Financial Institutions

We actively participate in the transformation of the financial services industry

The financial sector is undergoing a profound transformation, driven by a changing reality in which structural dynamics are converging, As a result of our industry focus, we are able to understand the specific needs of our clients and provide solutions to their unique problems; with other serious issues of a conjunctural nature (such as armed conflicts). In addition, the macroeconomic scenario is uncertain, with persistent inflation and weak growth coupled with strong regulatory demands.

With regard to regulation and supervision, the requirements are more numerous, more demanding and affect more areas (capital, provisions, balance sheet structure, liquidity, leverage, conduct, etc.), in exchange for greater security and solvency of the system as a whole, which structurally reduces the profitability of financial institutions and leads to very high direct costs relating to the adaptation to these requirements.

However, these dynamics are expected to stabilize somewhat in the medium term as the regulatory and supervisory transformation process is completed.
In terms of digital transformation, the emergence and rapid adoption of Artificial Intelligence is a daunting challenge given its transformative potential. The exponential increase in data and storage, processing and advanced modeling capabilities, with lower associated costs, the change in customer behavior towards a more digital and informed profile, and the emergence of new competitors strongly leveraging technology are having a full impact on the business model of financial institutions.
Finally, we should emphasize the active role that the banking sector is taking on in the area of sustainability (ESG), becoming a key player in the process towards changing the economy's production systems (greener and more socially responsible).

The response of financial institutions to these major challenges can be seen in relevant issues such as the incorporation of the digital dimension into strategic thinking with a focus on efficiency, the commitment to business sustainability, the improvement of the customer experience, the focus on profitability and financial soundness, the proactive management of risks with particular attention to those of social impact or the review of business continuity plans.

One activity that has been particularly affected by technological advances is payments. Financial institutions face major challenges in this area, including: a universe of increasingly sophisticated and digital customers who demand efficiency and excellence in the service provided to them (digital onboarding, multi- and omni-channel capabilities, self-service, direct connections to their own systems, etc.); a growing variety of products and services; a market with new players (fintechs, big-techs, etc.) in which volume/scale (flow) and niche/specialist (sophistication) models must coexist; a context with a strong drive towards globalization, based on new regulatory guidelines aimed at increasing both transparency and competition, and where opportunities for joint action in a syndicated manner or through partnerships are opening up; and a technological reality that offers levers to respond to a changing environment, but also requires efforts to modernize the infrastructure of obsolete front-to-back systems that have grown in a disorganized manner and are limiting growth.

Our practice

Management Solutions caters for all kind of entities within this market: banks, insurers, investment companies, financial institutions, etc.

Based on their in-depth knowledge of, and experience in, the industry, our professionals are more than prepared to meet any current challenge.

All our areas of specialty can be brought into play in this practice. Additionally, we have developed certain services that address industry-specific requirements. Especially noteworthy are our services in wholesale banking (Treasury, Capital Markets, Asset Management, Payment Methods, etc.), business and retail banking (distribution models, knowledge of customer, customer’s multi-channel behavior and experience, etc.), management of financial business risks (in any of its facets), optimization of equity, and regulatory compliance (Basel II, money laundering, etc.).

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