BANKING have seen several digital challenger banks cease operations , citing difficulties with raising capital in this current economic environment ,” Rieker states , echoing Plantier . “ Incumbent banks have a cost issue and need to take a page from challenger banks ’ playbook by moving operations to the cloud to reduce cost , reducing data silos and re-examining the holistic customer experience .”
An opportunity to reboot banking Opinions on banking ’ s medium-term recovery prospects run from cautious optimism to just plain caution :
Mancuso : “ Remember , the pre-COVID banking environment was not benign . Wiser banks recognise the pandemic as a strategic opportunity to recreate themselves for the future and are seizing it .”
Rieker : “ Banks have had to adapt quickly to function during COVID-19 . The industry is still too reliant on manual processes to operate efficiently and effectively in a virtual environment . COVID-19 should be an opportunity to reset and reposition our institutions for the future .”
Plantier : “ I believe recovery will depend on the effectiveness of vaccination operations . Tink is optimistic and believes that we will see a significant recovery in 2021 and that open banking will play a key role in this new world of finance .”
Therefore , the onus rests squarely on banking leaders to engage with digital transformation and arm themselves with the tools and expertise that will help them negotiate the risks of today , and perhaps even tomorrow .
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