Capital Deployment: shaping the future of finance

Following the 2008 financial crisis, increased political and societal pressures have brought risk management within banks into the spotlight. The standardization of risk management and heightened regulatory scrutiny have resulted in capital becoming scarcer and banking operations more expensive. In a future shaped by geopolitical and macroeconomic uncertainties, such as increasing funding needs related to factors like the energy transition and (trade) wars, banks are confronted with the challenge of navigating this capital constraint. Two key strategies are crucial for success. While capital efficiency is a well-established practice in the banking sector, capital deployment tends to be overlooked and undervalued.