Paula Smith, Partner and Head of Banking, discusses the key areas of focus for banks as we navigate to the new normal.
In our latest video on the new reality post-COVID-19, Paula Smith discusses two themes that are at the top of the agenda in the banking sector: resilience and how to manage the cost base more effectively.
COVID-19 has demonstrated how quickly and significantly things can change. That’s thrown a spotlight onto operational, commercial and financial resilience. It’s no surprise, then, that banks are increasingly focusing on building more resilient processes, teams and organisations. It will be important to adapt any new risk models to meet the evolving challenges posed by cyber, third-party risk and financial resilience.
There’s also a strong focus on managing costs. With low interest rates, and net interest margins squeezed, banks will continue to look at how they can reduce operating expenses.
We recommend that while identifying ways of reducing costs, banks also build capability to support growth. For example, while implementing process efficiencies, it’s also possible to deliver improvements in customer experience. And the control environment can be enhanced through increased automation.
Leveraging technology effectively will prove key – whether through moving services to the cloud, greater use of automation or improving the digital customer offering.
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