Rethinking the Portuguese banking sector in a post-crisis context

• Author(s): Ferreira, Pedro Filipe Botelho
• Date: 2014
• Persistent ID: http://hdl.handle.net/10362/14895
• Origin: Repositório Institucional da UNL
• Subject(s): Banking; Portuguese banks; Strategic consultancy; Market analysis
• Document Type: Master thesis
• Language: English
• Advisor(s): Ferreira, Miguel
• Contributor(s): RUN

Description

As the financial crisis hit the Portuguese banks, the profitability of the whole sector squeezed to historical minimums. Reinventing the banking business model in the post-crisis context is an overriding issue to achieve sustainable profits and a low cost-to-income ratio. We propose banks to adopt a true multichannel approach, proceeding to a branch network reformatting and a relocation of services to online channels; adopt a true customer-centric approach and reduce the product and services portfolio complexity; finally, industrialize operations and rationalize the structure. With these measures in place, Portuguese banks will become leaner and more efficient, aspiring to a cost-to-income ratio below 45%.

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