Financial Services【New】
Challenges for companies in growth financing
Roland Berger has been conducting an annual company survey since 2010 to analyze strategic issues relating to corporate financing. This year's international financing study compares the situation across Western and Eastern Europe, America and Japan.
The international financing study has the following focus:
• A description of future growth expectations in the context of developments in the financial and capital markets (euro crisis) and the main growth regions for surveyed companies, and an analysis of the key drivers or obstacles for the coming three years
• An analysis of the implications for financing types, a description of the criteria for selecting financing instruments, and the potential challenges and obstacles in financing
• An estimate of the importance of country risks in the context of the current crisis on inflation and interest rates over the coming years and an analysis of appropriate hedging strategies
http://www.rolandberger.com/media/publications/2012-03-10-rbsc-pub-Economic_scenario_2012.html
Client-centric wealth management
Values, desires and ideals are just as important as age and wealth in shaping the behavior of well-heeled bank clients. Conventional approaches to client segmentation are not enough: a approach is needed too. Roland Berger has proven tools for precisely this purpose.
Conventional means of client categorization – based on sociodemographic data (age, marital status) and financial criteria (income, wealth) – must at least be complemented by value-based or psychographic segmentation as a secondary or even as primary filter.
Today's wealth management clients are very demanding and play a more active role. They seek out advice more frequently, know more about finance and want to be more involved in the management of their wealth. As a result, banks must deliver on their client-centric value proposition time and again if they are to keep increasingly critical clients from jumping ship. A values-based approach allows wealth managers to reach clients by valuing them more as individuals. Ideally, matching "value types" will create an "emotional agreement" between advisors and their clients.
http://www.rolandberger.com/media/publications/2012-04-03-rbsc-pub-Client_centric_wealth_management.html
Redefining asset management in new realities
This global study explores the future development of asset management business models for both the retail and institutional investment segments in light of the new realities in financial markets and the asset management industry.
Responding to uncertainties even among asset management professionals in the wake of the financial crisis, it questions what is commonly perceived as conventional wisdom, highlights key strategic issues for asset managers, illustrates the strategic options available to them and enables them to set clear leadership priorities in order to master the changes ahead.
Specifically, it provides workable recommendations on how asset managers can position their business, sharpen their value proposition and improve their performance. Focusing on four key factors, the study discusses what we believe is essential to an understanding of the asset management industry both today and tomorrow.
Redefining_asset_management_in_new_realities
Innovation in China's Financial Services Industry
For several systemic reasons the study puts forth, innovation in financial institutions pales in comparison to the level of innovative activity in other industries. And if there are innovative approaches, they are usually most likely to originate from large institutions such as Goldman Sachs, JP Morgan Chase or Deutsche Bank. In China, however, some small to mid-size financial institutions are also quite active (and successful) in innovation, as the study shows.
The authors assessed the innovation performance of Chinese financial institutions along four dimensions: product innovation, channel innovation, marketing innovation, and management innovation. As an alternative to isolated or haphazard attempts at innovation they recommend the innovation factory model as full-blown innovation system. Since companies using this model put innovation at the core of their competitiveness, the innovation factory model is still most widely pursued by digital and internet companies.
The whitepaper explains how to build an innovation model in a systematic manner and provides insights and examples of how businesses embrace an innovation culture. "There is already a significant level of innovation happening at Chinese financial institutions," says Alain Le Couédic. "But there is also much more to do: innovation is clearly seen by domestic players as a key success factor in China's financial services landscape, where competition is getting fiercer and differentiation remains a challenge."
http://www.rolandberger.com/expertise/publications/2011-07-21-rbsc-pub-Innovation_in_Chinas_financial_services_industry.html
Wealth management 2011
The increase in managed assets underlines the appeal of the industry – although market recovery is still fragile.
Wealth management has regained momentum faster than some market observers were expecting.
Even though uncertainty remains as to how the market may develop, the increase in managed assets underscores just how attractive the segment is.
Yet, for many providers, margins are being eroded by price cuts and the increased complexity of services on offer.Measures to boost efficiency have only partly offset this trend.
In the current environment, providers should be concentrating on increasing earnings and cutting costs to bring their profitability back to pre-crisis levels. Offshore banking has been the subject of debate, but interest continues to focus on the established financial centers, including Switzerland, Luxembourg and Liechtenstein. A Roland Berger survey of 180 wealth management clients found that first-class advice and an international product range are key success factors.
Successful wealth managers put their clients – and their clients' values and expectations – at the heart of their service approach, aligning their advisory processes accordingly. Specifically, this can mean developing target client segments based on the values of particular client groups, managing the sales channels preferred by clients, and customizing pricing.
http://www.rolandberger.com/expertise/publications/2011-07-08-rbsc-pub-wealth_management.html
Delivering Financial Services in Sub-Saharan Africa
For decades microfinance has appeared to be the key to alleviating poverty and accomplishing sustainable growth throughout countries in Sub-Saharan Africa. The industry drew the attention of the development world, attracting money and spurring innovation.
