Introduction IT will be rightly focused on integration following any M&A program, but there are other considerations, notably regulation and what regulators demand of financial services companies. This falls into business resilience, including skills and security, and the management of fintechs – the likely takeover targets. Valuations One of the more surprising effects of the…
The COVID-19 pandemic and subsequent lockdown has shown the benefits of mergers and acquisitions (M&A) in detail, as large incumbents eye competitors, nimble entrants, and fintech companies as potential targets. Business synergies will presumably be clear, but the IT synergies that underly them need to be assessed in detail. Due diligence is the key to…
Takeovers, mergers and acquisitions (M&A) test companies to their limits. These stresses affect all companies but for financial services organizations they can be compounded. Not only do two businesses have to come together, but so do the systems offering their products and services. Part of the problem is that incumbent financial services companies tend to…
The COVID-19 pandemic and subsequent lockdown has thrown business valuations into chaos and shown financial services organizations that the shift to digital products and services is not a nice-to-have, but a necessity. M&As were already anticipated in a crowded market, but the changing behavior of customers has made them a necessity. They make sense from…
One of the consequences of the COVID-19 lockdown was the sudden shift away from traditional modes of financial services, notably the branch, to internet-based services. Whether the end user is a trader, an analyst, an actuary, a business owner, or a consumer, they will have been affected by these changes. These changes are likely to…
Challenger banks have shown what’s possible in the Financial Services sector – new ways of banking, trading as well as modelling and managing risk. As financial services brands consider the next five years, hybrid IT offers the greatest flexibility for developing next generation products and services. As customers increasingly exchange physical for digital experiences, those…
The climate agenda continues to divide leaders in the financial services industry. While some believe it’s not the job of banks to ensure that companies are adopting sustainable practices, others, like Hiromichi Mizuno, Chief Investment Officer of Japan’s Government Pension Investment Fund, said that it’s imperative for asset managers to support green finance. Whether it’s…
Since the emergence of novel coronavirus, or Covid-19, many businesses have had to adjust their business strategies and processes, shifting the focus away from central offices to home services for both customers and employees. This reduces to a minimum the chances of exposure to the virus but puts pressure on IT departments to keep work…
The phrase digital transformation might lead to an eye roll and a groan from many IT people in financial services, such is the ubiquity of the phrase. But while we search for a new way to have the conversation, the conversation itself stays the same. Businesses internally and externally need to increasingly merge physical and…
Mergers and acquisitions are proving crucial for financial services companies in today’s fast-moving and competitive landscape. From wanting to scale and enter new markets to obtaining unique intellectual property or technical capability, it’s clear why businesses in this highly competitive sector want to pursue M&As. In a recent survey by BankDirector, 44% of independent directors,…