Financial Institutions

We actively participate in the transformation of the financial services industry

The financial sector is immersed in a profound transformation driven by a changing reality in which dynamics of a structural nature converge. Some of these dynamics include: i) those arising from digital transformation, ii) those caused by the energy transition in response to the challenges of climate change and iii) the effects of the West's progressive loss of leadership. This is in addition to other more short-term issues such as: (i) the health and economic consequences of a pandemic which, although subsiding, we are still suffering from and which has led to the disruption of multiple supply chains, among other impacts (ii) the tragic war in Ukraine which, in addition to being one of the greatest humanitarian catastrophes this century, has exacerbated the effects of a fragile economic situation by triggering the price of some raw materials, or (iii) the effects of a macro-economic picture which we could entitle: the dangerous path towards stagflation. This overall context, among other things, is putting pressure on credit costs. 

With regard to regulation and supervision, the requirements are more numerous, more demanding and affect more areas (capital, provisions, balance sheet structure, liquidity, leverage, conduct, etc.), in exchange for greater security and solvency of the system as a whole, which structurally reduces the profitability of financial institutions and means they face very high direct costs to adapt to these requirements. But the expectation is for some stabilization in the medium term, as the process of regulatory and supervisory transformation draws to a close.

In relation to digital transformation, there is an unprecedented technological revolution with a profound impact on the business model of organizations. This transformation can be broken down even further into three constituent components: an exponential increase in data volume as well as in storage, processing and modeling capabilities, with lower associated costs; a change in customer behavior towards a more digital and informed profile; and the emergence of new competitors heavily leveraged in technology.

In the payments area, institutions are currently facing major challenges ranging from a universe of increasingly sophisticated and digital customers who demand efficiency and excellence in the services provided to them (digital on-boarding, multi- and omnichannel capabilities, self-service, direct connections with their own systems, etc.), as well as an ever-increasing variety of products and services; a market with new players (Fintechs, Bigtechs, etc.) in which it is necessary to coexist with volume/scale (flow) and niche/specialist (sophistication) models; a context with a marked drive towards "globalization" on the basis of new models (flow) and niche/specialist (sophistication). ) in which volume/scale (flow) and niche/specialist (sophistication) models have to coexist; a context with a marked drive towards "globalization" on the basis of new regulatory guidelines aimed at increasing both transparency and competition and where opportunities for joint action in a syndicated manner or through partnerships are opening up; to a technological environment that offers levers to respond to a changing environment but also requires an effort to modernize the infrastructures of obsolete Front-to-Back systems that have been growing in a disorganized manner and restrict growth.

Finally, we should emphasize the active role that the banking sector is taking on in the area of sustainability (ESG), becoming a key player in the process towards changing the economy's production systems (greener and more socially responsible).

Financial institutions are responding to these challenges by transforming themselves in at least four areas: business models, transformation and efficiency, finance, and risk management.

Our practice

Management Solutions caters for all kind of entities within this market: banks, insurers, investment companies, financial institutions, etc.

Based on their in-depth knowledge of, and experience in, the industry, our professionals are more than prepared to meet any current challenge.

All our areas of specialty can be brought into play in this practice. Additionally, we have developed certain services that address industry-specific requirements. Especially noteworthy are our services in wholesale banking (Treasury, Capital Markets, Asset Management, Payment Methods, etc.), business and retail banking (distribution models, knowledge of customer, customer’s multi-channel behavior and experience, etc.), management of financial business risks (in any of its facets), optimization of equity, and regulatory compliance (Basel II, money laundering, etc.).

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