How will you shape the future of banking and capital markets with confidence?
In an era marked by changing regulation, industry consolidation, the rise of FinTechs, and the rapidly expanding world of digital currency, the banking and capital markets landscape is more complex than ever.
While the regulatory framework is expected to become more favorable in areas like consumer protection, it will also intensify around cybersecurity, operational resilience, anti-money laundering and KYC regulations. Add to that, the market is ripe for consolidation. So how can banks shape the future of their business with confidence?
“With over 4,000 banks in the U.S. alone, the reality could be stark: there’s only room for about half. You’re either buying or getting bought, and you must decide which side of the equation you’re on. As we look to the future, banks must navigate this fragmented sector with a growth mindset,” Sid Khosla, EY Americas Banking and Capital Markets Leader explained in a recent episode of Real Time Business.
As banks seek to innovate and grow in this environment, they’re taking a proactive approach to risk management, building efficiency to unlock capital that can be redirected towards growth-oriented initiatives. This includes exploring new products in areas like crypto and digital assets, as well as adjacent businesses in insurance, wealth management, or asset management, weighing both organic and inorganic avenues for expansion. And with consolidation on the horizon, banks must identify their competitive advantage, particularly with proprietary data and insights.
“The U.S. financial services market is shaping up for a year of accelerating growth and transformational change,” said Shawn Smith, EY Americas Financial Services Leader.
“A clear growth ambition, and clarity around it, will separate the winners from the losers,” concluded Khosla.
