The business model will need to change in drastic ways, and the sooner, the better.
New York, NY (PRWEB) April 03, 2012
Global financial leaders are optimistic that weathering economic uncertainty and evolving regulatory reform eventually will lead to increased opportunities for bank growth and a more profitable business model, according to a new report issued by Ernst & Young.
Participants in Ernst & Young and Tapestry Networks’ third annual Bank Directors Summit said new regulations are expected to force a change in the future of banking, impacting bank customer relationships, risk governance, technology needs, and more.
As one participant said, “The business model will need to change in drastic ways, and the sooner, the better. Once everybody knows the rules, business models will evolve so that banks ultimately will have a better profit model.”
Bill Schlich, Ernst & Young Global Banking & Capital Markets practice leader, said the industry’s focus should be on the opportunities for growth within banks’ reach.
“I think that growth is going to come from focusing on customers, emerging markets, business models and really understanding what is the service banks are going to deliver and how are they going to deliver it.”
Schlich said the question of how banks can best service customers is already on the minds of senior bank leaders as the dialogue has begun to shift from ‘What can I sell my customer?’ to ‘What does my customer want and need and how do I deliver that service?’
Despite the opportunities for growth, regulations are expected to continue to shape industry trends for the foreseeable future. The challenges of trying to understand the regulatory environment are weighing heavily on the minds of financial industry leaders since many unknowns still exist, said Schlich.
About Tapestry Networks
Tapestry Networks is a well-established, growing firm dedicated to bringing together leaders from business and institutions to help make the world better by making it run better. Tapestry’s mission is to advance society’s ability to govern and lead. We enable senior leaders to address difficult, sometimes divisive, issues that require the public and private sectors to work together much more effectively than they typically do.
About the Ernst & Young Global Banking & Capital Markets Center
In today's globally competitive and highly regulated environment, managing risk effectively while satisfying an array of divergent stakeholders is a key goal of banks and securities firms. Ernst & Young’s Global Banking & Capital Markets Center brings together a worldwide team of professionals to help you achieve your potential – a team with deep technical experience in providing assurance, tax, transaction and advisory services. The Center works to anticipate market trends, identify the implications and develop points of view on relevant industry issues. Ultimately, it enables us to help you meet your goals and compete more effectively. It's how Ernst & Young makes a difference.
About Ernst & Young
Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 152,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential.
For more information, please visit http://www.ey.com.
Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
This news release has been issued by Ernst & Young LLP, a US client-serving member firm of Ernst & Young Global Limited.