Journal Detail

Journal 9 – Transformation

November 2003

Dramatic changes are reshaping the world as financial markets tumble, new members join the EMU, and financial companies cope with long-term shrinking margins. This issue aims to highlight these changes, analyze their implications, and provide prescriptive recommendations on how financial institutions can respond effectively.

It is with great sadness that this issue of the journal coincides with the death of one of the greatest economic minds of our time, Prof. Franco Modigliani: A man who helped both transform our understanding of how governments should view individual wealth accumulation and distribution of their citizens, and how companies should re-evaluate the perceived benefits of the different forms of capital. We were honored to have two opinion pieces from Professor Modigliani in the last issue of our Journal, and it is only fitting that this current issue be dedicated to his memory, and in the Nobel Laureate section, there is a special tribute fitting for such a great man.

The overall focus of this, the ninth issue of the Journal, is transformation. It looks at how economic, enterprise, and financial transformations have been, or should be, taking place and their implications for financial services institutions.

There is no doubt that our world has undergone a number of dramatic changes in recent years. Financial markets have tumbled, new members are invited to join the ever-expanding European Monetary Union, and financial companies are learning to cope with long-term shrinking margins. This issue aims to highlight these changes, analyze their implications, and provide prescriptive recommendations on how financial institutions can respond effectively.

The first section looks at how the economic environment has been transformed. The articles in this section analyze the implications of the EMU expansion on both current and potential new members. In addition, a critical look at the overall international financial architecture is provided by one of the most respected European economists.

The second section explores where the transformation has taken place at the enterprise level, with actual examples of successful transformations. However, the overall perception is that, for most institutions, there is a need to completely overhaul their businesses and operations. Section 3 of this issue looks at what aspects within the financial services industry have been transformed, the impact on the organizations operating within this new environment and, finally, how they should respond.