2014-11-20-奥纬咨询-All_Change_38页_1mb

Summary

Introduction

Oliver Wyman's report, "ALL CHANGE", analyzes the challenges and required transformation for European banks to survive and thrive in a changing financial landscape. The banking sector faces plummeting returns and low investor confidence, forcing massive change despite regulatory uncertainty narrowing and competitive pressures widening. The emerging industry shape involves differentiation based on business models, higher regulatory costs, and greater competition from non-bank players.

Executive Summary

1. European Banking Context:

   • Regulatory uncertainty has decreased, but competitive uncertainty from new non-bank entrants and regulatory costs is increasing.
   • Investor confidence is waning, with banks trading below book value and ROE averaging 4%.
   • Top European banks struggle to meet targets for performance metrics like ROE, even after balancing sheets improved.

2. Agenda for Change:

   • Banks must transform their business models, including cost efficiency, client-centricity, and digital tools.
   • Many cited low ambition, unclear vision, change fatigue, and organizational silos as major blockers for successful transformation.

Key Challenges in European Banking

1. Change Management Barriers:

   • Banks struggle to commit to a clear vision, embed change in culture, or align resources effectively.
   • Siloed organizations: hinders cross-functional delivery of transformation programs like cost reduction or IT simplification.
   • Low ambition levels: 67% of interviewees felt ambition was too low.

2. Execution and Sustainability:

   • Few banks prioritize or resource change initiatives effectively.
     -Transformation funding cycles hinder long-term planning, and celebrating successes is rare, leading to low employee motivation.
     -Insufficient use of technology and poor prioritization further slow down progress.

Innovative Techniques for Successful Transformation

Organizations are exploring innovative ways to tackle these challenges:

1. Zero-Based Mentalities: Starting transformation from scratch (not incremental) ensures radical changes.
2. Championing Innovation: Establishing "innovation labs" and experimenting with partnerships to foster innovation.
3. Network Organizations: Creating structures that transcend silos for improved collaboration.
4. Leveraging Technology: Using tools like API platforms and data analytics to improve efficiency and customer experience.
5. Frontier Programme Design: Fast-track execution via parallel processing to avoid delays.
6. Identifying Delivery DNA: Building teams with skills like quality assurance, adaptability, and scenario planning.

Assessing Readiness for Transformation

• Bank executives can use a self-assessment tool to gauge their organization’s preparedness and benchmark against peers.
• The survey highlights areas where progress is lagging, especially in cost optimization, IT upgrades, and cultural adaptation.

Conclusion

• European banks face enormous challenges but have room to improve.
• Overcoming barriers like silos, fatigue, and ambition deficits is critical.
• Innovation and technology can drive significant breakthroughs, but strategic vision, resource allocation, and cultural change remain essential for success.

Additional Notes:

• The stakes are high — rivals are positioned to benefit from any delay in effective transformation.
• Banks must balance urgency, ambition, and execution speed to navigate a competitive landscape and meet investor demands.