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COVID-19: Preparing for a new reality in banking

COVID-19: Preparing for a new reality in banking

Paula Smith, Partner and Head of Banking, discusses the key areas of focus for banks as we navigate to the new normal.

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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.

Building resilience

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.

Managing costs

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.

For more information around banking in the new reality visit our website.

© 2020 KPMG LLP, a UK limited liability partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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