Market positioning of a banking group
The issue
A banking Group was considering the transfer of its Luxembourg activities to various other locations. The challenge of the Luxembourg bank was to identify products and services which would complement those marketed by the Group, by leveraging the opportunities that Luxembourg has to offer.
Our approach
- Review of the current market strategy (business activities, client segmentation, product and service offering, and pricing).
- Review of the existing organisation (processes, human resources and systems) in the light of best market practices.
- Positioning of the bank within the Group and understanding of the existing and potential synergies to be created.
- Market analysis and identification of new value-added activities, products and services.
- Assessment of the impacts of the divestments and new activities from several perspectives:
- Regulatory (e.g. definition of the best legal structure to support the new activities identified)
- Tax (e.g. tax structuring opportunities)
- Operational (e.g. definition of new competences and IT requirements).
- Definition of a business case and action plan.
- Obtaining clearance from the Luxembourg Tax Authorities on the bank’s tax positioning in the light of the new business model.
The outcome
Repositioning of the Luxembourg entity within the Group with a new and clear mission statement, leveraging the business opportunities offered by the financial marketplace:
- Allocation of new market responsibilities.
- Significant improvement of financial ratios.
- Improvement of tax positioning.
- Hiring of additional staff.
