Banking

Zobrazit stránku: Česky
Project BlueExploring the mega-trends for the financial services industryRead the latest report

During the global financial and economic crisis of 2008-2012, the banking sector in the Czech Republic showed a high degree of stability along with significant levels of innovation and progress of the banking services, while keeping its profitability. There are other threats that have to be faced by the Czech banking sector, such as the European crisis supplemented by the ongoing recession and unfavourable prospects of the global economy development.

Despite the relatively high concentration of the Czech banking sector (three major players control up to 60% of the market), new innovative players enter the market as alternative to traditional bank institutions. Following the Czech Republic’s EU entry, there has been a pronounced trend of foreign banks penetrating the Czech financial market by expanding their branch networks based on a single EU-wide licence. Both these trends have a positive impact on the competitive environment and on the domestic banking sector development. Czech banks have also become flagships for the on-boarding processes and technologies within groups and for their foreign headquarters.


What challenges you face and how can we help with their solution?

We offer the following solutions to banks as well as to leasing companies, private equity companies and other financial institutions.


The strategy, segmentation, products and distribution

As clients are becoming increasingly sensitive to not only new products prices variation, the bank pricing policy is an important parameter. Banks must fight over clients not only by means of price, but also by the extent and variety of products, and especially recently also by distribution channels which mediate services to the customers. In this context, we observe two basic trends. On one hand, there is a shift towards individual approach in the form of private banking, where more emotional relationship with the client is promoted On the other hand, banks become modern service providers that outside the conventional ways of communicating with clients, also offer "contactless" electronic banking, which is essential for the further development of this segment.

Customer relationship management, maintenance and further improvement in customer satisfaction, adequate distribution models, management processes and customer information are critical for sustaining long-term profitability and growth. With proper use of available demographic and social data of their customers, banks are able to offer attractive targeted products and achieve good results.

Services:

 
  • Corporate / market strategy
  • Client segmentation
  • Client Strategy and Customer Experience
  • Value proposition
  • Product design and distribution
  • Management of customer long-term value (CLV) a customer and product lifecycle
  • Pricing
  • Management of distribution network
  • Customer process improvement (front-office processes)
  • Distribution model optimizing
  • E-banking
  • Business Intelligence

Contacts:

  • Tomáš Reytt
    Assistant Manager, Advisory services
    Tel: +420 251 152 069

Operations

Clients require greater flexibility in the area of operational transactions, which reflects mainly the requirement for a faster response from financial institutions, greater transparency (simpler terms of contract, understandable business terms, presentation of total cost without requesting, etc.) and limitation of physical visits and their replacement with electronic communication channels such as Internet Banking and increasingly more popular Smartphone Banking. At the same time, lean processes put pressure on efficiency and performance of financial institutions. In relation to outsourcing legal questions concerning providing customer data across borders of the Czech Republic, or European Union, continue to emerge.

Services:

 
  • Evaluation of the branches performance and their comparison with competitors
  • Evaluation of the functionality and call centre performance
  • Process and cost optimization
  • Lean and Six Sigma
  • Recovery process optimization

Contacts:

Information Technology

The effort to centralize and optimize systems and operations is the current trend in the banking information technology area, bringing along the unification of data warehousing, establishment of competence centres, off-shoring, etc. Also, recently the Czech banks tend to participate in pilot projects to introduce new solutions, which are later implemented within their group. At the same time, however, the pressure on cost reduction still persists, which also applies to the information technology environment.


Services:

  • Use of electronic information channels
  • E-banking
  • Customer relationship management and marketing (CRM services)
  • Management of customer data governance including security
  • Business Intelligence of System Campaign Management
  • Possible use of social networks

Contacts:

  • Michal Kohút
    Senior Manager, IT & Transformation
    Tel: +420 251 152 078

Finance

With the recent market turmoil it is often difficult for banks to modify annual budgets to match the current outlook. Greater flexibility can be achieved by implementing an adaptive planning and budgeting supported by adequate performance measurement and motivation of management and employees in line with the corporate strategy. It is essential to well understand the cost allocation in terms of maintaining profitability, the more stringent regulatory rules related to Basel III and in terms of liquidity.


Services:

  • Selecting and implementing appropriate pricing policy
  • Consultations related to cost management
  • Basel III
  • Management of liquidity risk and assets and liabilities
  • Enterprise Performance Management (including shaping the vision and strategy, planning processes, reporting related to investment management, employee motivation)
  • Business Intelligence
  • Resource allocation (including ABC methodology)

Contact:

 

Audit

We provide third party assurance services (audit and limited reviews) in accordance with both International Standards on Auditing / International Standards on Review Engagements, as well as the Czech Chamber of Auditors' standards. Our banking clients are served by a banking-industry-focused team of auditors with extensive experience in auditing banks and other financial institutions. To prevent any potential conflicts of interest, the other services outside the audit scope are provided to our audit clients while taking into account the ethical standards of the audit profession.

