Operational Excellence (OE) - A Key Differentiator In Private Banking - Ready To Take On The Challenge Ahead?

Over the past few years growth and profitability in the private

banking market have been very strong. However, shifting external

conditions are likely to make the future more challenging and

complex. They include intensifying competition and consolidation

emerging technology adoption, increasingly demanding clients and

therefore higher sophistication of the private banking service

offering. Against the background of these developments, what will

it take to grow and sustain revenue while keeping margins at

attractive levels in such an environment?

Taking on the Challenge

To take on the challenges, private banks are pursuing a

multitude of initiatives and strategies for differentiation in

competition. As illustrated below, strategic differentiators are

covering specific sets of these popular private banking

initiatives. Our analysis demonstrates that Operational Excellence

(OE) is the most comprehensive and balanced strategic

differentiator as it is most relevant with regards to coverage of

the initiatives.

Comprehensive and integrated framework - Stakeholders

are shaping and driving the future

Deloitte developed a unique approach to OE especially targeted

at the unique characteristics of private banking. As illustrated on

the right, Deloitte's Operational Excellence Private Banking

Framework covers three dimen-sions: Excellence Principles, Key

Stakeholders, and Building Blocks.

Excellence principles provide strategic

guidance to the bank's development and management from an

operational perspective

Key stakeholders' views have to be

considered to ensure a balance between diverging strategic and

operational targets, as well as frontand back-office functions

Building blocks cover all operational areas

ensuring the framework's comprehensiveness

OE affects most parts of the bank and involves major changes.

Therefore, buy-in and involvement of all stakeholders to the

program is crucial.

Bottom line impact - Unlocking enterprise value

OE is a strategic initiative because its ultimate goal is to

increase the bank's enterprise value by aligning and optimizing

its overall organization, processes, technology and

partnerships.

Deloitte's OE Private Banking Framework increases a

bank's enterprise value. By means of Deloitte's Enterprise

Value Map, the benefits include:

Expectations: OE improves the understanding

and perception of the bank's potential by its stakeholders

Capital: OE reduces the bank's deployed

capital and cost of capital

Operating...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT