To prepare for potential decline in revenue, banks need to identify alternative income sources that supplement existing revenue streams. This includes:

• Developing high-margin products
• Increasing non-interest income and enhancing fee-based services
• Investing in core business for growth and divesting non-core activities
• Exploring strategic alliances and partnerships

Banks can cope with cost increases and stay competitive by prioritizing operational excellence. This includes:

• Reviewing and optimizing the target operating model
• Enhancing business agility and assessing insourcing/outsourcing opportunities
• Automating and streamlining processes to increase efficiency and reduce costs
• Strengthening value proposition with new products/services leveraging open finance and the Financial Data Access (FiDA) Regulation

Banks must adapt to the rapid-paced, digital landscape with improved information technology systems and services. This includes:

• Modernizing and upgrading IT applications and infrastructure
• Developing and leveraging AI-driven solutions
• Adapting digital banking capabilities to meet evolving customer demands
• Leveraging cloud-based solutions to increase scalability, flexibility, and resilience

As staff costs represent a substantial proportion of a bank’s total expenditure, it’s imperative to manage human resources and consider future needs. This includes:

• Upskilling your workforce with various training programs
• Optimizing resource allocation and workforce planning