Financial Services Institute (FSI)
The Institute brings you decision intelligence and trend analysis in all financial services sectors including banking and capital markets, insurance, and asset management. FS Viewpoints offers real-time reporting and commentary on current issues affecting the industry.
May the distribution forces be with you: Developing the right P&C insurance distribution strategies for international markets
Distribution can offer insurers a more secure path to sustainable competitive differentiation because it directly strengthens customer relationships, improving the ability of insurers to both acquire and retain customers.
Simplicity is the ultimate sophistication: How life insurers can streamline incentive compensation for their producers
Life insurance carriers should reduce the overall number of plans offered before replacing the underlying systems supporting incentive compensation. Without simplification before system transformation, carriers will re-platform legacy problems and miss out on many possible benefits.
Eyes on the prize: Implementing fast, flexible policy administration systems in the P&C insurance sector
In this publication, we focus on the execution and investigation on how to operationalize these goals through the use of PwC’s Policy Administration Delivery Framework.
Life insurance is “sold” and not “bought” – for how long? A perspective on direct-to-consumer life insurance
After decades of relying on agency distribution, life insurers are unprepared to keep up with changing consumer buying habits and behaviors. The number of life insurance agents continues to decline as more consumers turn to the Web for insurance. Insurers must adapt their go-to-market strategies toward direct distribution or risk losing market share.
Fortune favors choice, not chance: How wealth management firms can pave the way to growth in new and emerging markets
Shifting demographics create new sources of growth for wealth management firms if they can understand preferences and priorities of wealthy individuals and if they can comply with regulatory demands and competitive pressures in local markets.
Love them or lose them: Why becoming a “top provider” is an all or nothing game with your top clients
Regulation, industry consolidation, low economic growth, and risk aversion are squeezing financial institution profit margins. Leading institutions are changing their client relationship strategies to earn “trusted advisor” status. Voice of the customer (VOC) analyses can determine the business changes needed to attain “top provider” status.
An unsettled world: The changing world of cash equities and fixed income and how it is impacting asset managers and their service providers
The financial crisis and new capital and regulatory rules have forced asset managers to reduce fees and have increased the challenges for sell-side firms participating in the cash equities and fixed income execution to custody value chain. Find out how firms are changing their business models to adapt to these market changes.
Recipe for success: How financial institutions can forge a sustainable path for mass-affluent customers
The new economic landscape is driven by strict capital requirements, narrow net interest margins, depressed commercial lending, and fee limitations. Institutions are asking how they should best deploy their capital. In our view, they should also be focused on what resources they need to best serve their customers. Wealth management presents an attractive prospect for lending, deposit growth, and fee income. The needs of the wealthy span those of their household, their businesses, and their extended family. Financial institutions serve those needs via mortgage and small business lending, deposit and cash management solutions, investment advice, and other services.
Rebooting the branch: Reinventing branch banking in a multi-channel, global environment
The rise of the digital consumer and the high-cost infrastructure of physical banking locations are leading to a declining ROI for branches. Evolving the branch network to align with changing consumer and economic realities can help banks boost ROI and position themselves for the future.
From good to growth: Why institutionalizing hedge funds creates value for owners and investors
Hedge funds are searching for ways to boost fund value, increase ROI, and ensure the sustainability of their businesses. In our view, few have the level of institutionalization in place to succeed.
Game on: How information is changing the rules of insurance
Gaining an Information Advantage is no longer about generating insights. It is about making effective, efficient decisions and integrating information into everyday operations.
Too important to fail: Insurance company enterprise risk and capital management capabilities
Regulatory changes present an opportunity for property and casualty (P&C) and life insurance companies to reexamine and risk management strategies, processes, and infrastructures for measuring performance and analyzing risk.
Success through excess: How property and casualty insurers are boosting profits by entering the excess and surplus market
The E&S market holds promise for insurance carriers with three key factors: Less rigid regulatory environment, market fragmentation, and operational synergies.
Missing the forest for the trees? Adapting underwriting intensity to boost insurance property and casualty sales
Missing the forest for the trees? Adapting underwriting intensity to boost insurance property and casualty sales
A matter of trust: Managing individual conflicts of interest for financial institutions
Financial institutions should develop an individual conflict-of-interest management process based on governance and organization, policies and procedures, analytics and reporting, and technology and data.
Deal or no deal: Methods, processes, and models for the new M&A environment
Consolidation in banking, insurance, and asset management impact profitability and drive the need for scale while economic risk is high. Alternative approaches are available for buyers and sellers in all deal environments.
The enormity of uniformity: How insurers can incorporate global rules and trends into local compliance
Insurance industry regulatory compliance presents an opportunity for insurance companies to invest in enterprise risk management (ERM), risk modeling, accounting and valuation applications.
2012: The revenue is not coming back: It's time to manage costs differently
Traditional revenue generators are not growing to overcome new capital and regulatory requirements. Financial institutions are implementing continuous expense management programs to focus on efficiency in budgeting and reporting systems.