Despite efforts to reach mass markets, microfinance has yet to bridge large geographic, administrative and cultural gaps between institutions and low-income Africans. In fact, the industry serves less than 5% of Africa’s adult population. Often, microfinance institutions do not bring their business to the countryside. A large portion of African farmers, traders, small business owners and laborers, especially in rural areas and poor suburbs, still do not have access to basic banking services taken for granted elsewhere. It is now time to rethink how to deliver financial services in Sub-Saharan Africa.
In this report, under the auspices of the IFC's Access to Finance Advisory Group, Roland Berger Strategy Consultants examines new solutions to the challenges of providing affordable financial services to Africans in both urban and rural areas. We evaluate how best to provide a larger array of essential financial products including savings accounts, loans, money transfer, and insurance to people previously left out of the traditional banking system.
Roland_Berger_Delivering_Financial_Services_in_Sub-Saharan_Africa2011
"New reality" in banking
Retail banking has reached a crossroad. After an unprecedented market panic followed by large-scale government bailouts and other support measures, banks face various challenges. In a study of 35 banks, mostly in Europe, Roland Berger analyzed disparities in the Return on Equity (ROE) of the worst- and best-positioned players during the financial crisis.
While there is no silver bullet for facing challenges that have emerged in European retail banking, it is clear that going forward the main areas of focus will be funding, restructuring and investment opportunities.
The winning banks will have solid funding, a lean structure with a fully integrated multichannel model and will be capable of grasping and leveraging investment opportunity in a systematic way. Generally speaking, even the best players are expected to experience a reduced level of profitability going forward.
However, there are some clear strategic priorities in order to limit the degree of ROE compression. These are capital and funding structures, cost effectiveness, customer service models and expansion strategies.
New_reality_in_banking_2011
European Private Equity Outlook 2011
This Roland Berger study describes the marked recovery made by the private equity market and new challenges facing the industry.
The European private equity market bottomed out in 2009 and has since been noticeably gaining momentum. For example, M&A transactions already rose 52% to EUR 36 billion in 2010, a positive trend that will continue in 2011. In this context, strategists and Asian investors are becoming more active.
Transaction security in the mid-cap sector is improving thanks to better pricing and a better financing environment. In addition, more and more investors are deciding at the last moment whether to sell a company to a strategist or financial investor, or whether they should place their trust in an initial public offering (dual track exits).
Medium-term challenges will include boosting value with innovative business models for the portfolio companies, and finding solutions to upcoming refinancing problems. These are the most important findings of the study "European Private Equity Outlook 2011".
Roland Berger European Private Equity Outlook 2011
Upheaval in the Arab world
After the protests and changes of government in Tunisia and Egypt, the situation is being repeated in almost a dozen Arab countries – Libya is currently only the most dramatic example. But where is this all going? The region's future does not depend so much on the consequences of the "Day of Rage" protests in Tunisia, Egypt, Libya, Morocco, Algeria, Syria, Bahrain and Yemen and the new power structures that emerge. Instead, the critical question is what will happen in Saudi Arabia, the region's resource-giant. Will there be increasing Islamization? And what new political and economic freedoms will emerge – if any? The latter is particularly relevant to us Europeans, as a neighboring region, and may be an opportunity for Europe.
We are not attempting to paint a comprehensive (political) picture of the situation in the Arab world here. Instead, we are focusing on the economic impact. That is why we have conducted a survey among 100 German managers over the past few days that shows what fallout German companies are currently dealing with, what they expect over the next few months and what long-term strategic challenges they face.
WHAT COULD HAPPEN IN THE REGION – OUR THREE MENA SCENARIOS
Together with colleagues from our MENA offices, we have developed three scenarios that could help with assessing the long-term prospects. The core questions are: How long will the crisis last? How many countries in the region are affected? And how comprehensive and long-lasting are the upheavals?
We first analyzed the underlying strengths and weaknesses of the MENA region, and then evaluated the consequences of global trends on the area. Lastly, we analyzed the impact of the crisis: is the crisis-hit country itself affected first and foremost, such as by declining numbers of tourists or a brain drain? In what cases will the crisis affect not just the countries themselves but also their trading partners (as we can see from the examples of German companies)? And finally: What will be the consequences of the upheaval in the MENA states on the global economy, for example via the oil price, refugee flows or terrorism?
Roland_Berger. Liquidity_Management20110427
Increasing the value of portfolio companies by improving their operational performance (2009)
The study, conducted from Sept. to Nov. 2008, was initiated to evaluate the importance of operational performance improvement for PE companies and understand how they act during times of financial crisis. Since attractive acquisitions and good exits are more difficult,
●PE companies place greater emphasis on performance improvement to increase value
●The average holding period of portfolio investments has increased
●PE companies work more professionally
●Roland Berger supports PE companies in increasing the value of their portfolio companies – More than 300 projects related to private equity transactions conducted since 2002 for many clients
Roland_Berger_Increasing the value of portfolio companies20090310
US-style subprime segment in Germany (May 2008)
Please see the below link.
Roland_Berger_Subprime_20080501.pdf (PDF, 232 KB)
Master the next 'Buy-out wave': European Private Equity Outlook (January 2007)
Please see the below link.
Roland_Berger_PrivateEquity_20070101.pdf (PDF, 1223 KB)