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Contacts:

  • Petr Kříž
    Partner, Assurance Services
    Tel: +420 251 152 045

Regulation and Risk Management

The European crisis is largely the driving force in the field of regulatory measures applicable to banks. Based on that, banks face several new regulations to which they must adapt their processes. New regulatory rules, however, come even from other sources such as the USA. Due to the crisis, the proportion of non-performing loans is on the rise, and banks turn their interest to recovery processes. It is also necessary for them to search for adequate risk management systems which will carefully manage exposure to risk according to the overall strategy.


Services:

  • Governance and operational models for risk management and compliance
  • Adaptation to regulatory measures (such as FATCA, or Basel III)
  • Increase the effectiveness of collections
  • Risk reporting
  • Strategic, credit, market and operational risk management
  • Ensuring governance

Contacts:

Fraud Risk management

Economic crime remains a serious problem and no company is immune to it. Number of international statistics show that the financial sector is the most vulnerable to the risk of fraud. Economic crime has not only financial impact, but can also result in damage to the reputation of the company. Therefore banks and financial institutions should be sure that their system for fraud prevention and detection is working effectively and they are able to detect potential fraud, committed by external entities, as well by their own staff, as soon as possible.


Services:

  • Identification and assessment of fraud risks (Fraud risk assessment)
  • Assessment and testing of anti-fraud programs effectiveness (prevention and detection), including protection against money laundering (AML)
  • Data analysis focused on risk areas or suspicious transactions such as loan portfolio, procurement, payroll, payment to suppliers
  • Investigation of suspected fraud cases, including capture provision of electronic evidence, data leakage, theft of sensitive data or misuse of information systems
  • Compliance audits
  • Programs “Know your employees and business partners"
  • Assistance/Advise during selection process of system for fraud detection and assistance during implementation phase
  • Accounting, financial and economic consultancy and expert evidence for court and arbitration proceedings involving complex business matters

Contacts:

  • Filip Volavka
    Senior Manager, Forensic Technology Solutions
    Tel: +420 251 151 269

Human Resources Management

Human capital is one of the most valuable resources in the framework of a successful company. Human resources must be aligned with corporate strategy, support customer orientation and bring innovation to all parts of a company’s business. This often requires measuring and implementing investment in human capital, transforming HR services to achieve efficiency and setting up transparent communication, correct motivation and well-made change management.


Services:

  • Optimisation and audit of HR processes
  • Measurement of Human Capital Return on Investment
  • Changes in organisational structures, processes, roles and responsibilities
  • Performance management
  • Satisfaction and engagement management of employees
  • Strategic workforce planning (workforce management, talent management)
  • Support for sending employees abroad
  • Management of international mobility
  • Change management in methods of operation and organisational culture
  • People management
  • Assessment Centre preparation
  • Strengthening or modification of corporate culture and internal communication
  • Role of HR department as an internal partner in the company
  • Role HR oddělení jako interního partnera ve společnosti

Contacts:

  • Daniel Soukup
    Manager, Human Resource Management
    Tel: +420 251 152 595
  • Jan Malý
    Business Consulting
    Tel: +420 251 152 424

PwC Legal / Banking and Finance

Banks, lenders, sponsors, creditors and debtors rely on our expertise in banking and financing across a wide range of industries in commercial and governmental sectors. Thanks to our cooperation within PwC, our clients are in an ideal position to benefit from a unique combination of innovative tax and legal advice with first-class transactional expertise.

We provide clients with sophisticated advice on the whole range of financial products, including syndicated loans, speculative and acquisition financing, product derivatives, financial regulatory rules, insolvency and restructuring.

Thanks to our broad international background and local experts, we assist our clients in acquiring financial means locally, as well as with international transactions in Central and Eastern Europe, or anywhere in the world.


Services:

  • Acquisition finance
  • Mezzanine finance and subordinated finance
  • Syndicated loans
  • Project finance
  • Mortgage finance
  • Financial restructuring
  • Loan and security arrangements
  • Structured finance and securitisation
  • Regulatory framework
  • Banking
  • Loan and own capital market
  • Private equity, risk capital
  • Tax planning and structures
  • Project structuring and management
  • Insolvency and restructuring, including pre-insolvency proceedings

Contacts:

  • Petr Kincl
    Attorney, PwC Legal
    Tel: +420 251 152 905

Tax advisory/ Research and Development tax allowance

The Czech Income Taxes Act allows taxpayers to deduct from the corporate income tax base 100% of expenses incurred when realizing R&D projects. The tax savings available to the company in respect of the performed R&D activities result from the fact that the eligible R&D costs may be applied twice – once as tax-deductible costs and then again as a tax allowance.

The basic criterion for differentiating R&D from other (related) activities is the presence of a measurable element of novelty in R&D and clarification of research or technical uncertainties.


Examples of R&D projects in banking:

  • Research on projection methods; development, usage or maintenance of software
  • R&D related to electronic banking, internet-related services and e-commerce applications
  • Development of risk models of credit policy (e.g. Basel II).

Services:

  • Assistance with identifying projects eligible for the R&D tax allowance
  • Preparation of the legally required documentation in cooperation with the company’s experts
  • Evaluation and maximisation of the R&D tax allowance

Contacts: