The views and opinions expressed in this article are those of the thought leader as an individual, and are not attributed to CeFPro or any particular organization.
By Jeff Simmons, Chief Risk Officer, MUFG Securities (Europe) N.V.
How have you seen the global pandemic impacting business strategy within financial institutions?
Financial Institutions have tackled the issues around business strategy in a number of different ways I think, each with varying levels of success. I would categorise them into 2 different classes:
– Those that adapted their existing BAU models so as to provide the same level of service and product set as they did before the crisis. This normally entailed a decrease in that service at the onset but was followed by a relatively quick recovery. Normal, pre crisis business strategy is now being enacted
– Those that saw this as an opportunity and changed business models, focussing on what they saw as the new paradigm in the industry. As the world recovered they were the first out of the starting blocks offering new products and services targeted at the population of the “new normal” world.
Neither of these strategies are better than the other, and each have their own risks and challenges. The risk is on estimating what the post crisis world will look like