One of CONFIDUM’s special skills lies in the development of profitable client business. When they are strategically and operationally well positioned, regionally active banks and savings banks are able to remain competitive in the long term and to significantly reduce their dependence on treasury business. For more information on this topic, go to Management Consulting, Regional Banking.
Since the financial crisis, the private banking environment has radically changed, and many high net worth clients have been disappointed by the performance of reputable providers and are prepared to consider alternatives. However, these need to differ significantly from the traditional business model, thereby opening up new opportunities for regional banks in particular, which are seeking to gain a foothold in this business.
Despite ever more extensive regulatory requirements, commercial banking is gaining in attraction. Further interesting growth opportunities are developing in combination with private banking. CONFIDUM devises individual strategies together with its clients, and underpins these with bespoke sales and organisational concepts designed to realise opportunities.
Bank Assurance goes well beyond the sale of single premium products, offering attractive opportunities to significantly improve the commission income of regional and private banks. Opportunities exist for both group-based and standalone insurance companies to maximise the potential offered both by composite business and by pension schemes within superior private client business.
The downward trend in mortgage lending, alternative financing and savings products, sharply falling levels of savings in retail banking, all bring new challenges to the building society business model.
In addition to triggering a serious drop in demand, the financial crisis has seriously called into question the traditional supply of liquidity through the money market. Growth can only be achieved through an appropriate liquidity strategy, which increases pressure to consolidate within the market, but which also offers opportunities for new and also smaller providers.
The asset management market continues to polarise: whereas increasing numbers of discount products such as ETFs are being used for common asset classes, increasingly complex management techniques are needed in the alternative investment areas in order to achieve outstanding performance. This puts increasing pressure on traditional providers of index-linked and actively-managed products in particular.
We expect to see a great deal more consolidation in the finance industry over the next few years, driven in particular by the sharp fall in the profitability of client business and the resultant need to adapt the business model accordingly. Effective merger management is one of CONFIDUM’s key services.