1. AI and Gen AI: Select the most relevant uses cases (based on a full benefits / constraints analysis), deliver them at scale thanks to AI factories and get ready for AI act. The capacity to execute will be key.
Why this is critical for 2024:
After the hype and promising experiments in 2023, 2024 will be the year of the truth for many AI Gen use cases that have been identified and that are now in the process of being delivered.
2024 will also be a crucial year in terms of AI regulation with the local enforcement of AI act in Europe, who has been the first region to issue such a regulation.
What should be done:
Build AI factories: AI factories bring together the relevant skills, processes, tools and governance to get Business and IT to work together to create and deliver the AI uses cases at scale.
Given the magnitude of financial resources put in AI by industry leaders combined with the competition for AI-talent, those not deploying fast enough the new AI-augmented service levels and productivity standards might quickly fall behind.
Get a deep understanding of technical, human, financial and regulatory constraints to frame correctly the uses cases and ensure they deliver the promises.
Onepoint accelerators – how we can help:
- AI factories design and implementation
- AI acculturation, strategy, ideation, framing, implementation (business, data/IA and technical support)
2. ESG: Increase the financing and advisory support to most impacted sectors and get ready for the CSRD 2025 deadline, implying to build a complete framework for all ESG topics (Environment, Social and Governance)
Why this is critical for 2024:
Energy transition is an emergency to save the planet and with high needs of financing. Clients’ ESG agenda makes them expect their CIB to understand their supply chains and contribute to solutions engineering.
Banks must play a key role to support the most impacted sectors (Industry, Transportation, Oil/Gas/mining…).
On a more global perspective, Climate changes impacts on environment, related social and governance issues have also to be tackled.
COP28 has dethroned the lucrative oil & gas “sacred cow” in the year 2023 where CO2 emissions have gone the opposite way of 2015 COP21 commitment towards max +1,5 degrees.
More innovation and money are needed at scale to reconcile transition with financial returns.
The 1srt CSRD reporting will be published in 2025 (with 2024 data) for large corporates.
What should be done:
CIBs must work hand in hand with clients, greentechs, and public authorities to find the relevant technical and financing solutions to support the transition. Innovation and partnerships will be key to accelerate the impact.
Perform an assessment to identify the key gaps to comply with CSRD and engage actions to be ready for 2025 deadline.
Onepoint accelerators – how we can help:
- Materiality analysis
- Data for ESG
- CSRD offering
- Climate risk modelling and mitigation strategies
- Net Zero trajectory definition and enablement with technology and innovation
- ESG digital platforms, Green business models design and implementation
3. Industrialization and efficiency: Continue the re-engineering of business processes, operating model, sourcing model and IS/Data architecture to become more scalable, resilient, simple and cost efficient
Why this is critical for 2024:
The economic environment is expected to remain challenging for CIBs limiting growth and profitability. Focus must remain on creating operating leverage through cost excellence, cost variabilisation and scalability of the operating model at low marginal cost.
What should be done:
Continue the re-engineering of the operating model and IS/Data architecture to ensure scalability, resilience and cost efficiency. Main levers to be used include automation, IA/data, process review, IS architecture and rationalisation, HR/Culture levers, and also consolidation/mutualisation with peers or new sourcing models / partnerships.
Define a short-term and long-term industrialization plan with an exhaustive list of KPIs allowing to monitor success.
Onepoint accelerators – how we can help:
- Our operational efficiency offering combining process review, digital, innovation, architecture and cultural levers.
- Our agile transformation culture seamlessly combining our business, technology, regulatory, data and change experts.
- Data analytics / data visualisation for KPIs and Data
4. Product and services innovation: Investigate and launch new products and services to diversify revenues and find new sources of growth (e.g. Treasury management services for corporates, structured and cross asset products, ops and IT services for tier 3 and 4 players, Tokenization of illiquid assets, digital assets trading and custody, ESG advisory…)
Why this is critical for 2024:
The revenue growth on traditional CIB products is expected to remain limited in the coming years due to strong competition, regulatory impacts, and challenging macro-economic environment. Finding new levers of growth via product innovation will be key.
What should be done:
Strengthen or build a product innovation team in charge of assessing business relevance and potential of new products.
Perform market, client segments and product analysis on emerging client needs and pain points.
Launch a product innovation hackathon with all businesses.
Investigate partnerships with technology players to accelerate product time to market.
Define a “revenue growth” roadmap with clear investment plan and ROI.
Onepoint accelerators – how we can help:
- Prospective design
- New products innovation framework and methodology
- Open and applied innovation
- Partners and fintechs ecosystem
- L’institut onepoint
5. Client centricity: Generate more revenues/profitability through improved client knowledge and prospecting tools / Upgrade client service capabilities to ensure satisfaction / Release customer care time with AI
Why this is critical for 2024:
In a low growth environment, the fight for client revenues and satisfaction will be fierce.
AI allows a step-change in KYC complementing client risk and compliance controls with business opportunities detection.
Clients will expect AI-adoption in CIBs to translate in better service levels throughout the bank.
What should be done:
Generate more revenues/profitability through improved client knowledge and prospecting tools. Leverage data and AI to build a 360° client cockpit, generate cross selling analysis and next best actions.
