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Finance & Performance
OUR ACTIVITIES //Finance & Performance
Finance & Performance department assists financial institutions (insurance companies, banks and social protection groups) in their transformation projects affecting supply and networks, Finance & Risks functions, analysis and management of performance and business processes.

Challenges of the sector and business model of financial institutions

Optimind Winter

In the face of unprecedented challenges combining competitive pressure, margin erosion and regulatory inflation, financial institutions are engaged in transformation projects and are reconsidering their business model occasionally in structural terms.

Transformation of company business models //

Therefore, insurers, banks and social protection groups are reconsidering their business model to adapt to a new economic, regulatory, technological and societal paradigm:

  • Maturity of domestic markets, consequence of increased competitive pressures and high – and new – pressures on margins and profitability.
  • Chronic instability of financial markets and the historically low cost of money which is weakening the traditional business model of financial institutions.
  • Unprecedented regulatory and normative inflation, which requires financial institutions to implement complex, multi-standard financial and prudential processes, involving several departments and activities, increasing requirements in terms of time, volume, frequency, evidence and documentation of data produced.
  • Digital revolution brought by new media and new economic models – like the emergence of the collaborative economy – which modifies the uses, aspirations and expectations of financial institutions clients.
  • Increased requirements of financial institution clients about the quality of service and responsiveness to applications.
  • Increased risk to image and reputation, at a time of viral campaigns online, consumer protection associations and class actions.
  • International development amid the rise of emerging economies, which contribute to global growth and drive growth and profitability for European financial institutions.