Global banking outlook 2014-15

Society: politicians, citizens, activists

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The reputation of the banking industry has taken a severe blow. Compliance breaches, product mis-selling, computer failures, data leaks and benchmark rate manipulation have collectively shrunk confidence in banks to perhaps an all-time low.

Customers expect change, and investors are looking for credible and sustainable business models. Investors are also looking for the balance of rewards to shift back from managers and employees toward shareholders.

Scrutiny from politicians and the media will continue to be relentless, and activism by consumers and shareholders is on the rise in both developed and emerging markets. The actions and expectations of these groups create the conditions in which our four other drivers shape the industry.

The burden of responsibility is shifting rapidly to an extreme form of consumer protection, and this environment will probably remain for years to come.

Banks recognize the need for a behavioral shift in attitude and approach. Conduct has become a major concern, but embedding cultural changes throughout the organization will be an ongoing process.

For additional perspective, read our report Remaking financial services: risk management five years after the crisis.”