BY Fraser Tennant
Over-regulation and cyber risk are the two major threats to banking & capital markets (BCM), according to a new PwC report 'Achieving Success While Managing Disruption'.
The report, which showcases the views of 175 BCM CEOs across 54 countries, contends that over-regulation concerns have increased from 80 percent in 2014 to 89 percent in 2015 with CEOs particularly fearful over the impact of regulatory change.
“The ability to meet current and future regulation is hampered by lingering uncertainty over regulatory details and the potential for reactive and piecemeal implementation,” said Kevin Burrowes, PwC’s UK financial services leader. “It is vital for organisations to develop a proactive approach to regulation, headed by a regulatory leader responsible for liaising with regulators, assessing the strategic impact and co-ordinating the response.”
In terms of the risk of cyber attack, 79 percent of CEOs consider this to be likely and a potential barrier to business growth, although 92 percent still felt optimistic as to the prospects for growth of their own organisations.
Further survey findings include: (i) 86 percent of BCM CEOs recognise the importance of the CEO being the champion of digital technologies in helping to make the most of their bank’s digital investments; (ii) 93 percent of BCM CEOs see mobile technologies as being critical; (iii) 89 percent view data mining and analysis as important not only to gaining a better understanding of customer needs, but also in driving operational efficiency and effectiveness throughout the organisation; (iv) more than 40 percent of BCM CEOs see joint ventures, strategic alliances and informal collaborations as an opportunity to strengthen innovation and gain access to new customers and new/emerging technologies; and (v) 63 percent of BCM CEOs have a strategy to broaden talent diversity and inclusiveness or plan to promote one.