Sources of information and trends

Global banks review their strategies in Latin America

Financial sector companies streamline participations in complex markets such as the region's

Despite the significant average growth in Latin America in recent decades, financial sector companies that operate in the region have faced a challenging scenario. This mainly occurs due to slow or negative growth of countries such as Mexico and Colombia, as well as the recent political and economic crisis, which has restricted the expansion in Brazil, Argentina and Venezuela.

This is one of the conclusions of the study “LatAm Eminence – Financial services challenges and best practices for divestitures and wind-downs in Latin America”, conducted by Deloitte.

The study demonstrates that a number of issues related to more stringent capital requirements, lower gains, increased credit losses and higher compliance and litigation costs, in addition to the internal efforts to focus on the strengths of larger markets, indicates that the global banks will continue to review their local strategies.

The risks presented by the economic perspectives and by operating environments in some Latin American countries are also contributing to the financial institutions’ decision to leave the region.

The challenges in this uncertainty environment and the best practices for dealing with cases such as these are also presented in this study.

Access the study “LatAm Eminence:  Financial services challenges and best practices for divestitures and wind-downs in Latin America” in its entirety.

Pricing: a value based strategy focused on the client

Pricing practice geared to the consumer profile leverages the companies’ results

Customization of business practices has also impacted the companies’ pricing strategies, seen as a lever to boost performance and maximize the organizations’ profit. The study “Pricing True Value – From pricing strategy to commercial excellence”, conducted by Deloitte, confirms this trend and provides information about how the companies that operate in Brazil in the most diverse sectors are positioned and manage price in the current economic panorama.

The changes in the economic environment, together with the integration of the digital world to the business environment, has contributed to the creation of a new consumer profile: more connected, mature and insightful in relation to their habits. This transformation opens up new opportunities for the companies to develop a more responsive and customized communication with the customers.

This reality requires an increasingly personalized approach by the companies in their pricing practices. In order to accompany the business transformation and grow in a sustainable way, organizations must have a look back to what the customer wants and tailor their segmentations in order to maximize their profits.

The report points out that the competitor’s price, demand and supply are the market data most analyzed for Pricing decisions among the organizations consulted for the survey. This result indicates that the practices of product differentiation by customer segmentation or sales channels can be best explored by the organizations.

Access the study “Pricing True Value – From pricing strategy to commercial excellence” in its entirety.

Risk management practices steps in the financial industry

Pricing practice geared to the consumer profile leverages the companies’ results

In the years following the global financial crisis, there was a sharp increase in regulatory requirements and market expectations in relation to risk management, which came to encompass a wide range of issues. The tenth edition of the “Global Risk Management Survey”, conducted by Deloitte, assessed the risk management practices of the financial industry and the challenges faced by the sector.

In General, for almost 70% of respondents, the effectiveness of their institution in risk management is extremely or very effective. While financial institutions are managing operational risks for some time, little more than half of the respondents (51%) feel that their institution is extremely or very effective in managing this type of risk.

Among the concerns raised by the survey, cyber risk continues to grow and is attracting increasing attention from the regulatory point of view. The study also revealed that organization leaders are focused on the regulatory impact of recent geopolitical changes and still question the consequences of some initiatives.

The survey was based on responses from 77 financial institutions from all over the world, representing a total of US$13.6 trillion in aggregate assets.

Access the “10th Global Risk Management Survey” in its entirety.

Digitalization changes chemical and pharmaceutical sectors

Deloitte's study, in partnership with a German association, indicates what are the forces that will shape the sector until 2030

The chemical and pharmaceutical industries will be shaped in the coming years by phenomena such as digitalization and circular economy, according to the study “Chemistry 4.0”, prepared by Deloitte, in partnership with the German Chemical Industry Association. The survey examined the forces that will influence such sectors until 2030.

Digitalization allows the chemical companies to collect data that can be evaluated and used to improve operational processes and create new business models. This digital transformation of the chemical industry can be divided into three categories: transparency and digital processes, operational models based on digital business data and models.

With the change in customers’ preferences in relation to sustainable production and consumption, the need for a circular economy arises, focusing more on the application than in volume. The chemical industry has the opportunity to take into account all aspects of circular economy throughout the product’s life cycle. The study details the seven circular economy levers that a chemicals business should consider.

The chemical companies already have a high degree of team work, but still need to explore digital economic networks. To develop new opportunities for growth, it is essential that companies identify the role they play in these structures. The study also has strategic recommendations for organizations and associations, together with the political and regulatory conditions recommended in order to build these new opportunities that digitalization and the circular economy can bring to the chemical ecosystem.

Access the study “Chemistry 4.0” in its entirety.