With a plethora of new fintech activity intensifying competition, yet more complex legislation, and wobbling consumer and government confidence levels, banks have never been more under pressure. BearingPoint believes success lies in finding and executing answers to five, inter-related, questions.
The banking sector is experiencing massive disruptions from challenger banks, evolving regulations, dynamic customer demands, and the emergence of Fintechs. For established banks to survive, let alone thrive, they must be flexible enough to integrate new digital financial tools and adapt to rapid change.
There are many positive figures from the banking sector. After a challenging year in 2020, the profitability of European banks rose significantly in the second Corona-impacted year. However, the banks had no respite: geopolitical developments kept them alert. Competitive pressures have also continued unabated, and new regulatory ESG requirements must be taken into account and implemented and scaled cost-effectively.