Financial Services Industry Newsletter - nr.3February 2012 |
In the third issue of our FSI Newsletter we provide the information about innovative communications with the consumer and the market using new communication platforms and look into the challenges of recruiting and keeping talent as a key competitive leverage in the Financial Services Industry
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| Accounting and financial reporting | ||
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The global financial crisis, coupled with problems in day-to-day operations, has put the Financial Services Industry under the loop of regulators. One of the key changes involves exactly new financial reporting rules. Deloitte’s study Accounting and Financial Reporting provides an insight into the latest present and future novelties in this area, with a particular focus on the following four FSI segments: Banking, Insurance, Asset Management, and Property Management. As expected, IFRS 9 and IFRS 4 are the hottest topics raising at the same time biggest concern among the FSI players. | |
| Social CRM | ||
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Social CRM, or CRM 2.0, is a new business approach that broadens the current capabilities of the traditional CRM and enables financial services institutions real-time communication with their customers and the overall market. CRM 2.0 is an Internet and social media based platform offering customers the opportunity to exchange their experiences. Given the accelerated development and acceptance of the technology, in particular among the young population, the orientation towards CRM 2.0 could introduce changes to marketing strategies and bring significant corporate advantage in the long run. By analyzing interaction between customers and groups of customers with shared interests while focusing on their experience, emotion and sentiment as key components, companies can obtain valuable information for formulating their strategic approach to customers. In addition, linked customer groups enhance the complexity of customer experience, ultimately evolving into a new type of customers that make connections and bring about changes in their behavior. More |
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| Stress testing as a risk management tool | ||
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The global financial crisis has compelled regulators and banks from all over the world to start using stress test as a risk management tool. The objective is to measure, analyze and reduce vulnerability to potential unexpected shocks. Namely, to support the conclusions suggested by traditional analytical methods and reduce the weaknesses identified in the common risk management models, the use of techniques such as sensitivity and scenario analyses has become a necessity. Moreover, properly used and interpreted stress testing techniques may be well suited for integrating analytical tools with the expertise and experience of senior management. More |
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| Tax tactics for financial institutions | ||
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Today's FSI experiences a number of changes that affect management decisions and operating processes at financial institutions. Financial institutions are facing the need to adopt regulatory changes arising from the finalized versions of Basel III and Solvency II. As a response to those changes, there is a need to consider the related tax implications and new opportunities. Understanding tax system and positioning in an evolving trend may lead to discovering opportunities to harness those changes to the benefit of financial institutions. Deloitte’s study Harnessing the forces of change: Tax tactics for financial services institutions addresses the possible ways of optimizing tax positions within a wide range of operations. More |
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| Rethinking retail banking growth | ||
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Deloitte's research Rethinking retail banking growth presents an overview of strategies for increasing revenues in the retail banking industry by building stronger connections to the post-crisis customer. According to the research, executives of financial services institutions are considering growth as the top priority in the future. As low interest rates and regulations strangle traditional sources of income, many once-attractive customer relationships are generating less revenue, causing some to become unprofitable. As a result, the tried-and-true strategies for organic market share and revenue growth are not sufficient anymore. Competing based on pricing, convenience and service is still fundamental for the banking industry growth. However, a new era has arrived that requires the implementation of new strategies to increase the profit potential of banks such as identifying underexploited revenue and profit sources, analyzing most profitable customer relationships and creating a new business climate enabling faster and more efficient transacting with customers. More |
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| Talent Edge 2020 | ||
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Deloitte' research Talent Edge 2020 reviews strategies to attract and retain top talent in the FSI. High unemployment rates cannot be expected to generate surplus talent. Quite the contrary, many executives consider that this would result in a lack of talented individuals to deal with innovation and growth. Voluntary termination of employment is a common theme during recession - almost half of the organizations surveyed (47 percent) have perceived a higher turnover rate over the past 12 months, whereas 56 percent expect the turnover in the next 12-month period to increase further. This is why retaining top talents has become one of the highest priorities for the FSI, with 50 percent of executives already having developed detailed plans to keep their talents in house. The Deloitte research shows that, as workforce converges, top companies are likely to refocus on building a new generation of leaders capable of performing well across all financial service segments and geographic territories. More |
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