The Conduct Advantage

What if you could create a bank that had a “Conduct Advantage”?

In the digital economy trust and transparency matter. Since 2009 global lenders have paid $321B1 in fines and penalties. The pace and scale of conduct risk related events is accelerating.

Typical responses to address conduct risk are not effective or sustainable.

What is needed is a way to align the business and risk agendas. Getting aligned, executing faster is difficult in a matrixed organization. One way to get aligned is to focus on the customer, become more transparent and change the internal dialogue with inline operational metrics. We call this enterprise operational intelligence (EOI). (1Source BCG)

Putting the client at the center changes the internal dialogue.

Change execution is difficult. The pace of change is accelerating. Need to execute @ speed.

The Conduct Advantage

We believe that with the right leadership, and a thoughtful approach to change execution it is possible to create an evidence based operating model designed around clients that enables culture change, demonstrates good conduct and allows an organization to break through the current paradigm that makes traditional execution so difficult.

Building a “conduct advantaged firm” is now possible. We have the capability to automate, digitize and measure our operational processes to manage and deliver the right client experience while also designing for compliance, risk and good behaviours. We can also quantify the operational risk, fines and penalties that may apply and use that information to make good business decisions about how much risk to retain and how to spend project budgets or invest capital to manage conduct risk.

Imagine the upside for the most trusted bank that serves customers extremely well. The brand and reputational benefits would be significant. In todays connected economy operational processes must deliver on the brand promise to deliver the right client experience. Failure to deliver means that clients leave or are not satisfied. Poor conduct related behaviour can cost in terms of fines and penalties, but the real cost is an erosion of trust which is the only sustainable competitive advantage.

Let’s start a conversation about building the “Conduct Advantage”