The KPMG report provides insight into the following critical areas:
- Culture of embracing change – In today’s environment, change is constant, so banks must be nimble and innovative.
- Focus on customers, not products – To increase revenue, banks must determine the appropriate customers to target and how best to package the products and services for which they are willing to pay.
- Deriving value from data – Banks that are able to extract more value from all available data sources to develop a better understanding of customer needs can serve customers more effectively and profitably, while developing a competitive advantage and staving off threats posed by new market entrants.
- M&A/Alliances – Banks will need to strategically evaluate whether they are a buyer, a seller, or neither, while also examining the possibility of developing alliances to expand, enhance product capabilities, or reduce costs.
- Technology – The promise of harnessing technology advances can help banks streamline operations to reduce operating costs, connect future and existing customers across a multitude of new and emerging channels, tap new revenue streams, enhance customer loyalty, and build better defenses against cybercrime and denial-of-service attacks.
- Cybersecurity – The increasing scope, frequency, and sophistication of cyberattacks on banks means institutions need to be better prepared to address this risk.
- Capital – Banks will continue to need to prepare for stress testing, while also monitoring various capital adequacy and liquidity requirements and associated staffing and compliance costs.
- Accounting – Banks will need to understand revisions to accounting for credit losses on financial assets and other rules.
The publication is available here.
About KPMG LLP
KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us), is the U.S. member firm of KPMG International Cooperative (“KPMG International”). KPMG International’s member firms have 152,000 professionals, including more than 8,600 partners, in 156 countries.