Portfolio transformation and the quest for digital skills driving deal activity
Almost two-thirds (62%) of respondents see portfolio transformation as the top priority on the boardroom agenda, as BCM companies look to become more agile, alert to new opportunities and quickly responsive to a fast-moving market environment. Banks are increasingly using data analytics and artificial intelligence (AI) to make more informed decisions about their portfolios.
Disruption is being tackled head on
BCM executives are on the front foot in the face of disruption, with 33% having identified an asset at risk of disruption to divest during their most recent portfolio review. Read our Financial services: Global Corporate Divestment Study 2018 for more detail on how companies are refocusing their portfolios to address emerging technologies and digital transformation.
Looking ahead, almost all (97%) BCM respondents see the global M&A market as either stable or improving. Record levels of dry powder could also fuel increased activity in the broader BCM sector by PE acquirers. We expect to see increased PE investment in banking infrastructure, consumer lending, payments and nonperforming loans. Meanwhile, shareholder activism will continue to be a factor for boardrooms and is set to become more prevalent in Asia and Europe.