09. 10. 18 banking business model : challenges and opportunities ix financial meeting. “ transformation of the banking industry in a new setting of digital innovation ” margarita delgado deputy governor good morning. it is a pleasure to participate in this ninth edition of the financial meeting, a classic in our calendar widely acknowledged for its prestige and which gathers together a large number of banking industry leaders. i thank the organisers for their kind invitation to me to speak at the start of the event. and it is a pleasure to follow on from ramon quintana, my “ brotherin - arms ” over the course of intense years of work, first at the banco de espana and then at the european central bank. indeed, in connection with ramon ’ s words, and in this my first address as deputy governor of the banco de espana, i wish to focus on the banking business model and the need to adapt it to a changing environment. like all private companies, banks can only survive in a stable fashion over time if they are profitable. and, set against the current transformation of the banking industry, ensuring profitability over time calls for a comprehensive, strategic and individualised reflection on the business model. allow me to develop this idea of “ comprehensive, strategic and individualised ”. in doing so, i will perforce refer to some of the findings included by the single supervisory mechanism ( ssm ) in its recently published thematic review of the determinants of profitability and business models. 1 a comprehensive reflection taking the first adjective, when i say a comprehensive reflection is necessary i refer to the fact that a bank should examine its income and costs at the greatest level of detail possible : by product and not by customer, by business line and by geography. it should seek to gain detailed knowledge of which activities generate recurring profits, and which occasional profits or even losses, delving into the reasons that may explain each of these results. this will allow the bank to identify whether there is scope to turn the profitability of certain activities around, or whether it is better to change tack or abandon such activity. in addition, the bank will be in a position to judge whether the reality of its business, understood as its assets / liabilities mix, and the decisions taken in and bearing on such activity are appropriate or need adjusting. in short, if the bank has advanced tools to improve profitability, it can develop an appropriate, consistent and comprehensive price - setting policy to ensure that the price it charges for a product or service matches its

of the national fund's collaboratives is the southwest alabama workforce development council ( sawdc ). this collaborative is working to address a local skills gap by creating a comprehensive workforce development system for the region. this system includes formal feedback from the business community to the educational system about skills that are in high demand. educators then develop a curriculum that prepares students to access the local job market. during the national fund's first five years of existence, it worked with more than 3, 000 employers to serve more than 42, 000 job seekers and workers across 32 communities. for more information about the national fund for workforce solutions, go to www. nfwsolutions. org. see p. steven berchem ( 2012 ), “ structural shift? ( pdf ) ” staffing success. american staffing association. this article cites u. s. department of labor, bureau of labor statistics ( 2012 ), “ employment, hours, and earnings from the current employment statistics survey ( national ), ” august 4. in a 2011 mckinsey global institute u. s. jobs survey of 2, 000 employers of all sizes and in all sectors, 34 percent of employers indicated that they expect their companies to increase temporary and contract workers over the next five years. see james manyika, susan lund, byron auguste, lenny mendonca, tim bis central bankers ’ speeches contingent employment is arguably a sensible response to today ’ s competitive marketplace. contingent arrangements allow firms to maximize workforce flexibility in the face of seasonal and cyclical forces. the flexibility may be beneficial for workers who want or need time to address their family needs. however, workers in these jobs often receive less pay and fewer benefits than traditional full - time or “ permanent ” workers, are much less likely to benefit from the protections of labor and employment laws, and often have no real pathway to upward mobility in the workplace. 12 many workers who hold contingent positions do so involuntarily. department of labor statistics tell us that 8 million americans say they are working part - time jobs but would like full - time jobs. 13 these are the people in our communities who are “ part time by necessity. ” as businesses increase their reliance on independent contractors and part - time, temporary, and seasonal positions, workers today bear far more of the responsibility and risk for managing their careers and financial security. indeed, the expansion of contingent work has contributed to the increasing gap between high - and low - wage workers and to the increasing sense of