Tag: Swiss banking

The SBA guidelines on energy efficiency in mortgages: Where things stand 180 days before coming into force – Banking blog
[ad_1]
The self-regulation guidelines from the Swiss Bankers Association (SBA) on the promotion of energy efficiency in mortgages have shone a sudden spotlight on the subject of ESG in financing. While the current guidelines are limited in scope, they nevertheless present challenges for banks in Switzerland, as they may well be extended in the future. Banks are well advised to adjust their lending operating model not only in the short term, but also strategically for the longer term.

ESG criteria for mortgage financing are new in Switzerland

With the Paris Agreement, Switzerland set a goal of reducing greenhouse gases by 50% from a 1990 baseline by 2030. However, this is only a stepping stone to the net zero target for 2050.[i] Despite making significant progress, Switzerland narrowly missed its targets for 2020.[ii]

Buildings account for a significant proportion of greenhouse gas emissions (roughly 25%) and an even higher proportion of energy consumption (approximately 45%).^[iii]^,[iv] Heating, much of it powered by fossil fuels such as natural gas and oil, makes up the bulk (68%) of this energy consumption.^[v] Achieving climate goals will necessarily entail building renovations with focus on energy efficiency, but the 0.9% renovation rate in Switzerland remains far too low despite the incentives of a carbon tax and a building energy renovation programme.^[vi] This suggests that there may be an “information deficit”. Unsurprisingly therefore, mortgages and mortgage providers are increasingly attracting attention from regulators — after all, mortgage providers have regular contact with both new and existing property owners, and consequently have opportunities to discuss sustainability issues with their clients. But while in the EU clear rules on dealing with potential climate risks from financing already exist (EBA/GL/2020/06, 4.3.5 and 4.3.6), Switzerland has so far limited itself to disclosure of climate-related financial risks, and only for category 1 and 2 banks (FINMA Circular 2016/01). Sustainability is an increasingly important topic in the political arena, fuelled among other things by the debate around UBS and CS. For example, a bill of targets in climate protection, innovation and energy independence was adopted with a substantial majority of 59.1% in the referendum of 18 June 2023, and this is likely to further intensify regulatory pressure. The SBA self-regulation “Guidelines for mortgage providers on the promotion of energy efficiency” that came into force on 1 January 2023 introduce ESG-related lending requirements for the first time in Switzerland, requiring banks to address the topic of energy efficiency in buildings with customers for mortgage financing.[vii]^,[viii]

Numerous challenges for banks despite narrow scope

It should be noted that there are two limitations to the guidelines. First, they are voluntary self-regulation by the Swiss Bankers Association (SBA).[ix] Unlike other self-regulation (such as CDB 20), the guidelines are only binding on SBA member institutions. This means for example that the Raiffeisen banks are not directly affected by the guidelines despite their large share of the mortgage market (approx. 17% in 2022). The same goes for insurance companies and pension funds (approx. 5% market share in 2022).[x] There are also limitations relating to the properties concerned. The guidelines apply exclusively to owner-occupied single-family and vacation homes. Nevertheless, the new requirements are sufficiently comprehensive to present banks with challenges that should not be underestimated — not least because the guidelines also apply to existing loans. The guidelines concern five main topic areas: (see Figure 1 for detailed contents of each section).
1. Provision of information (Art. 5)
2. Advising customers (Art. 2 & Art. 5)
3. Terms and conditions (Art. 3)
4. Data (Art. 4)
5. Training and professional development (Art. 6)
With the exception of the “Terms and conditions”, the requirements in each area are compulsory and member institutions must implement them appropriately. However, implementation is complex because the guidelines contain principles-based requirements (thus leaving room for interpretation) while also covering matters that have an impact on the overall process (such as capturing energy efficiency data). Figure 1 provides an overview of the key contents along with selected implementation challenges for each topic area.