Grow a tree for ten years; grow men for a hundred: How private banks can nurture human talent to prosper in China
Retention problems for private banks in China increase the demand for experienced entry-level talent and is crucial to expanding the customer base to a wider demographic.
Breaking up is hard to do: The eurozone crisis - possible implications and contingency planning for US companies
The eurozone debt crisis was triggered in April 2010. Operational risks remain for US firms operating in the eurozone.
Ending the endless reorganization: Building an adaptable operating model
Restructuring, regulatory reform, globalization, and changing consumer demands require financial institutuons to have flexible operating models to respond to market changes.
Gaps in the Apps: Why the Traditional Security Lifecycle No Longer Works
As banks race to develop mobile banking apps that satisfy consumer demands, how can they guard against the security breaches that could damage their reputation and prompt customers to flee?
If They're Happy, Do You Know It? The CIO's Agenda in Improving Customer Centricity at Financial Institutions
Financial services customers want bundled products, customization, 24/7 access, and consistent interaction. Financial services should align IT strategy with business strategy.
The Price of Success: Aligning Pricing with the Customer Value Proposition
Banks should replace traditional pricing with data driven approach that includes customers' needs, preferences, behaviors, purchasing patterns, and price sensitivity.
Lean Forward or Fall Back: How Applying Lean Principles Can Improve the Finance Function
Finance leaders face accounting, regulatory, and management challenges. By reducing costs and releasing capacity, Financial institutions applying lean practices can experience cost reductions
Look Before You Leap: Analyze Customer and Business Impact Carefully Before Implementing Product Changes
New regulations will require financial institutions to re-examine and align their customer and product portfolios across capital management, funding, and risk.
Projects Without Borders: It's All About the Execution
Financial institutions must expand their services to global markets to survive. As banks are making plans to globalize, many fail due to poor project execution.
Time for an Upgrade: Five Things You Need to Know to Make Your Commercial Lending Transformation a Success
Regulatory, market, and operational needs impact commercial lending processes and systems. Banks should focus on data strategy.
The Road to Swap Dealer Registration: Preparing for Swap Dealer Registration Under the Dodd-Frank Act of 2010
The transition to registered swap dealer status for OTC market participants under Dodd-Frank will impact systems, policies and procedures.
When Cash Isn't King: Driving Deposit Value in a World of Excess Liquidity
Rising deposit levels caused by expanded money supply, customer deleveraging and low loan rates impact market competitiveness.
Dialing up a Storm: How Mobile Payments Will Create the Most Significant Revenue Opportunities of the Decade for Financial Institutions
Mobile services have put over $20 billion in play for FS industry participants. If traditional players don't keep pace, tech innovators will prevail.
The Sprint for the Global Footprint: How Insurers can Build a Profitable Growth Strategy through International Expansion
Insurance companies expanding to international markets and should develop a growth strategy tailored to their business goals and organizational profile.
It's Harder Than You Think: The New Reality for Managing Risk and Valuation of OTC Derivatives
Many challenges accompany the over-the-counter (OTC) derivatives market regarding valuation, capital requirements, and counterparty and liquidity management.
Disconnected: Why Fixing the Business/IT Divide Now is the Key to Survival
Financial institutions are building new IT organizational models that assess business objectives and are adapting the model as needed.
Fire, ready aim: Don't miss the point of a policy administration transformation
Poor upfront planning and alignment with key business drivers often means Policy Administration System (PAS) transformation programs are delivered late or over budget.
Under the Table, On the Radar: Improving Anti-corruption Compliance for Financial Services Institutions
Anti-corruption is driving companies to change their behaviors. An effective anti-corruption program should reassess risks and be supported by top leadership.
A View from the Top: Credit Risk Management Dashboard Reporting for Financial Institutions
A credit risk dashboard aids in identifying credit risk and helps financial institutions make better business decisions.
Avoiding the Headlines: How Financial Services Firms Can Implement Programs to Prevent Insider Trading
Insider trading can destroy client, investor, and public trust. Financial services firms are implementing robust compliance, supervisory, surveillance, and control measures to prevent and detect insider trading.
Spring Ahead or Fall Behind: Creating a Market-Ready ETF Operating Model
US-listed Exchange-Traded Funds (ETFs) is growing faster than traditional investments. Asset managers and financial services providers are updating their ETF operating models.
Rebooting Your IT Strategy: Using IT to Accelerate Your Business
A review of IT organizations in financial services and discussions with bank CIOs reveal that firms benefit when their IT organizations innovate and are aligned with their business groups.
Cure for the Common Culture: Building Effective Risk Cultures at Financial Institutions
Meeting new regulatory expectations means applying risk mitigation, compliance and control methods, and instilling an effective risk culture where the right people do the right thing at the right time.
Getting to Know You: Building a Customer-Centric Business Model for Retail Banks
Market forces are eroding financial institution profitability. Banks are adapting to be customer-centric while improving profitability and enhancing competitiveness.
