Insights for March-24
On my mind this month
I recently participated in a sell-side panel at the KBW Fintech & Payments conference. It was inspiring to see the collaboration between FinTech leaders, investors, and consultants – a true recipe for successful deals!
Speaking at the conference, I highlighted the rise and importance of sell-side market reports. Ten years ago, they were rare in the U.S.; since then, they’ve become much more common as buyers become increasingly sophisticated and sellers see the ROI of sell-side market work. L.E.K. now conducts hundreds of sell-side studies globally each year across sectors.
So why are sell-side reports so important? They essentially help sellers attract more potential buyers and keep the best ones engaged. This leads to finding the right partner and achieving the best valuation.
A sell-side report leverages research and data to establish the proper market narrative and frame the company's position within it.
An independent report from a reputable firm with strong evidence-based conclusions also lends credibility to the information presented, reducing buyer skepticism
This month, we have a newsletter full of insights:
1. Navigating the New Instant Payments Era: The Implementation of FedNow for Banks
The Federal Reserve’s new FedNow service ushers in an era of instant payments for the banking sector. This shift demands strategic agility from banks as they adapt to 24/7 operations, manage liquidity in real-time, and transform customer interactions. Banks must understand the new cost structures, regulatory requirements, and operational models to thrive. The integration of instant payments is not just an upgrade, but a step into a future of faster, more efficient banking attuned to modern consumer demands. By preparing now, banks can lead this payments revolution.
Authors: Gigi Wong , Sam Shinner , Stanley L.
You may also be interested in reading:
2. Schroders: Allocator’s Edge with Peter Ward and Eilert Hinrichs – A discussion on the UK and European Pensions Market
In this video, Juan Torres of Schroders’ Value team and host of The Value Perspective podcast interviews Peter Ward and Eilert Hinrichs, as part of the ‘Allocator’s Edge’ series. Both Peter and Eilert have over twenty years’ experience in advising investors and leaders in the financial services sector. The episode covers what the landscape for the defined benefit (DB) and defined contribution (DC) industry looks like in the UK; whether Peter and Eilert think DB in the UK is dead; how Insurance is participating in the de-risking of the DB space; Peter and Eilert’s outlook for Europe; and finally, the findings and implications of a survey on the cost of ESG amongst different age groups in the UK.
The Allocators Edge series, from The Value Perspective, is available on all podcast streaming platforms.
Featuring: Juan Torres Peter Ward Eilert Hinrichs
You may also be interested in reading:
Recommended by LinkedIn
3. The Next Frontier of Value Creation in Wealth Management
External trends such as higher interest rates, regulation and consolidation are driving profound change in the UK Wealth management sector with firms looking for a way to adapt. These pressures are creating greater urgency for leaders to re-examine their operating model and cost structures. In this video, Bronswe Cheung, Ashish Khanna and, industry expert, Matt Lonsdale explore how firms can use a well-designed operating model to drive efficiency, compliance and commercial performance. Watch the full conversation.
Featuring: Matt Lonsdale Ashish Khanna Bronswe Cheung
You may also be interested in reading:
4. Consumer Credit: The Complain Game
As reported widely across the media, the UK ombudsman has highlighted the significant growth in complaints about unaffordable credit (Credit card complaints hit all time high). For those impacted by the spiraling costs of credit, financial distress is awful, with very high personal costs too often leading to mental and physical harm for affected individuals and families. How should the industry respond?
Author: Douglas King
You may also be interested in reading:
Popular publications
L.E.K. capabilities
Connect with our thought leaders
Ashish Khanna, Peter Ward, Eilert Hinrichs, Sam Halliday, Bronswe Cheung, Pretam Singh, Douglas King, Richard Mould, Gigi Wong, Sam Shinner, Clayton Souza, Felipe Ahouagi
The L.E.K. financial services team helps clients develop fact-based, practical, winning strategies for our dynamic sectors. Our work for investors, shareholders and leaders brings insight and a rare breadth of experience and perspective to drive strategic decision making.