In a highly unpredictable environment, the only certainty is that Banks should rethink their financial and operational strategies going forward. To thrive, Banks should embrace digital transformation, enhance their operational resilience and adapt to the constantly evolving environment.
- With customers increasingly demanding for a seamless banking experience and more tailored products, digital transformation is critical for banks to meet these demands. With increased access to more customer data points, banks can take advantage of emerging technologies to offer more personalized customer experience.
- This increased interconnectedness however multiplies the cyber risks that banks face. With ever-more complex cyber-attacks targeting potentially unforeseen vulnerabilities, banks must ensure that cyber security is embedded in their organizational culture. Otherwise, there is a risk of erosion of customers’ confidence in digital platforms that may have cost enormous resources to build and implement.
- In addition, the disruption brought about by the COVID-19 pandemic has highlighted the need for Banks to continue enhancing their operational resilience. The pandemic has brought to the fore the need for banks to continue revamping their business continuity plans, talent management plans and operational processes. This will also ensure banks can operate sustainably as different stakeholders are increasingly demanding for sustainable operations from a social and environment viewpoint.
- Finally, as Banks strive to thrive in a post-pandemic world, they must adapt to an evolving regulatory and more competitive environment. Banks should ensure they have capabilities to adopt to expected or foreseeable regulatory changes. Such changes may also be catalysts for consolidation in the banking industry, and banks should be prepared to take advantage of such opportunities which may be key drivers of organic growth in future.