Sign up and be the first to know

About Hugh Terry & The Digital Insurer

Hugh Terry & The Digital Insurer Video

Contact Us

1 Scotts Road
#24-10 Shaw Centre
Singapore 228208

Write an article

Get in touch with the editor Martin Kornacki

email your ideas at

Pre Registration Popup

itcasia2020 Registration Popup

Share Popup

Prime Member: Find out more

Access a unique programme!
  • 56 pre recorded lesson of online content from industry experts over 7 courses
  • The best in digital insurance for practitioners and by practtioners
  • Online MCQ after each lesson
  • Join the discussion forum and make new friends
  • Certificate upon completion to show your expertise and comitment
  • 3 months to complete
  • Normal price US$1,400 Your Prime member price is US$999
  • Access to future versions included in your Prime membership!
Become a member

Prime Member: Contact Us

REach out to us. Please fill up the form below
  • Let us know how we can help. You can expect a response within 24 hours

Financial services cultural assessment – KPMG


Article Synopsis :

Much has been written in recent years about the conduct of financial institutions, with the attention largely on the adverse impact on consumers.

 The Digital Insurer reviews KPMG’s Report on Financial services cultural assessment and transformation

“Culture eats strategy for breakfast.” – Peter Drucker

In “Financial services cultural assessment and transformation”, KPMG Australia studies the issue of culture in financial services, specifically how it can be measured, understood and, ultimately, changed.

A recent global KPMG study confirms a number of financial institutions have become more focused on shareholders and employees, less focused on value to customers and impact on society. Understandable, given the intense competition for financial and human capital, the shift manifests itself in a number of ways, including:

  • Sales incentives that encourage employees to focus on targets and product campaigns above all
  • Organizational structures that drive focus on product manufacturing and distribution over customer centricity
  • Portfolio views of the customer focused on cross selling that encourages product development and sales that may not offer customer value
  • Complex products and opaque pricing benefiting shareholders over simple and transparent products benefiting customers
  • Minimal and legalistic regulatory implementation over principles- and values-driven compliance

Redefining the culture of financial institutions, making them more balanced, can help achieve the following:

  • Reduce regulatory costs: In the UK alone financial institutions have spent 38.7 billion pounds in fines, remediation costs and management costs. All major markets have a similar story
  • Stem further political intervention into financial markets: With trust in financial institutions low, interventions have been legislated in key areas such as capital (Basel 3), customer engagement (FoFA), and key business activities such as derivative trading (Dodd Frank) and payments (New Payments Platform)
  • Provide a positive response to disruption: Including digital. New participants with a sharp focus on customer engagement are targeting the profit pools of financial institutions. Organizations oriented toward customers and communities are better placed to respond to this disruption
  • Respond to new competitive threats: A balanced response is required to address the competitive threat of new entrants in the market, such as digital natives, retailers and others exploring broader financial services offerings

For the action-minded, cultural diagnostics, and techniques for achieving balance and making cultural change happen, based on Edgar Schein’s model of corporate culture and KPMG’s own approach, are discussed in depth.

Link to Full Article:: click here

Digital Insurer's Comments

Financial institutions serve a number of key stakeholders, including customers, society (including via regulators), shareholders, employees and the company itself, all of which have different and often competing interests. The pull towards shareholders and employees has arisen over time and is often difficult to see from the inside.  One of the biggest problems for larger insurers in the digital age might be the perception that culturally they don’t have a problem.

This paper is an excellent starting point for seeing your company for what it is, and plotting next steps to get more customer-centric in an age and market that increasingly demands it.

Link to Source:: click here


Livefest 2019 Register Popup Event

Livefest 2019 Already Registered Popup Event

Livefest 2019 Join Live Logged-in Not Registered

Livefest 2019 Join Live Not Logged-in