Executive Summary Focus for success The ongoing financial crisis has forced many businesses to face some grim realities, none more so than investment banking Banks have had to undertake largescale restructuring and cost cutting, hilst scrambling to meet even reduced revenue and rofit targets, all ithin an environment of intense regulatory ressure and lacklustre economic erformance It has been the erfect storm for the industry emerged, roving that success is ossible through The result is that investment banks have to disciline and clear strategic ositioning hilst reexamine the very rinciles of ho they these findings rovide insight into the building do business To survive, let alone thrive, banks blocks of high erformance, they are not the only have to use the ne economic realities to or definitive anser iven the game is changing, fundamentally reform the ay they aroach banks ill need to understand hat it ill take the market, and ensure they remain relevant to be high erforming in this ne era to their clients To this end, our study has identified a number It is because of this aradigm shift that €ccenture of key characteristics that ill define the ne has conducted a detailed examination of hat industry Banks ill have to face u to multile it ill take for banks to be high erforming in s ueees on rofitability, ithin an increasingly this ne era ith over „… years orking at the comlex marketlace, all under rising cometitive heart of the industry, €ccenture has a uni ue ressures The combination of these factors leaves ersective on hat it takes for banks to be high little margin for error Banks need to diligently erforming e have seen a number of banks focus on those areas that ill generate sufficient rise and fall, building extraordinarily rofitable returns and are relevant to their clients businesses before sectacularly crashing †n Building a strategy in such an uncertain and many occasions, as banks’ senior managers volatile environment is challenging Hoever, readily admit, banks dodged a bullet They ere market dislocation ill bring oortunities for able to avoid structural change by hiding behind those able to look beyond shortterm concerns high rofits and extraordinary revenue groth To take advantage, banks need to build structural rates Hoever, as €ndre Haldane at the Bank change into their strategic lanning To rovide of England recently noted, ‘the urchaser of a banks ith the tools to drive this rocess, ortfolio of global banking stocks in the early €ccenture has identified five business models to ‰ ‰ŠŠ…s is today sitting on a real loss’ ‹learly, hel understand ho to reach high erformance no is a time to reassess and rebuild in the ne era These are‚ To better understand hat has driven high • The Flow Monster, hich harnesses highly erformance in the ast, €ccenture has carried efficient infrastructure to rocess huge trade out a detailed financial analysis of the recent volumes at tight sreads erformance of ‰Œ leading investment banks, as • The Regional Champion, hich crosssells ell as reflecting on historical trends This has risk management and financing solutions to an rovided insight into the recent inners but, more existing client base of midsied cororates imortantly, has shon that banks have achieved high erformance through multile routes To • The Product Specialist, hich achieves traditional scale layers have stretched clear of the cometitive differentiation through niche ack, but three smaller ‘focused inners’ have also roduct offerings
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