Banking 2030: Unveiling Opportunities and Challenges in Core Offerings

There are many opportunities for banks across various business lines and customer segments, including commercial lending, wealth management, small business services, and international expansion. Banks can significantly simplify and expedite commercial loan processes by leveraging technology. Small business lending represents a promising growth avenue, which can be seized by embracing technology, reimagining processes, and adopting agile strategies. The wealth management landscape also presents a colossal opportunity, with over $68 trillion in generational wealth transfers underway. Establishing an omnichannel high-touch/high-tech service model is paramount in this endeavor. Small businesses also represent a substantial growth avenue for banks, but fully capitalizing on this potential necessitates more than just offering a basic business checking account. Banks can provide an integrated suite of products and services to establish themselves as true financial hubs for small business customers. Developing regions such as Southeast Asia and Latin America represent promising growth frontiers for banks, driven by rising incomes and increasing adoption of financial services. Securing a first-mover advantage is crucial in the face of formidable competition. Banks can focus on specific country opportunities and adapt products and distribution to align with local customer needs and regulatory nuances. Responsible innovation is crucial in the banking industry to strike a balance between innovation and responsibility. Technology must be guided by human values, and banks must uphold depositor trust and financial stability. Banks must also prioritize the welfare of their customers and society as a whole in their pursuit of innovation.