2018 Banking Outlook

Real GDP growth should stay healthy across most major markets and the continued tightening of labor markets in the United States and more recently in the European Unionshould fuel income gains and credit expansion for retail banks in the near term. Meanwhile, corporate tax reform, as currently proposed in the United States, could mean repatriation of US corporate profits leading to a surge in business investments. In this report, we identifies six macro themes that should be critical for long-term growth. We realize that the banking industry is in the initial stades. Accordingly, a way to address how the themes play out in the next 12-to-18 months might be examine how they are being addressed alon fice broad business lines.

Six Macro Themes

1.    Customer centricity

2.    Regulatory recalibration

3.    Technology management

4.    Mitigating cyber Risk

5.    FinTechs and big techs

6.    Reimagining the workforce

Five Business Segments

1.    Retail banking: Transitioning to a mobile centric and digitally anchored instition

2.    Corporate banking: Prioritiaing customer experience, technology, and targeting markets

3.    Capital markets: Leading technology adoption for competitive differentiation

4.    Payments: Making the right strategic choices

5.    Wealth management: Robo platforms expanding beyound investment advice