Figure 1: Overview of key contents of the new guidelines and selected challenges for banks

It is unsurprising that some Swiss banks have made more progress than others with implementation, particularly in view of the transition period up to 1 January 2024. Nevertheless, banks would be well advised to obtain clarity as soon as possible as to what changes will be needed by the end of 2023. If they fail to do so, they run the risk of having to implement a large number of tactical auxiliary measures shortly before the end of the transition period, which could impair their competitiveness. An interim analysis by the exclusive Deloitte Mortgage Survey in early June (see Figure 2) found that some 88% of institutions indicated that they had already incorporated ESG issues into their consultations. Where further-reaching measures are concerned, however, the picture is more differentiated. Just 21% of respondents use ESG as a criterion in property appraisals (for mark-up/write-down purposes), while only 33% have special terms for houses with a good eco score. By contrast, 25% of respondents plan to define ESG-related KPI targets for their mortgage portfolios, while 42% intend to introduce customer incentives for ESG renovations in 2024.

Figure 2: Survey on implementation status (as of 30 June 2023, n=24)

Taking the opportunity for sustainable optimisation of lending operations

While banks have the option of relying on particular tactical measures in implementing the new guidelines (e.g. manual entry of certificates and labels in customer files, fact sheets/links to subsidy programmes), this approach is likely to fall short in meeting changing regulatory demands. The provisions in some other markets go considerably further than those in Switzerland. For example, the draft of the seventh MaRisk amendment (published in September 2022) adopts parts of the previous German Federal Financial Supervisory Authority (BaFin) memorandum on managing sustainability risks, such as adjustments to credit risk strategies and appetite considering ESG risks, as well as ESG risk measurement at the portfolio level. The requirements will be subject to audit. At present this is not the case for the new SBA guidelines, but it is quite conceivable that FINMA will take similar measures in the years to come. The scope of properties affected is also likely to expand (to include, for example, investment properties). Last but not least, it is also clear that Switzerland will not be able to avoid the international trend towards better measurement and reporting of climate risks. Banks are therefore well advised not to take the changes associated with the SBA guidelines too lightly. The opportunity here is to use the momentum to achieve a better strategic alignment of their lending business with future challenges, such as those related to their future operating model (see also https://blogs.deloitte.ch/banking/2021/03/strategic-trends-and-implications-for-bank-operating-models.html). There are already examples in the market of banks with innovative, comprehensive solutions, such as home2050, a collaboration between Basellandschaftliche Kantonalbank and the canton’s leading energy supplier: among other things this offers a solution for assessment of the potential, financing and installation of solar equipment and the associated energy system.

In deciding what to do next, banks should specifically ask themselves the following five key questions:
1. What gaps still exist in respect of the SBA requirements?
2. What short, medium and long-term measures can be taken to close these gaps?
3. What further initiatives/projects could impact the implementation of the guidelines, and where can synergies be utilised?
4. Are we seeking a purely tactical implementation for the sake of compliance, or will we utilise the momentum for a comprehensive, forward-looking transformation of the lending business?
5. Will we implement the requirements ourselves or work with an external partner?
You can also view this blog on our website in English and German.
Marc Grüter, Partner, Lead FS Transformation

Marc has 16 years of experience as a partner for leading strategic consulting firms and Big Four companies in Switzerland. Within his project portfolio, he focuses on:

Strategy development, target operating model design and digitalisation

Process optimisation and re-engineering, efficiency enhancement and cost optimisation

Automation, transformation and application of advanced analytical tools

Email | LinkedIn
Eric Gutzwiller, Director, FS Transformation

Eric has more than 10 years of consulting experience for leading universal and cantonal banks. Within his project portfolio, he focuses on:

Front-to-back lending process optimisation, standardisation, application of digital automated technologies

Strategy development and redesign, front-end and sales enablement, income optimisation projects

Complex reorganisations and comprehensive cost optimisation initiatives at banks.

