SunGard Identifies Ten Trends in Banking

Boston - 15 September 2010

Nick Brewer, vice president of SunGard’s Ambit business unit, said, “The financial crisis has led many banks to realize that they need a prudent, long-term, balanced view of their business. In order to succeed and grow, banks of all sizes will need to focus on their three core assets – customers, staff and capital. The key is to ensure that these three assets are managed in a balanced, risk-adverse and profit-focused manner.”

SunGard, which provides its Ambit solutions for retail, corporate and private banks, has identified ten trends shaping the banking and financial services industry. These trends are:

1. The financial crisis has caused banks to re-assess their business fundamentals like profitability and client relationship management to improve client retention and cross selling capabilities
2. Banks are renewing their focus on the fundamental assets of customer, staff and capital rather than product innovation for long-term growth to become well managed
3. Banks are increasing risk transparency to help reduce operational risk and comply with corporate governance regulations and standards
4. Banks are focusing on staff efficiency to make them more aligned with the bank’s risk and profit strategy by enhancing their IT solutions
5. Banks are moving from a product-centric approach to a client-centric approach with a 360-degree understanding of their clients to better manage and maintain client relationships
6. Banks are deploying client profitability analytics to enhance performance by analyzing profitability at multiple levels
7. Banks are seeking data reporting technology and proactive approaches to better manage clients and client portfolios
8. Banks are trying to better leverage the best of existing infrastructures while adding new platforms for operational and cost efficiencies
9. Banks are accelerating the use of algorithmic approaches to complex back-office tasks for increased automation and efficiency
10. Banks are looking to do more with less by balancing cost reduction with process improvements using business process management and business activity monitoring

Bart Narter, senior vice president of the Banking Group at Celent. said, “After the financial crisis, we see that financial institutions, regulators and customers have all become more cautious. Tighter regulations are making it hard for banks to obtain the growth rates of yesterday. There is a belief that there will be a “new normal.” As a result, we see that more and more financial institutions are returning to a client-centric approach rather than focusing on innovating with more products, each of which adds operational cost and complexity. Banks are looking to drive operational efficiency and better manage their exposure to risk. This back-to-fundamentals approach is the overarching trend for banks as they emerge from the crisis.”

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