Banking Technology

The current financial crisis and the responses of financial institutions—capital infusions, portfolio actions, and initial-cost take-outs—have been well documented. But the crisis has done more than destroy value. It has redefined what financial institutions must do to compete and win.

To succeed in this new environment, financial institutions need to answer some critical questions:.

• How is the structure of the financial services industry evolving? How are industry revenue and profit pools likely to change?

• What new business models are emerging? What do they signify for the organization structures, operating models, and product and distribution strategies in each of our businesses?

• How is this crisis changing customer behavior in terms of product preferences, risk tolerance, and the perception of financial institutions? How should we respond?

• How do we better understand and manage risks in our businesses? What is the likely impact of new and emerging regulation?

• How do we transform our cost structure to better align with reduced margin expectations?