After seven years of turmoil, the banking sector can finally shift focus from cleaning up the debris caused by the financial crisis and start making steps towards delivering sustainable growth and profitability. Richard McCarthy sets out a new direction for banking in the future.
The vital next step for UK banking is conceptual change. New entrants to the market are bringing fresh, exciting and agile solutions to core banking challenges. They’re building business models from scratch without the burden of legacy processes or infrastructure.
That’s not to say the UK banking sector isn’t also in a period of renewal. Innovation aside, there is acceptance of change in a bid to redefine a 'new normal'. This positivity is appropriate – even after a long period of remediation - despite the fact that huge risks remain and that there are major obstacles to overcome. We see three broad themes to this renewal:
Our latest benchmarking report offers our points of view on these themes. We can already see banks making a clear and public commitment in many of these areas. Those that adopt clear strategies in all of them will be particularly well placed to be a bank in the future.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.