strategic partnerships with FinTechs and BigTechs offer significant opportunities to implement innovative solutions more quickly and diversify business models. These partnerships should be actively sought and fostered.