This report assesses the 10 key themes that are transforming the banking market right now and scores the world’s leading banking players against these themes. Our thematic scoring methodology allows us to identify which companies will do well in the market in the future, as well as the companies that will falter due to their lack of investment in these key themes.
The future success of retail banks will be determined by how well they respond to themes. Themes - whether a disruptive new technology, a political event, or indeed a global pandemic - can blindside executives, evolve in fast and unpredictable ways, and render existing modes of operation obsolete. As such, firms that invest in the right themes often end up winning, whereas those that miss the big themes often end up lagging behind. The big theme for 2023 is generative AI (a subset of AI), which exploded into the mainstream following the launch of OpenAI’s Chat GPT, which reached 1 million users in only five days. We expect gen AI disruption in banking to be analogous to the mobile device, in that every product and process will have to be revisited and reimagined in light of the new capabilities that gen AI can bring.
The future success of retail banks will be determined by how well they respond to themes. Themes - whether a disruptive new technology, a political event, or indeed a global pandemic - can blindside executives, evolve in fast and unpredictable ways, and render existing modes of operation obsolete. As such, firms that invest in the right themes often end up winning, whereas those that miss the big themes often end up lagging behind. The big theme for 2023 is generative AI (a subset of AI), which exploded into the mainstream following the launch of OpenAI’s Chat GPT, which reached 1 million users in only five days. We expect gen AI disruption in banking to be analogous to the mobile device, in that every product and process will have to be revisited and reimagined in light of the new capabilities that gen AI can bring.
Scope
- DBS was in first place again in 2023. Doing a number of different things well over a period of many years has allowed the bank to harvest the benefits of multiyear tech spend. This has driven cost reductions and increased customer satisfaction, but also operational agility to push forward with other changes more quickly.
- In a more difficult environment, we will see increased pragmatism around cloud migrations. Not all workloads can or need to be moved to the cloud, and certainly not as a first-order priority.
Reasons to Buy
- Understand which banks are best positioned for success within critical themes and why.
- Learn which banks are under-invested in key themes and thus most vulnerable to disruption.
- Understand which themes your institution can address (and how) to drive share price.
Table of Contents
- Executive Summary
- Introduction
- Themes
- Sector Scorecard: Retail Banking
- Who’s who
- Thematic screen
- Valuation screen
- Risk screen
- Thematic Research Methodology
- About the Publisher
- Contact the Publisher
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- DBS
- BBVA
- Alphabet
- Amazon
- Tencent
- Nubank
- KEB Hana Bank
- U.S. Bancorp
- Westpac
- La Caixa
- Apple
- JPMorgan Chase
- RBC
- Bank of Montreal
- Monzo USAA
- Bank of America
- HSBC
- Lloyds Bank
- PNC
- Nordea
- Societe Generale
- Intesa Sanpaolo
- ING
- Revolut
- Wells Fargo
- Citigroup
- Santander
- Capital One
- UOB
- ABN AMRO
- CommBank
- KBC
- Swedbank
- ICBC
- AIB
- TD Bank
- Barclays
- BNP Paribas
- Danske Bank
- Nationwide
- Deutsche Bank
- NatWest Group
- Credit Agricole
- UniCredit
- TSB Bank
