Video 1: Banking: The Road Ahead

Responding to the New Wave of Re-regulation

3:37 (Part 1 of 11)

As the finer details of bank regulation evolve, global banks should concentrate on understanding their core businesses, where they are making money and where profits are most likely to come from in the future.

Also posted in Banking: Future Growth Models, Lessons Learned from the Financial Crisis, Managing Regulations, Risk Management |

Governance Challenges

3:42 (Part 2 of 11)

Despite uncertainty over how all the new regulations will be interpreted by regulators, banks will need better internal dashboards to meet new requirements and to help shape them.

Also posted in Banking: Future Growth Models, Governance, Lessons Learned from the Financial Crisis |

Capital Requirements and Basel III

4:30 (Part 3 of 11)

Uncertainty over capital requirements makes it harder to form a strategic view, but at least one thing seems certain: Stricter requirements will reduce the return on assets.

Also posted in Banking: Future Growth Models, Lessons Learned from the Financial Crisis, Managing Regulations |

Global Banks Face Increasing Complexity

3:08 (Part 4 of 11)

Is the increasing — often overlapping — re-regulation effort by various countries, regions and international bodies a recipe for regulatory fragmentation and confusion?

Also posted in Banking: Future Growth Models, Risk Management |

How Level Is the Playing Field?

2:36 (Part 5 of 11)

It will take some time for the banking industry to sort out how all the new regulations will be implemented. Expect the regulatory playing field to be uneven for a time, perhaps offering opportunities for regulatory arbitrage.

Also posted in Banking: Future Growth Models, Lessons Learned from the Financial Crisis, Regulatory Arbitrage, Risk Management |

Regulatory Impact on Return on Equity and Dividends

4:51 (Part 6 of 11)

Expect returns on equity to go down, the cost of capital to go up and margins to shrink. Banks will have to adapt. There is a lot of interest in migrating to businesses that require less capital and liquidity, and that are more fee based. But what does that mean for banking when it comes to credit creation and intermediation.

Also posted in Banking: Future Growth Models, Lessons Learned from the Financial Crisis, Regulatory Arbitrage, Risk Management |

Models for Future Growth

3:35 (Part 7 of 11)

While it is difficult to get a clear picture of future growth models until the dust settles around all of the new regulation, a couple of things stand out: There will be a much sharper focus on customer needs, and investments in emerging markets, already underway, will climb significantly higher.

Also posted in Banking: Future Growth Models, Customer Focused Products, Emerging Markets, Lessons Learned from the Financial Crisis |

The Potential in China and Other Emerging Markets

2:48 (Part 8 of 11)

The ability to crack the Chinese market, where the goverment controls mortgage and deposit rates, will be very challenging. Watch for a number of outside banks to pursue the joint-venture route. Of the major players, Brazil may offer the most opportunities because it is the most integrated with world markets.

Also posted in Banking: Future Growth Models, Emerging Markets |

What Level of IT Investment Will Be Needed?

3:44 (Part 9 of 11)

The financial crisis made it obvious – especially to regulators – that many organizations had difficulties getting their hands on crucial information quickly. As a result, expect continued rising investment in IT across all areas to get better metrics, including financial, regulatory, risk and management reporting.

Also posted in Banking: Future Growth Models, IT Investments, Lessons Learned from the Financial Crisis |

What Role Might CoCos Play?

5:58 (Part 10 of 11)

Contingent Convertible Bonds (CoCos) can offer needed flexibility for banks and investors alike. But some fundamental challenges will need to be worked out, including the right amount to issue, how many will convert to equity, and what will trigger a shift into equity.

Also posted in Banking: Future Growth Models, Lessons Learned from the Financial Crisis, Risk Management |

Lessons Learned from the Financial Crisis

3:02 (Part 11 of 11)

The jury may be out on whether the lessons of the last crisis have been fully absorbed, or whether it is just a matter of time before players return to taking on excessive risks in the hunt for yield. But in addition to looking backward to what went wrong in the past to gain insight, interested parties must also look forward: What is the next risk? And how should you prepare for it?

Also posted in Banking: Future Growth Models, Customer Focused Products, Lessons Learned from the Financial Crisis |

Banking: The Road Ahead

36:51 (Full video)

Global banks, following the financial crisis, face a level of uncertainty not seen in decades. Among the chief challenges are: massive re-regulation; strong downward pressure on profits; a demand for significant IT investments; and the need to innovate to build new growth models capable of tapping rapidly developing emerging markets.

In this video series, professionals from Wharton and Ernst & Young offer insight into these and related key issues.

Also posted in Banking: Future Growth Models, Customer Focused Products, Emerging Markets, Innovation Revisited, IT Investments, Lessons Learned from the Financial Crisis, Managing Regulations, Rebuilding Trust, Regulatory Arbitrage, Risk Management |