Pandemic fallout catapults banks to the brink of a new era – Banking 4.X

Welcome to Banking 4.X, which will shatter traditional industry boundaries as banks become virtually invisible, and banking is embedded for convenient access within consumer lifestyles. Banking 4.X is an experience-driven, platform-based, optimum channel banking resilient to financial and non-financial threats, built around long-term, sustainable growth where human interactions evolve from servicing to advising.

The prevailing VUCA environment is forcing banking rationalization

The financial services (FS) industry was already struggling through a rough patch. Then, the ultimate black swan, COVID-19, upended the world and created an unparalleled VUCA (volatile, uncertain, complex, ambiguous) environment.

Rising costs and constrained revenue growth have forced banks to rethink their IT spending priorities. On average, 1 in 3 banks are expected to reduce IT budgets or postpone large digital transformation projects. Moreover, approximately two-third banks plan to optimize workforce costs and scale down less profitable operations to reduce their expense base.

 

Banks rationalizing costs and restructuring operations in a profit-sensitive environment

World Retail Banking Report 2021

The World Retail Banking Report 2021 from Capgemini and Efma explores an era where banking is invisibly embedded within customer lifestyles to provide a sustainable, experiential customer journey. Discover how implementing BaaS platform models to unlock the value of open ecosystems and harvesting customer behavioral data to provide hyper-personalized engagement will be the key to success for banks.

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