Does Banking Need A More Humane Touch?

The only silver lining from Covid-19 is the chance for all of us to reset our lives, our social structures, and our businesses.

- Pramod Bhasin

Some implications are very clear. First, digitisation and digital adoption has significantly accelerated. Second, customer expectations have changed across the board. We now demand a different level of intimacy, customisation, and ease of use—and this will not revert in a new normal.

Now, financial services face some unique challenges. The need for good risk management often prevents the provision of credit to those who most need it and banks are unwilling to lend in times of crises. But, banks are changing around the world. Today 49% of total worldwide financial assets are held by non-bank players. In 2007, 80% of U.S. mortgages were originated by banks, today that is down to less than 50%. This is not just due to regulatory arbitrage—but also the fact that many incumbent banks have not innovated and changed fast enough—and other players are stepping up.

A Makeover for Banking?