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In This Issue
Better Business Banking Segmentation: Understanding Lifecycle Needs
Regulatory Reform: Planning
for Change
The Changing Banking Environment: Consumers
and Channels
Successfully Implementing ERP and Financial Systems
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Welcome to our summer issue of On Financial Services.
Weather isn’t the only thing heating up the summer months – so is the debate over financial services regulatory reform taking place on Capitol Hill. While the House and Senate work to combine their versions of the reform bills, we bring you in this issue of our newsletter a look at how banks can begin planning for the changes likely to hit financial institutions. Also, in a follow-up to last issue’s Business Banking Segmentation article, we further examine how to segment these businesses to best meet their financial services needs while also optimizing the returns to the banks that pursue them. Another topic of interest we address is the shifting consumer and channel landscape, and the questions banks need to begin to consider in light of these changes (which include reduced consumer wealth and borrowing, and emerging mobile and social channels). To wrap up this quarter’s issue, we provide an overview of Hitachi Consulting’s solution for successfully implementing ERP and financial systems. We hope you’ll find these topics as interesting to read as we found them to write.
If you are interested in discussing these, or any other financial services topics of interest, in more detail, we would welcome the opportunity to share our thoughts.
Best Regards,
Jim Neckopulos
Managing Vice President, Financial Services Industry Team
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Better Business Banking Segmentation: Understanding Lifecycle Needs
By Jim Neckopulos
Small business banking continues to offer attractive opportunities for banks of all sizes, be they national giants like Bank of America, JP Morgan Chase and Wells Fargo, or local community institutions. Moreover, because small businesses have been traditional sources of job creation in the U.S. economy and are likely to lead us out of recession, business banking opportunities should become even more pronounced in the coming months and years.
Being able to capitalize on business banking opportunities requires careful thought and analysis. The question that we explore here is, “what is the optimal way to segment these businesses to best meet their financial services needs while also optimizing the returns to the banks that pursue them?”
To read the full article, click here.
Regulatory Reform: Planning for Change
By George Simotas
On May 20, 2010, the Senate approved a far-reaching financial regulatory reform bill, putting Congress on the brink of approving a broad expansion of government oversight of the increasingly complex banking system and financial markets. This expansion of oversight may include the following changes:
- Regulators would receive more authority to monitor a broad range of products, from mortgages to complex securities
- Financial firms would be forced to reduce financial leverage and to hold more capital in reserve
- Derivatives would be subject to new regulations, where most trading would be required to take place through open marketplaces
- A new consumer protection agency would be created with powers that include curbing abusive lending, particularly in the mortgage industry
This article provides a brief overview of potential impacts that could result from enactment of this bill and offers some suggestions on what banks can and should do to prepare for it.
To read the full article, click here.
The Changing Banking Environment: Consumers and Channels
By John Hansen
The banking landscape is in the throes of change. The economic difficulties of the past two to three years, changing demographics, the maturing of the Internet and rise of mobile phone uses have materially altered the environmental context within which the banking industry operates. These changes span the customer/market environment, the competitive environment and the regulatory environment.
Banks now face some new realities, forcing them to confront anew questions around customers (and, by implication, products and services) and channels.
To read the full article, click here.
Successfully Implementing ERP and Financial Systems
In an ever-changing financial services environment, ERP and financial systems must adapt to mergers, acquisitions, divestitures, and other changes in business or organizational models. Executives overseeing these systems must be able to do some or all of the following:
- Understand available options for ERP and financial management systems and how they can best support their organization’s strategies and business objectives
- Select a new ERP system and related components that best fit the organization’s business needs and IT infrastructure
- Adapt or implement ERP platforms and change-related business processes to meet evolving business needs
- Manage complex implementation and integration activities – functional, technical, and process-related – while minimizing the impact on customers and day-to-day operations
Hitachi Consulting has worked with numerous clients to deploy ERP and financial systems, solutions, and applications to help address these challenges.
To learn more about our solution, click here. |
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Hitachi Consulting is a recognized leader in delivering proven business and IT strategies and solutions. From business strategy development through application deployment, we leverage decades of business process, vertical industry, and technology experience to understand each company's unique needs and to achieve sustainable ROI. Inspiring your
next success!®
Our national Financial Services Industry Team is the result of significant investments the firm has made in this space over the past few years. In August 2005, we acquired Dove Consulting, a Boston-based strategy and organization consulting firm specializing in payments strategy and research. In March 2008, we acquired JMN Associates, a leading provider of consulting services to the financial services, real estate and insurance industries based in San Francisco. Together, our team brings valuable expertise and practical, proven solutions to clients in the areas of business and technology strategy, process improvement, market research, project management, and industry and regulatory compliance.
Visit us at: http://www.hitachiconsulting.com, or send feedback to: onfinancialservices@hitachiconsulting.com.
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© Copyright 2010 Hitachi Consulting. Contents in this newsletter may be reprinted with proper attribution to Hitachi Consulting. |
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