What the ‘Big Four’ bring to Bangladesh

There is a simple question worth asking about Deloitte, PwC, EY and KPMG, the firms we call the “Big Four”. How have they lasted this long? Deloitte goes back to the 1840s. They have outlived empires, wars and currency collapses. Most companies do not survive a century. These four have thrived for the better part of two, and today employ around 1.5 million people globally and make more than $200 billion.

The reason, in my view, is not their size. It is their willingness to keep changing what they sell. They began as bookkeepers, became auditors, then tax advisers, then consultants, and today they are, in large part, technology firms. Through all of it, they have guarded one thing above all else: trust. That kind of trust is slow to build and very hard to copy, and it is the real product they sell. It also explains why their arrival or departure matters greatly for business.

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Risk is the other half of the story. A firm that vouches for other people’s numbers must manage its own with the same care. One bad audit, or one conflict of interest left unchecked, and a brand built over a century can disappear in no time. So, these firms have wrapped themselves in layers of protection: strict rules that keep their auditors independent, constant internal quality reviews, and walls between one service line and the next. Helping a bank or company understand the risks it is actually running, across its loan book, supply chain, computer systems and legal dealings, has become one of their largest lines of work.

Take technology, where they are growing fastest. As banks, factories and government offices move online, the ‘Big Four’ have moved with them, installing enterprise software such as SAP and Oracle, upgrading core banking systems, shifting operations to the cloud, building cyber defences and advising on digital government. In this work, they behave more like engineers than auditors, building controls into the systems the economy runs on. To my mind, the most exciting area is data and analytics. Analytics tools, automation, and now artificial intelligence are changing how businesses operate, how fraud is caught and how decisions are made.

Away from the headlines, these firms help with Basel and IFRS 9 rules, insurance and non-bank finance. They advise on restructuring weak institutions, carry out actuarial work for insurers and help firms raise money. They also work with regulators on supervising a modern financial system, and with boards and audit committees meant to hold banks in check.

Assurance is the oldest of these services, and goes beyond signing off annual accounts. They help companies report under financial reporting standards, carry out internal audits and provide independent assurance over sustainability and other non-financial information.

In management consulting, they advise governments and large companies on reform and strategy. This includes modernising tax and revenue collection, structuring public-private partnerships, turning around loss-making state enterprises and redesigning how organisations operate. Their deals teams handle: financial and tax due diligence, independent valuations, advice on mergers and acquisitions, and support for companies raising money through share flotations or bond issues. On ESG, they build sustainability reporting frameworks, provide assurance over the results, and advise banks and exporters on climate risk and green finance.

No one really buys a logo anymore. Clients want value-driven service, trust and hard-won experience, and that is what the “Big Four” bring to the table. The brand may open the door, but it is the substance behind it that keeps them going.

The writer is an economic analyst and founding managing partner of PwC, Bangladesh