EY releases Global Banking Outlook 2021: 'Can banks turn today's disruption into tomorrow's transformation?' which discusses the once-in-a-generation opportunity caused by the pandemic for banks to accelerate transformation in order to grow, cut costs, connect with customers and drive a more sustainable future.

Some key highlights from the report include:

• Creating opportunities from uncertainty: As banks look ahead, the trajectory of the world's recovery will remain critical to their profitability. Subsequent waves of the virus and accompanying lockdowns would require more provisions and a further squeeze on lending books' scenarios which banks should prepare for now. But while COVID has created challenges, this disruption has led to new opportunities; therefore, 2021 must be about seizing the opportunity to transform by accelerating investments in technology and embedding agile and scalable business models.
• Building a more resilient enterprise: Banks can build greater strength across the enterprise by expanding testing for scenarios around cyber, third parties, technology, operations and regulations, and develop new performance metrics. The pandemic has shown that you cannot predict all risks, but that building resilience means building an organization that can respond with agility and flexibility when they occur. Furthermore, banks can expect to be under more intense pressure to prioritize and disclose ESG factors: they will need to identify not just risks, but new opportunities presented by ESG, notably in sustainable finance.
• Rethinking cost management as a foundation of profitability: Banks that consider the crisis as an opportunity for holistic cost reduction across three areas such as operational, structural, and strategic can find strategic ways to align resources to maximize potential. Even in weaker conditions, investment in transformation remains critical.
• Greater customer-centricity through data: Banks must build new revenue streams, find ways to give customers the products and services they want in a post-pandemic world, and deliver these in the ways they demand. This requires financial institutions to consider how to leverage data to hyper-personalize the value they offer to retail, wealth and business customers, embrace the potential of platforms and become more attuned to the changing needs of customers.

To download the report, follow this link.