Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) today announced details of the execution of its strategic plan, known as “Strategy 2020,” including information on the Bank’s strategic goals; management actions in its business divisions, infrastructure functions, and regions; and updated performance targets for 2018 and 2020. Not to be outdone by McKinsey, the Boston Consulting Group weighed in with their prescriptions for banks in Retail Banking Distribution 2025: Up Close and Personal. Read More. But where will those gains come from? In addition, it’s not clear how a “customer care platform” (which BCG never defines) will improve profitability by 2% to 8%. What Is Fragility, Conflict, and Violence? Deutsche Bank unveiled a €6bn (£4.4bn) loss this morning: ... And lo, new chief executive John Cryan spent the morning outlining Strategy 2020, his plans to turn the bank around. Four pillars of the new strategy for 2020-2023 correspond to the key components of mBank’s business model In the strategy for 2020-2023, mBank Group will focus on 4 areas Client Platform Acquisition & long-term relations Ecosystem & user experience Efficiency Operational advantage Employees & organisation culture Specific measures announced today include: Global Markets The Bank announced a series of measures to create a strong Global Markets business division with a more focused Fixed Income & Currencies platform. Strategy 2020 for Bank Millennium Presentation to analysts and investors. With two exceptions (embedding distribution on partner platforms and materially changing the cost structure with modular activities), the consultants’ advice falls far short of being the “bold moves” or “future predictions” they’re advertised to be. If you continue to navigate this website beyond this page, cookies will be placed on your browser. Deepen relationships with priority clients, increasing cross-selling while moving away from single-product relationships; Continue to expand in transaction banking, notably in Germany and Asia-Pacific; Expand market share in Advisory and Equity Capital Markets; Reduce and rationalise CIB’s country footprint; Extend capital allocation decisions to cover all CIB clients to improve efficiency. Asset Management Ron Shevlin is the Managing Director of Fintech Research at Cornerstone Advisors. From eliminating customer support headcount. BCG defines five levers banks can pull to increase profitability by up to 25%: My take: These profitability improvement estimates are unrealistic and conflicting. Corporate & Investment Banking (CIB) As part of the execution of Strategy 2020, the Bank aims to: As part of the execution planning process, the original outline financial targets for Strategy 2020 have been upgraded and accelerated, with delivery on a number of targets anticipated for 2018. As part of the execution of Strategy 2020 the Bank aims to: Impact: cost measures are anticipated to produce gross cost savings of approximately EUR 3.8 billion, with associated restructuring and severance costs of approximately EUR 3.0-3.5 billion. As part of the execution of Strategy 2020, the Bank aims to: Becoming better capitalized McKinsey follows this recommendation by saying: “Customers will switch if they’ve had a very poor experience, but they will not necessarily buy more even if they are highly satisfied. © 2021 Forbes Media LLC. For most consumers, working with a bank is just a means to an end: ensuring a secure retirement, growing a business, or buying a home, for example. Stock market. Bank stocks surged over 20%, nearly keeping pace with the S&P 500 Index, and the industry racked up a record $180 billion in profits through the first three quarters of the year. Exit certain products, including: market making in uncleared Credit Default Swaps, certain Legacy rates products, agency Residential Mortgage-… Nifty & Bank Nifty futures trading strategy for 24 Dec: Indian stock market opened flat to positive in the morning and continued to trade positively throughout the day. These include: Euromoney Awards for Excellence 2020 (World’s Best Bank for Sustainable Finance and Global Excellence in Leadership (during COVID-19) award); The Banker Investment Banking Awards 2020 (Investment Bank of the Year for Sustainability); Euromoney Trade … All Rights Reserved, This is a BETA experience. Finally, to run Deutsche Bank with greater discipline and purpose based on delegation of responsibility, personal accountability, and a reward system which is aligned to good performance and conduct.”, He concluded: “Sadly, this also means closing some of our branches and country locations, and reducing some of our front-office and infrastructure staff too. Harnessing the creativity and passion of front-line colleagues to meet customers’ needs, providing support for the four other levers. In a report titled The last pit stop? As part of Strategy 2020, the Bank aims to reduce organisational layers that create complexity, increase levels of individual accountability, and reduce its reliance on committees. Deutsche Bank Strategy 2020: It is all about execution Reposition Investment Banking Reshape Retail Digitalise DB —IPO / sale of Postbank, sale of HuaXia stake —Restructure cost base, close >200 branches —Leading advisory capability for affluent, wealth and commercial clients —Automate manual processes to drive efficiency and control … Firms that successfully serve narrow niches (or micro-segments) identify the unique needs of those segments and develop targeted products and services for those niches. 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