A triple threat of rising geopolitical tensions, the ongoing pandemic and a volatile economic climate is sending ripples across the banking sector, fuelling new ways of innovation and strategies to keep pace with rapid distruption.
While the current situation poses a myriad of challenges for both consumers and stakeholders, it is also heralding a new era of change that will impact the domain's trajectory.
As part of our 2022 Banking CEO Outlook, we spoke to 1325 global CEOs across 11 markets to gather their insights on key elements that will impact the business and economic landscapes over the next three years. This includes a survey of 141 banking CEOs who expressed optimism over long-term growth in the sector despite growing uncertainty over rising interest rates and reputational risks. The key? A renewed focus on tech, talent and ESG to spur new solutions and frameworks amidst an ever-changing world economy. For in-depth perspectives into the future of banking, read our report.
Weathering the economic storm
believe there will be a recession over the next 12 months
think a recession would upend anticipated growth over the next 3 years
say an anticipated recession will be mild and short
To brace for a gloomy economic outlook ahead, banking CEO's are putting in place measures to navigate potential recessionary impacts over the next three years. Nearly 55% of respondents expressed interest in pursuing M&As as a potential market for growth with a focus on strategic alliances, organic growth and managing geopolitical risks at the top of their agendas.
Yet, as macroeconomic uncertainty continues to grow, a majority also believe that banks will face the brunt due to changing tax regimes.
Turning it up with tech
Investments in tech and digitisation are being viewed as key proponents of growth with a keen emphasis being placed on partnerships and preparedness to help organisations navigate the new normal.
But a majority of respondents also recognise the challenges in bringing people and technology together. Nearly 69% of banking CEOs acknowledge that having the adequate people skills to manage strategic and operational rollouts remain a key obstacle in the face of digital transformation.
say driving rapid digital transformation is critical to stay ahead of the competition
Easing into ESG
have committed to allocating more than 6 percent of revenue to make their organisation more sustainable
Amidst growing global scrutiny over organisational action across enviromental and social issues, a focus on ESG is helping banks build trust and transparency.
For most, the pace of change needs to be quicker. Nearly 67% of banking CEOs believe that progress on inclusion, diversity and equity (IDE) has moved too slowly in the business world.
Welcome to the new age of work
The race to attract, retain and support talent is on as banking CEOs turn their attention to tech and new ways of working to build a resilient workforce.
While some are considering reducing employee headcount over the next six months, their long-term approach to hiring remains encouraging. In fact, nearly 86% indicate that they are planning to expand their workforces over the next three years.
expect the physical office work environment to be the go-to working model over the next three years
For more insights, download our full report.
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