Deloitte comments on retail banking report season
23 February 2017
Neil Tomlinson, head of banking, Deloitte UK, said:
“Despite macro-economic uncertainty, bank asset quality has held up at historically high levels, demonstrating the resilience of UK consumers. Banks have also benefited from a significant reduction in cost of redress and Bank of England initiatives decreasing their cost of funding. However, profitability could be challenged by continued pressures on margins amidst relatively sluggish economic growth.
“Banks will need to keep a laser focus on costs, so we’re likely to see increased use of robotics, automation and cognitive technologies to keep those costs down. From January 2018, the Open Banking Standard is expected to come into full force, granting third parties access to bank customer data. This should make it easier for customers to switch to the most appropriate or cost efficient account for their needs, and have more of their day-to-day banking activity supported by technologies such as budgeting tools. Banks will need to be ready for a potential increase in competition and new propositions from peers and challengers alike”.
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
Member of Deloitte Touche Tohmatsu Limited.