“Retail banking business profitability will not improve, despite an improvement in the financial system” – Javier Gómez de Olea Bustinza, CEO at UPITE Consulting.
Spanish multinational UPITE Consulting is expanding its business to new markets: Canada, Turkey, Eastern Europe and Asia.
Madrid, 03 July 2014.- Banks are now offering better lending conditions, partly thanks to the fact that Spain left its financial crisis behind more than a year and a half ago. “At that time the financial hole at some banks was quantified and plugged, signalling the end of the financial crisis – it was quite another thing for banks to increase their profits and size at a pace we would all love to see, but at the very least doubts in relation to Spain’s financial system had been eliminated”, says the founding partner and CEO of UPITE Consulting, Javier Gómez de Olea Bustinza.
Last week’s €400,000 million bank liquidity injection by the ECB heralds a major improvement for the finance market. Gómez de Olea believes “it is positive news, and also essential for banks to become more sophisticated, expand and adopt a more aggressive commercial stance. This could create opportunities for UPITE Consulting to work with them and make their operations more profitable”.
The ECB financing scheme comes as UPITE Consulting undertakes another change of image and, most importantly of all, as it embarks on an ambitious strategy of international expansion to countries such as Canada, Turkey, Poland, Russia and other CIS states and Eastern European countries, China and Hong Kong, Singapore, Japan, South Korea, the Philippines, Malaysia, Indonesia and India.
“We are now moving into South Korea because it is one of the largest finance markets with some of the world’s leading card issuers, and UPITE Consulting cannot neglect this kind of market, or China or Japan either. Nowadays the global economy does not permit banks and companies such as ours that can advise them to focus solely on domestic markets. When banks have regained financial stability and thus their normal trajectory of business and profitability, we will see that certain entities will choose geographic diversification to minimise their risks in the next crisis”, says Gómez de Olea.
Javier Gómez de Olea, who has forged a professional career in the strategic consultancy business in more than twenty countries, feels that now is the time for opportunities, and that the time is ripe for innovation and adaptation to change: “The financial sector has undergone some major changes in recent decades. Our firm meets the needs of clients by offering tangible alternatives and solutions to increase returns within a very short space of time. Our entire team has extensive consultancy experience in this extremely specific market niche, and I believe this is our competitive edge against the competition”.
UPITE Consulting’s CEO also points out the importance of the firm’s international expansion process. “It is not just a change of image. What is much more important is our strategy to move towards new markets much further overseas. The name, the image and most especially the objective of this consultancy firm is to help the entities we advise worldwide to boost their profitability”.
The firm’s partners also have extensive professional experience. Joel Korn, a Director of Embratel, former CEO of Bank of America for Mercosur and now a member of UPITE Consulting’s International Advisory Board and Senior International Partner for America, explains the major repercussions of the ECB’s capital injection for banks: “This decision forms part of a number of necessary measures deployed to stimulate economic recovery in EU Member States, where growth is still very low indeed. Monetary policies geared towards restoring growth and encouraging consumption exert largely positive effects on retail banks and retail distribution networks, UPITE’s main objectives”.
In short, the experts predict that bank profits will remain low for the time being, and Javier Gómez de Olea agrees: “As yet there are no economic activities to directly boost financial activity at banks and increase their earnings. Meanwhile, the role of regulators and consumer protection bodies has been stepped up. A number of banking practices used to be valid, but this is no longer the case, making banking business increasingly more difficult all over the world”, concludes Javier Gómez de Olea.
About UPITE Consulting:
UPITE Consulting is a strategic consultancy firm specialising in the identification of recommendations to boost the returns of retail banking and consumer finance products, using in-house methodology known as “Revenue Intelligence®”. Its clients include many mainstream banks and financial retailers in Europe and America, making it a world leader in the highly specialised domain of strategic consultancy