What are the banks doing?
- While some retail banks have yet to correct past errors or absorb new conduct proposals, others are taking a forward-looking approach to conduct risk and embracing customer-centricity.
- As universal banks begin to separate their manufacturing and distribution groups, wholesale banks are reviewing structural changes to their business and product lines.
- All banks are confronting higher regulatory costs that will impact their pricing and drive increased automation and cost reduction.
Is lasting culture change possible?
- To rebuild industry trust and execute a customer-oriented business model, fundamental culture change is required by banks.
- Culture change is difficult and depends on leadership commitment, rebalancing decision-making priorities, reforming risk culture, business mechanisms and performance measures and close scrutiny of talent risk.
What is the impact on customers?
- Although customers should benefit from the banks’ customer-centric spirit, simpler products and more transparent service, such regulatory reform could also push costs higher, reduce the number of providers and product choice.
Review this section of report (PDF 2.87 MB) for details of the evolving conduct agenda, the current response by banks and the implications for organizational culture and customers.