Deloitte comments on Q4 bank results season

Neil Tomlinson, head of banking, Deloitte UK, said:

“Despite macro-economic uncertainty and inflation ahead of wage growth, bank asset quality remains strong, demonstrating the resilience of UK consumers. This combined with a reduction in cost of customer redress positions banks well to increase distributions to shareholders.

“However, profitability could be challenged amidst relatively sluggish domestic economic growth and by the emergence of new challengers & personalised banking products enabled by the Open Banking Standard. Banks will need to increasingly invest in digital to pursue the opportunities and potential new sources of revenue that technology and ‘open data’ offer to offset revenue pressure elsewhere. We are likely to see increased use of robotics, automation and cognitive technologies to develop more tailored banking products that meet changing customer expectations, and transform the cost base of banks.”

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