Global Banking Outlook: Trends and Predictions
Posted December 16, 2016 in Articles
With 2017 nearly upon us, banks and other financial institutions around the world are preparing for another year of innovation, regulatory changes and industry transformation. If 2016 taught us anything, it is that it is time to expect change in the once relatively-stable confines of the global banking edifice.
Looking ahead to 2017 (and the rest of the decade), here are five predictions for what global bankers, financiers and investors can expect in the years to come:
- Financial Technology Will Continue its Rapid Evolution and Takeover. First, we will continue to witness the technological takeover of the financial industry. Technology-driven solutions are the new norm, and regulators are finally catching up so that banks can keep pace with the rest of the world. However, despite advances, security will remain a key concern throughout the industry, and financial institutions will need to make substantial investments in protecting their clients’ assets and sensitive information.
- Banks and Other Financial Institutions Will Continue to Outsource Non-Core Functions. Banking customers at all levels are becoming savvier, and this means that they are more interested in shopping around. In order to remain competitive, institutions will need to cut costs, and one method that has proven successful in recent years is outsourcing non-core functions. In addition, with obligations such as data security taking on both increasing importance and increasing complexity, institutions may have little choice but to rely on outside vendors that focus exclusively in their areas of need.
- Customer-Centric Offerings and Customer Experience Will Take on Heightened Importance. By the same token, banks and other financial institutions will need to rededicate themselves to a customer-centric way of doing business. From introducing products with new levels of transparency and flexibility to catering to both individual and corporate clients’ digital preferences, banks seeking to compete will need to adapt to emerging market trends in order to do so.
- Traders Will Go the Way of Blockbuster and the Dial-Up Modem. Along with the continued development and adoption of financial technology, traders will play an increasingly-limited role in the financial markets. Individual investors will continue to do more on their own using consumer-friendly technology platforms, while institutional investors will rely on both in-house and third-party technologies built with artificial intelligence that can outperform human traders.
- Acquisitions and Contractions Will Be a Way of Life. Finally, as some financial institutions thrive in the new world while others falter, mergers, acquisitions and restructurings will be a way of life. Bank executives will need to make quick, informed decisions that focus on maximizing shareholder value while also according due weight to compliance, workforce, client satisfaction and other considerations.
Worldwide Banking Industry and Investment Consultants | Mithras Investments
A global leader in financial consultancy, Mithras Investments advises financial institutions, investors and other financial industry players in all aspects of regulatory compliance, operations and acquisitions. For more information about how we help drive the banking industry forward, call (305) 517-7911 or inquire online today.