A new report by the Economist surveyed 203 global banking executives to understand the challenges and changes they face. Over one-half (135) of the respondents work for banks with assets of less than $50b. The report concluded that, "The digital revolution has moved from existential threat to potential survival strategy for the world’s retail banks."
The digital revolution has moved from existential threat to potential survival strategy for the world’s retail banks. For the first time in three years, the post-crisis regulatory squeeze no longer tops our retail banking trends. Banks may not like the renewed regulatory focus on know-your-client and suitability, but they now have a more pressing draw on their resources: financial technology (fintech). The scale of disruption is unprecedented, across every market, every distribution channel and every single product line. Fintech poses a potentially fatal risk and will be a severe test of banks' IT systems and their ability to respond to rapid changes in customer expectations, short product development times and growing cyber risks.