Research & Thoughts

The New ‘Trust Fund’?

Yet another perfect storm? Cross-border banking in a ‘new world’

The recent Swiss Finance Institute and Capco joint inaugural conference – on the challenges of cross-border banking in a ‘new world’ – was followed by our survey on the key themes of the event. To discover more about banks’ current attitudes to the challenges, and the opportunities, of profitable and compliant cross-border banking in a social media age, download an overview of the survey results.

Now, cross-border banking faces its own ‘perfect storm’. Brand trust has never been more important to client loyalty. Yet recent brand surveys indicated that the banking industry lost half of their reputational value after the financial crisis. Regulatory compliance is key to brand integrity, but the costs of achieving it will drive up charges. Who will pay? How can banks re-build reputation, especially in the unforgiving spotlight of the social media? How will they ‘fund trust’ and re-gain client confidence, while tightening their grip on costs?

In the past five years, the banking world has been shaken to its core. The major reforms it is currently undergoing are the result of pressures from many sides: economic, political and legal. To navigate successfully through the numerous challenges, the industry needs to find different ways of working. New approaches need to account for both the global environment and increasingly complex local market requirements.

The question now is how do we move forward? The industry needs to define a common, overarching vision that, above all, empowers clients and re-builds trust.

In the age of social media and instant reaction to brands and corporate behavior, the key lies in effective communication - creating an open dialogue between clients and industry. And we have to start inside the industry. By bringing together leaders of today’s banking world, together with academics, commentators and other eminent practitioners, our thinking is that we can begin to shape a positive and sustainable future.

It is in the spirit of this vision that the Swiss Finance Institute and Capco jointly launched an inaugural conference – on the challenges of cross-border banking in a ‘new world’ - held in Zurich in the spring of 2012. Capco then followed up with a survey related to the key themes of the event.

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