When the Growing Gets Tough: How Retail Banks Can Thrive in a Disruptive, Mobile Regulated World
Retail banks are striving to outperform competitors while grappling with regulatory challenges and shifts in consumer behavior, including opportunities created by mobile phones and social media.
Too Good to Fail: Defining the New Gold Standard for Risk Management in Financial Services
Regulatory and structural changes in the financial services industry impact risk management strategy.
Breaking the Ice: Using Transparency to Thaw the Securitization Market
Restoring confidence in the securitization market requires a focus on rebuilding investor confidence through transparency, enhancing accountability, and balancing risks, rewards, and costs of securitization.
Risky Business: Why Managing the Risks of Evolving Business Models Is the Key to Avoiding the Next Financial Crisis
A review of post-financial crisis risk management at leading financial institutuons.
Orchestrating Mortgage Lending Using Business Process Management
Lenders need sophisticated operational capabilities to meet current regulatory demands; business process management (BPM) can offer key benefits.
Breaking the Cycle: The Case for Eliminating the Budget
Budgeting and planning processes can be costly and time consuming with little return on investment. Many financial institutions are achieving measurable benefits from transforming the process.
The New Basel III Framework: Navigating Changes in Bank Capital Management
Banks should begin to develop strategies to anticipate Basel III rules, especially since some of the standards will be challenging to meet.
In the cards: Preserving Profitability in a post-CARD world
The financial crisis and the Credit Card Accountability, Responsibility, and Disclosure Act caused tighter credit for consumers and increased expenses for card issuers to comply.
Navigating risk in the high-frequency trading environment
We analyze the compliance, risk, and control challenges that high-frequency trading strategies present
Branched out: Fewer branches--Newly designed--Are a sign of the times
An analysis of the bank branch network of the future, and strategies to improve the branch network and individual branch design to increase revenue and maintain margins.
Viewpoint on the US savings rate
Increased savings and reduced lending affect structural changes for US financial institutions.
Liquidity Risk Management: Staying Afloat in Choppy Seas
A liquidity risk management process can help balance liquidity considerations and allow for revenue growth.
Viewpoint on claims transformation
This report offers our firm's point of view on the potential for claims transformation as an overall strategy to reduce costs and increase customer satisfaction and a framework for driving a successful transformation of claims operations
Viewpoint on managing reconciliations by exception
Financial services firms can look toward exception prevention to reduce costs and increase controls and transparency.
Viewpoint on opportunities in crisis
PwC's report provides our firm's point of view on the challenges in failed bank acquisitions and a framework to address operational and accounting challenges associated with a failed bank acquisition.
Viewpoint on prime brokerage
The credit crisis has created demands on hedge funds that are affecting requirements for prime brokers. Prime brokers should create a cost-effective operational infrastructure.
Viewpoint on banking transformation
Problems in banks’ business models and support structures illustrated by the financial crisis can now help them prepare for the post-crisis business environment.
Viewpoint on Lehman Brothers' bankruptcy
The causes and effects of the sudden failure of Lehman Brothers Holdings, Inc. in 2008 will be discussed and debated for years but certain valuable lessons have already been learned from it.
Viewpoint on clearing and settlement
Financial services companies should reevaluate their global clearing and settlement relationships and determine whether a self-clearing, hybrid, outsourcing, or joint venture model is most appropriate.
FS viewpoints: The new world of bank M&A in the US
The recent financial crisis created consolidation, unique buying opportunities and risks in the banking industry. To capitalize on current conditions, investors and acquirers will need a new approach.
A brave new world for insurance companies
The insurance industry is experiencing regulatory changes requring them to review and improve compliance and risk functions to comply with the changes.
FS viewpoints: Boston, Bangalore, Beijing, Budapest, or Buffalo: The United States as a low-cost location and the implications for financial institutions
Changing market conditions have overturned preference for and the suitability of sourcing locations for financial institutions. This leaves the US in a relatively better position for consideration as a low-cost location than it has been in years.
FS viewpoints: Stress Tests: From stressful times to business as usual
The Treasury Financial Stability Plan will subject banks to a "comprehensive stress test" to assess banks' ability to support lending and capacity to absorb losses in a crisis.
Rogue trading: How to successfully manage this risk: PwC
Rogue trading been a problem since the beginning of organized trading but it can be managed in an acceptable manner similar to other types of risks. It is very difficult to design preventive controls absent real time monitoring, which is under discussion at a number of institutions.
Current challenges in counterparty collateral management: PwC
The recent turmoil in the credit markets has highlighted significant errors and shortfalls in collateral management operations. These errors have translated into material actual losses creating a risk management exposure but also a savings opportunity.
Exchange and E-Trading system outages: How to successfully manage this risk: PwC
Today's trading environments are seeing large swings in market volatility and the accompanying trading volume. These changes present a challenge to organization's in ensuring their systems and related processes are both stable and resilient to handle the increasing demands placed on them and in those situations where an incident or outage may occur, and how the organization can effectively handles and respond such incidents. This document provides some examples of where problems can occur and how some organizations have built controls to mitigate such occurrences.
