Global financial crisis

The global financial crisis and its consequences 

Financial institutions have to deal with longer-term strategies and sustainable business models to recruit new realities. 


Reconsideration 

Financial service providers have their traditional models fundamentally rethink. Unlike after other recessions of the postwar period is not expected that the global economy to recover quickly and the old trains will continue to run. "Changes in this magnitude have occurred in the financial world is unprecedented," commented Matthias Memminger, Partner and Head of Business Consultancy Financial Services at PricewaterhouseCoopers Switzerland, "whole industries will change, and traditional patterns of cooperation will lose its validity. The more important are targeted measures to combat the uncertainty and to reduce the volatility in the markets - in the interests of all stakeholders in government, management and shareholders. " 

Shift of global power 

The financial power is shifting further from west to east. The subprime bubble burst as Auslöserin the global economic crisis is an expression of a US-centric global economy interpreted. This macroeconomic imbalance will increasingly through a new pattern in international trade and investment removed. Moreover, many Western financial institutions in the past two years, crucial values such as trust, reliability, stability and good regulation have been neglected. "We are moving towards a multipolar world, in the Western financial centers can easily be circumvented," says Matthias Memminger. «Successful globalization has always been at the trade-oriented ways, so the banks will in future also increasingly investing in the East." 

Renaissance of the traditional banking model 

A more regulated banking system and the dominance of a global financial model will be the future banking landscape. "The profits are in different years lower than in the past, but long term, sustained higher, as risk-sensitive strategies and a customized business mix continued good returns are possible," Matthias Memminger is convinced. "The future belongs to the 'Nouveau Classic'-bank model, the simpler, less risk and more transparent and thus operates long-term profitability. Successful banks will be more on its original core focus, with more responsibility and care, the quality of their loan guarantee. " 

Stronger interventions by governments 

The governments will be to stimulate the economy even more in the financial system to intervene. The most these interventions are already in the U.S., Britain and Germany felt, where the pressure on state-sponsored banks is increasing. Other conflicts and influences are predictable, because the companies under the massive bail-outs of the banks insist that their behavior more to the interests of the general public than those of the shareholders' needs. "The next time the governments in the financial system play a primary role," says Matthias Memminger. "You could say it's a 'New Deal' of the 21st Call century, comparable to the state intervention and the economic and social reforms during the great depression. " 

Sustainable Strategies 

Financial institutions have to deal with longer-term strategies and sustainable business models to the new realities set in which the interests of governments and society are becoming more relevant. Organizations that are still reactive and behavior of short-term profit-guided, in the future competitive disadvantage.