Email | LinkedIn
Simon Heller, Director, Lead Sustainability Services Risk Advisory

Simon has 18 years of experience in sustainability topics in the finance sector. Within his project portfolio, he focuses on:

Sustainability and climate strategies, climate risks

Net zero targeting and decarbonisation of enterprises and real estate portfolios

Sustainability reporting and ESG ratings

Email| Linked
Pablo Paron, Manager, FS Transformation

Pablo has more than 5 years of consulting experience for leading universal and cantonal banks. Within his project portfolio, he focuses on:

Design of target operating models (TOMs) for the lending business, including strategy development and redesign

Front-to-back process optimisation, standardisation and application of digital automated technologies

Market entry strategies, due diligence and platform implementation

Email | LinkedIn
____________________________________________________________________________________________________

[i] https://www.bafu.admin.ch/bafu/en/home/topics/climate/info-specialists/emission-reduction/reduction-targets.html

[ii] https://www.bafu.admin.ch/bafu/en/home/topics/climate/info-specialists/emission-reduction/reduction-targets.html

[iii] Federal Office for the Environment [FOEN] – CO₂ statistics (2022)

[iv] Swiss Federal Office of Energy [SFOE] – Analysis of Swiss energy consumption 2000-2020 by specific use (2021)

[v] The Federal Council – Switzerland’s long-term climate strategy (2021)

[vi] https://www.sia.ch/de/politik/energie/modernisierung-gebaeudepark/

[vii] Requirements are only binding for SBA member banks

[viii] A transition period until 1 January 2024 applies for adaptation of internal bank processes

[ix] Cf. https://www.swissbanking.ch/en/topics/regulation-and-compliance/self-regulation

[x] Market share based on own calculations using SNB and FINMA data
[ad_2]

Lena Woodward

Source link
July 20, 2023
Challenger banks: profitability and cost efficiency in uncertain times – Banking blog

[ad_1]

This blog is the second publication in our blog series. In our previous blog entitled ‘Challenger banks: Disrupting the Swiss market’, we outlined the history of banks, the different categories of Challenger banks and how they can mitigate the risks they are facing. In this blog, we further explore the various obstacles that Challenger banks are facing today, such as economic and political difficulties, and provide recommendations on how to navigate these hurdles and grow in the years to come.

Challenger banks are facing significant threats to their survival due to economic obstacles. Their growth has slowed, and most have not yet achieved profitability or are currently operating at a loss. Overall business development strategy, regulatory & compliance, and data security have developed into important focus areas if they are to become sustainably profitable and compliant. To withstand the current economic and geopolitical uncertainties, Challenger banks should act promptly by revaluating their strategic course.

The financial sector is grappling with challenges posed by major players such as FTX, BlockFi, and Celsius, resulting in a “crypto winter” that wiped out over $2 trillion in market value. This not only impacted the digital asset market but also affected the broader financial industry, including challenger banks . In addition, two California-based financial institutions, SVB and First Republic, experienced a sudden exodus of customer deposits, thereby indirectly threatening the banking sector’s stability. Finally, UBS acquired Credit Suisse amidst the financial turmoil caused by the collapse of the two US banks.

Furthermore, macroeconomic setbacks such as high inflation and increasing interest rates, coupled with microeconomic factors like rising energy costs, have arisen from global geopolitical tensions. This resulted in a slowdown in investments and increased risk aversion, impacting Challenger banks. This stands in stark contrast to the high valuations seen in Fintech firms at the end of 2021. With decreased investor participation and public scepticism, Challenger banks must now address profitability issues, improve customer retention, ensure compliance, and enhance data security.

Challenger Banks and Profitability Issues

In recent years, Challenger banks have been confronted with the reality that once abundant investor funding is now dwindling, down by 45% in 2022 as compared to 2021. In addition, the number of global Challenger banks launched has dropped to an all-time low (a 46% decline between 2020 and 2022), as the market matures and becomes more consolidated and less attractive for new entrants.

The decline in funding can be attributed to decreased investor appetite and major players reaching maturity, hence not needing further investments. Early pioneers, like Revolut, have secured enough backing to focus on profitability rather than raising new funds.

Profits of Challenger banks are linked to scale: generating revenue from an expanding global customer base across diverse products and services while minimizing prospect acquisition costs.

In recent years, there has been a rise in M&A deals, which has led to market consolidation, indicating that some Challenger banks depend on financial acquisitions to achieve the necessary scale and profitability. Prominent examples include Starling Bank’s purchase of buy-to-let mortgage provider Fleet Mortgages Ltd. in 2021. From 2021-2022, the number of annual Challenger banks launches has steadily declined and so have the number of M&A deals completed (a drop of 43%). Regulators have also played a role by implementing regulations (e.g., PSD2) that aim to level the playing field, challenging the dominance of established players.

