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Banking Consulting

Overview

With the impact of the financial crisis and resulting changes to the regulatory landscape and consumer behaviors, retail banks have had to adapt rapidly in order to regain trust and remain competitive.  L.E.K. works with our retail clients to help them modify their business models, identify cost efficiencies and identify new growth initiatives and customer-centric strategies.

These evolving market conditions also mean that debt management has become a key issue for all consumer lending providers.  Rising write-off rates combined with changing regulations has resulted in a growing demand for debt management services in all European countries.  Since the collapse of the debt sales market in 2009, the market, particularly in the U.K., has recovered and matured; debt sellers have developed more sophisticated approaches and debt purchase companies are experiencing an attractive flow of opportunities.

Through our involvement with the industry over the last 10 years, L.E.K. has developed an unrivalled understanding of the debt management industry, has established relationships across the industry, and has become the leading provider of strategic advice and consulting services to the industry. We have also provided commercial due diligence and strategic advice on the most successful transactions in debt management in recent years.

Client Issues

Some of the key commercial issues we are being asked by our clients include:

  • How can banks improve operational and organizational efficiency?
  • How should banks respond to regulatory changes while continuing to grow and remain competitive?
  • How can banks develop innovative approaches to customer segmentation, enabling increased effectiveness of its marketing and distribution?
  • How will the debt management market develop and what business models will be successful?
  • How attractive is internationalization for debt management companies and which markets appear to be
    most attractive?
  • How will unsecured consumer lending develop given banks focus on credit-worthiness and increasing
    regulatory pressures?

Examples of Our Work

To learn more about how we help our clients, please refer to these case examples:

  • Supporting a leading banking group in responding to the Independent Commission on Banking (“ICB”) review into the U.K. banking sector.  L.E.K. reviewed the structure and competition within the sector, providing a robust analytical foundation to support the bank’s positioning.
  • Conducting an extensive review of the retail banking sector in India with a particular focus on rural operations, for an international banking group.
  • Advising a leading debt purchase company in assessing U.K. market trends and opportunities to
    expand internationally.
  • Developing a retail banking strategy for an international banking group made up of a collection of
    regional franchises.
  • Reviewing branch distribution profitability for a leading U.K. bank, including developing a range of KPIs and metrics to manage branches at individual as well as cluster level.
  • Assisting a financial sponsor and an international debt management company to assess an acquisition opportunity in the U.K. debt management market.

View additional case studies

Please contact us at financialservices@lek.com for additional information.