2014年-普华永道全球_Retail_Banking_2020_the_future_of_the_retail_banking_industry_44页_1mb

Retail Banking 2020: Evolution or Revolution? Summary

Core Content

The document explores the transformation of the retail banking industry in 2020, highlighting the impact of global macro-trends and the need for banks to adapt to new challenges and opportunities. It emphasizes that while the traditional role of banks as trusted institutions remains, the methods and models of service delivery are undergoing significant changes. The report outlines a framework for understanding these shifts, based on PwC's Project Blue research, and identifies six key priorities for banks to ensure future success.

Main Viewpoints

• Banks must evolve or risk being left behind: The industry is facing a dual transformation, where change is both evolutionary and revolutionary. While banks have historically evolved slowly, the pace of change is now accelerating due to technological advancements, regulatory pressures, and shifting customer expectations.

• Customer expectations are rising: Customers are demanding better service, more personalization, and greater value. Banks need to develop a customer-centric business model that anticipates and meets these needs.

• Technology is a key enabler: Digital transformation is reshaping banking, enabling more efficient operations, enhanced customer experiences, and new delivery channels. Technology is also driving innovation and reducing costs, with banks needing to become agile and digitally integrated to remain competitive.

• Regulation is becoming more local and prescriptive: The rise of state-directed capitalism is leading to stricter, more localized regulations. This is affecting how banks operate, especially in terms of capital requirements, lending policies, and compliance.

• Non-traditional players are a double-edged sword: While some executives view these players as a threat, others see them as potential partners. The perception varies by region, with US executives more likely to see them as a threat compared to those in Asia.

• Demographics are reshaping the market: Aging populations in developed markets are shifting focus towards savings and investment, while younger populations in emerging markets are driving demand for consumer credit. This creates new opportunities for banks to innovate and tailor their offerings.

• Branch banking is evolving: Traditional branches are becoming less necessary as digital channels take over. However, they may still play a role as advisory and engagement hubs. The number of branches is expected to decrease, especially in developed markets.

Key Information

• Challenges:

  • Attracting new customers and deepening existing relationships.
  • Complying with increasingly complex and localized regulations.
  • Managing cost pressures and delivering more value with fewer resources.

• Investment Priorities:

  1. Developing a customer-centric business model.
  2. Optimising distribution.
  3. Simplifying business and operating models.
  4. Obtaining an information advantage.
  5. Enabling innovation and fostering the capabilities to do so.
  6. Proactively managing risk, regulations, and capital.

• Global Trends:

  • Rise of state-directed capitalism: Governments are increasing their influence over financial systems, leading to more localized and prescriptive regulations.
  • Technological change: Digital tools are enabling more efficient and personalized services, and are redefining how banks operate and interact with customers.
  • Demographic shifts: Aging populations in developed countries and younger, credit-hungry populations in emerging markets are changing the landscape of banking.
  • Social and behavioural changes: Customers are more informed, expect more from their banks, and are more likely to switch providers, reducing the stickiness of customer relationships.

• Disruptors and Opportunities:

  • New market entrants are challenging traditional banks with innovative, customer-focused models.
  • Cross-border partnerships and third-party collaborations are becoming more important as traditional cross-border banking declines.
  • The emergence of digital-first banks and fintechs is pushing traditional banks to innovate and restructure.

• Executive Sentiment:

  • 70% of global banking executives believe it is very important to form a view of the banking market in 2020.
  • 55% of executives see non-traditional players as a threat, while 31% see them as an opportunity.
  • Fewer than 20% of executives feel well-prepared to address the challenges and priorities outlined.

Conclusion

The future of retail banking in 2020 is one of both evolution and revolution. While the core functions of banks remain, the methods of delivering these services are changing rapidly. Banks must adopt a proactive stance, embrace innovation, and align with regulatory and customer expectations to remain relevant and competitive. The six priorities outlined in the report provide a roadmap for banks to navigate this transformation successfully.