Large banks are reconsidering their business models.

• Position: MARKETING NEWS

MANY BANKS AROUND THE WORLD are struggling to develop business models that can restore a measure of stability and growth to their various operations in the aftermath of the financial crisis, according to a new report from KPMG International, New York.

The company's new report, "Creating a New Mold for Banking," reveals that banks in developed countries, such as the United States, have been the hardest hit by the financial crisis and are fundamentally reconsidering their business models.

Compliance with various regulatory requirements has many financial institutions re-examining and refining their business models, according to Tony Anzevino, partner-in-charge of the company's U.S. Banking and Finance practice. "New regulations such as the Dodd-Frank Wall Street Reform and Consumer Protection Act and Basel III will require banks to hold additional capital, impose additional costs and may reduce returns."

Post-crisis, the need to focus on revenue replacement also will serve as a catalyst for U.S. banks to re-examine their business models, as some formerly lucrative revenue-generating areas such as the securitization market clearly are not what they used to be, notes Carl Carande, national account leader of the company's Banking and Finance practice. "Profitability, or returning to it, is a key objective for U.S. banks and new or refined business models will need to...