DECEMBER 6, 2019
Prepping for 2020
By Mark Loehrke, Editor, Financial Managers Society
It’s that time of year again – time to find out what the good folks at Deloitte see coming for financial institutions in the year ahead in their annual Banking and Capital Markets Outlook.
While noting that the industry overall is on fairly solid ground for the time being, Deloitte nevertheless takes notice of exactly what everyone else in and around banking has understood for some time now – disruption is underway, and only figures to intensify in 2020. And that means banks and credit unions need to be thinking big – envisioning bold moves, new alliances and a renewed dedication to social responsibility. A few key takeaways from this year’s report include:
• The next wave of disruption coming over the next decade figures to be more forceful and more pervasive than what has been seen in recent years. With this disruption, though, comes endless opportunity for well-positioned institutions.
• The combined effects of technological disruption, sweeping changes to the nature of work, demographic shifts and climate change could hold serious implications for the banking industry.
• The above forces will also likely figure into the changing nature of how banking is done. Namely, banking is likely to become more open, transparent, real-time, intelligent, tailored, secure, seamless and deeply integrated into consumers’ lives.
• Even as the way banking is done might change, however, the role of banks and credit unions will likely not. Regardless of what happens, institutions should remain true to their core identity as financial intermediaries – matching demand with supply of capital.
• Entering the new decade, institutions should focus on fortifying their core foundation on multiple levels, including technology infrastructure, data management, talent and risk management.
As always, the report supplements the above topics with a wealth of timely information regarding payments technology, M&A trends, the growing threat of climate change and much more. For all of the data and detail, however, Deloitte’s advice to the industry heading into 2020 is a fairly simple one – keep doing what you do best but find ways to do it even better.