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IT in the new reality for banking & capital markets

Through the height of the COVID-19 pandemic, the banking and capital markets sector played a pivotal role. Financial institutions were key to the rapid delivery of government stimulus programs, enabling businesses and individuals to access liquidity and manage finances — and did so while making profound changes to their own normal ways of working, quickly scaling digital channels for customers and transitioning a remote workforce as branches and offices closed.

But while demand for banking services has remained as high as ever, the outlook has distinct operational challenges. The majority of organizations see COVID-19 impacting their bottom line in the near to medium term due to headwinds from low interest rates, higher anticipated credit losses as business failures and unemployment levels rise, and lines of businesses within banking and capital markets recovering at different rates (e.g., retail vs investment banking) — making accelerated digital transformation an urgent necessity in order to increase operational efficiencies, create scalability, and build streams of data. 47 percent of companies in this sector expect to transform to re-emerge in their recovery path in the new reality — needing to transform operating models to emerge stronger and more in line with changed consumer priorities. Digital leaders in this sector perform 24 percent better than competitors in operational efficiency through investments in automation of key workflows and 20 percent better in customer experience through investments in digital channels such as mobile banking and websites. Companies in this sector must maintain the gains made during COVID-19 in customer-centric, seamless, and secure digital customer services by expanding their offerings and platforms as well as monetizing data. In the middle and back office functions, companies in this sector may focus on extending their digital transformation through targeted investments in automation and optimization.

Board priorities & investment

In such a highly competitive space, banks and capital markets’ strategic IT priorities of operational efficiency, digitally enabled customer, and agility and speed to market lead their path to the new reality. Companies in this sector are looking to invest in automation (78 percent) and managed services (49 percent) as key enablers to set up their digital backbone long-term and build resilience to Black Swan events such as experienced during the crisis. In addition, banks and capital markets continue investing in security and privacy and customer experience and engagement to maintain customer trust, loyalty and confidence.

CIO Report pages Banking

How KPMG can help

While KPMG firms are some of the largest providers of services to banking & capital markets organizations globally, we take a boutique approach to client issues with a focus on flexibility, adaptability, and innovation. We recognize that there are many on-ramps to supporting IT transformation and we’ve tailored our services accordingly:

Transform the business

  • Strategy and operating model
  • Organizational design
  • Enterprise architecture
  • Portfolio planning
  • Merger and acquisition
  • Integration and separation

Run the business

  • Scaling agile
  • Product management
  • DevOps tooling
  • IT financial management
  • IT service management
  • IT asset management

Modernize and protect

  • Cloud strategy
  • Data center strategy
  • Continuity and resiliency
  • Workplace transformation
  • Network modernization
  • Cyber, risk, and compliance