Uncertain Times and Pressurized Margins

It can be argued that the core issue lies in revenue generation. According to industry experts, the estimated revenue per active customer is around $30 per year. Challenger banks, such as Monzo, Revolut, and N26, offer limited product portfolios with lower fees, including subscription fees, foreign exchange fees, and card fees. They lack more lucrative products like mortgages, business loans, or investment products, which traditional banks typically offer. This limited range may constrain their revenue potential. Recent economic situations have also strained consumer spending, further affecting digital bank revenues.

Despite Challenger banks’ popularity, many retail customers are still hesitant to use them as their primary account. According to industry surveys, 25% of respondents cited data security as their main concern, followed by fraud (22%) and “not being perceived as a bank” (20%).

Players are addressing higher cost base due to…

Increased business development and client attraction expenditures

Revolut’s 25 million client milestone is an exception, as many Challenger banks face difficulties acquiring new clients. Traditional banks now offer similar services and products after significant investment in digital user experience. For example, UBS’s commission-free “key4” credit card appeals to frequent travellers, while Zak by Bank Cler and CSX by Credit Suisse provide more options for clients in Switzerland. Additionally, unified mobile wallet solutions like TWINT, offered by most major Swiss banks and used by 5 million users, cover various financial needs, leaving few unfulfilled niches.

Challenger banks face fierce competition, constantly introducing new features. However, recent scandals involving digital asset firms such as FTX, including some Challenger banks, have eroded public trust. Industry experts don’t consider them “proper banks” and express concerns over fraud, resulting in low penetration rates in certain regions (e.g., US) and some banks exiting markets (e.g., N26 exited UK and US).

Tighter Compliance, New Regulations – and Costs

One major cost driver for Challenger banks is increased spending on regulatory compliance. As these banks attract more users, their responsibilities towards regulators and clients expand. They have made progress in financial crime control measures, but regulators expect further improvements in areas like customer due diligence, transaction monitoring, and Suspicious Activity Reporting (SAR). The Financial Conduct Authority (FCA) states that financial crime control resources, processes, and technology should match a bank’s expansion. To address this, Challenger banks are creating new positions in their Compliance department.

Challenger banks must also manage requirements related to their banking license, such as renewing a license from FINMA (the Swiss regulator). This can be challenging due to capital requirements, which depend on the bank’s category and risk profile. A minimum of 8% of total Risk-Weighted Assets (RWA) and suitable financing sources are required. Management must find a balance between the significant regulatory costs of maintaining their banking license and managing costs for scalability purposes.

Intensified Data Security and Fraud Risks

Challenger banks have long operated with a “scale first” approach, often overlooking other critical aspects of their business, such as fraud prevention and cybersecurity. Traditional banks allocate around 20% of their annual budgets to IT-related expenses, including data protection, according to a J.P. Morgan study. In contrast, some rapidly growing Challenger banks struggle to maintain a strong technological and security infrastructure for customer data protection.

These banks also face a shortage of skilled back-office employees, like fraud and cybersecurity specialists. Consequently, many rely on third-party vendors, increasing their vulnerability and dependency due to insufficient internal cybersecurity capabilities. As a result, numerous Challenger banks have encountered security challenges, including fraud attempts, scams, phishing, and client data breaches. For example, in September 2022, Revolut suffered a cyber-attack that affected around 50,000 clients, representing 0.2% of its 25 million customers. Although the percentage is small, such attacks have significant privacy and reputational consequences.

Challenger Banks and Future Outlook

Challenger banks, particularly in the Swiss market, must implement a strategic approach to sustain growth and maintain competitiveness.

Firstly, they can boost revenues by revising pricing models, such as Spain’s Bnext, which created a marketplace offering for not only financial products but also travel and energy services. They can also target more premium clients, akin to Revolut’s “Ultra” subscription plan aimed at higher income client segments.

Secondly, cost control is critical, encompassing measures such as reviewing cost structures, automating processes, and exiting non-strategic markets, as seen with N26’s decision to leave the US and UK markets.

