// . //  Insights //  4 Winning Strategies For Financial Institution Leaders

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Look beyond what we see in the industry that can come from sciences, philosophy, or novels in order to imagine what is not there yet
Marguerite Bérard, Head of French Commercial and Personal Banking and Member of the Executive Committee, BNP Paribas

Bank managers who diversify their points of view will be more prepared for future challenges rather than those from the past. These are the key strategies they should consider.

Watch more from the New Monetary Order video series and discover how financial institutions are adapting to the evolving monetary landscape.

In the very fragmented world we are living in, it's quite important that we are able to understand the environments and conditions we operate in because we can't always be everything to everyone and we have to make choices and understand what we're doing.

The New Monetary Order, with a peak of 450 basis points increase in interest rates in less than 18 months, has been quite demanding on the financial sector in Europe and elsewhere in the world. Nevertheless, I think banks and insurance companies are taking it quite well, and this should not make us forget that they're also longer term important trends that pose challenges: I'm thinking demography for Europe, I'm thinking tech, I'm thinking the environment. So, of course there are short term concerns, but we shouldn't be shortsighted and forget that we should be focused on the longer term ones and the large trends.

I can think of four keys point managements should have in mind in order to compete in this New Monetary Order. One of them is the ability to diversify points of view around the table. For example make sure that business people talk to LMT people, talk to modeling people. I think that's very important. The second one would probably be to keep improving, but also questioning our models and predictive abilities, but also question them and sometimes look beyond what we see in the industry that can come from sciences, philosophy, novels, in order to imagine what is not there yet and will probably be the next challenge, instead of looking in the rear view mirror. So that would be the second one. The third one is rely on a diversified business model, for example across geographies, but also business lines. That's very helpful. And the fourth one is develop a form of geopolitical bilingualism, because in the very fragmented world we are living in, it's quite important that we are able to understand the environments and conditions we operate in. Because we can't always be everything to everyone and we have to make choices and understand what we're doing.

I think technology is, probably with climate challenges, the most important trend we are facing for the next 10 years. I remember that one year ago, when the world discovered at a large scale Generative AI, the excitement we all felt. Of course there are tons of questions including ethical one, and that go way beyond what corporates have to solve. But also there are questions to all societies. But I think also this is going to revolutionize the way we do business, the way we interact with our clients, our processes, the way we build our scoring models. There are many, many new things that's coming, including with AI, and that are things to look forward to, but also to question.