28 August 2015

Gary Wright

Gary Wright - BISS Research

277Posts 944,166Views 369Comments

EBAday

EBAday is the annual event for European payments professionals run by Finextra in conjunction with the Euro Banking Association. This community has been created to deliver a forum for EBA delegates to exchange views on Sepa and new developments in payments processing.

Object reference not set to an instance of an object.

18 June 2010  |  2713 views  |  0

If there is one thing financial services organisations should always do, it is to actively maintain their client relationships. It is a core function and can make or break a firm. However, in recent years, it has seemed as though many firms have been more concerned with profits and less about the needs of their clients. Any number of people can relate plenty of incidents over the years, where large banks have dictated to its customers what they will or won't get and of course charge the earth for the privilege. Whilst as costs rise in financial markets, so do the banks profits, without seemingly any cost savings, being passed onto the end investor, rather they appear to be wending their way into the bonus packets of the elite. This is a practice fraught with disaster for the banks, as with the aftermath of the financial crisis; bankers are now perceived as, villains of the piece.

The arguments about banker's bonuses are well known and not about to go away, so what are the banks doing to redress their position? Right now, not a lot! As they try to scramble out of the hole they dug themselves and wait fretting about possible political fallout.

If confidence is to be restored in financial markets, there must be a complete refocus back to traditional banking services and a rebuilding of relationships. As each year the growth of online access exceeds the last and with direct communication and online knowledge, comes an increased desire by the consumer and investor. It is the incremental expectation of the consumer/investor, which is putting more pressure on the securities markets and organisations can stand or fall on the loyalty of their customers, with a number of recent examples, such as Northern Rock, showing can happen when customers withdraw their support.

The MiFID review has been completed and we all wait patiently to hear the result and what new rules will be introduced. However, what is certain is that client relationships based on customer protection, will still be a major aspect, which banks will have to cope with. A friend of mine who works in a senior capacity at one of the leading Custodians, tells me that its client relationship systems have not been updated for years. They still rely heavily on the individual Account Manager to paper over any cracks with his client and a good deal of back covering ensues.

Banks have invested hugely in systems over the years, mainly because of regulatory pressures, but its now time that the back to basics approach should become prevalent and that clients (all types and size) are put at the top of the agenda for banks.  Whatever happened to the customer is always right?

Tags

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Latest posts from Gary

Wealth Management - Turkeys Vote for Christmas

27 September 2013  |  3046 views  |  0  |  Recommends 0

The future of systems in financial services

29 July 2013  |  2750 views  |  0  |  Recommends 0

Social media and trust in financial markets

25 June 2013  |  5126 views  |  0  |  Recommends 0

Technology changing the markets

25 June 2013  |  2691 views  |  0  |  Recommends 0

Technology begins to change

14 June 2013  |  2274 views  |  0  |  Recommends 0

Gary's profile

job title Analyst
location London
member since 2007
Summary profile See full profile »
CEO of B.I.S.S. Research, founder of the BISS Independent Accreditation for all systems and services provided to financial services companies internationally. Guest Lecturer at Reading University and...

Gary's expertise

Who's commenting on Gary's posts