Thirdly, Challenger banks need to differentiate themselves to attract customers. This can be done through strategies such as offering competitive and profitable products, exceptional support, and implementing client retention initiatives. The introduction of Apple’s high-yield savings account, which offers an impressive 4.15% annual return, is a notable advancement in the financial industry that can significantly disrupt the landscape. This innovative product, initially launched for US customers in April 2023 and accessible via the Apple Card in the Apple Wallet mobile app, not only signifies a transformative step in the financial industry, but also holds the potential for expansion into other global markets, bringing its potential for disruption to a worldwide scale.

Lastly, enhancing data security is paramount to reduce data breach risks, as highlighted by Deloitte’s Global Future of Cyber Survey 2023. A combination of these strategies, including the introduction of new products, cost control, customer attraction, and enhanced data security, will be key to surviving and thriving in the ever-evolving Swiss banking landscape.

Conclusion

As Challenger banks face key operational hurdles on their road to success, they should carefully evaluate the root cause of their profitability challenges and fraud and cyber risks to reframe their company strategy. By adopting strategic options such as revising pricing models, reviewing cost structures, offering new products and services and partnering with other companies, Challenger banks can navigate the challenges they face. In a highly competitive and rapidly evolving challenger banks landscape, they must keep agile and innovative to stay ahead of the curve.

Sergio Cruz, Partner, Consulting

Sergio is the lead Partner of Deloitte’s Business Operations practice in Zurich and has more than 25 year of experience in Consulting. He focuses on large scale front-to-back digitalisation programs in financial services and has worked on several large assignments both in Switzerland and abroad, covering the implementation of regulatory requirements and the definition as well as implementation of target operating models and process optimisations.

Email | LinkedIn

David Klidjian, Partner, Consulting

David is a Partner in Consulting and leads Deloitte’s Business Operations Banking Industry for Switzerland. He has significant experience of Investment Banking and Wealth Management working in the UK, US, Asia and Switzerland. His focus area is on large Front-to-back operations transformations and setup and expansion of new banking operating models.

Email | LinkedIn

Soheil Modheji, Digital Assets and Cryptocurrencies Lead

Soheil is a Director within Deloitte Consulting Switzerland. He is engaged in formulating strategies for banks and developing target operating models as well as leading business, regulatory and IT/Ops strategy-driven banking projects. In the DLT space, he has been involved in projects and initiatives for implementing crypto asset trading and custody solutions at banks.

Email | Linked

Katerina Kochova, Senior Consultant, Consulting

Katerina is a Senior Consultant at Deloitte Switzerland in the Business Operations team. She is specialized in banking and FinTechs working in France, Luxembourg and Switzerland. Katerina has experience on large digital transformation, process excellence setups and Target Operating Models definition projects in Retail Banking, Private Banking and Wealth Management.

Email | LinkedIn

Hongming Li, Consultant, Consulting

Hongming is a Consultant at Deloitte Switzerland in the Business Operations team with focus on the banking industry. Mainly engaged in business testing activities, client risk scoring and client onboardings, Hongming has supported major Swiss Banks in its client life cycle management efforts.

Email | LinkedIn

[ad_2]

Lena Woodward

Source link

July 6, 2023
Challenger banks: Disrupting the Swiss market – Banking blog

[ad_1]

This blog is the first in a series on the impact of challenger banks on the Swiss market. It provides insights into how challenger banks threaten to disrupt traditional banks, the different types of banks that are entering the market, and the need to adapt the challenger banks’ operating models to grow successfully.

Today, banks are changing rapidly to keep up with their customers, who are demanding better experiences and more sophisticated products and services from their providers. For most people, visiting a bank branch used to be the main way of interacting with their bank. However, more and more people are choosing to interact with their banks digitally rather than through a traditional bank set-up.

This has led to the rise of challenger banks, allowing new entrants to gain momentum and increase their market share in the Swiss banking sector. They have achieved this by offering a superior digital user experience compared to traditional players, by leveraging strong capabilities in technology and focusing on customer centricity. Naturally this raises the questions:
• To what extent are challenger banks a threat to the market share of traditional banks?
• Are traditional banks able to keep up with the rapid pace of innovations and customer-centric offerings?

