The banking sector is experiencing massive change and is rapidly building on the power of digital technologies and data analytics, frequently within banking eco-systems. Furthermore, COVID-19 has dramatically reshaped the world in which we live, with tumultuous economic and financial effects running alongside the public health emergency. At the height of the outbreak, banks across the globe played a fundamentally important role, supporting businesses and families by administering government-backed loans, providing additional liquidity and rapidly installing forbearance measures. In many ways, trust in banks is at an all-time high as customers and businesses view them in a new and positive light.
Customer-centric cultures and people strategies within the institutions, alongside intense regulatory scrutiny, are placing resilience and trust at the core of every bank. Digital has been accelerated and continued transformation is now more important than ever. Banks are embracing and enhancing the opportunities offered by digital change to build improved services and better respond to client needs. Challenger banks and new currencies are radically altering the banking environment, boosting competition and creating new business models. Innovative banks understand how changing client demographics, shifting age profiles and growing entrepreneurial businesses will shape long-term banking activities. These banks deliver the right service at the right time. Banks need to maintain and strengthen trust with their customers, and innovation will build a new generation of clients. With some banks following a path of gradual evolution and others opting for a complete strategic change, consolidation in the banking market is potentially around the corner.
