It's no secret that slow and steady no longer wins the race.
Yet, for banks, the need for speed is becoming more important than
Banks have certainly made progress in recent years. In many
respects, they are in good shape and are optimistic about the
future. In fact, 87 percent of the 100 US banking
executives1 surveyed in our 2016 Banking Industry
Outlook Survey foresee revenue growth over the next year.
Approximately two-thirds of respondents believe their organizations
are actively embracing change, and more than half rate their
current digital capabilities in the above average to excellent
But perception today may not match reality tomorrow. There is
much more to do. And quickly. Today, any and all parts of a
bank's business model are fair game. Newer, tech-savvy entrants
have speed and agility on their side and continue to successfully
nip away at different facets of a bank's business. Meanwhile,
consumer expectations of highly personalized experiences continue
to evolve daily.
So how fast is fast enough? For banking executives, this
question looms large. Depending on bank size, strategic priorities
will differ but common challenges remain. Managing costs, upgrading
outdated legacy IT systems, complying with evolving regulation and
changing a process-driven culture are just a few. In addition, they
also must grapple with their own identity. Bankers by tradition,
are typically risk- averse, long-term strategic planners—the
antithesis of the tech entrepreneur rapidly encroaching on their
A key to future success will rely on banks' ability to fully
integrate digital into their business. This means going far beyond
digital capabilities on the front-end and instilling a core focus
on the customer that permeates every aspect of the organization.
Banks continue to incorporate digital capabilities and recognize
the need to continually innovate the customer experience. However,
digitization has not yet become a foundation for their business.
Therefore, to keep their home field advantage, banks will need to
continue making adjustments to their business model, incorporate
new and emerging technology in ways that customers will find
favorable, and adapt a truly digital mindset across the entire
Change is, and will continue to be, hard. Still, as you will
see, many of the results of our survey indicate positive strides in
the right direction. However, they also serve as a reminder that
time is of the essence. Banks need to accept it's no longer a
race the big and strong are guaranteed to win. Speed and agility
count just as much...if not more. And the time to accelerate is
Gaining ground on growth
The long-awaited banking technology revolution is taking root.
It's true the progress to date has been small, and much work
remains before fundamental changes gain real traction, but banks
continue to move in the right direction. And the positive momentum
Our survey results reveal optimistic expectations as 87 percent
of the banking executives surveyed foresee revenue growth in the
year ahead. Larger banks are more modest in their growth
predictions, with 43 percent expecting to see growth of up to five
percent, while 46 percent of their smaller counterparts are more
optimistic, anticipating revenue growth in 11 to 20 percent range
in the next twelve months.
Q: How do you expect your company's revenue to
change in the next 12 months?
According to survey respondents, the top three growth drivers
include developing and selling new investment services,
cross-selling services and charging fees for innovative and
valuable products. It's worth noting that many of the sources
banks are relying on for future revenue growth are underpinned by
digital technologies—and the field for those services is
becoming increasingly competitive as financial technology
(fintechs) and other tech companies chase after the same valuable
Q. What specifically is your bank doing to drive revenue
The optimistic expectations for growth signal that banks see
real opportunities ahead. Despite an increasingly competitive
landscape, new revenue opportunities will likely be found by
increasing personalized services to customers. Banks willing to
seize the opportunity to become innovators of new products and
services by embracing disruptive technologies and transformative
forces will be better positioned to reach growth targets.
Under Regulation (EU) No. 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories ("EMIR")...
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).