Commercial banking faces a more complex environment than perhaps ever before. Changes across the industry are forcing banks to review their growth strategy and innovate to remain relevant against client demands, rapid enhancement in digital capabilities, digitisation and new sources of competition.
The commercial banking industry is rapidly evolving through digitisation, increased competition and tighter regulation. Commercial banks serving small and medium-sized businesses are transforming to compete. So, what will the future commercial banking landscape look like, and what should commercial banks do to stay competitive?
In our latest report, KPMG surveyed over 400 commercial banking leaders from around the world, who are involved with customer-centric strategy and enablement decisions. We identified key signals of change taking place across the industry, alongside what we believe will be the three dominant future business models in the new reality. To survive and grow in this new reality, commercial bankers should consider how a connected approach, underpinned by technology to support the front, middle and back office, will enable true value from digital transformation.
Signals of change
- Customer
- Data, digital and technology
- Trust
Customer
Commercial banks are building adaptable platforms and ecosystems to provide seamless customer experiences and innovative new products. Successful commercial banks should provide a complete end-to-end experience, across multiple integrated channels (including the convergence between pure retail and corporate portals).
Data, digital and technology
Both financial and non-financial players can thrive in new ecosystems open to integration, greater connectivity, and data sharing. Technologies such as distributed ledgers and quantum computing will increase transaction efficiency, and enhance information sharing, security, and transparency.
Trust
Stakeholders (including public communities) are constantly scrutinising the impact of banks’ products, services, culture, operations and relationships upon people and the environment. Commercial banks consider regulation and governance as the most important factor to earning trust, and 40 percent believe that by building trust with consumers, they can enhance the brand reputation, achieve higher efficiency and more sustainable growth.

Future of commercial banking
Discover the latest insights and trends that are shaping the commercial banking industry
Future business models:
We believe three business models will dominate the commercial banking market:
What are the 8 Connected Enterprise Capabilities?
Eight capabilities, for twice the impact
The most successful organisations invest in eight capabilities which span all areas of the customer experience. This ensures a connected organisation that goes beyond cross-channel interactions. Those that invest in all eight capabilities are twice as likely to meet customer expectations, achieve objectives and deliver return on investment.
Click on a capability box to discover more
- Introduction
- Insight-driven strategies and action
- Innovative products and services
- Experience centricity by design
- Seamless interactions and commerce
- Responsive operations and supply chain
- Aligned and empowered workforce
- Digitally-enabled technology architecture
- Integrated partner and alliance ecosystem
Eight capabilities, for twice the impact
The most successful organisations invest in eight capabilities which span all areas of the customer experience. This ensures a connected organisation that goes beyond cross-channel interactions.
Those that invest in all eight capabilities are twice as likely to meet customer expectations, achieve objectives and deliver return on investment.
Click on a capability box to discover more
Insight-driven strategies and action
Better insights help you better understand customer needs, develop customised solutions and create seamless experiences.
Nick Whitfeld
Partner, Data and Analytics
Paul Henninger
Partner, Head of Lighthouse
Innovative products and services
The need for fresh thinking and ideas doesn't stop, and it's the only way to meet your customers' growing expectations and help them achieve success.
Penny McLoughlin
Director, Ignition Services
Chloe Burton
Ignition Architect
Experience centricity by design
Today's customers want personalised, connected experiences. And that isn't going to change anytime soon.
Tim Knight
Partner, Customer Advisory
Seamless interactions and commerce
KPMG Connected Enterprise helps organisations across sales, marketing and service to drive business smoothly.
Hugh O'Reilly
Associate Partner, Financial Services, Customer
Clotilde Chohan
Director, Customer Transformation
Responsive operations and supply chain
The beating heart of your organisation, deliver on the customer promise via responsive operations and supply chain.
Maureen O'Shea
Partner, Operational Transformation and Supply Chain
Kirk Hull
Director, Operations and Supply Chain
Aligned and empowered workforce
Every business needs to build engaging employee experiences, working with them to deliver on your customer promise today and in the future.
Mark Williamson
Partner, People Consulting
Louise Scott-Worrall
Partner, Learning
Digitally-enabled technology architecture
Architect and engineer smart digital services, technology and platforms in a cost-effective, scalable manner.
Iain Fox
Partner, Microsoft Business Solutions
Phil Crozier
Partner, Connected Technology
Integrated partner and alliance ecosystem
No organisation does it all themselves. Building successful alliances can help your organisation deliver a competitive edge and extend your business growth into new markets.
Adrian Clamp
Partner, Head of Digital Transformation
Our approach
Our approach is centred on enhancing all eight connected capabilities across the enterprise to the level that can provide the greatest value. These connected capabilities map to the operating model of a bank and can allow you to prioritise, shape and execute your digital transformation.
KPMG professionals help commercial banks evaluate their maturity across these connected capabilities, shape their transformation agenda and plans, and deploy improvements in the capabilities across the enterprise with the aim of providing the greatest value.
With the consumer at the core, there are five critical questions that commercial banks should ask themselves:
Are you connecting your clients/brokers with compelling value propositions, opportunities,
and interactions?Are you connecting and empowering your employees to deliver on the client promise?
Are you connecting your front, middle and back offices to execute the client growth agenda?
Are you connecting your ecosystem of business partners to jointly deliver on commitments
to clients?Are you connecting to market dynamics and digital signals?