Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

Nearly half (43%) of financial services firms turn to independent professionals over traditional management consultancies for more flexible consulting support

  • Majority of financial services firms (43%) use independent consultants instead of traditional management consultancies for the greater level of flexibility they offer 
  • Demand for independent consultants across the financial services sector driven by a greater need for flexibility in business models 
  • Three-quarters of financial services firms think independent consultants deliver a higher quality of work than large firms across risk and regulatory work (68%), Technology (65%), Operational Improvement (54%) and Business Transformation (51%). 

New research by Odgers Connect, the consulting arm of executive search firm Odgers Berndtson, has revealed that the majority (43%) of financial services firms are turning to independent consultants over traditional management consultancies for more flexible consulting services.

The research, which surveyed 250 board-level executives across large enterprises in the UK, Germany, the Netherlands and Switzerland, found that a greater need for flexibility (62%) is the most significant driver of change in financial services companies, suggesting the preference for independent consultants over large firms is a result of the growing trend towards flexibility in business models.

The second most important factor for using an independent consultant over a traditional consultancy was price (38%), followed closely by the higher quality of consulting work (35%) they offered.

However, financial services firms would turn to a management consultancy to meet internal capacity shortages, with 57% of businesses in the sector citing this as the primary reason for working with a traditional consulting firm. Alternatively, just 17% would use an independent consultant for this purpose.

Adam Gates Principal at Odgers Connect, said: “When it comes to mass resourcing, the on-demand ‘consulting pyramids’ and hordes of junior analysts supplied by big-four type consultancies is an easy option take. However the growing necessity to adapt rapidly to disruptive technologies and react to shifts in the market lends itself to the flexibility of independent professionals, with financial services firms valuing the blend of strategic direction and hands-on implementation they can bring to a range of business issues.”

When comparing the quality of work delivered in key business area, independents came out far and above their corporate counterparts. Financial services firms thought independent consultants delivered a higher quality of work in risk and regulation (68%), Technology (65%), Operational Improvement (54%) and Business Transformation (51%).

It’s unsurprising then that the majority (43%) of the financial services sector would seek out critical skills from independent consultants, whilst a mere 17% would turn to a traditional management consultancy for specific area expertise.

Gates added: “With mounting regulation in the sector and growing competition from challenger banks, financial services firms are doubling down on digitisation to respond to regulatory pressures and provide a more seamless customer journey. Combining specialist skillsets with hard-won experience, independent consultants are proving to be an effective resource in meeting the rapidly evolving legislative needs of the financial services sector.”

Despite a shift in the consulting buying behaviour across the financial services sector, independent professionals still have to contend with the level of quality assurance and international reach the big firms can offer. The main factors deterring financial services firms from hiring an independent consultant was their lack of quality control (38%) and global coverage (30%).

Commenting on this, Gates said: “With offices in most countries, mainstream consultancies seem like a no-brainer for firms with overseas projects. However, this mentality is starting to go out of fashion, with an increasing number of firms parachuting in elite teams of independent consultants for more agile and senior levels of engagement.”