Transforming Financial Institutions
Value Creation through Technology Innovation and Operational Change
Transforming Financial Institutions outlines an experienced-based value creation methodology for leaders and decision makers to transform financial institutions and bring them back to a growth path in the post-crisis landscape of higher capital requirements, regulatory scrutiny, and emerging technology innovations.
The book outlines EES’s approach to value creation and transformation at the intersection of finance and technology. The book was published by Wiley in its Finance Series in early 2022.
With the Global Financial Crisis (GFC), a boom of 30 years of deregulation and growth that started with the Big Bang in 1987 ended abruptly. With it, the fundamental beliefs in modern risk transfer mechanisms and financial engineering were shaken. In response, the G20 regulatory reform addressed several of the issues through new capital requirements, leverage constraints and regulatory scrutiny. These incoming regulations have challenged the established commercial models with their profitability thresholds, leading to the immanent result that large complex financial institutions operate significantly below their cost of capital.
At the same time, emerging technologies have fundamentally transformed operating platforms and the decision making frameworks. The incoming technology agenda has the potential to re-innovate the industry and put it back on a growth path. However, this requires substantial investments and the break-up of the industry’s existing organisational structures.
“Transforming Financial Institutions” outlines the building blocks that lead to an applicable value creation framework to transform financial institutions and bring them back to growth. The book introduces several technology innovations while outlining a speciality model for commercial success. Its methodology combines strategic and financial decision making with asset-liability and technology management. It is written in two parts. The first one covers core concepts and managerial fundamentals. The second part demonstrates how these managerial fundamentals are applied in practice with emphasis on commercial and wholesale banking, and specialty finance.