Winds of change in banking

Amid global economic uncertainty, changing customer preferences and competition from thousands of financial technology startups, banks need to focus on operational efficiency and evolve key systems and processes to accommodate the demands of an increasingly unpredictable business environment. Here are the trends that will drive the industry over the remainder of 2024 through next year as forecasted by industry thought leaders.

Banks focus on deposits to hedge against economic turmoil

For the first time, deposit growth is the biggest business challenge banks see in the year ahead. A strong deposit base ensures liquidity and resilience during economic uncertainty. It is also a reliable funding source and a key indicator of customer loyalty. Growing deposits can help banks strengthen lending capacity, protect against failures, improve customer retention, and reduce reliance on investment banking revenue. Many retail banks now offer cash bonuses for new accounts as a low-cost way to drive growth.