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Gain insights into the challenges and opportunities of building a global bank from Simen Munter, Chief Executive Officer, at the Kazakhstan BTA Conference in 2008. Explore the trends in the banking industry, the benefits of scale, and the importance of strong leadership and unique capabilities for successful globalization strategies.
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Building a Global BankSome personal views Simen Munter, Chief Executive Officer, Kazakhstan BTA Conference 2008
BANKS ARE BECOMING BIGGER AND MORE INTERNATIONAL Top 15 banks, combined market cap (source McKinsey) USD billions EU 7 US 35x 12x • 1990 • 2005 • 1990 • 2005 Average market cap ~6 ~75 ~2 ~90 Share of international revenues for the top 25 banks has increased from 28% in 1995 to 43% in 2005
Mega Trends • Globalisation is speeding up and Financial Institutions will increasingly follow the lead set by Industry. Significant growth in Cross Border operations • Challenge of Benefits of Scale vs Cost of Complexity • The Big Banks will continue to be getting Bigger, but leverage will be coming down • Financial Service will become more complex • Common solutions to Common Problems
c) Unique capabilities – and these can be replicated across markets
Our Customers Service Excellence Our Brand The World’s Local Bank Our Culture The Best Place to Work Our Global Distribution Our Global Advantage Our Businesses Building for Sustained Growth Our Technologyand Process Joining Up the Company Our Organisation Guidance with Wisdom Delegation with Confidence Communicate – Communicate - Communicate
e) Building a Bench of ‘Right Leaders’(and avoiding the Wrong Ones!)
Questions/Comments? simen.munter@hsbc.com