Global Regulatory Network

In Banking and capital markets

Our Global Regulatory Network (GRN), consisting of former regulators and bankers from the Americas, Asia and Europe, provides strategic insights on financial regulation that help clients adapt to the changing regulatory landscape.

Global Regulatory Network

What EY can do for you

The GRN, along with EY’s risk and compliance consulting professionals, helps the C-suite and board-level bank executives respond to constantly changing financial and nonfinancial risk management, operational and governance requirements. In times of crisis, such as we’re experiencing now with the COVID-19 pandemic, the GRN advises financial institutions, as well as governments and regulators, on what actions they can take to mitigate the financial impact of the crisis. 

As digital reshapes financial services, risk strategies must continue to evolve. Banks that succeed will excel at proactively addressing the impact of digitization on compliance, accountability, transparency, risk management and data governance. Advising clients on how to meet these challenges, the GRN provides insight on a range of issues, including:

  • Risk and compliance management frameworks, and allocation of resources
  • Understanding the global, regional and local regulatory agendas
  • Prioritization of issues, and identifying what’s next and beyond
  • Input to senior executives on matters of accountability and governance
  • How to build positive dialogue and relationships with the regulator 
  • Linking the risk and regulatory environment to the wider geopolitical landscape.

Our regulatory outlook for 2021

After a year dominated by a global pandemic and the consequent disruption to financial markets, supervisory processes and policy agendas, in its 2021 Global bank regulatory outlook the GRN looks at the immediate environment (‘Now’) and a little further ahead (‘Next and Beyond’) to identify likely future regulatory action.

Although the financial services industry is considerably stronger than during the 2008 crisis, the upheaval caused by the pandemic has tested risk management capabilities and regulatory responses. In 2021 the immediate priority is likely to be around supervisory and policy actions designed to address the impact of Covid-19, balancing an appropriate level of compliance and risk controls with the need to support governments in creating a financial market environment that can assist economic recovery. After that we will see regulators returning to several key agendas; conduct risk, climate risk, digital, operational resilience, data protection, cybersecurity and financial crime. 

Against this backdrop, key participants will face a range of challenges:

  • Market regulators and policymakers will need to identify and collect new, standardized data sets that can inform policymaking, allowing the new frontiers of technology and environmental, social and governance (ESG) to expand while maintaining appropriate levels of resilience and risk sensitivity.
  • Central banks will need to consider the lessons learned and consider amendments to the supervisory framework going forward. Some of these may include new approaches to understanding the effects of contagion in financial markets (especially in the non-banking space), refinements to stress testing and a crisis policy framework that incorporates a financial markets response.
  • Firms will need to maintain risk and compliance standards, implement digital transformation and at the same time settle on an efficient set of operations that accommodate more remote and flexible working and can be responsive to similar crises in future. An additional factor will be the extra priority given by regulators to sustainability, diversity, inclusion and wider corporate responsibility.
Case Study
The better the question. The better the answer. The better the world works.
Case Study

Case study: How one of India’s largest public sector banks merged and transformed itself

EY merged three large banks with smooth Day-1 integration, minimal disruption and new operating model.

Case Study
The better the question. The better the answer. The better the world works.
Case Study

How would the bank transform its operating model amidst a merger?

Successful Day-1 integration with best-in-class operating model design led to a holistic transformation.

One of India’s leading public sector banks merged with two other banks and the combined entity resulted in one of the country’s largest banking entities. It was the largest merger in the Indian banking industry at the time.

At the time of the merger, the bank’s primary objective was to achieve seamless Day-1 integration with minimal customer disruption and smooth structural, cultural, operational, and functional integration. The bank sought support to manage the scale and complexity of this integration. It also wanted to ensure that the combined entity realized all synergistic opportunities for future growth.

EY worked with the bank to deploy a destination operating model for providing a competitive advantage across the value chain. The new operating model set a foundation for scalable growth and higher efficiencies across sales, credit, collections, and internal operations.

Business transformation road map
Case Study
The better the question. The better the answer. The better the world works.
Case Study

EY led Day-1 integration and destination model roll-out to transform the bank

The transformation involved building an operating model with a revamped organizational structure, efficient operations and a culturally aligned workforce.

EY conducted a detailed diagnostic and comprehensive Day-1 readiness assessment across the business, support and control functions of the bank. The key focus areas were:

  • Harmonization of products, processes and policies
  • Ensuring minimal customer disruption
  • Enhancing geographical reach with an optimum product mix
  • Alignment and integration of unified digital platforms for customers

Subsequent to the successful Day-1 merger, EY created a destination operating model with an 18-month long transformation roadmap targeting:

  • A four-tiered credit operating model with specific focus on large corporates, mid and small corporates, micro, small and medium enterprises
  • A revamped organization structure to create specialized verticals including fintech and collections and recovery
  • A comprehensive assessment of potential cost and revenues synergy arising from the amalgamation and developing a 3-year roadmap for the bank for realizing the same
  • Seamless customer experience with inter-operability across branches and other digital and physical channels 
Operating model transformation
Case Study
The better the question. The better the answer. The better the world works.
Case Study

The bank saw successful business transformation with an efficient operating model

The bank is set to continue its momentum and grow rapidly to achieve its future targets.

As the merger stabilized and concluded, the bank saw substantial improvement in its overall business and operational performance, leading to a sustainable change in the bank’s financial metrics with a significant value delivered by EY.

20%

Improvement in cost-to-income ratio

13%

Cost synergies

3.5%

Revenue synergies

The engagement was led by the EY team and senior bank leaders including the MD and CXOs. The EY team included a cross-functional mix of partners, directors, senior managers and over 40+ consultants who came together to devise the merger and integration strategy for the bank.

EY became a trusted partner for the bank by enhancing its geographical footprint, strong future roadmap and optimized target operating model. These milestones were achieved by establishing strong relationships with the senior executive management and division stakeholders.

Transformation Realized

Transforming businesses through the power of people, technology and innovation.
Business operating model

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