KPMG International’s global survey shows that banking CEOs are confident about growth prospects – and they view innovation as critical to their growth strategy.
In 2017, KPMG International surveyed 120 banking CEOs worldwide to find out how they plan to grow, what opportunities they see in the market and the steps they have taken to further their competitive advantage. Below is a summary of our survey findings.
A strong outlook for business growth:
Banking CEOs are confident about their own businesses’ prospects for growth – particularly over the long term. They are also more bullish than their peers in other sectors such as investment management, technology or telecoms about growth prospects for the next three years.
Investing for growth and transformation, and thinking long term:
Banking CEOs’ top investment priorities are improving bottom-line growth, business transformation and increasing productivity and customer engagement. They are seeking sustainability through a focus on trust, values and culture, and balancing long-term and short-term objectives.
Innovation moves up the investment agenda:
Banking CEOs see innovation as the most critical element of their growth strategy. Reflecting this priority, innovation is moving up the investment agenda. Spending on innovation has increased incrementally by 39% over the last 12 months. And two thirds of banking CEOs are planning to increase investment over the next three years:
Anticipating and planning for risk:
According to our banking CEOs, the top industry risks today are emerging technology, cyber security and operational risk. In response to these, CEOs are prioritising the fostering of innovation and the implementation of disruptive technology, as well as client-related initiatives (speed to market, marketing and branding and a stronger client focus).
The top strategic priorities for 2018-2020 include: