Banking

For the past decade, the global banking industry has been on a transformational journey, and the coming years could prove to be much more challenging.

Banks are under pressure from several fronts and need to start putting strategies in place with an ecosystem of partners to transform their business and achieve growth. They have to implement new technologies such as AI, robotics and IoT, transitioning to new, low-cost structures while driving value creation. Furthermore, to be successful they need to remain flexible and put customers at the centre of every strategy.

Regulatory reform, risk management considerations and enhanced reporting requirements were all challenges to growth even before COVID-19. Leaders need to ensure their organizations remain resilient, knowing that the pandemic has presented productivity opportunities, too. Some of them are highlighted by the relative ease with which customers have switched to digital channels and the successful aspects of remote work. As a result, banks are seeking help to become more efficient by rationalizing processes and increasing automation.

The future of banking will look very different from today. Disruption, regulation and cost are three key themes that link the many challenges retail, commercial and investment banks face in today’s rapidly evolving financial services industry - bringing a wave of competitive models and heightened expectations from consumers, businesses and investors.

The banking industry is expected to have clearly defined systems for risk management and controls, with regular reviews and recalibration. Sophisticated strategies and solutions will be required for financial institutions to navigate the post pandemic world and gain a competitive edge.