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The Business Priorities of Global Banks, 2018

Banking in 2018 is a minefield. Consumers are disenchanted, emerging FinTech technologies are disrupting the industry leaving traditional banks contemplating their place in an ever-changing, modernising field. Turnerlittle.com took to investigating the business priorities of global banks in 2018, to better understand what our banks are doing to restore customer faith – and the sector.

To sculpt their findings, Turner Little analysed the report Global Banking Outlook 2018 released by Ernst and Young (EY). Comprising a survey of 221 financial institutions, across 29 markets, the report reveals bankers are positive about their ability to improve their financial performance this year. To achieve this, banks and bankers alike will prioritise five main categories: protect, control, grow, reshape and optimise.

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Observing each of these priorities will allow effective change to take place over the course of the year.

Clearly, we can see from the infographic above, to ‘protect’ comes out top. In fact, the highest priority in every category is to ‘enhance cyber and data security’ – at 89%, plainly indicating this is an urgent focus.

Other high priorities include to ‘implement a digital transformation program’ (85%), to ‘recruit, develop and retain key talent’ (83%) and to ‘gain efficiencies through technology adoption’ – at 82%.

Lower priorities include, to ‘optimise the balance sheet’ (78%), to ‘meet compliance and reporting standards’ (77%) and to ‘improve risk management’ – at 77%.

Delving further into detail, it is found, within the next three years, 40-60% of companies will choose to purchase a variety of technologies to help them achieve their goals. Some of the most favoured technologies include artificial intelligence, augmented and virtual reality, cloud technology, cryptography/cybersecurity technology and identification software based on biometrics.

Turner Little also pulled the top five reasons banks will invest in technology this year, with interesting results.

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To ‘strengthen competitive positioning and build market share’ is the number one reason banks will look to invest in technology – at 70%. Followed by ‘expand ability to acquire, engage and retain customers’ (67%) and to ‘generate cost savings and operating efficiencies’ (62%.)

Closely followed, was to ‘mitigate growing cybersecurity threats’ (58%) and to ‘drive digital transformation program’ – at 51%.

James Turner, managing director of Turnerlittle.com, comments:

“It’s clear traditional banks need to embrace digital advances, such as those under the FinTech umbrella, to drive opportunity. Not only will this improve efficiency and help to manage risk; it’s critical to sustainable success.

In fact, it is understood embracing digital innovation will provide banks with the key to reach their goals in 2018 and to appease fed up consumers. It’s time to move with new advances, rather than wasting energy, money and custom fighting the tide.”

Feature image credit: Sittipong Phokawattana/Shutterstock

 

 

Turner Little and its affiliates do not provide tax, legal or accounting advice. Material on this page has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.