Kelley Mavros is a partner in Strategy&’s Digital Business & Technology practice with expertise in the financial services industry. Her work includes lean operating model, cost transformations, IT effectiveness and post-merger integration programs. The successes of today’s financial services firms require taking on a more strategic approach to costs. In this post, sponsored by Strategy&, Kelley Mavros talks about how companies can adopt a Fit for Growth approach to cut costs and grow stronger.
Question: What is the concept behind the “Fit for Growth” strategy and how can it help financial-services firms in particular?
Answer: The financial-services industry faces a unique set of challenges in the wake of the financial crisis. New regulations and capital adequacy requirements, changing client behavior, the rapid advance of digitization, and a fluid competitive landscape have permanently altered the rules of the game and raised the cost of doing business. In short, there’s a lot of pressure to remain profitable in an environment where a lot of obstacles stand in the way of doing so. (read more…)
This post is sponsored by AOL. Click here for the article.
U.S. banks have successfully provided their existing clients with great online methods for managing their day-to-day money matters. But when it comes to shopping for a bank relationship, the industry is falling behind what consumers experience in other realms of their life. There are great opportunities to bring together the channel and marketing silos into an integrated approach to build brand awareness and provide multi-channel shopper support and smooth account opening.
A recent study sponsored by Oliver Wyman and AOL highlights several shifts in consumer mindset, shopping research patterns, influences on bank selection and triggers for account opening. The study combined survey response data from more than 1,700 participants who were either switchers, first time account applicants or abandoners, along with their actual online clickstream history during the 90 days prior to beginning their account opening applications.
Here are four areas where consumer behavior calls for a change in bankers’ thinking:
Your brand must be in the small consideration set, all of the time. (read more…)
Gina McCarthy, the administrator of the Environmental Protection Agency, discussed Sec. 111(d) of the Clean Air Act, which deals with carbon emission reductions, at a webinar hosted by the American Sustainable Business Council on Sept. 4.
McCarthy said the rules proposed in the EPA’s Clean Power Plan are part of President Barack Obama’s climate action plan. “Climate change is a risk to health, business and economic growth,” she said, adding that small business owners overwhelming want action taken on the issue. And she’s proud of what the EPA is doing by developing standards to control air pollution, much of which comes from plants that generate power by coal, natural gas and petroleum.
McCarthy explained that the rule-making process took into account views from industry, unions, state officials and others. The EPA’s goal, in addition to cutting carbon emission was to make sure that the rules “can change climate economic risks into opportunities,” she said. (read more…)
Advisers need to proactively review clients’ annuities that are within individual retirement accounts to avoid “traps” by ensuring required minimum distributions are being taken properly, said Jeffrey Levine of Ed Slott and Co.
IRA or Roth rules trump annuity rules when an annuity is within an IRA, Levine explained Monday at the National Association of Insurance and Financial Advisors’ Career Conference and Annual Meeting in San Diego.
Roth conversions and required minimum distributions, or RMDs, are based on an annuity’s fair market value, which is a complex, “don’t-try-this-at-home” calculation, but an adviser can ask the provider to perform it, Levine said. (read more…)