Regulatory reform, more stringent capital requirements, risk management considerations, disruptive technologies, a low interest rate environment, and enhanced reporting requirements were all challenges to growth in banking and capital markets, even before COVID-19 entered the picture. Sophisticated strategies and solutions will be required for financial institutions to navigate the pandemic and gain a competitive edge. PwC professionals assist many of today's largest banks and securities firms with their most challenging issues in every segment of the financial industry: consumer/retail banking, commercial banking, wholesale banking, mortgage banking, securitisation, capital markets, insurance, investment management, broker/dealer and real estate.
Digital disruption in banking is certainly one of the biggest trends that the industry is facing. Both technology-enabled FinTechs and established firms are looking to realise the benefits that technology can offer in order to become more transparent, more efficient and offer a better customer experience.
Regulation has become a key driver for change in the banking sector, while cyber security has also emerged as a key operational risk. For both established banks and FinTechs, regulation and cyber security in the banking sector is posing a key challenge.
Those organisations that are succeeding in this landscape are those that are going above and beyond and treating compliance and cyber security as a way to stand out in a crowded market and build trust with customers, rather than simply a box to tick.
Banks now have access to a greater wealth of data than they ever have. The challenge is no longer around gathering data though, instead the focus has shifted to how analytics tools can help companies within the banking industry to find valuable insights within the huge amounts of data they now have access to.
Technology companies have redefined what it means to be customer-centred in recent years, and banking is now facing the challenge of keeping up with the demands of a tech-savvy and tech-enabled customer base. In many cases, it is FinTechs that are taking the lead in developing innovative, customer-centric products, either in collaboration with established banks or independently.