A problem for traditional banks today is that they are bound by legacy systems and have rigid operating models and governance structures. Even so, many market players have been innovative in adopting new systems and technologies, and in customising client journeys. Upgrading to highly customised systems is costly and does not always justify the cost, ultimately leading many banks to hold back their system upgrade plans. Additionally, the systems of traditional banks have been pieced together over years by internal developers and external outsourcers. This has made them sluggish in keeping up with innovative challenger banks which are changing the banking market status quo.

Brief history of Swiss banking

Swiss bank development – Source: Deloitte internal research

The legal and regulatory framework of the Swiss banking sector played an important role in allowing Switzerland to become the banking powerhouse it is today. Since the foundation of the first public bank in Switzerland in the 16th century and up until today, five centuries later, their dominant position was not challenged. Historically, banks owned the entirety of their value chain and differentiated their offerings by creating product and service packages for customers at slightly different rates than their competitors. However, the core operating model has remained the same and has always consisted of building customer relationships and distributing services through brick-and-mortar branches.

Business models in the banking industry evolved slowly until the creation of the first challenger bank in 2009 which accelerated the business model transformation to keep up with changing customer demands. Backed by private funding, challenger banks have since filled a gap in the market by addressing the increasing demands from customers for innovative features as well as “real-time” transaction speeds. With their new operating models, challenger banks are building large customer bases and are intent on dominating the market. However, they need to obtain a banking licence and address a multitude of regulatory requirements − just like traditional players, which are more experienced and still hold a majority share of the Swiss market.

Gaining market share whilst addressing regulatory and operational challenges

Although challenger banks aim to compete with traditional banks by using mobile-centric technology and targeting specific customer segments, they face some challenges to successful growth. We identify four distinct types of banks in the market, each with their unique challenges.

Categorization of challenger banks – Source: Deloitte internal research

Main regulatory and operational challenges for challenger banks in the Swiss market include but are not limited to:
Licence vs. no licence: Without a banking licence, organisations can still offer prepaid cards, permitting customers to cap the foreign currency fee. However, to generate revenue and make profits, expansion is needed into other financial products and services, such as personal loans, mortgages, credit cards and digital assets. A question is whether it would be more profitable to partner with existing traditional players or to undertake a rigorous and time-consuming banking licence application process.

Client due diligence and ongoing monitoring: To provide adequate evidence of compliance with Swiss banking regulations and banking secrecy laws it is necessary to establish a client risk assessment framework, relevant policies/procedures and appropriate transaction monitoring alerts. A lack of regulatory and compliance expertise and poorly defined processes might result in failure to gather sufficient information to identify high risk customers, such as politically exposed persons (PEPs), sanctioned individuals and money laundering organisations.

Governance and internal controls: The governance of Swiss banks is characterised by a strict separation of activities between the board of directors, which is responsible for oversight, and the executive management. There may be a lack of clearly defined roles and responsibilities for each core product offerings and internal functions, and insufficient monitoring of compliance with applicable regulatory requirements. This leads to increased FINMA scrutiny, exposure to financial fines, and reputational risk.

Compliance risk management: This is a major concern for challenger banks of all sizes. The complexity of region-specific banking rules and regulatory risks means that even major banks with large compliance teams struggle to stay compliant.

Combatting risks in line with the evolution of the business model

There are only limited differences between the regulatory and financial crime risks faced by challenger banks and those facing traditional retail banks. Unlike traditional banks, which have large legal and compliance teams, challenger banks are thinly resourced and face increasing pressure from regulators. It is therefore vital for challenger banks to evaluate and mitigate their risks continually, in line with their evolving business model. The most critical and urgent areas for both new and existing challenger banks to focus on are summarised below:

Banking licence: Before engaging in business operations to offer a wider range of financial products and services, challenger banks should obtain authorisation from the Swiss Financial Market and Supervisory Authority (FINMA). Applications for a licence must be submitted to FINMA in an official Swiss language, containing general information with supporting documentation about their intended operations. The lead time for obtaining a licence is between 6 to 12 months, depending on the quality, completeness and complexity of the application.

