A new report by the Economist surveyed 203 global banking executives to understand the challenges and changes they face. Over one-half (135) of the respondents work for banks with assets of less than $50b. The report concluded that, "The digital revolution has moved from existential threat to potential survival strategy for the world’s retail banks."
The digital revolution has moved from existential threat to potential survival strategy for the world’s retail banks. For the first time in three years, the post-crisis regulatory squeeze no longer tops our retail banking trends. Banks may not like the renewed regulatory focus on know-your-client and suitability, but they now have a more pressing draw on their resources: financial technology (fintech).Key findings include: The banking world of the future. By 2020 bankers expect the banking environment to be shaped strongly by technology and non-traditional competitors. They believe that retail peer-to-peer (P2P) lending will be available via banking platforms (65%); retail banking will be fully automated (64%); and more money will flow via fintech firms than traditional retail banks (57%). Profits face multiple attacks.