76% of banking executives say the sector has an ‘obligation’ to pursue social good

Economist Impact Global Survey of Banking Executives Sponsored by SAS Shows Industry Is Preparing for Post-Digital, Purpose-Driven Banking by 2035

Carey, North Carolina, November 10, 2022 /PRNewswire/ — From changing market dynamics and escalating geopolitical tensions to surging cyber threats and a worsening climate crisis, the world faces risk and uncertainty on many fronts.How are these and other general trends reshaping financial services? Global The future of bank research Produced by Economist Impact and sponsored by analytics heavyweight SAS, the report is a snapshot of a sector in transition, whose leaders are considering a more conscientious, purpose-driven trajectory.

of Banking in 2035: Global Banking Survey This report explores insights shared by nearly 500 decision makers, director level and above, from corporate, commercial, retail and digital banks around the world. To supplement the report, users can drill into survey data via her SAS. online dashboardenable regional filtering, etc.

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Notably, the report reveals overwhelming support for more socially responsible business practices. When asked about the role of the financial services industry in promoting social good, the survey found:

• Three-quarters (76%) of executives believe the industry has a “strong obligation” to address the needs and problems of society, and one-third (32%) believe the industry is a “core I believe that we must fulfill our role.
• Nearly four in five (79%) believe the industry should be “more involved” in addressing social issues.
• A majority (82%) believe financial services organizations can improve society while pursuing profits at the same time. Among C-suite respondents, the figure is even higher at 91%.

“The financial services sector is ringing with cries that purpose-driven banking is the future,” he said. Theo Lau, renowned industry commentator, author and founder of Unconventional Ventures. “Investing in social and environmental benefits, promoting positive transparency beyond compliance, and fully digitalizing banking to make it more accessible to the unbanked and unbanked. Making things happen – These concepts are not superfluous, they are essential to helping banks evolve their mission and business model, delivering new value to stakeholders and moving towards a better future for people and the planet. move forward.”

There are many risks, but there are also opportunities
The survey captures cautious optimism among banking executives despite facing disruptive trends, internal and external barriers, and rising social and environmental challenges such as: I’m here.

• The burgeoning digital revolution: ‘Digitalization of financial services and adoption of emerging technologies’ tops industry’s most influential sectors trend, cited by 55% of respondents. The emergence of digital currencies followed closely behind, cited by 49%.These trends are the industry’s largest chancerespectively, pointed out by 54% of respondents.
• Rising cyber risks: The rising threat of cyberattacks caused the top-cited risk among trends identified by 53% of respondents. What is the bank’s response? Nearly half (49%) of executives cite investing in security and data protection as a top strategy for staying ahead of trends. 44% also point to increased data sharing between fraud detection, digital payments and anti-money laundering capabilities.
• Tricky environmental, social and governance (ESG) issues. While a majority of executives (64%) believe banks lag behind other sectors in advancing ESG objectives, it is clear that banks’ ESG agendas are more focused . Two of her five (41%) executives selected his ESG as the organization’s greatest opportunity. Nearly half (52%) named environmental sustainability and climate change as the top issues their organization is most committed to addressing societal needs.

Analytics pave the way
This research report is the second article in a two-part survey.The investigation itself was the original Banking in 2035: 3 Possible Futures The report is a qualitative study of three potential future states of the industry, full of insight into how key trends and bank responses will reshape the landscape.

Executive teams, no matter what, recognize the importance of technology in building resilience for their organizations and entire industries for a brighter future. Nearly half (48%) identified advanced analytics as the most important technology their organizations need to remain competitive as long-term trends redefine the banking industry. Similarly, more than three-quarters (77%) rate their organizations on track (35%) or on track (42%) in achieving their digital transformation goals.

In fact, digital transformation tops the list of strategic priorities that executives will focus on over the next three to five years, cited by 57% of executives, followed by security and data protection (55%). . Customer Experience and Risk Management followed at 39% each.

“The enormous potential we see in banking today in 2035 will be enhanced by analytics and AI in the cloud,” he said. Alex Kwiatkowski, SAS Director of Global Financial Services. “Banking leaders understand that significant change cannot scale without transforming the functioning of the organization into insights that can be easily shared with stakeholders and the public. To achieve optimal performance, We need to make the best decisions based on data.”

Download below to learn more about how better insights drive better banking. Banking in 2035 Report or dig into relevant material for SAS.com/betterbanking.

About The Economist Impact
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