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 officefunctions, companies in this sector may focus on extending their digital transformation through targeted investments in automation and optimization.