Banks and financial market businesses face a series of headwinds as they move forwards and try and recover from the
shocks of the Global Financial Crisis, and the challenging economic conditions which have followed in its wake. These headwinds include the following:
- In the aftermath of the Global Financial Crisis, banking and financial market supervisors and regulators introduced
significant new rules, regulations and requirements for investment banks and financial market businesses. These include major legislation which have inundated firms with a list of rules, regulations,
dos and don’ts covering almost every aspect of their work.
- Banks have been hit by a series of financial market controversies, scandals and misselling sagas. Huge financial
penalties have resulted, along with extremely negative publicity, and a loss of trust in banks by the publics and their clients.
- Finally, the old model of banking is being challenged, the need to produce value for shareholders, to provide higher
standard of service for customers and clients, and to win back the trust of the public is driving banks to look at new strategies and approaches. Some of this is being met by the application of new
technology with the rise of electronic trading and services. Beyond this banks are increasingly looking at strategies based around concepts such as ‘client-centricity’, ‘solutions based approaches’,
and ‘selling across asset classes’.
The need for change and transformation in the banking sector has never been higher. However
the old culture of banking is still pervasive across many organisations. If banks are going to meet the challenges they face head-on, then changing and modifying their culture is the big hurdle to
overcome. This is never easy, culture can’t be edicted, culture has to be cultivated and given the support and leadership to grow. The most successful banks in the future, will be those whose culture
can take the best of what they have now, but modify it to meet new higher standards, to act ethically and morally, to take risk prudently, but still allow their talent to take risks, and aim for high