The report, Retail Banking 2020: Evolution or Revolution, based on a survey of 560 financial services executives (20 of which are from the
Executives differ in their views by region. For example, many more US executives view non-traditional new market entrants as a threat (71 per cent), than executives in
Over two thirds (70 per cent) believe it is important to consider how global trends (such as economic growth, regulation, and social, demographic and technological changes) will impact the banking industry in 2020. But again, there were differences by region. For example, fewer US (61 per cent) and European (67 per cent) executives think it important to form a view of the industry in 2020 than executives in the emerging markets (79 per cent).
Ninety per cent of executives agreed that six key priorities identified by
??Putting customers first;
?Getting to grips with the move from traditional branch-based to digital banking;
??Simplifying business and operating models;
??Ensuring they can harness the power of big data;
??Pro-actively managing risk, regulation and capital.
However, only a fifth (20 per cent) feel well-prepared to address these priorities.
When asked to name the top three challenges facing the banking industry, 47 per cent of emerging markets executives were most concerned about attracting new customers, followed by attracting and retaining talent (43 per cent) and new market entrants (29 per cent). The top three investment priorities for emerging markets executives are enhancing customer service (47 per cent), followed by R&D and innovation (36 per cent) and new product development (32 per cent).
Hayward said, "Most Middle East banks operate at higher costs than market norms. While growth is being achieved following market expansion, returns are frequently not optimised. Banks must understand where they have a competitive advantage and where they don't to manage costs appropriately, and seize the opportunity to redeploy resources to activities that add value to the business.
"Operating models that are customer- focused and delivery channels that meet the needs of the expanding and highly mobile population are of chief importance. Furthermore, understanding and being able to effectively manage the processes that support and enhance service-delivery to customers will create additional competitive advantage for the banks that do it well."
Operating models that are customer- focused and delivery channels that meet the needs of the expanding and highly mobile population are of chief importance. Furthermore, understanding and being able to effectively manage the processes that support and enhance service-delivery to customers will create additional competitive advantage for the banks that do it well
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