Our journey towards sustainability

Our clients
Focusing on Financial Services
What the changing market landscape means for
financial services
Despite GDP growth, interest rates across the Eurozone and the UK are set to
remain low. When combined with increased regulatory requirements, this provides
an impetus for a wave of transformation across the FS industry. Our EMEIA FS
sector leaders summarize the changes below. More information can be found in
the latest Eurozone forecast - Outlook for FS
Banking & Capital Markets (BCM)
It’s clear that there’s little scope for European banks
to grow their revenues given the low interest rates, and
low growth across Europe. As a result, banks must
consider doing more to optimize their business, as well as
seek out new and innovative ways to grow revenues. This
provides banks with opportunities to integrate disruptive
innovations with their existing systems and processes.
Success in applying fintech into traditional banking
models will be central to organizations’ ability to respond
to the pressures of today’s macro environment as well as
compete with new, agile, technology-driven competitors.
Marie-Laure Delarue
Banking & Capital Markets Leader, EMEIA FS
Insurance
In 2015, the EU’s Insurance Distribution Directive
(IDD) was ratified, confirming the expansion in the
focus of industry regulation from prudential, risk-based
measures towards policyholder protection and conduct.
The IDD will change companies’ behavior by applying
new rules around sales situations to ensure customers
are protected through the contract term. This will
reinforce the trend to reexamine how insurers go
to market and use customer data.
Andreas Freiling
Insurance Leader, EMEIA FS
By 2016, we had hoped the effects of the financial crisis would be well behind us. In that
context, we might well be slightly disappointed with the outlook for this year. However,
given the steady but relatively slow progress made in the last three or four years, we can
take comfort that in the UK the vital signs are all now back. Things are looking up across all
sectors. If we can plot a course through the policy and politics, 2016 looks set to be another
relatively good year.
Wealth & Asset Management (WAM)
Historically, the cost of regulation has been an obstacle
to market entry that has been protecting incumbents.
These barriers to entry are crumbling. New business
models are emerging that rely on technology to meet
evolving client needs. Armed with digital enablers,
these new entrants are leveraging technology in ways
that deliver lower cost but more customer-centric
wealth management services. These services are
provided on more efficient and flexible platforms
that are able to scale rapidly.
Roy Stockell
Wealth & Asset Management Leader, EMEIA FS
UK GDP is
expected to grow
by 2.6%.
EY ITEM Club
2016
11
Appendices Our communities Our people Our clients Introduction
Omar Ali
Managing Partner, UK FS