Upgrade client service capabilities and client experience to ensure satisfaction.
Propagate the client tiering and service level deep inside the organization and embed in day-to-day.
Onepoint accelerators – how we can help:
- Our client performance and client data analytics offering
- Relationship manager augmented by AI (e.g. cross sell and next best action)
- Our customer journey methodology
- Our expertise in KYC and AI-augmented KYC for CIB
6. Data access and quality: Define a clear roadmap on Data access and quality, a pre-requisite to become a genuine data-driven company, deliver all the promises of AI and Data, and get rid of massive costs created by data disquality
Why this is critical for 2024:
Data quality is a key lever to address the challenges of 2024: the decrease of operational costs, the wave of AI/AI gen uses cases to be delivered, the need to optimize RWA, ESG reporting, Regulatory audit / remediation… also the rise in regulatory requirements and penalties for incidents.
What should be done:
Identify the relevant technological platforms to store and distribute data.
Perform a data quality assessment to identify key pain points and define the relevant remediation plan with quick wins and structural transformations. Understand and manage end-to-end the lineage of incidents with data.
Investigate AI / Gen AI as a lever for data quality.
Onepoint accelerators – how we can help:
Our data management offering covering data governance, data quality assessment, remediation and leveraging leading edge data architecture AI.
7. Resilience: Prepare for the worst and for the unexpected in terms of shocks and crisis (cyber, HR, ops, IT, geopolitical, financial) in a permacrisis environment and leverage regulations to make the bank more robust and competitive (flight to quality)
Why this is critical for 2024:
The world has reached unfortunately another level in terms of economic and geopolitical instability. The rising frequency of shocks and disruptions in recent years has led to a global output loss of more than $3.6 trillion (source WEF). CIBS must prepare for the worst at all times. Regulators will also scrutinize the level of resilience of banks (e.g. DORA).
What should be done:
Perform a full risk assessment (cyber, HR, operational, IT, geopolitical, market/credit/liquidity risks) based on stressed scenarios and define remediation actions.
Onepoint accelerators – how we can help:
- Our full suite of offering on risks and resilience: cyber (Including DORA), sourcing, IT risks, financial risks, Operational risks.
- Risk based cartography and framework across all activities of the bank.
8. Regulations: Invest in Data and AI to improve structurally the quality of regulatory reporting and to accelerate delivery of regulatory projects in 2024 and beyond (MIFID / EMIR, FRTB, Basel 3 and 4, T+1…)
Why this is critical for 2024:
The regulatory agenda is still intense for 2024 and regulatory scrutiny is expected to remain high with the emergence of new risks.
What should be done:
Invest in Data and AI to improve structurally the quality of regulatory reporting and to accelerate delivery of regulatory projects in 2024 and beyond (MIFID / EMIR, FRTB, Basel 3 and 4, T+1…)
Onepoint accelerators – how we can help:
Our regulations and compliance teams and methodology combined with our data and AI expertise and tools.
9. HR and Culture: Prepare workforce to cope with impacts of technological innovation, transform mindset and leadership towards a performance, impact and innovation culture
Why this is critical for 2024:
The pace of technological innovation is very high and the impacts on workforce will be significant especially due AI deployment.
Most CIBs have built a culture and management model based on expertise. The level of transformation required at all levels of the bank will require a complete change of culture and mindset geared towards performance, impact and innovation.
What should be done:
Perform a workforce impact assessment to identify the upskilling / reskilling / hiring needs.
Launch a cultural transformation to move from expertise mindset to a performance and innovation approach across the bank.
Onepoint accelerators – how we can help:
- Our complete offering of workforce transformation and cultural change.
- Onepoint learning and training academy “L’ecole” delivering leading edge acculturation and training on technology, innovation and AI.
10. Consolidation and Specialisation: Use M&A lever as a strategic solution to increase scale or refocus using all options of acquisition, merger, carve out or partnerships with an open mind
Why this is critical for 2024:
With the Green and AI tides acceleration combined with continued regulatory pressure to enhance markets security and financial stability, CIBs will need to mobilise even more human and financial capital to preserve or gain market share.
Regarding technology capabilities, there is a strong case to acquire specialized fin techs to accelerate technology enablement of the business.
What should be done:
CIBs should continue to consider acquisitions and partnerships to protect market positions and profitability.
Acquisition targets with AI-inside or DLT-powered business models should be looked at as these capabilities will be key to capture clients and market shares in the future.
Onepoint accelerators – how we can help:
PMI, partnerships, Technology-focused due diligence, Target operating model, Cultural and HR change
Meet our team of CIB experts:
- Michel Jaubert, Partner value chain industrialisation, PMI and transformation program
- Christine Lensel-Martinat, Partner Finance, Risk, Compliance and Green Finance
- Hugues Bessiere, Partner Innovation and operational efficiency CIB
- Jacques Labat, Senior Leader, Asset Management
- Olivier Pierre, Partner Securities Services and Market Infrastructure
- Fabrice Penot, Partner Solutions architecture, transformation programs, platforms
- Emmanuel Arnaudin, Partner Digital Transformation CIB & Retail Banking
- Tatiana Pecastaing, Senior Leader, Asset management and sustainable finance
