The banking and financial services industry has made visible progress in its efforts to modernize. But in the face of tighter regulation and lingering reputational damage—scars from the 2008-2009 financial crisis—as well as increased competition from tech-savvy, client-obsessed fintechs, there’s more to do.
The rise of the environmental, social and governance (ESG) agenda adds still more pressure on financial institutions to modernize, especially when combined with the industry’s key role in global efforts to tackle climate change, notably through their loan portfolios and capital markets financing.
In recent Economist Impact research supported by Cognizant, the banking and capital markets industry ranked fifth of eight in future-preparedness. From advancing core modernization, to boosting personalization, to rethinking their operating models, banks, asset managers and financial intermediaries need to step up their modernization game.
Here are insights into where financial institutions stand in terms of future-readiness—and where there is work to be done.
Advance core modernization
To what extent does your company's corporate strategy prioritize the following?
(Percentage of respondents rating each strategic imperative as business-critical or high/medium priority.)