Banking & Insurance
PMP assists financial institutions in devising development and transformation strategies adapted to new competitive challenges and, which meet the expectations of their customers
A rapidly changing environment
Financial institutions are currently faced with new challenges, the effects of which conspire to undermine the very foundations of traditional models.
As in so many other areas, it is clearly technology that is sounding the charge. This is precisely how, on the one hand, its democratisation opens up new business opportunities (new offerings, enhanced customer experience, financial gains…) and how on the other, it poses a threat, in particular through the competitive edge of newcomers, the potential disappearance or transformation of certain elements of the value chain and more generally, a calling to question of business models.
In addition to the disruption of technology, there is a slowdown in growth and pressure on margins that, amongst other things, lead to a long-term, lower rate environment; stiff competition from traditional players and the arrival of new players that disrupt the value chain, forcing the creation of new partnerships; and finally – or perhaps we should say, first and foremost? – the consistent and increasingly demanding expectations of customers (constant accessibility, omni-channel access, transparency …), influenced by high quality experiences in other sectors.
In this new world, innovation is no longer optional.
In the insurance sector:
Economic conditions mean rethinking the business model and migrating towards alternative investments;
Demographic changes, socio-economic constraints and changing consumer habits all apply pressure on revenues, increasing the need to optimise operational performance and underwriting;
New competitors and business models lead to the trivialisation of insurance products, forcing major transformations and notably the need to address the transition from an insurance-based model to a service-based model;
Technological advances are disrupting distribution and, more generally, the customer relationship, intensifying the need to enhance the customer experience as well as investment to allow an omni-channel interaction with customers;
« Cheap » and easy data access weakens the entry barriers to the insurance sector, raising the issue of how pricing models will evolve.
The consolidation of the sector forces insurers to redefine their positioning by investing in new, innovative modus operandi and makes it imperative to give meaning to these new, major entities while maintaining both agility and effectiveness;
Finally, the ambition to personalise offerings and the desire for segmented approaches, calls to question the historical, sharing-based insurance model.
In the banking sector:
Cost rationalisation will soon have reached its limit, increasing the need for revenue growth and operational efficiency;
The reduction in revenues due to the arrival of newcomers, is forcing the banking sector to enhance the customer experience, to heighten digitalisation and omni-channel distribution. The time has also come to devise and implement diversification strategies to underpin growth, capitalise on client assets and absorb the cost of distribution networks in a market that has been consolidated now for a number of years.
Against the backdrop of product trivialisation, acquiring shares of the market will require strong segmentation skills and a customer-centric organisation. This challenge is all the more important as the battle between the banks to win over customers is likely to intensify, fuelled by the growing interest of the Millennials for alternative offerings from non-traditional players.
To meet these challenges, to ensure their sustainability, support their development and preserve their margins, financial institutions need to address 4 key challenges :
Meeting customer expectations
- By developing the customer experience in-line with the standards to be found in other sectors and meeting client demands, in particular with relation to omni-channel access, providing flow, not friction and a more personalised service.
- By meeting the steadfast customer demand for simplified, clear and transparent offerings.
Upgrade the customer “promise”
- Anticipate the risk that, by ignoring customer expectations increasingly geared towards services, financial products become mere « commodities » and purely accessory to the services and goods.
- Reassess the business core in harmony with the advent of Big Data, artificial intelligence, blockchain and the IOT
Optimising business models
- By rethinking distribution as a function of digital technology with a view to modernising it, making it more targeted and less costly.
- By always being more competitive against a backdrop that is aggravated by fewer and fewer significant entry barriers and the arrival of non-traditional players.
- By taking advantage of new technology and by rethinking the value chain as a whole.
Supporting the transformation of skills and managerial cultures
- By reflecting on the way skills and profiles have evolved and by assisting teams in securing new practices and tools.
- By assisting organisations to adapt to an environment where the scales of time and space are radically changing and where individual aspirations call for the implementation of a different type of management to rally the latest generations around a collective project.
Support for business development around Paris area: sizing of target markets, analysis of customer use and expectations, estimation of competitive pressure, modeling of development scenarios and associated economic models, definition of the roadmap to 3 years.
Support for updating the 2020-2024 strategic plan: review of the 2017-2020 strategic plan, analysis of the external environment, animation of the management seminar, co-construction of the future strategic plan and the associated roadmap.
- Analysis of market opportunities
- Competition analysis
- Definition of an offering strategy
- Standardisation of market approach
- Building a business plan
Digital transformation planPMP provided support in defining the digital transformation plan and in establishing governance :
- Definition of target and expected results
- Development of roadmaps, order books and initiatives to reach the target
- Establishment of a governance structure
Redesign of the customer approach
PMP provided support, from the diagnosis initiative to defining the target value proposition
- Analysis of what the customer has to say and of market trends
- Identification of levers and competitive assets
- Development of a value proposition and identification of resulting priorities
- Strategy development and devising of action plans to achieve target
REORGANISATION AND DIGITALISATION
- Sharing sector best practices
- Gap analysis
- Design of a restructuring and digitalisation plan
- Design of digitalised health plan strategy
- Audit of the company’s digital maturity
- Building a digital transformation plan
Building a strategic patnership
- Analysis of the strategic project
- Formalization of assets
- Identification of market opportunities
- Design of offering
- Building a business plan
Devise and steer the strategy
In an environment undergoing great change, we advise and guide our clients in devising strategic plans, in developing growth and efficiency strategies, in developing new offerings in their quest for new markets and in updating regulatory systems.
When taking part in strategic discussions, we display a real knowledge of the strategic issues facing players and apply innovative methodologies that support the creative process, as well as uphold the cohesion and involvement of the Executive Committee (WarGame, BMG, …)
Take advantage of digital and new technologies
Digital has created waves across all economic sectors and financial institutions are not immune from both the customer and employee point of view. To facilitate developments in this regard, we assist and support our clients with channel unification.
New technologies offer opportunities for differentiation and we help our clients seize them, whether they concern connected objects opening the way to expanding services or the integration of new analytical approaches and Big Data allowing improved customer insights, or experimenting with new processes/offerings made possible through blockchain.
Enhance the customer experience
In order to meet the incessantly upward demands of customers, we develop inventive acquisition and retention approaches to provide customers with a unique experience. We also assist organisations in revising the relevance of their value proposition and in transforming themselves to become more customer-centred, through, inter alia, process redesign, fully reshaping their customer itinerary and by personalising approaches.
Convinced that a strategy’s success lies primarily in the way it is implemented and having experienced how changes across demographic, social, economic and technological environments, necessitate a far-reaching metamorphosis of skills/ cultures/ management models under tight time constraints, we have historically put our ability to assist senior executives in devising and implementing their transformation plan, at the very heart of our value proposition.