Banks today are living with new realities that are redefining what they must do to succeed. Focus is the rule of the game, focus to clearly define the target client segments, priority regions and locations and aligning with the bank’s product skills, product delivery model and channel strategy.
The crisis made it painfully clear that Russian and international banks need a clear strategy more than ever to exploit the Russian opportunities. Different banking segments can expect to be impacted in different ways: for retail and universal banks a key question remains how to run a branch network in a profitable way in Russia; for corporate banking business value creation will become more difficult: more realistic risk costs squeeze the margins; larger corporations will be more difficult to target for non-affiliated banks and many banks will yet have to develop a specific proposition and coverage model for the Mid-cap segment and Small-and-Medium sized enterprises.
Having been among Russia’s fastest growing industries in recent years, we now expect banking and insurance to slow down a little. The insurance industry will be affected, primarily, in two ways: in the short term, through high pressure on the asset side of balance sheets; in the long term, through the detrimental effects of what is predicted to be a prolonged economic downturn.
Our practice
The Boston Consulting Group works with domestic and international commercial banks, investment banks, and companies providing financial services in Russia and throughout the Commonwealth of Independent States. We work on a wide range of strategy development and operational topics:
Business strategy for Retail Banking, Corporate Banking, Investment Banking, Asset Management, Private Banking, Leasing and Insurance
Network profitability and regional strategy
Risk management and debt center organization/setups
Debt-to-equity conversion strategies
Sales effectiveness
Efficiency improvement and quick cost improvement programes
Operational turnaround, bailout support and restructuring
M&A and transaction support
Our value to our clients is built upon our ability to forecast changes in the market as measured against other developing markets, in segmenting customers, products and channels, and in recommending process improvements based upon the best practices of our domestic and global clients.
Our Financial Institutions team consists of three Partners, and over 30 Russian speaking project managers and consultants.
Contact us
Learn how BCG can help your company. Contact BCG Moscow’s Financial Institutions practice leader Nick Gardiner at +7 499 755 3100.