The banking industry experienced a strong recovery after the worst of the financial crisis, but continued to be weighed down due to the ongoing Eurozone crisis and concerns of sluggish growth in the United States. An evolving banking landscape in emerging economies (especially China and Latin America) is expected to transform the banking industry in the future. Meanwhile, regulations continue to evolve and create an ever-tightening regulatory environment for the banking industry.
For banks, top priorities include regulatory compliance, improving asset quality, enhancing customer centricity, focusing on digital convergence, and tackling competition from non-banks. Banks are therefore making business and technology investments to change their business models to comply with new regulatory requirements, enhancing capital adequacy, rolling out new channels such as social media, and leveraging customer data analytics and predictive analytics to enhance customer understanding and prevent fraud.