Trends in the Global Banking Industry 2012

| Point of View

The banking industry experienced a strong recovery after the financial crisis of 2008-09. However a tightening regulatory landscape, a debt crisis in the eurozone and in the U.S., and an evolving banking landscape in emerging economies is expected to transform the banking industry in the future.

Risk management and the evolving regulatory landscape remain the key focus areas for banks. Emerging priorities include reducing unproductive assets from non-profitable segments and geographies, and focusing on core business areas to improve efficiencies. The banking sector continues to face key challenges including evolving customer demands; increasing cost of operations due to heightened regulatory and compliance pressure; changing customer channel preferences with increasing adoption of mobile and social media; and rising competition from non-banks such as retailers and telecom firms.

In this paper we explore four key trends in banking around capital adequacy in response to Basel III; increasing adoption of social media; convergence of mobile and online banking technology; and big data and customer analytics.