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2 minute read 17 November 2021

2022 banking and capital markets outlook

Scaling new heights with purpose

2022 banking and capital markets outlook

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Banks are at a make-or-break moment.

The pandemic was the ultimate gut punch, testing banks’ resilience in unforeseen ways. Yet, they are emerging stronger. And they now have a newfound conviction: They can overcome almost any challenge that comes their way.

But how can they channel this new energy to scale greater heights?

Before embarking on this journey, banks should take account of the tectonic shifts reconfiguring the global financial system: phenomenal growth in digitization, convergence of industries, fusion of technologies, proliferation of increasingly intertwined ecosystems, and the blurring of product constructs.

Look no further than the explosive digital assets market. The new financial architecture created by digital assets will have profound consequences for banks by revolutionizing how money is created, transferred, stored, and owned.

Simultaneously, powerful undercurrents are forcing banking leaders to reckon with the never-before-seen challenge of redefining the workplace and how work is done. To complicate matters, they are grappling with several upheavals in the workforce, not least of which is the escalating war for talent. Employees, for the first time in decades, appear to have the upper hand, especially in sought-after positions.

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Meanwhile, even though digital transformation is going ahead at full speed, these efforts tend to be incremental, localized, and fragmented, resulting in a pervasive and pernicious “technology trap.” This is preventing many banks from realizing the full potential of their investments.

Bank executives also have a clear opportunity to lead the creation of an authentic, differentiated identity that embeds higher purpose. In addition, many banks have yet to turn their commitments to environmental, social, and governance (ESG) concerns into concrete action. They can alter the trajectory of climate change by taking the lead in climate finance innovation, something sorely needed to help transition companies, industries, and countries to a net-zero world. And then, there are gender and racial inequities, and gaps in financial inclusion where there is an opportunity for the industry to continue to step up to support the communities they operate in.

Certainly, there are many other hurdles to overcome.

But the window for decisive action is closing soon. Now, more than ever, banks should be bold and aggressive in orchestrating change at the pace and scale that will drive results.

This report analyzes various challenges and opportunities facing banks, as shown in figure 1.

We hope you feel inspired and emboldened to take action to ensure that institutions can thrive in the new, exciting financial system of tomorrow.

Download the full 2022 banking and capital markets outlook to learn more.

Coauthors Val Srinivas, Jill Gregorie, Richa Wadhwani, Samia Hazuria, Abhinav Chauhan, Rob Bradley and contributing analyst Shivalik Srivastav wish to thank the following Deloitte client services professionals for their insights and contributions:

Zach Aron, principal, Deloitte Consulting LLP

Scott Baret, partner, Deloitte & Touche LLP

Robert Contri, principal, Global Financial Services Industry leader, Deloitte Services LP

Peter Firth, managing director, Deloitte Touche Tohmatsu

Rob Galaski, vice chair & managing partner, Financial Services, Deloitte Canada

Sylvia Gentzsch, senior manager, Deloitte GmbH

Edna Kamara, managing director, Deloitte Services LP

Howard Kaplan, partner, Deloitte & Touche LLP

Jean-Francois Lagasse, managing partner & Financial Services industry leader, Deloitte Switzerland

Taryn Mason, senior consultant, Deloitte Canada

David Myers, partner, Deloitte Touche Tohmatsu

Raman Rai, partner, Deloitte Canada

Michael Tang, partner and head, global digital transformation for Financial Services, Deloitte Canada

Neil Tomlinson, partner, Deloitte MCS Limited

Aaron Turenshine, partner, Deloitte Tax LLP

Economics

Daniel Bachman, US economic forecaster, Deloitte Services LP

Talent

Susan Hogan, senior manager, Deloitte Services LP

Margaret Painter, principal, Deloitte Consulting LLP Customer and marketing

Ryan Alderman, principal, Deloitte Consulting LLP

Gina Primeaux, principal, Deloitte & Touche LLP

Jonathan Valenti, principal, Deloitte Consulting LLP

Technology

Gys Hyman, principal, Deloitte Consulting LLP

David Jarvis, senior manager, Deloitte Services LP

Diana Kearns-Manolatos, senior manager, Deloitte Services LP

Jeff Loucks, managing director, Deloitte Services LP

David Schatsky, managing director, Deloitte LLP

Chris Thomas, principal, Deloitte Consulting LLP

Finance

Bradley Niedzielski, partner, Deloitte & Touche LLP

Risk and Compliance

Alex Brady, principal, Deloitte & Touche LLP

Thomas Nicolosi, principal, Deloitte & Touche LLP

Bob Walley, principal, Deloitte & Touche LLP

Cyber Risk and Financial Crime

Julie Bernard, principal, Deloitte & Touche LLP

Mark Nicholson, principal, Deloitte & Touche LLP

Michael Shepard, principal, Deloitte DTBA

Sir Rob Wainwright, partner, Deloitte Risk Advisory BV

Fintechs and Bigtechs

Irena Gecas-McCarthy, principal, Deloitte & Touche LLP

Monica Lalani, principal, Deloitte & Touche LLP

Richard Rosenthal, principal, Deloitte & Touche LLP

M&A

Maximiliano Bercum, principal, Deloitte Consulting LLP

Liz Fennessey, principal, Deloitte Consulting LLP

Corey Goldblum, principal, Deloitte DTBA

Matt Hutton, partner, Deloitte & Touche LLP

Jason Langan, partner, Deloitte & Touche LLP

Nadia Orawski, principal, Deloitte Consulting LLP Sustainable Finance

Ricardo Martinez, principal, Deloitte & Touche LLP

Kristen Sullivan, partner, Deloitte & Touche LLP

Hans-Juergen Walter, partner, Deloitte Consulting GmbH

Digital Assets

Linda Pawczuk, principal, Deloitte Consulting LLP

Richard Walker, principal, Deloitte Consulting LLP

Cover image by: Willy Sions

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