The banking industry faces several challenges due to recent economic, geopolitical and regulatory developments. KPMG has identified the top 10 issues facing banks in 2022 and beyond, and in this article we examine the topic of accelerating digitization.
Survive and thrive
Digital-first banking requires a surgical approach to modernizing everything – from business and operating models to the core banking platforms. There can be no let-up in banks’ investment for the future through modernization of their core platforms and making their infrastructure ready for the furious pace of change and competition.
Such a strategy is fundamental to a digital-first, customer-centric bank that leverages an ecosystem that enables agility and accelerated innovation. The reality is that the marketplace is a competitive chess board. Any company—not just banks—with the technical ability to grow, manage, and move consumer money, is competing for market share. Non-banks and fintechs are aggressively going after the traditional banking customer – at a time when there is zero cost to switching.
Many of these new competitors are not weighed down with the same business and technical debt as banks. It is no wonder that consumers are actively engaging with businesses that are furthest ahead in their digital journey. Banks have a great opportunity to respond to this challenge by modernizing their core infrastructure, enabling them to thrive as a future-ready, customer-centric bank.