COVID-19 has dramatically reshaped the world in which we live, with tumultuous economic and financial effects running alongside the public health emergency. At the height of the outbreak, banks across the globe played a fundamentally important role, supporting businesses and families by administering government-backed loans, providing additional liquidity and rapidly installing forbearance measures.
In many ways, trust in banks is at an all-time high. Customers and businesses view them in a new and positive light. The key now is to retain those gains and build on them as we move through what KPMG describes as the 4 phase framework: from reaction, to building resilience, followed by recovery, and then arrival in a new reality.
Multiple challenges abound. Difficult economic times lie ahead, customer defaults could rise and banks’ balance sheets and profitability face a squeeze. But for those that reimagine their operations, harness an increasingly digital economy, and manage their costs and risks, opportunities for growth could also be on offer.
In this series of both written and video materials, we discuss six macro trends that will be pivotal to banks’ future success. KPMG experts from across our global network bring their insights into how banks can thrive in uncertain times.
As the potential economic consequences of COVID-19 continue to evolve we encourage you to follow our regular Banking and Capital Markets article series as we share insights from across our global network on the impact the pandemic may have on your business strategy and operation. Subscribe to receive financial services insights directly to your inbox.
As we continue to navigate our way through COVID-19, there will continue to be frameworks and processes created. Financial Institutions who are able to navigate through the recovery with an eye on the new reality stand the best chance for a bright future.