The introduction of currencies enabled the world of banking to launch, and while it has evolved, banks have remained alive with the purpose of providing a way for people to store their money safely. What started as a place for wealthy merchants to store their precious gold has grown enormously throughout the years.
These days, you will find a much larger proportion of people of all levels of wealth have a bank account than those who do not. The numbers sit at around 81% of Americans owning bank accounts. This jumps to 99.32% in Australia and 99% in Canada. Additionally, approximately 409.46 million people around Europe, including the UK, entrust their money to a specific banking company.
Despite this data, banks should not rest on their laurels. Just like other industries, banks have to compete against other banks if they are to remain successful. However, just what do they need to be doing to keep their customers and their bank thriving? If you are curious to learn more about what banks need to do to earn your custom or are a senior manager in a banking company looking for inspiration to keep your bank moving forward at the pace you need, keep reading.
With such strict regulations in the industry to ensure good bank management and this pressure increasing from the CCAR, TRIM, and IFRS 9, if a bank is to remain successful moving forward, it must prioritize model risk management. With it being more complex than ever before, there is nothing wrong with banking managers reaching out for the necessary help. In fact, it is encouraged if they are to find the most success. Using GRC software management, your team can reduce risks, spot potential opportunities, identify issues, track all your models, and quickly handle regulatory change. Having all this data in one place and built for your organization will keep your bank making all the right investment opportunities while being a reliable company for all your customers.
It is effortless for customers to switch banks these days, so if their bank is not meeting their needs, they will find someone who can, and it would be foolish to assume there isn’t someone waiting to swoop in on them, providing them with exactly what they want. Chances are those banks that do this have centralized their focus on meeting customer needs.
For a prosperous future, banks must consider improving the customer experience, even if it appears that their customers are currently happy. A full assessment of how customers feel, with feedback and requests of what they want from their bank, provides a starting point, but it is essential to look beyond. Think about what they want before they know they want it! Be the first bank to offer customers a truly revolutionary way forward for banking. Your model risk management system is going to come in handy for this.
Trends can come and go, but the risk of a bank ignoring them is an outcome where said bank gets left behind. As a bank manager, you want to ensure this is never the case. You would just be following suit of all past bank managers – they will have noted trends and new ways of conducting banking, and if they hadn’t acted on them, banking as people know it today might not be this way. Trends expected in the coming years include:
Major research into these trends and the trends yet to come and acting upon the ones with the most potential will make your bank part of history, a bank that changed the future for the better.