Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .


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

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.”

Global Banking & Finance Review


Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post