New Success Equation for Retail Banking Detailed in BearingPoint Global Research Study

MCLEAN, Va., Oct. 17 /PRNewswire-FirstCall/ -- BearingPoint, Inc. , a leading global management and technology consulting firm, announced today the results of a global research study that indicates that retail banks and bankers are not only changing their mindset around their business model to succeed for the next decade, but also changing their mindset around new processes, including the convergence of service-oriented architecture (SOA) and business process management (BPM) for greater efficiency and profits.

The study, "Are You Transforming or Just Transacting? The Model For the 21st Century Retail Bank," is available at http://www.bearingpoint.com/21stCenturyRetailBank and outlines how retail banks and bankers have uncovered three key factors that are converging to form a new type of equation for success and a new vision for banks for the next decade:

* A greater focus on "Return on Process," a term derived from BearingPoint's research, referring to the value banks can realize from investing in comprehensive end-to-end technology and processes. * A material change in the role of banks and bankers -- which are now more and more being seen as data brokers requiring the need to leverage data in creative ways across the enterprise. * Customer experience/compliance conundrum -- how to handle customers' data in a world where there are escalating security and compliance requirements and risks.

"The very real opportunity exists for retail banks to improve on their return on process as they converge business process management and service- oriented architecture to create low-cost, repeatable ways to manage their business," said Christopher Formant, executive vice president, Global Financial Services, BearingPoint. "Add to this the 'data broker mentality' and the creativity and technical adeptness to solve the customer experience/compliance conundrum and you have the emergence of a new kind of retail bank and banker: data smart, intuitive and highly cost streamlined."

In developing this success equation and creating a vision of the 21st century retail bank, BearingPoint relied on research findings regarding the dramatic change facing the industry; along with the critical issues banks themselves expect to be dealing with in the coming years. These include:

* Accelerated expansion -- The largest banks during the 21st century will control far more assets and deposits than those during the 20th century, which will require greater use of technology to maintain efficiency. * Process efficiency -- This will become an important competitive factor as acquisitions are completed, which can allow for a higher volume of transactions on the same platform. * Greater customer sophistication -- The changes to customer expectations brought about by the Internet will occupy a great deal of a bank's strategic thinking, requiring banks to know their customers and maintain closer relationships. * Emergence of new competitors -- Factors such as consolidation and technology maturity will make it easier for non-traditional players to establish financial services operations, potentially eroding market share. * More intense regulatory demands -- Regulations such as Sarbanes-Oxley and Basel II are exacting an onerous toll on technology cost and planning requirements.

"The maturity of transactional banking services in the twenty-first century will place downward pressure on interest income and transaction fees, driving the need to understand customer profitability and risk more accurately, as well as raise customer satisfaction and loyalty," said Cece Sutton, Head of Retail Banking for Wachovia. She believes that the next five to 10 years "will separate the great banks from the good banks."

"As banks increasingly become information and data aggregators and managers, they must differentiate themselves by more effectively using this data to serve their customers," said Peter Nikonovich, a managing director with BearingPoint. "This will enable banks to rapidly respond to customer needs and desires by creating products and services that will suit the requirements of specifically targeted customer segments."

The global study was developed in conjunction with Datamonitor plc, a premier business information company specializing in industry analysis. Datamonitor conducted the study for BearingPoint in the summer of 2005 based on interviews with chief information officers from leading global banks.

To speak with BearingPoint about the global study, please call John La Place at 212-896-6213, or john.laplace@bearingpoint.com.

About BearingPoint, Inc.

BearingPoint, Inc. is a leading global management and technology consulting firm, providing strategic consulting, application services, technology solutions and managed services to Global 2000 companies and government organizations. We help customers achieve results by identifying mission critical issues and implementing innovative and customized solutions designed to generate revenue, reduce costs and access the right information at the right time. Our proprietary research institute, the BearingPoint Institute, demonstrates the firm's commitment to analyzing and responding to issues with a thoroughly researched and informed perspective. Based in McLean, Virginia, BearingPoint has been named as one of Fortune's Most Admired Companies in America for three consecutive years. For more information, visit the Company's website at http://www.bearingpoint.com/.

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