Operating model: Banks should build a robust target operating model with clearly defined roles and responsibilities, to ensure that their various business functions are lean and compliant. They should enhance the customer journey with innovative and risk-based measures to meet their ambitions for growth and profitability.

Client risk assessment: They should define a robust and flexible risk assessment framework to determine standard and enhanced client due diligence checks,
with the ability to identify the ultimate beneficial ownership in complex structures, manage financial crime risks and trigger adequate transaction monitoring alerts.

Control framework: They should avoid regulatory risks relating to anti-money laundering, KYC, banking secrecy, PEP, and sanctions, through risk-based customer screening and appropriate systems. They should enhance their reporting and operational resilience with quality assurance controls.

Conclusion

As challenger banks continue to attract more customers and expand their operations in Switzerland, they must pay close attention to the requirements of FINMA and the Swiss Bankers Association (SBA). Balancing regulatory compliance with achieving internal operational growth can be a challenge for many newcomers. It is therefore crucial that challenger banks should manage regulatory and compliance risks effectively by establishing a robust operating model, to position themselves for growth and operational resilience in the Swiss market.

If you would like to know more about the landscape for challenger banks and how Deloitte can help, please reach out to our contacts below.

Sources:
[1] https://www2.deloitte.com/ch/en/pages/financial-services/articles/digitalisation-banking-online-covid-19-pandemic.html

[2] https://www.fca.org.uk/publications/multi-firm-reviews/financial-crime-controls-at-challenger-banks

[3] https://www.globallegalinsights.com/practice-areas/banking-and-finance-laws-and regulations/switzerland?msclkid=53079fa6c72711ec8fd3352e9249c895

[4] https://uk.practicallaw.thomsonreuters.com/w-007-8999?contextData=(sc.Default)&msclkid=b9229eccc72411ec8b01e08fcdff0f31&transitionType=Default&firstPage=true

Sergio Cruz, Partner, Consulting

Sergio is the lead Partner of Deloitte’s Business Operations practice in Zurich and has more than 25 year of experience in Consulting. He focuses on large scale front-to-back digitalisation programs in financial services and has worked on several large assignments both in Switzerland and abroad, covering the implementation of regulatory requirements and the definition as well as implementation of target operating models and process optimisations.

Email | LinkedIn

David Klidjian, Director, Consulting

David is a Director in Consulting and leads Deloitte’s Business Operations Banking Industry for Switzerland. He has significant experience of Investment Banking and Wealth Management working in the UK, US, Asia and Switzerland. His focus area is on large Front-to-back operations transformations and setup and expansion of new banking operating models.

Email | LinkedIn

Erika Kuckian Puydebois, Senior Manager, Consulting

Erika is a Senior Manager in the Business Operations team specialized in Financial Services with a key focus on Front-to-back Business Transformation projects. Additionally, she has led regulatory projects in Asset Management, Wealth Management and Investment Banking areas. She has extensive experience in leading large scale engagements focused on creating process efficiencies, defining and implementing strategic cost reductions, setting up Target Operating Models and implementing digitisation efforts.

Email

Katerina Kochova, Senior Consultant, Consulting

Katerina is a Senior Consultant at Deloitte Switzerland in the Business Operations team. She is specialized in banking and FinTechs working in France, Luxembourg and Switzerland. Katerina has experience on large digital transformation, process excellence setups and Target Operating Models definition projects in Retail Banking, Private Banking and Wealth Management.

Email

Thibault Delahodde, Manager, Consulting

Thibault is a Manager at Deloitte Switzerland in the Business Operations team. He is specialized in the financial services industry with a banking focus on the Swiss market. Thibault has extensive experience in Private Banking and Wealth Management supporting Global Swiss Banks in large operations transformation projects and Target Operating Models definition.

Email

Hongming Li, Consultant, Consulting

Hongming is a Consultant at Deloitte Switzerland in the Business Operations team with focus on the banking industry. Mainly engaged in business testing activities, client risk scoring and client onboardings, Hongming has supported major Swiss Banks in its client life cycle management efforts.

Email

[ad_2]

Lena Woodward

Source link

September 19, 2022